Binance Research says that HODLing Bitcoin is the best strategy and they may just be right, considering Bitcoin mostly goes up only a few days a year.
When in doubt? #HODL.
Not holding #Bitcoin on Dec, 7 2017 means you would have missed its largest daily absolute gain of $3,608 (25%).
— Binance Research (@BinanceResearch) November 14, 2019
The study conducted by Bitcoin Research reveals everything on why HODling is the most viable strategy in the current crypto market. The reason for this being true is that the most important moves for the Bitcoin are happening for only a few days and can be quite easy to miss.
Not HODLing Can Be Painful
As reported by BeInCrypto, ever since the year 2013, Bitcoin has performed greatly in only 10 days of the year. If the 10 upping gains for every year ever since 2013 would be removed, Bitcoin would be in fact down as much as -25%. Therefore, what was most important with Bitcoin has happened very rapidly when compared to how the cryptocurrency performed during the rest of the year. It can be very painful to miss on the gains, especially since they’re difficult to foresee.
What 2017 Has Taught Us
There are people who disagree with Binance Research. If someone would have HODLed Bitcoin starting in December 2017, he or she would be at a significant loss of more than -50%. There are voices who say that in this situation, selling in January 2018 is the best way to go for the monthly drop to not end up at -65%. It’s reasonable to think that HODLing is not a rational strategy for value preservation, but at the same time, no one can say that HOLDing keeps crypto enthusiasts stuck with their holdings. It only involves resilience, so it doesn’t require to sell at every minor downturn. HODLing is also efficient when it starts out smartly, like for example, when it’s done from January 2019.
HODLing Seems Negative Only to Those Who Got Burned in 2017
HODL is being negatively viewed by many because they got burned in 2017. However, it’s important to remember that the marker cycle is at its beginnings, which is a great time for the HODL strategy to start paying off because as soon as the next tough cycle will come, the HODL profits are surely going to be realized. The current market seems to ask for HODLing, so it’s understandable why the research sees it as the most efficient strategy.