Hodling Without Getting Rekt

9 Feb 2023

One of the most hyped strategies in cryptocurrency investment is hodling. Basically, this means you buy a cryptocurrency and hold it for a long term, in hopes that it will one day appreciate greatly in value. A number of cases, including the classic rise of Bitcoin from a value of a few cents to thousands of dollars, have given this strategy a lot of validity.

However, what is generally not mentioned is the fact that just as prices are expected to "go to the moon", they can also crash down to earth. And the failure to realize this and blindly hodling is one of the reasons many people get rekt when investing in crypto.

"Many in crypto get rekt because they were hodling."

The scenario is typical; investor buys coin expecting a good future profit when coin rises in value in some months or years, coin price rises, whales dump or something else happens causing coin value to crash, unsuspecting investor gets rekt.

Luckily, there's a simple way to minimize, if not avoid, getting rekt in this manner and that simple strategy is known as "Profit Taking". The method is simple. Whenever you buy into a project by purchasing its tokens and the price of the token rises by any significant margin, sell part of the tokens you bought so that you can recover your initial investment capital and if possible, make a little profit. After recovering your investment, whatever tokens you have left is what you can now hodl.
After taking profits and recovering your investment amount, if the price of the token continues to rise, good for you because your profit increases. However, if the price crashes, you are safe because you had already recouped your investment so whatever price the token goes to will always leave you in profit.

In a nutshell, buy your tokens, then when prices rise, sell part of your tokens to recover your investment, then hold the remainder.
Of course, this strategy wouldn't work in all situations but in many cases, it will save a lot of investors from the pain of losing money due to price crashes.

In conclusion, whatever coin/token you hodl, always take profits whenever possible, it's a good way to avoid getting rekt.

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