Why hodling is bad for your health?

Hello guys 🤗.

My name is Ismail ,and I have been in the cryptocurrency world for quite a while, so far I’ve managed to cross my way over into the professionalism. well, there are still things to be dealt with but in general the puzzle pieces are starting to reassemble , and the shape of the game is starting to appear for me.

The purpose behind this article is that I want to shed light on some of the bad behaviors in my opinion that the majority of newbies and even some traders are attracted to and which they are ready to defend at any cost, and I’m sure that I’m going to receive all sorts of judgments only for bringing up the subject but at least for me I will provide the arguments behind this train of thoughts of mine.

We can all agree that the cryptocurrency market is still in its early stages and not as mature as traditional markets even though the technology behind it is quite promising .but let’s talk numbers:

A simple 24HR volume comparison between both the cryptocurrency market and some traditional market can easily led you to the conclusion that it is a fragile market and vulnerable to every sort of manipulations. consequently, people with big money(whales) will always be one step ahead of you in addition to the fact that they have the ability to influence other retail investors using their 100K+ followers twitter accounts, so on the one hand they want you to keep trusting them and you keep believing that they provide you with useful knowledge but on the other hand it is a race for money “everyone wants to win others money, right?”. So ,the next time an influencer told you to do this, or do that try to rethink that through another perspective. And by this and that I’m referring to :

HODL 🤭

In traditional markets, if you maintained a position without a stop-loss order for a long period of time and you didn’t react to the ups and downs of the market even when you are down-say 30% or more. Well basically this is called a suicide but here in the cryptocurrency market they have found a fancy way to address it :“HOLDING” or “HODLING” they say, well some might told me that hodling in the past was very beneficial and I totally agree with that ,xrp for example is up by approximately 35.000% in 2017,but things now has changed and that’s why:

1. The total market capitalization was at around 17bn $ on January 2017,this indicates a very low interest in cryptocurrencies back at that time ,the market cap of the major company here in morocco(Maroc Telecom) has a similar market cap and that’s one single company in a humble country (when it comes to economy).
   However, now, the current market cap (at the time of writing of this article) is at 260bn $ down from an ATH of 835bn $ back in January .therefore, this is a clear indication that the market now is more mature and there has been a run due to new money flowing in with an accelerated rate and now 6 months after this ATH we still haven’t found the bottom quite yet and no one really knows when bitcoin is going to reverse and start looking for a new bull run ,it could be months or years no one really knows and by holding your assets for a long period of time, not only you slip on major scalping opportunities but also you prevent yourself from learning and acquiring new skills and a better understanding of the market sentiment because you have no fiat left to trade, you are too afraid to look at prices frequently because that’s goanna give you a headache .and, in order for you to specialize in trading you need to do it the hard way and that is by losing money my friend, filling trades and trying new strategies and skills otherwise you’re going to stay the same.

2. The cryptocurrency market now can be played both ways(and that is the most crucial point that few people are really considering it when it comes to ‘hodling’). As you may have heard back in November of last year that two of the biggest option exchange and derivative exchange in the U.S had started to issue the bitcoin future contracts ,I’m not going to dive into the details of what futures are (the internet is all yours) but this had opened the possibility for a new practice of dealing with bitcoin and that is shorting the market or betting against cryptocurrencies assets mainly bitcoin. With a much bigger volume because they can provide you with a high leverage .and through the years being a bear has been more effective than being a bull I call it the gravitational law because things are much easier to go down than it can go up and that is true when it comes to markets.so the next time you see a big red candle you shouldn’t link it to only that people are selling their initial positions but instead think that there is an army of professional traders that are selling and rebuying at a cheaper price and you instead of following the market movement you stand in front of your chart and you hope for the best -the best that 6 months now had yet to come .

The discussion is not over my friends ,it's just that I try to keep my articles as brief as possible so in the next article I’m going to keep enlighten you about how to deal with the market psychology and how to get rid of other bad practices that some big players are instructing us to do .

My next article will be next Monday.

Until then, happy trading