Crypto community

Investing in cryptocurrency HODL

HODL is technically the simplest way to make money, but it does come with some risks. Hodl is a slang expression in the crypto community that means storing cryptocurrency instead of selling it. A person who does this is called a hodler. It originated in December 2013 in a post on the Bitcoin Forum, apparently made by a drunk user who wrote with a typo in the subject: “I HODL”. It is often jokingly suggested to be used as a backronym for “hold on for dear life”.

In short, it works like this: you need to buy the cryptocurrency with real money, the long-term prospects of which seem the most “solid”, and store it in a safe place for a long time, sometimes even several years. Then, when the rate of the crypto coin, in the investor’s opinion, has grown enough, you can sell it at a profit.

The main difficulty is the volatility of cryptocurrencies. When the rate starts to fall, it is very important to determine whether it is necessary to rush to sell savings before they are completely devalued, or if this is just a temporary crisis, so there is no point in panicking. Using your knowledge and skills, you can ensure that patience will pay off many times over.

To increase your chances, you need to gain as much experience as possible – the market is largely controlled by emotions, no expert can 100% predict its rise or fall.

Investors are divided into two main types:

Some firmly believe in the success of popular cryptocurrencies, especially Bitcoin, and keep their savings in them.

Others are looking for alternative options – for example, investments in exchange tokens (HTX, BNB, EXMO Coin, etc.) are gaining popularity. They really show good growth potential, and in addition, they are actively working and developing.

You should remember one important rule of investing – never put all your eggs in one basket. In other words, you need to diversify your investments, buy several cryptocurrencies of different types at once. Then, even if one collapses, the investor will not lose all the money. Cryptocurrency exchangers, with which you can buy cryptocurrency, are an alternative to exchanges if you do not plan to actively trade.