Are you a trader or a hodler?
Every crypto investor falls into the category of a trader or a hodler.
A trader : Someone who loves the daily thrills of buying and selling cryptocurrency, regardless of the market situation.
A hodler : Someone who believes in keeping a particular cryptocurrency for long term.
Whichever the case may be, you need to understand how the market works before making vital decisions. You also need to be emotionally intelligent to avoid making sentimental choices that could make you lose money.
SELL OR HODL
Let’s explore when to sell your coins during a dip
Remember that this is not financial advice
When to sell:
1. If you notice that there’s no progress regarding long-term development for the token you hodl.
2. When there’s no structured community support for the cryptocurrency.
3. When your coin stops appearing on popular exchanges like Binance, Coinbase, FTX and Kucoin.
4. When a government creates negative policies against the cryptocurrency in your region.
When to hodl:
1. When the coin has a history of rebounding from dips e.g Bitcoin.
2. When the asset has the backing of the community and continues to develop new products e.g Solana.
3. When the token is adopted by institutions and companies globally e.g Ethereum.
Benefits of selling during a dip
1. It saves you from significant losses. It is usually best to sell when the coins are quickly dropping in value so you do not lose all your assets at once.
2. It allows you to redistribute capital into buying other coins at extremely low prices.
Benefits of hodling during a dip
1. It helps you avoid panic selling and losses from short-term market volatility.
*NOTE* : With that being said the decision to sell and hold depends on your conviction about how the asset is performing. Always remember to tailor advice to your specific situation and use it as a guide for your crypto journey.
Source:
https://breachclub.medium.com/what-to-do-in-a-dip-hodl-or-sell-63066998136
