What's the HODL?
According to data shared by Glassnode, an on-chain market intelligence that shares data on the blockchain, despite Bitcoin's growth over the past couple of months, some buyers during the last bull run have refused to part ways with their coins.
From a chart that was shared, they indicated that 40% to 80% of the coins bought during the third quarter of last year on-chain have not been touched.
This chart indicates that over the past couple of months, there have been a lot more hodlers than short term traders of bitcoin.
If you're a newbie, you're probably wondering - who in the world are hodlers and short term trader. Well, you're welcome.
Trading and Investing Terminologies
Timing is the major factor that separates traders from investors. While traders actively monitor the charts, investors only come in when they're satisfied with their profits and pull out where necessary.
Investors are called hodlers.
- Hodlers
These are long term investors who accept the volatility of bitcoin and are willing to invest for the long haul.
HODL, not to be mistaken for HOLD means to Hold On for Dear Life. The term came about in 2013 out of an error made and has since stuck through the industry.
Traders can be separated into different categories like;
- Scalpers
These are traders on steroids. They constantly monitor the charts and make numerous trades in a day.
These traders reduce as much risk as possible by taking their profits in bits every day.
- Day Traders
These traders are a lot less active than scalpers. Although they make numerous trades in a day and take profits in bits, their trades are based on short-term market predictions.
Most day traders close their trades at the end of the day.
- Swing Traders
Unlike day traders and scalpers, swing traders are a lot more patient. They study the charts over long periods of time, pick selected entry points, monitor the charts and select an exit point.
Swing traders could spend a week or more on a single trade to make a certain amount of profit.
Understanding these basic terminologies should help you in your next crypto conversation.
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