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HODLing bitcoins is very simple, but it is one of the most difficult and challenging things you can do.
HODLing with bitcoins is an option. You have to wake up every day and choose to continue HODLing btc. When you have every reason to sell bitcoins, you have to keep HOLDING. This is where most people fail.
The anxiety of losing money appears. The fear of being wrong becomes a cloud over your head and you start to wonder if you are wasting your time and ruining your future by HAVING bitcoin.
It's really not for the weak, so I understand why so many people couldn't imagine holding such a volatile asset, so early in its existence. It makes sense why most people weren't prepared to bet on bitcoin, but those who did were highly rewarded for their efforts.
This American HODL thread sums up bitcoin HODLing perfectly.
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Here is a story of $106,600 per bitcoin.
6 years ago, in 2018, I stockpiled cash all year knowing I would buy bitcoins back into the “bottom.”
We spent about 3 months consolidating around $6,600.
I got impatient and said, “Fuck it, this is my time” and deployed half my stack…
— AMERICAN HODL (@americanhodl8) <a target="_blank" href="https://twitter.com/americanhodl8/status/1868854511273681134?ref_src=twsrc%5Etfw”>December 17, 2024
I remember what it was like back in 2018, when the price of bitcoin fell 50%. Only at the time I was a young college student working in physical therapy. I was in a position to take as much risk as possible because taking care of myself was my only responsibility, so that giant fall didn't affect me too much mentally. But for the American HODLer, as well as many other Bitcoiners who had wives and children to take care of, the stakes here increased significantly.
Many Bitcoiners want the price to drop, so they can accumulate cheaper btc. But for many Bitcoiners who have already accumulated bitcoins at cheaper prices, it can be heartbreaking to see the price of bitcoin drop by 70% to 80% in bear markets. After all, Bitcoiners are in this to preserve wealth and increase their purchasing power. So when the price of bitcoin drops drastically, many feel like it's a punch in the gut. Losing money sucks.
However, if you can withstand the brutal bear markets, the bull markets reward those who sheltered themselves from the storm, those who put in the effort to understand this asset and why it has these intense ups and downs. Historically, the price of bitcoin goes up for three years in a row and then goes down for one year.
HODLing with bitcoins is not easy. It is normal and human to feel the depression of the bear market and the euphoria of the bull market. So when bitcoin inevitably falls in the future after the bull market, prepare to HODL.
Don't put yourself in a position where you can't withstand a 70-80% correction.
Understand the asset you got yourself into and understand that this is normal and everything is fine. If you can do that, you will come out of the bear market alive and be in a prime position to take advantage of the next bull market.
This article is a Carry. The opinions expressed are entirely those of the author and do not necessarily reflect those of btc Inc or bitcoin Magazine.
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