Difference between HOLD and trading
If you ever heard about investing in cryptocurrencies, you might hear the expression HODL which really means just HOLD and is referred to as a strategy that is made on buying and holding a specific cryptocurrency like Bitcoin, Ethereum, Ripple,…that’s the simple explanation of this jargon word.
Trading means that you have an asset manager usually a person employed by a financial institution that is buying and selling assets according to their plan which can vary. How trading strategies vary and how to find a perfect one for you, we explained in a previous article which you can find here.
HOLD or trade?
Hodling(holding) is a very good strategy if you believe in the long term growth of your investment and in bull markets. Those are hard to predict and rely on the analysis of the market which is connected with the mentality and knowledge of trading. Trading, on the other hand, is usually done by professionals but with the rise of digital/cryptocurrencies more and more people decide to try trading and learning how to trade or just buying and holding. Word of advice, if you are just starting don’t expose all of your savings to your learning curve as it’s very likely you will lose your assets and don’t just go buy and say I believe this asset will grow. Do your homework and educate yourself before investing or starting to trade.
Predictions and opinions
It depends on who you ask on what the answer will be. Some people will tell you either that Bitcoin or any other cryptocurrency will go to the moon and some will say this is a scam. The saying goes: a hundred men have a hundred opinions, meaning that every single thing has both sides always, it just depends on how well you are educated to establish your own terms as to how much or if any will you invest in a specific asset.
That’s why we emphasize the importance of education when you make decisions on who to trust. Some very significant figures say that Bitcoin is a bad thing like president Trump when on the other hand if you ask a giant of the industry like Tim Draper he will tell you that it’s the future and he is not alone. It’s important that we take into account that people have very different interests as to what they say, that’s why you need to come up with your own.
We wish and hope that the future holds the system that offers everyone access to the free market, transparency, real store of value and transactions independent of the centralized systems. We believe such a system or solution is mandatory for more equal and fair trade to happen, which could be possible with Blockchain technology which is the technology that Bitcoin is built on.