At time of writing, one bitcoin is now worth more than US$8,000. That’s more than AU$10,500. And it represents a new all-time high, following a massive 43% rally in just five days!
But there is perhaps an even bigger milestone. For the first time, crypto market-trading volume has reached in excess of US$10 billion. Here’s the weekly chart:
‘Hodl’ beats FUD with bitcoin
That’s not a misspelling of ‘hold’. Though it shares a similar meaning.
Hodl is a certified part of the crypto vernacular. It’s an acronym that stands for ‘Hold on (for) dear life’. Which articulates the meaning quite nicely.
It refers to people who hold on to their bitcoin — or any cryptocurrency — for long-term gains. They aren’t day-traders looking for quick ‘flips’ between cryptos for marginal gains. They buy a coin with the intention to hold on to it for a long time.
And ‘hodlers’ will continue to hodl even when the price begins to dip. As it did last weekend.
However, not everyone is a hodler. Some people get caught up in ‘FUD’, or ‘fear, uncertainty and doubt’. These are the hallmarks of an emotional trader who might get nervous when their investment starts to go belly-up. Remember, you’ve got to have thick skin in the bitcoin game — after all, it’s volatile at the best of times.
As you can see, in 24-hour volume (in grey in the chart above) metric, there were a lot of traders buying into the FUD last weekend. They sold off their bitcoin when it began to dip in price. But the hodlers rode out the storm. And today they’ve been rewarded for it, just as they have been time and time again.
It’s risky business, but it’s also potentially extremely lucrative. If you’ve got the stomach to endure the risk, you may want to explore investing in a crypto such as bitcoin. We’ve written a new report to help you get started on your hodl journey. Details here.
Junior Analyst, Money Morning