3 May 2021
Back in 2013, a user named GameKyuubi posted on the forum of BitcoinTalk “I AM HODLING” and ever since it became a slang to call it “hodling” instead of “holding” in the crypto space.
Hodling is a process wherein the user holds cryptocurrency than selling it, and the user who holds is called a “hodler”, also it became a strategy for many users.
Hodling is a strategy wherein the user holds its assets and sells them based on their convenience, strategy, goal, monetary requirement or for any reason while hoping the selling price to be higher than the purchasing value.
In this blog, we are going to introduce you to 6 benefits a hodler enjoys:
1. Understanding the technology
Before investing through any strategy, in this case, hodling, it is important to understand its underlying technology as it helps to be prepped up about the subject you are going to be dealing with.
Cryptocurrency works on blockchain technology - a technology that is decentralized, meaning it is not centralized by any entity - no organization, no financial institutions, no government - nothing. It allows transfer across the world amongst peers without any centralization or permissions.
Cryptocurrency hodling is a strategic process that focuses on long term goals and avoids any related short-term fluctuations or any oscillations, so learning about crypto and its technology would help you understand its potentiality.
2. Blockchain Trends
Holding involves planning on long term goals, thus, you do not have to be worried about any fluctuations or drops in the short term. You will always be an active participant without the need to worry about the short term hurdles or constantly checking on the price charts, data or bear markets and working yourself up by analysing. By keeping yourself updated with the trends of blockchain and cryptocurrency, you can learn a lot through various industries that focus on long term too and understand the evolution, developments and progress of the space.
3. The Approach
With hodling, you do not have to constantly worry about price fluctuations, price histories, tracking companies or constantly analysing the market performance. You save a lot of time and energy, you are the buy-and-holder, which even gives you the benefit to make fewer transactions leading to paying fewer fees and due to your strategy, hodlers always invest in not-so-volatile crypto that also leads to less anxiety.
Also Read, 4 Ways To Earn Interest On Cryptocurrency
4. No more REKT
As a short term trader, you are constantly worried about the price and updates, however, as we have mentioned before, with hodling you don’t really have to feel REKT. As you are hodling your funds, you need not worry about any uncertainty, volatility, loss, liquidation that may occur now because you have s strategy for the long term than the fast gains.
5. Alternative Finance
Cryptocurrency is based on decentralization due to its underlying technology unlike traditional financial institutions, it does not consist of a central authority wherein every procedure of transactions is based per the regulations and norms of the authority, with crypto you are in control of your money and independent of any independent from the government’s eye. With cryptocurrency, the funds can be transferred across the world without any interference from the government or any authority as such.
Satoshi Nakamoto, the creator of Bitcoin had stated a message on its Genesis block - ‘Chancellor on brink of second bailout for banks’, the very message was also the title of the Times newspaper during the 2009 crisis, wherein the crisis was stated to be responsible by its own system over monetary policies.
While the halving of May 2020 also stated another message in the last block of the third halving generation - “With $2.3 trillion injections, Fed’s plan far exceeds 2008 rescue”, which was also referred in the cover page of the New York Times.
The structure of cryptocurrency does not allow any intermediaries or central authority to influence your transactions and ensures a free flow of monetary assets.
6. HODL Blockchain Game
You can even play the Hodl: The God of Bitcoin prices as they move ahead in the game wherein the ultimate goal is to reach the moon. Hence, you could enjoy a gaming experience while hodling.