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Often from many authors, popular personalities and even CZ we hear calls to hold: HODL! Keep it and don't sell it!
It is believed that if you know how to store your coins and not sell them ahead of time, then in the end you will remain in a winning situation and by the time everyone gives up, you will receive a reward in the form of those long-awaited green candles and hundreds of percent growth... But is it true? is it for real?
And my answer will be this: partly yes, partly no.
Most likely, such a strategy has roots in the stock market, where indeed, in the long term, blue chip companies have stable and good growth, but what about cryptocurrencies?
Cryptocurrency is a high-tech market and everything changes very dramatically every year.
If in 2017 EOS was considered the future gem and killer of ETH, then after it there were a dozen or even more such blockchains, each better than the previous one. And investors simply cannot keep up with technology. Today we are investing in supposedly super-technological and fast chains like Aptos, and in 2 years they will offer us a completely new and unique system that will bring the previous guys to their knees.
The same applies to various DAPPS and other projects. The old ones are constantly being replaced by new ones, and only the industry giants or the lucky ones who managed to break through and consolidate their positions remain afloat.
Hundreds of popular projects in 2017, after the winter, never got off the ground... Hundreds of projects that were in the last year of 21-22 will never get off the ground after this winter... And it will always be like that.
Thus, the HODL strategy in the cryptocurrency market comes into great doubt. Why should I store tokens of projects that have a fairly high chance of being washed and crushed by others in the long term?
However, there are a number of cryptocurrencies that, on the contrary, I believe, are created for such a strategy. For example BTS.
Bitcoin is not in the zone of competition for the best and fastest blockchain, it doesn’t need it. The first and independent coin which, purely psychologically, is considered the only safe haven in the entire market.
All of the above risks in this case come to naught, while we have stable demand and distribution throughout the world, which grows exponentially every year.
Thus, for myself personally, I made the following conclusion: the HODL strategy is appropriate only for very fundamental projects that have gained a foothold in the market and have shown steady growth and interest from the audience. Everything else is just tools for making quick money.
Of course, this does not mean that everything except such coins as BTC, etc., must be immediately sent under the flip, taking out the first profit. You always need to analyze and assess the situation, predict future outcomes and draw up a strategy.
For example, I have been holding the MINA token for more than one year, but at the same time I consider it from the point of view of making quick money. I have a goal, upon reaching which I close my position and leave this project.
And there was somehow another token obtained from IDO and in which I did not see any prospects. Here the strategy was towards selling quickly after listing and making any profit that the market would give me.
That is, there is always a different strategy for different projects, but in my opinion, HODL with a long-term perspective should be what you are confident in and where you are as calm as possible. A place of quiet haven.
I myself was somehow a maximalist in terms of holding many projects after IDO, believing in technology and the success of innovation, but I realized a lot over the experience of the last two years. Greedy funds, investors, flippers and unscrupulous developers are ruining the culture of long-term investment in crypto startups.
