Smart hodling vs just hodling
Smart hodling vs just hodling
Many of us here are hardcore bitcoin believers. If you are anything like me, you’ve put a good chunck of your savings in bitcoin.
However, how painful is it to watch bitcoin price plummet?
April 1st signaled the start of what seemed would be yet another bull run… however, the rally seems to have been cut short without getting close to the all-time high.
What do you think would be a smarter way of hodling bitcoin other than standing still, bag in hand, while watching the price go down in each correction, or maybe even back to the $3K range?
To me, the utmost goal of a hardcore hodler is to accumulate bitcoin, as much as possible, always managing your risk level.
With that in mind, the smarter way to hold bitcoin is to sell it when prices start going down, only to re-buy a larger quantity when prices stabilize at a lower range. Then, with the same capital, you increase your bitcoin holding every time prices drop.
That is what I’m doing at this point. I’m using a strategy a few friends and I built. The strategy seems to be very good at predicting big downward market moves, giving a sell signal early on, as the move starts developing. It also indicates when you should re-buy. Back tests show amazing performance in 2018 (549% ROI in BTC) and 2019 (106% ROI in BTC). Current live trading experience is quite short-lived, but we did catch the fall of September 24th, with a 26% ROI in BTC in a single trade.
I would consider myself a true believer in bitcoin but I dont have most of my savings in it. The volatility is just too much to handle to do that, and I am not a kid in my twenties anymore.
As regards ‘smart’ hodling, whether you make a profit on bitcoin or not depends on what price you bought it at. Smart investors dont make mistakes like buying bitcoin when it was near its all time high, and there were no doubt many traders who did just that. My opinion is that now is an excellent time to buy and hold bitcoin, because its at less than half of that high and in time it will get back there. I couldn’t say when but its going to happen and probably within a couple of years. That’s smart hodling.