If you’ve been paying attention to the meteoric rise of Bitcoin (and really, who hasn’t?), you would have noticed the global excitement over Cryptocurrency. If you’d invested $1,000 in BTC back in July 2016, it would now be worth around $58,900 – a growth of around 5,800%.
Going even further back, the picture looks even bleaker. If only you’d invested 10 years ago, you’d be looking at a grown of several hundred thousand percent.
It’s not too late, though! If you’ve ever wondered what HODL is or wanted to invest in Crypto, read on for a quick guide.
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Crypto Terms
Being born as part of the internet culture, crypto has many terms that only make sense with context. Don’t let them throw you when you’re looking at investing – they’re no different from those used around Wall Street.
Wallet
Much like your traditional wallet, this is the easiest way to buy crypto and is the first thing you should do. A wallet is a digital repository for the crypto you own and can be used for all buy and sell transactions.
HODL
This is quite possibly one of the world’s most popular misspellings; this comes from the start of Bitcoin’s rise. Originally meant to spell “hold” as in, “hold and don’t sell,” it’s now taken on a life of its own and means “Hold on for Dear Life” in most circles.
Example: “Be strong! The price drops but we HODL!”
FUD
A true acronym, this stands for “Fear, Uncertainty, and Doubt.” There have always been those outside the Crypto Investing Community who believe that Bitcoin is in a “bubble” and that investors will lose all their hard-earned cash. This is referred to as FUD.
Example: “Bubble? Longest bubble in history, then. Ignore the FUD.”
Mooning
Really, this is when a particular Cryptocurrency is experiencing a large spike in volume and/or price. You’ll often see this term used on social media and other, less formal platforms. It refers to a stock price rising “to the moon.”
Example: “After Elon Musk Tweeted support, BTC started mooning”
Strategies
Now, let’s talk about how actually to get started investing in long-term crypto. To do this, you’ll need to learn a few of the key strategies and when to apply them. It’s also an excellent idea to decide which coin you’ll invest in – whether it’s Bitcoin, Ethereum, or even Dogecoin.
Each strategy can be profitable if used correctly, so don’t be afraid to experiment. What fits your investment personality may not fit others.
Short Term
If you want to do some short-term trading and aren’t interested in the long-term benefits, employing this strategy can be useful. But, before you go ahead and embrace it, you should consider your position carefully.
When will you sell? Will you sell all at once or in parts? Having a clear roadmap before you start investing is a must for short-term gains.
HODL Strategy
The HODL approach to crypto investing is the most popular investment strategy. This is almost the opposite of the typical fiat or traditional investment strategy that teaches quick liquidation and fast position swaps.
Essentially, knowing what to HODL is the key to your success. It’s generally a good strategy to diversify your portfolio across cryptos and HODL as many as you can. This pays off in the long term as the coin’s Market Capitalization increases over time.
Don’t give in to the hype of a coin when deciding to HODL. Instead, take a look at who is invested, how much they hold, and where the market is moving. Research is always a good investment, no matter if you’re working with Crypto or traditional markets.
Getting Started
It’s clear that Crypto investment is trending, and it shows no signs of slowing down. So now that you’ve got a good basic grasp of the strategies you can apply, as well as terms like HODL and FUD, it’s time to go out and invest.
If you’ve enjoyed this blog, check out the other entries in our category.
