You’re reading this article because you’re interested in saving your money with Bitcoin. By now you already know that Bitcoin is a currency like fiat currency, except it is cryptocurrency and it is not available in physical form. Bitcoin is a popular digital asset and a store of value. That means you can use it to hold value or trade it the same way you do in the stock market. People invest in cryptocurrency in different ways.
For instance, you can buy and sell this cryptocurrency via platforms like the bitqt app homepage. Such a platform is ideal for anybody that wants to trade Bitcoin in both manual and automatic modes. Both expert and beginner traders can use it. But, if you’re going to save with this cryptocurrency, consider an investment strategy called HODL.
What is HODL?
Most people think HODL is a misspelled word when they come across it for the first time. But, this word has a meaning when investing in this cryptocurrency. It came into being by accident in 2013 when a Bitcoin investor said he would hold on to his coins. He misspelled the word “hold” and wrote “hodl” and kept repeating it. This word became slowly popular and is now more often used when talking about Bitcoin.
Today, this word means “Hold on to Dear Life.” People use it to mean they will hold on to their coins instead of selling them. And this is now a popular Bitcoin investment strategy. A person can essentially buy Bitcoin at a low price and simply hold instead of selling it for profit when the price goes up.
Trading versus HODLing Bitcoin
As hinted, when you HODL Bitcoin, you opt not to sell your coins. That means you make Bitcoin your investment since you don’t sell your coins even when the price drops, increases, or your investment loses value due to market stabilization.
Most crypto experts recommend HODLing because Bitcoin performance has continued to improve over the years. As the popularity of this crypto increases, its price keeps rising. However, some traders have lost their money for making wrong decisions. Nevertheless, most people have profited from holding onto their Bitcoin for a more extended period.
For instance, if a person bought Bitcoin worth $1,000 and HODLed it since 2009, their investment would be worth billions today. Although some people might not believe it, considering the crashes and peaks that Bitcoin has endured, that is a fact. Many people are millionaires today because they were patient and did not rush to sell their Bitcoin.
On the other hand, trading Bitcoin entails purchasing and selling the cryptocurrency for profit. Ideally, you wait for the Bitcoin price to drop to buy your coins and then sell when the price increases. Bitcoin trading differs from HODLing in the sense that you don’t hold your Bitcoins on a long-term basis. You wait for the price to go up and sell your coins for a profit.
Using HODL Strategy to Save with Bitcoin
HODLing is not just about saving with Bitcoin. It’s also an investment strategy because you will eventually sell your coins at a higher price. However, you have to be vigilant when using this strategy to save with Bitcoin. Ideally, stay updated about the crypto market. Read Bitcoin blogs and news reports to know about events that may affect Bitcoin value and sell your coins if necessary.
Be patient because people will say many things that may tempt you to sell your Bitcoins too early. Yet, saving with Bitcoin requires you to hold onto your investment longer.
The Bottom Line
Bitcoin is a good instrument for saving your money. However, be careful. Only Bitcoin is the best savings technology and not altcoins. Buy Bitcoin when prices are low and eventually sell at a higher price. That way, you will never lose your money.
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