Scared Money Makes No Money: Crypto HODL Culture

DISCLAIMER:

  1. This is not a financial advice
  2. I am not a professional investment planner/consultant
  3. You can do with your crypto whatever you please.

Now that we have that all cleared up...

WHY THE HELL WOULD YOU LET YOUR CRYPTO JUST SIT IN THOSE WALLETS DOING NOTHING?

I was speaking with my brother a while ago and I asked him, hey, aren't you gonna start making money from that stash of yours? He took part in some airdrops early this year and got some very good rewards for it. Well, he said Nah, I am gonna HODL it out, you see this is a very good project and I trust it's gonna moon soon. Hmmm

I said, yo' I get that you are trying to HODL and all but HODLing isn't really a great strategy at compounding wealth or Crypto for that matter which you so desperately want and have talked about for years. Why don't you send those coins to a Defi platform with a good reputation and either stake it or farm with it and get a good ROI? How are you gonna get rich if you are scared of investing?
He said, sometimes, HODLing is the best strategy, I said alright then. Peace.

I get that HODLing in the crypto industry is seen as a brave and honorable thing, especially when the assets you are HODLing went/is going through a tough phase and dumped/is dumping pretty badly like XRP during their legal issues. This 'show of faith' in said assets and their project is commendable but does it always make you money? Rarely.
Are you HODLing because you are scared of loss or you actually have some scheme up your sleeve? Another perspective for thought...

Sometimes we read about people who had their BTC when it wasn't up to $1 per BTC and we say hey, that guy is so damn lucky he didn't sell all those years ago. Yeah, you could say that and you'd be vindicated, but a lot has changed since then. Back then, it was just BTC at the center of everything Cryptocurrency, people even rarely traded it then. Those who had it just locked it away and that was it. Safe to say BTC had little or no use back then.

WHAT ABOUT NOW?

Now, there are millions of projects out there and that means millions of coins and tokens vying and competing for the chance to be at the forefront, to be on everybody's lips, on every exchange, on every wallet. (reason we have shillers) What does this mean in effect? This means that a coin/project would have to be really special or have some high-profile persons shilling it to keep the price on a steady rise. That means it might be a while before all your HODL turn into something worthwhile but if you put them to work, it would take but a short while before you start seeing some compounding and actual increase in your stash.

So you are just gonna leave those coins in your wallet, waiting for them to do a BTC? If your answer is in the affirmative, then you will have to wait for a while because BTC paid its WAITING price. But why just wait when you can put your coins to good use, make some good profits, and compound your gains. Makes sense yet?
What I am saying is, you could invest, make some profits, and from your profits, you buy and stack up those particular coins you think are going to make you rich. You get it now right?

Crypto is actually a digital machine that has presented us with so many financial opportunities that it is actually crazy but a lot of people still wanna operate it as an analog machine.
I staked the little BNB I have on my Binance and every day, I get TLM (another crypto) in my spot wallet as my staking reward and the sweet spot is, TLM rose from $0.45 to $0.75 within that period, BNB was also mooning. This means that while my original BNB stake is in the vault working out my TLM rewards, it is still fattening up from the rise in the price of BNB. Isn't that just tasty?

Are you scared money or is your money working for you?

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2 comments
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Speaking of making your money work for you, are you on any DeFi platforms?

I'm sure you've seen that the LeoFinance backed platform called Cub Finance?

Especially with their bLEO/BNB LP, a lot of the community here is using Cub to make at least part of our crypto portfolio work for us.

Get around it :)

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Security is one reason I would hold on a wallet rather than exchange. I have stacking options on mine as well and I am actually stacking XTZ.

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