“HODLing” with your “Diamond Hands”; far more than just the Crypto Memes
“The crypto industry is full of memes and jargons and even the meme coins themselves find their place in the industry. This does not mean that it is not serious, even the most funny memes have a serious meaning embedded into them as far as the crypto industry is involved. The terms HODL and Diamond hands have been popularly used in the crypto sphere and they mean business, as they relate to the most experienced investors.”
The Terms: HODL and Diamond Hands
These two meme terms HODL and Diamond hands are used quite often in the crypto world and in conjunction to define an investment strategy not to sell the crypto you own when there is a bear market or a sharp price decline. To HODL simply means to hold on to the crypto bag you own. The term originated from a reddit post many years ago when an investor claimed to HODLing his Bitcoin in the bear market and refused to sell no matter how low Bitcoin price went. The “Diamond Hands” refers to the hardest of hands that will never sell in panic during the volatile events in the crypto markets.
How these Strategies can Benefit an Investor
Effectively Beats FOMO and FUD
The investors who HODL with their Diamond Hands for the long term are able to beat the FOMO (Fear Of Missing Out) and FUD (Fear, Uncertainty, Doubt). This means that in the long term, they will be able to see their crypto portfolio price rise putting a blanket over all the noise created by FOMO and FUD in between.
Relieves from Stress
It is extremely stressful to look at your portfolio value to cut in half during the crypto market volatility and that leads to rash trading decisions that results in intensifying the losses further. Using the strategy to HODL in the thick and thin will ensure that the stress is out of the question and so is the probability of taking rash decisions.
Makes you a more Seasoned Investor
Using the strategy of HODLing with the Diamond Hands can make you a seasoned investor as you would be able to see the market moves from a longer time perspective. If you zoom out any fundamentally good crypto project, it has always shown a rise in the long term no matter how volatile its price might be in the short term. Though you might lose on short term trade opportunities and in increasing your crypto bag, more often than not the investor will reap the benefits.
Reduces Trading Fee
The quick trades are very expensive as trading fees are levied on each trade which might increase in amount as you keep on trading. HODLing helps you reduce your trading fee as there is no trade involved in the short term.
Disclaimer: The article is meant for the educational purpose only and in no way it should be considered as financial advice. Own research on the topic is advisable.
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