Just HODL and Grow
| KEY TAKEAWAYS: |
| — The term “HODLing” was coined in December 2013 to refer to holding onto one’s crypto assets even during market swings. — Crypto investors who are looking for the simplest ways to grow their assets can simply HODL their assets and wait for the markets to potentially play out in their favor. — Irrespective of what it is called across different markets, expert investors consider long-term holding as one of the safest and most rewarding investment strategies. |
HODLing is considered one of the safest and easiest ways to grow your crypto. All you need is knowledge and patience. Here’s how you just HODL and grow.
If you have read the articles on our “Keep growing it” playlist, you already know two methods through which you could potentially grow your crypto goods. But the easiest of all is to simply HODL it for the long term.
It’s often said that buying Bitcoin is not a big deal, it’s HODLing the asset for the long term that is the real test. That is because every time Bitcoin’s price swings, any investor would be intrigued to either take some profits or cut their losses.
Many of us have done that in the past only to later realize that the best was yet to come. But that need not be you. If you’re considering growing your assets without having to do anything, HODLing maybe your best option.
Let’s dive in to understand what HODLing means and how you can HODL.
What is HODLing?
If you’re relatively new to the world of cryptocurrencies, you may have realized crypto enthusiasts absolutely love throwing around weird jargon. One such jargon is “HODL” or “HODLing.” And it’s a funny yet inspiring story how the term HODLing was coined.
The story dates back to the 2013 market crash, when Bitcoin fell from over $1,150 to around $150. Panic ensued. Bitcoin investors started to panic sell their BTC.
But some were able to see past the storm and “HODL.” One such investor rose to the top, took charge of the BTC clan, and confronted those who were shorting BTC. He also explained his reason for holding his position, all while having had a drink or two.
GameKyuubi took to the BitcoinTalk forum and created a thread “I AM HODLING” to let his peers know that he was drunk, his girlfriend was out at a bar, Bitcoin was crashing, and yet he was not selling his BTC. He was well aware of the typo in the heading of his thread and explained it in these exact words: “I type d that tyitle twice because I knew it was wrong the first time. Still wrong.”
The crypto community went head over heels for GameKyuubi’s thread and could never let go of the new term he had coined. And that’s how the drunk legend coined the legendary term “HODL” for the crypto community. It has since been a part of the crypto vocabulary.
Why HODL?
Simply put, “HODLing” or “to HODL” refers to the act of patiently holding your cryptos as a long term investment. This does not require you to do anything but show patience and trust in the asset you are holding, and if the price of your crypto rises, so will the value of your holdings.
Apparently, for GameKyuubi, his decision to HODL in 2013 might have earned him a fortune by now as Bitcoin has grown by over 350 times since the 2013 lows of $150.
At the time of writing, Bitcoin is trading above $50,000 and Ether has flown over $1,700. Imagine the situation of those who sold their Bitcoin in previous bull runs thinking it was the end of it. Poor decision!
Also, let’s just accept the fact that not all of us are professional traders with three-screen set ups who can time the markets. We have other things to do in life. But that doesn’t mean we can’t grow our assets.
Those who can’t time the markets and trade like pros — and that’s most of us — can still HODL and wait for the long term game to play out on its own. All you need is to research, invest in projects you believe in and have patience, that’s it.
If that sounds like something you’d do to grow your assets, let us tell you how exactly you can secure those assets you’ll be hodling for the long-term
How to HODL your crypto easily and safely
If you want to HODL, you may have to keep your cryptos stored in the same place for a long time. And no doubt, you’d want that place to be as easy to access and as safe from threats as possible.
We’re not even joking when we say this… crypto platforms allowing you to invest and store cryptocurrencies have had their fair share of mishaps. Very often, it’s the users who pay the price. To avoid that, you must look for the safest way to HODL your crypto assets.
Hot wallets
We’ll be very clear. We’re not big fans of hot wallets because they are connected to the internet and leave a window for cybercriminals to steal your assets. Nonetheless, we accept they’re absolutely necessary under many circumstances, which is why they’re extremely common.
In this category, the safest option is to have a non-custodial hot wallet where you control your private keys and seed phrases. Thus, you get more control and increased security for your assets. Yet, your assets may still be under constant danger due to their exposure to the internet.
Most people, however, choose to store their crypto assets in a hot custodial wallet on a crypto exchange. As much as it contradicts cryptos’ decentralized nature, that’s the reality.
When using an exchange wallet, you do not own the private keys to your cryptocurrencies. This means exchanges have the ultimate control over your assets. Not you. Them. And this may work out in the short-term, like a house on rent. But complete security and ownership are out of the question.
What do we suggest? A cold hardware wallet.
Cold wallets — the Holy Grail for HODLing
In the end, the safest long-term solution is to have a house of your own. A crypto wallet, we mean, where you are in full control. And who knows, you can someday pay from that wallet for your own house.
On that note, non-custodial wallets are the way forward if you want to HODL your cryptos safely. If you’re looking for maximum security for your crypto assets, a cold hardware wallet is the way to go. From a security perspective, Ledger Nano products are the only hardware wallets independently certified on the market.
They allow you to HODL more than 1,500 cryptocurrencies and tokens away from the internet. Giving you complete control over your crypto as only you have access to the private keys and the recovery phrase to your wallet.
When HODLing your crypto assets on a Ledger wallet, you can rest assured that as long as you keep your private keys and recovery phrase secure, your cryptos will remain yours under all circumstances. You can calmly HODL and wait for your assets to grow in value over time.
Alongside that, if you ever feel like it, you can directly lend or stake your idle crypto assets through Ledger Live.
Now, there you are, with all this knowledge about growing your crypto. You can finally call yourself crypto-smart and embark on your journey to financial freedom. Make sure to bring along a few friends and enlighten them with your new discoveries.
May the crypto force be with you!
Knowledge is power – so keep on learning! If you enjoy getting to grips with crypto and blockchain, check out our School of Block video Get Rich Quickly In Crypto