Why do most analysts advice to Hodl, even when you are on profit?
Why do most analysts advice to Hodl, even when you are on profit?
This is the question that keeps coming in my mind. Most of the subreddits have top posts telling people to Hold, many educators advice people to hold…but why?
Some pointers from me:
Bitcoin only has limited coins. Unlike dollars, Bitcoin’s supply is fixed, so it could gain value over time.
Prices move a lot in crypto. Most people who try to time the market end up buying high and selling low. Holding avoids a lot of those mistakes.
The fomo also kicks in when you sell and the value start climbing up, a psychological panic creeps in and people end up buying on a high.
Nonetheless, Imo we don’t have to pick any strategy as a hard and fast rule. In many cases, just taking the profit and moving on makes perfect sense and that can many real life cases. It’s really all about how much risk you’re okay with, when you need the money considering how much you have invested. What do you think, what is your preference?
