The best way to HODL your Ether

Have you ever heard of the term HODL? Chances are you have, if you are active in the crypto sphere. And even if you haven’t, you might intuitively understand the concept very well. So what does it mean exactly? HODL is one of the most frequently used terms in the crypto community. Some people say, incorrectly, that HODL is an acronym for “Hold on for Dear Life.” While this is accurate, it does not explain its origin story. Actually, HODL originated as a simple misspelling of the word ‘hold’, when a drunk Bitcointalk forum user declared to the world that he was ‘HODLING’ his Bitcoin from now on after a volatile period, no matter the state of the market. With this typo, a legend was born.

Irrespective of the origin story, the term still refers to a strategy that is widely used by some crypto investors. They hold on to their crypto tokens, rather than sell and buy regularly in an effort to increase their profits. Many investors choose this strategy because they aren’t confident they can beat the market by trading. HODL’ing (yes, it can be a verb, too!) has a lot of advantages, but some disadvantages as well. Fortunately, there is a new way to HODL your crypto.

Advantages of HODL

A great advantage of HODL’ing is that you can participate in the cryptocurrency market without effort. By buying cryptocurrencies for the long term, you don’t need to be worried about buying and selling at all times. This means you won’t have to pay a lot of fees. You can just sit back and relax.

This passive investing strategy has been working for investors not only in the cryptocurrency market but also in traditional markets. You do need to ensure that the funds are protected in a hardware wallet. As long as you keep your private keys, you can wait as long as you want to sell the funds you acquired over time.

Furthermore, if you choose to HODL, you will be spared the stress of buying and selling your cryptocurrencies. Moreover, HODL’ing will reduce the time spent looking at the charts. Although a stress-free experience may sound like a trivial advantage, it shouldn’t be overlooked. Stress caused by looking at charts all day can certainly lead to bad trading decisions. This could have a negative impact on your portfolio.

Although HODL’ing will not guarantee a 100 % stress-free life, it will definitely help you perform better on other activities. During periods of large volatility, traders may have to open the charts several times a day. You will be spared this stressful and time-consuming task.

Disadvantages of HODL

Yet HODL’ing isn’t all sunshine and rainbows. And it isn’t for the impatient either. Although holding may be a smart strategy for long-term holders, it is not suitable for traders on the hunt for fast profits in the crypto market. A HODL strategy could take up to several years to bring profits to users.

If you are looking for big profits, HODL’ing might not be for you either. Active trading may offer better results. Indeed, you could get better results by actively investing digital assets and looking at the charts on a regular basis rather than holding over time.

For example, if the market is reaching a peak, the best strategy would not be to HODL but to sell close to the highs. This would provide you with better results than holding throughout a bear market without being able to recover the funds invested. But don’t forget, this could require you to invest more time on a daily basis compared to a traditional HODL strategy.

When we consider the points above, it becomes clear that HODL’ing has a lot of advantages and disadvantages. It is relatively stress-free and not too time-consuming, but you might need a lot of patience and HODL’ing is not a strategy that yields a big profit.

Luckily, there is a solution. There exists a brand new strategy that combines the advantages of HODL’ing with those of active market trading. Meet Gain DAO.

Gain DAO: the best of both worlds

Gain DAO is a crypto-based pool, currently starting out with Ether. We are powered by machine learning optimized trading algorithms. These algorithms are operating in traditional financial markets. This way, Gain DAO serves as a bridge between centralized and decentralized financial systems. We leverage the strengths of each to create Hybrid Finance (HyFi). This means that GAIN token holders benefit from the possible appreciation of the underlying base asset (Ether, in this case) and from algorithmic trading strategies intended to grow the amount of crypto in the Gain Pool.

This is the perfect marriage between the two strategies: assets are actively traded in the traditional financial markets, giving you all the advantages of active day trading, without having to peer at charts yourself. At the same time, you are HODL’ing your crypto by putting them in the Gain Pool. You can live a stress-free life, knowing that you can profit from the possible growth of your crypto. Meanwhile, your assets can actively grow because of our optimized trading algorithms.

The best way to HODL your crypto? We believe we found it!