In the last year when China banned cryptocurrencies a huge drop was in the price and value of bitcoin. Within one day, the price drop made all the users in the world go through a wild ride. The price drop triggered a really bad reaction from the people and their reactions were coming out on various social media platforms. Where on the one side investors wanted to sell their coins, on the other side some wanted to HODL on their crypto coins. There was also a group of people that thought of buying more bitcoins in the drop.
However, during the previous economic crisis, the traders were attempting to mourn in despair. They tried to highlight the pain and empathize with them because many of them were trying to dispose of their holdings to prevent further loss. They were more worried for those investors that had come to this field afresh and faced such travesty. But the plunge that had been seen this time was even a new experience to those who were not new to this. If you are interested in bitcoin trading check the president of el salvador cleared speculations about el salvadors golden reserve .
What Is Cryptocurrency HODLing:
Two concepts emerge when we talk about cryptocurrency HODLing. The first theory says that the term HODL is a misspelt word for HOLD which is the crypto industry means to acquire and store a digital currency till a higher selling price is not seen. The second theory also says that this term is an acronym for HOLD. If we summarize its definition, it means a technique for investment where investors are restricted from selling their coins if a short-term drop is seen. Freshers who do not understand this technique will surely dig into their losses since they have no proper understanding of the crypto market.
Why FOMO And Anticipated Regrets Are Linked In cryptocurrency
Both mentioned terminologies are almost the same in the cryptocurrency context. But still both the terminologies have some differences from each other. FOMO applies to those people that are out of the race of investments and still reading about an IPO. It affects those categories of people that are still finding opportunities to participate in an investment.
But in case of anticipated regrets, they are those people that have already invested in cryptocurrencies and have sold the invested sum at an unfavourable time. Such type of people have got nothing now to appease and they cannot even enjoy rebounds.
Keep Yourself Away from Emotional Manipulation
Persuading other people to invest and believe in Bitcoin will end up winning acceptance for adopting BTC and other cryptocurrencies. But to the world at large, to consider digital currency as the legitimate currency might have their effect indirectly in not the other way round. If you engage yourself in such arguments, you might be convinced by people to have taken an irrational step.
Bitcoin can be related to that of a gamble, even those who are best at BTC investment has not made any impact in its volatility aspect. An investor who sells bitcoin immediately after a dip might be remorseful for the immediate rebound that is always seen after the dip although they might not feel it to be that painful. If we see bitcoin's nature, we can say that it has become quite predictable as per past trends. Hence if you see a dip, you just hodl on to your investments until their value climbs again.
In this article, after we have seen the decline in the value of the crypto market, I have told you about some of the reasons why you should HODL onto your crypto investments.