5 Concise pointers to be mindful of when hodling.
Hodl doesn’t mean just buy and hope. These five points give you some concise non-financial advise in regard to investing in cryptographic currencies and services.
Every Little Helps
This section is not remotely crypto related but bare with me. Find things you can cut back on – coffee, lunch, subscriptions. Find alternative or passive income streams and point that cash flow at your crypto accounts. the drip-feeding now will pay off big in the future.
DYOR — Do your own research
This isn’t about finding out the purpose of a token / coin, its history, team, development e.t.c. DYOR is about assessing its current & potential value in respect to those factors. You must determine if you feel an asset is under or over valued. Also realise that markets work in cycles and price may not be your limiting factor but time. If it is the wrong time to buy in the grand scheme, what are you achieving? Ask yourself “Am I buying the dip? Or the hype?”
Do you know what a chart is?
Other than just price & time, what is a chart? They are graphs of intent and action. By this I mean, large, quick moves display the hand of those that play them. Chart formations and volume display the intention and actions of the crowd. These two realizations are critical in evaluating ‘perceived’ value.
Opinions are like butt-holes, they stink and everyone has one.
Opinions about the state of the market should always be formed yourself and before adhering to what others think. Never second guess yourself based on someone else’s opinion. Or you will quickly turn from hodl to heard mentality. If the difference of opinion is enough for you to want to change tact, note it and the outcome of said market conditions instead. This data is very useful to guide your trading plan.
Learn to use spreadsheets and CSVs
I’m sorry. This one is boring but it must be said. If you plan on making enough to live off, scratch that, thrive off, then you are going to need to keep track of your investments for tax purposes. The simplest way to do this is to download CSVs (comma separated value files) from your exchanges and import them into a simple spreadsheet that tracks deposits, withdrawals, gains & losses.
Kaizen — Improve every day
Improve yourself everyday. Whether its, DCA (Dollar cost averaging), taking profits, reading a book, or an article, listening to a podcast, keeping abreast of charts and opinion, or even acknowledging flaws and gaps in your methods, knowledge or thinking. Instead of making a list of goals to work towards, try making a list of questions to ask yourself every day to make sure your on-course to be the trader you want to be.
Its with these simple few point that I leave you to ponder. These are some of the essentials to making it as a trader/hodler, crypto or otherwise. If you master the art of hodl, your almost there.
If your looking for tips on increasing cash-flow read our article on how to maximise your hodl here
ETH Address: 0xbe9658a5FD67B297B8062607C45FF9C868599AaA