Have you ever gotten the reaction of “you are rich” from people when you tell them you are into crypto? People just assume you are rich because the price of bitcoin is high and the crypto trend got lots of people thinking that crypto bros are very rich. Well, they are not wrong, we have a lot of people who have made a fortune off crypto, but when you see some of them, they don’t look like they have the money. This is because, they are rich off unrealized gains. They might have gotten into crypto way earlier than others and decided to hodl till this very moment. So technically they have money, but they have made the decision to not sell yet and wait till they are comfortable selling. This is very risky, because, no matter how much trust you have in the crypto space and market, it’s always advisable to learn to take profit, because, anything can happen.
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Hodling takes a lot of self conviction and discipline, when you hodl and hit it big, you will be celebrated as the most intelligent person, but when it goes wrong and you lose your money, you are regarded as the most foolish person. This is why I always say that luck is very important in investment. Hodling means that you are deep into crypto investment with all the crypto tools, having your crypto assets valued so much, and yet it’s possible that you don’t have any fiat money to show for it.
My sister was complaining how shopping for clothes, shoes, bags and other fashion accessories eats up all her money. And she was like, “at least you don’t spend all your money on clothes”. My reply was “I might not spend all my money on clothes, shoes, bags and other fashion accessories like you do, but I spend mine on crypto”. We are both spending money on things we think is worth it, the difference is that hers is physical and can show for it, while mine is digital, you can’t see it except I decide to show you.
Making money in crypto is not easy, aside hodling to preserve, making money from your idle coin is necessary to help you sustain yourself while you wait. This is one of the reasons people stake, lend and trade so they can make passive income while hodling. Some people started hodling and took profit in the last bull run, some people didn’t and kept on hodling, but then gave up and took profit. They took profit quite good, but the profit is lower than what it would have been if they had taken at all time high. But who knew that was going to be the all time high at that time.