HODLing is probably the safest and easiest way to grow your KGO. All you need is patience and knowledge on how to do it properly. Here is what you need to know.
What is Hodling?
“HODL” is a term commonly used in the cryptocurrency world that stands for the word “hold” misspelled. It often refers to retaining crypto assets for an extended period, regardless of the price increasing or decreasing, and is more frequently used in a bear market when people refuse to sell their coins despite heavy price drops. “HODL” also acts as an acronym for “Hold On for Dear Life” which is meant to encourage not to impulsively sell during strong market volatility and poor market performance.
HODL originates from a spelling mistake by a drunk user named GameKyuubi on BitcoinTalk, one of the old Bitcoin forum chats. In the original thread titled “I AM HODLING,” GameKyuubi wrote:
"I type d that title twice because I knew it was wrong the first time. Still wrong. w/e. GF's out at a lesbian bar, BTC crashing WHY AM I HOLDING? I'LL TELL YOU WHY. It's because I'm a bad trader and I KNOW I'M A BAD TRADER. "
The post dates back to the 2013 market crash, when Bitcoin fell from over $1,150 to around $150, a time when Bitcoin investors started to panic sell their BTC. Since that post, HODL has become a strategy used by people who admit they do not have the skills to do short-term trades and prefer to wait for brighter days to come.
As a result of GameKyuubi's post, HODL soon became a symbol for an approach to cryptocurrency investing that shuns trading based on short-term price moves, something which can be hard to do. Indeed, cryptocurrency price movements defy familiar logic. Just to use Bitcoin as an example, the price shot up by 52,000% from 2011 to 2013, then plunged by more than 80% over the following year. Since then, it has reached more than 17 times its previous high, only to fall again by half. Knowing that, it is tempting to try timing your investments with the market.
Despite this, hodlers wash their hands of all this volatility, prognostication and temptation.
They simply HODL because it allows them to counteract two common destructive tendencies: FOMO (Fear Of Missing Out) that leads to buying at a high price, and FUD (Fear, Uncertainty, and Doubt) that leads to selling low.
Some think cryptocurrencies will eventually replace fiat currencies and form the basis of all future economic structures. According to that view, the fiat exchange rate of cryptocurrencies becomes irrelevant, and hodling your coins can only be a winning investment strategy. At least that would what Legendary investor Warren Buffett’s would say and do, to find some gems and hold on dearly to them:
"When we own portions of outstanding businesses with outstanding management, our favorite holding period is forever. We are just the opposite of those who hurry to sell and book profits when companies perform well but who tenaciously hang on to businesses that disappoint. Peter Lynch aptly likens such behavior to cutting the flowers and watering the weeds."
How to HODL Your KGO Safely
If you have read the previous articles of our “Introducing KGO series”, you already know how to answer this question. Here is a healthy recap in four steps to finish things off and to ensure you do the right things to safely HODL your KGO tokens.
Get your KGO out of the exchange you bought them from.
If you happen to have bought your KGO on a centralized exchange, leaving your tokens on the platform can be risky. Don’t, unless you really must.
Put your KGO in a wallet where you own your private keys.
Remember the famous cryptocurrency mantra “not your keys, not your crypto”. Get one of the following wallets for free, transfer your KGO and enable 2FA on all your accounts:
Get a hardware wallet to secure your KGO holdings even more.
Although hot wallets such as the ones mentioned above are pretty secure, they do not compare to cold wallets that store your keys offline. Luckily, the three hot wallets can be connected to hardware wallets like a Ledger or a Trevor device. They are pricey, but they are the best there is.
Do not worry about short-term price movements.
Hodling is a way to take off your eyes from daily price movements and relax. Believe in the KGO project as we do and have your moon gear ready. Moon is soon, and you better be prepared!