You have likely heard the term HODL thrown around quite a bit, but there really is some serious math to back that up in regards to cryptocurrency investing.
To start with, HODL originated as a misspelling of the word "hold" and it has stuck on pretty well ever since.
It most literally means to:
- Hold
- On
(for) - Dear
- Life
HODL!
In regards to BTC, especially the way it has traded lately, I am sure many out there are wondering if they should just sell the coin and then buy back in when it is near the bottom.
It's a nice thought I know.
However, if you need any more convincing that you probably won't be able to time it correctly, take a look at this chart:
(Source: https://twitter.com/fundstrat?lang=en)
What does this mean exactly?
Basically that chart is saying that each year, on average, if you miss the 9 best days out of the year, you miss all of the gains.
Which means that if you are out of bitcoin waiting to get in, you may miss the 9 best days and miss the majority of the big moves up for the entire year.
Tom Lee, the creator of this model says exactly that:
“The reason ‘buy and hold’, or HODL, makes sense for Bitcoin is that a handful of days each year account for the bulk of gains for Bitcoin."
(Source: https://bitcoinist.com/market-strategist-tom-lee-hodl-bitcoin/)
There you have it, if you are scared right now, just HODL and hope everything turns out alright.
Perhaps some praying might be warranted as well. ;)
Stay informed my friends.
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