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HODLing: The Ultimate Trust Deposit

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Holding is not a particularly wise strategy, if we are to be completely honest with ourselves. I mean, how does one ignore selling Hive at $3 for instance and continues to hold through the asset losing more than 80 percent of its value within a short amount of time. This isn't even a one-off, and is a strategy likely to be repeated all over again at the next market swing.

Crypto markets are quite unique with the way they operate, which differentiates them substantially from mainstream financial markets. While speculation has its role to play in the market, a large part of the crypto mode of operation by investors are based on trust on what the coin or asset could potentially become as it goes through its stages of evolution and innovation.

Every crypto asset we hold on to signifies that we have some measure of confidence in its ability to deliver. Such assets are held with little consideration for current value, but rather based on the potential metric. Assets that do not inspire as much confidence are sold during peak periods or at the closest opportunities to turnaround a profit. A lot of investors who have used the trading strategy have hit it big, but a substantial number have also been burned.

Being a holder might sound noble and dignifying but it could also signal that we are perhaps too scared to take the necessary risks in order to perform. Do we really invest in the assets we hold on to, or are they just there to be counted among the assets we own. Giving ourselves a firm conviction for holding is necessary for several reasons, hence the need to be fully vested in how an asset is structured, operates and is valued.

One reason for such convictions is that we are able to maximize the holders experience. Take for instance a Hive investor who purchases Hive because it was recommended somewhere and does nothing but wait for it to boom, and another Hive investor who is fully immersed in the community and takes time to keep growing his/her position while leveraging on the information and technology provided. Should a boom arrive, both might be prosperous but with varying degrees and different experiences. An investor without serious conviction might also be more willing to abandon ship during turbulent times.

Conclusion

I have come to conclude that the holding experience remains the best way to enjoy crypto, even though some instant crypto millionaires might dispute that. Know what you're potentially getting into and what you could get out of it. The painstaking path every holder takes is one that would test us, but ultimately reward us beyond our expectations.

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