Whenever you join any cryptocurrency community you would find some of the users who want you to HODL the investment. And every time you feel like spending you would come across people who want you to HODL even in the times when the market is good for the sale.
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How do you view HODL investment argument? So here's my view on what to HODL and what not to HODL in investment. My view is definitely different from you and may not go in line with the market movement.
Scenario 1: You Need Money. You don't want to wait for future.
Many people among us have crossed the age of 50. Some of them have crossed age of 60. And a lot of people have started family. So financial requirement for many of the people is different. Does HODL investment a good strategy if you have crossed age of 40? When you have no home? Renting apartment?
It's a bad investment advice when you don't have home and the financial safety net. HODL only when you have basic needs covered. So when you need money for emergency or for your financial safety net. Make sure to turn money into fiat and then make your financial present secure before even worrying about future.
Scenario 2 : You have money. You want to secure your future.
You have your home. You have savings. You have enough for your family in present. And you are worrying about the future. This is the scenario where you have to think of HODLing the investment. You have to focus on multiple coins and hodl them so that you can spend one when in need and hodl another.
When your basic needs and the investment is taken care of, that is the time you should be thinking about HODLing the investment. You should be more focused on the investment which can make sense long term.
Take away
Here's my take away out of this.
- If you need money for your current life issues, convert the crypto into FIAT and secure yourself first.
- If you need money for long term, start HODLing.
- Invest in multiple coins so that you can regularly convert to FIAT and also HODL along the way.
To avoid getting into confusion and panic. Think of your options from one of the three ways. Avoid falling into trap of HODL forever. Someone gets rich when you constantly HODL and do not help yourself by cashing out into FIAT.