Most first-time crypto buyers are left with the dilemma of whether or not to buy Bitcoin when to buy, why, and how. There are others who go in straight to scoop out their coins almost immediately after buying. And there are those who buy and have no idea what to do next.
Whatever category you find yourself in, you’re most likely here because you have no idea what to do after buying Bitcoin. Today, we explain one of the many ways by which you can become a Bitcoin trader. The term for this type of crypto trading is Hodling.
What is HODLING?
HODL is a misspelling of the word “hold,” used in the context of buying and holding cryptocurrencies including Bitcoin. The term HODL (or hodl) came into existence in 2013 in a Bitcointalk forum post.
How do we Hodl?
Consider your BTC wallet as your piggy bank. You can let your BTC sit in your wallet and the dollar value could appreciate or depreciate until you need to break it for the purpose you intended to use it. This strategy was used in February 2021 by Elon Musk, founder of Tesla.
Tesla (TSLA) took an unusual approach to its $1.5 billion BTC buy by selling a small percentage of it at a favorable price when the company needed cash to fund its projects in March 2021. Tesla claims it wants to use Bitcoin as a source of shorter-term liquidity.
It’s just like keeping a gold bar in a safe at home. You monitor until the price appreciates or until you really need it for something very important. Think of BTC the same way. When you buy bitcoin, you can become a holder by waiting for the right moment of appreciation before withdrawing.
However, you need to be very alert because of the volatile nature of Bitcoin. Being alert helps you discover when is the right time to make a decision (the decision could be withdrawing your BTC to cash or converting your BTC to USDT to maintain its current dollar value). It is important to monitor your BTC activities in order to read when it’s appreciating or depreciating.
Also, if you intend to use this approach, it is important to withdraw (sell for cash using Mybitstore P2P Market place or sell directly to Mybitstore) when there is high market activity and value for your coin. You can monitor the value of your Bitcoin using the MYBITSTORE wallet.