Day Traders Pay HODL'rs

Hey JessHodlrs

The world of cryptocurrency has created a brand new way to earn money with its volatility and its unknown quantity that comes with the creation of a new asset class. As more people are stuck at home, they're also looking at ways to earn money online, and crypto trading seems to be the most popular of the methods of making money in this sector.

Trading sounds simple enough, put in capital into an undervalued asset wait for the market to reprice it, sell said asset at the new value, take profits and repeat. The problem with this is, it's not that simple, finding profitable trades in the short term is a highly technical process and rife with insider information, front running and market manipulation.

It's by no means impossible, but the vast majority of traders lose money, if it weren't the case, HODLr's and the top traders would make no money.

90% of traders lose money

By conservative measures, it stated that 90% of traders lose money and we can go into the reasons why, but that would be a story for another post. If the vast majority of traders lose money, that means a small number of traders consolidate their positions with the winning trades.

If the trend is towards consolidation and always has been in the market, it means those who take long term positions, forget spikes and focus on cycles tend to do far better than those who try to jump on every uptrend or attempt to buy the so-called dip of the day or week.

Why hodlers tend to fair better

Long term hodlrs and those who try to accumulate positions and ride macro-trends or larger cycles tend to be better at position sizing, tend to hedge their bets better and tend to remove emotion from their trades.

To be a hodlers seems unnatural in a world that vilified consumption and short term profits but as they say, if you want the rewards that few get, you need to do things others don't do.

Any purchase we make is highly emotional; we are selling ourselves on the fact that we're getting a better deal and what we forget is that theirs always someone on the other side of the trade also looking to profit.

Time beats the market

While the medium-term crypto market takes on a lot of the characteristics of the forex market with the arbitrage opportunities. Those trading long terms are banking on the entire market developing into a larger market cap as more interest, investment, users, use cases and value trickles into crypto over time.

HODLing to me is reprogramming yourself into the new world we're moving towards. The forces of deflation cannot be stopped, even with inflationary monetary policies the forces of nature can't be stopped.

Getting yourself in the right frame of mind and the right understanding for a new economic system will do you well. Many think that HODL'ing is about getting that one BTC but its actually about learning to save, learning to be responsible with your purchasing power, learning to handle ownership, learning to boycott mindless consumption and to revalue goods and services.

When your money keeps getting better, the products and services that want your money need to continue to improve in value.

A Hodl today, means a vote for a better life tomorrow. I continue to hold and stack sats each month as I go against the grain and buck the trend.

I see the economic collapse coming, and I'm preparing for any situations, deflation, hyperinflation or stagflation, I'm ready for it all.