The million dollar question in every crypto investor’s mind is “for HODL or not for HODL.” Social media is luxurious with terms like “HODL” and “diamond hands” making it seem like those selling their cryptos are losers. Influencers blame crypto investors for “selling” their assets for a profit and calling them “paper hands.” The words are now so deeply ingrained in the minds of investors that they feel that selling their cryptos is an eternal sin. Therefore, profit or loss, investors feel the pressure to hold onto their assets because “Twitter said so.”
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Also, as Bitcoin collapsed to $20,000 last month and took all the coins with it, tweets about “I’m HODLing” and “proud paper hands” were splashed onto the platform. This gives investors the impression that no one is selling and should keep their assets even during a downturn; it doesn’t matter if it’s a win or a loss.
Therefore, this type of “HODL” culture hinders the thinking ability of retail investors. The choice and freedom of personal financial decision making is hijacked by the ‘HODL’ gang, ultimately leaving everyone poor. Investors who witnessed the crypto boom of 2020 and delivered good gains, did not sell because of the ‘HODL’ gang, are now at a loss. The current market loss is dramatic and it could take months or even years for it to regain its former glory.
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How to overcome the crypto ‘HODL’ culture mindset?
Making profits is never seen as folly in the stock markets, but is considered blasphemy in the crypto market. Thanks to the uncanny array of crypto influencers who promote ‘HODL’ culture on a daily basis. Their service hurts retail investors who have never made a profit despite entering the crypto market to make money.
“Don’t risk your lifestyle over a HODL meme. No one went bankrupt by making a profit,” said Tyler Reynolds, a Web3 investor at CoinDesk†
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Investors should understand that “making a profit” means making money from your investments and not getting out of the crypto market altogether. You decide when to sell or keep your assets, and don’t let a random user on Twitter dictate your financial choices.
Keep in mind that the only hand that is considered superior is the one that feeds you and your family. Not “diamond hands” and “paper hands” as the expression is irrelevant in real life.