Monday, August 15, 2022

SELL or HODL – The Everlasting Question For Crypto Owners

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George Soto
George Soto
George Soto is a national journalist with nearly 15 years. While studying journalism at Chicago, George found a passion for finding currency stories. George mostly covers cryptocurrency, NFT, blockchain and other business related issues.

There is an ancient proverb from around 10 years ago that speaks monumental levels of truth – “To Sell or to HODL” – Some Reddit User

While we jest in the concept, it is actually something that has been asked on more than one occasion in forums and by serious pundits in the space. It all harkens back to the foundational aspects of investment practices, and all centers around one question: What are you trying to gain, long term or short-term profit.

After-which it becomes more about the risks you’re prepared to take with your money, and having enough put aside (if you’re choosing the higher risk routes).

Imagine you’ve invested in a coin that is exploded in value, gone up 2-300% in a matter of weeks or months – you begin thinking about the possibilities of selling it for a quick buck, but there’s that little voice that says “hold it, see where it goes” – they’re both tempting, and it can be hard to weigh up the pros and cons in a moment of heated consideration.

So, to sell or to hold – let’s explore the options.

Sell

Sell or hodl

Selling is always a smart option if you’re not exactly rolling around in cash, having a slight profit is better than holding it and it potentially falling back to earth in value (which can happen). If the coin itself is part of a meme or trend, maybe it’s not exactly built to last. One only has to remember the DOGE coin debacle to know that sometimes Icarus can indeed fly too close to the sun. 

Hold

Holders are a special kind, the logic behind holding is usually surface-level investment. If that is your investment strategy, and you’ve got enough money to live, then maybe you should let it ride. It all comes down to the amount of risk you’re willing to play with, after all, it has upside potential and could lead upward even more if you held onto it. Look at Bitcoin, the ultimate Holders dream, going from pennies to thousands of dollars over a very (very) long period of time.

Remember to always research your investments thoroughly for viability and above all, trust your instinct.

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