The Church of HODL CRYPTO
Welcome to the Church of HODL CRYPTO, where holding is acknowledged for the skill that it is amidst the volatile crypto markets. We hodlers dollar cost average our cryptocurrency holdings when prices are low, which results in a level of solvency higher than the average investor.
It is commonly said that 80% of crypto investors buy high and sell low.
While it's entirely understandable for someone to (unfortunately) buy close to an all-time high, selling at a lower price after buying at higher prices is flat out dumb.
Venn Diagram for Buying High and Selling Low
Not selling at a loss is a principle rule for many traders, who only break this rule for serious exceptions such as a change in the fundamentals of the underlying investment.
These 80% of crypto traders who (allegedly) buy high and sell low are primary reason for the fear/greed hype cycle we see so prominent in the crypto markets.This is why Elliot Wave theory works so well at times for technical analysts in the cryptocurrency space.
For those unfamiliar with Elliot Wave theory, it's basically a form of technical analysis that traders use to analyze market cycles and forecast trends by identifying extremes in investor psychology, highs and lows in prices, and other collective factors.
ETHUSD Elliot Wave Analysis
This is precisely where the concept of "Hold on for dear life" comes in. Yes, it's true that the term "HODL" originated from a typographical error committed by an early bitcoin adopter who was under the influence at the time; however HODL has become an iconic mantra for investors in the cryptocurrency community to encourage others to hold their coins and not panic sell under times of extreme volatility.
At the time of writing this March 21st 2018, the Bitcoin price has recovered a solid 22% from lows set just 3 days ago, amidst a 3-month bear trend.
We are still over 50% below the all-time-highs set in December, however hodlers who may feel the sting of short-term price decreases also had an amazing opportunity to add to their Bitcoin holdings just 3 days ago a 65% discount from December highs.
The strategy I prefer to use, however un-scientific is may be, is to wait for those panic levels to add to my cryptocurrency holdings. In essence you are using those same emotions to your advantage to dollar cost average into a larger position at multi-month lows.
As the crypto-clueless Warren Buffet has so famously been quoted, "Be fearful when others are greedy and greedy when others are fearful".
This is excellent advice when it comes to crypto investing. If you follow this advice, you will be the one buying up all the cheap coins when panickers sell their precious coins at huge discounts.
Follow the gospel of the church of hodl crypto and dollar cost average your way to the pearly gates.Check out the art shop for this design on prints, apparel, and other accessories.
Church of HODL CRYPTO
Hold on for dear life.
Posted from my blog with SteemPress : https://hodlcrypto.org/2018/03/22/the-church-of-hodl-crypto/