Benefits of being a hodler

The concept behind Bitcoin and other cryptocurrencies is difficult enough for most people to understand. Hodl is a slang belonging to the cryptocurrency world that is actually the result of a bug incident in December 2013 when the Bitcoin forums spotted a user-written message on their message board with a typo in the subject line “I AM HODLING”. Thereafter, the term "Hodl" quickly caught on and became an important slang in the world of cryptography. In 2017, Quartz declared it one of the most important terms in crypto culture.

 

What is a Hodler?

There are many people who trade on a regular basis and monitor every small drop and rise in the value of a currency. Hodler, on the other hand, holds onto cryptocurrency in the same way that a person holds onto any other centrally managed monetary asset and sells it based on convenience or monetary claim in the hope that the selling value will be higher than the purchase value paid. a hodler. An alternative is trading where the trader monitors daily patterns and analyzes daily activity and, accordingly, considers buying or selling a currency depending on the rise and fall of the coin.

 

Hodler's participation in trading

Trading is difficult and difficult to understand as it requires an understanding of analysis based on charts and numbers. This is not to say that traders don't make a living by betting on results, but trading comes with a high risk factor as well.

One of the most compelling advantages of bitcoin hodling is that the hodler can remain a very active participant in the market and keep abreast of all developments in the cryptocurrency market without being stressed by fluctuations in the value of the currency. Instead of being pressured or nervous on a daily basis to analyze charts and data, hodlers can track actual events in the world of cryptocurrencies and blockchain technology. Such observation and understanding instills confidence in a long-term investment. Organizations that view cryptocurrency as a long-term investment or digital gold are key to understanding an emerging industry.

Thus, instead of being nervous about a sudden drop in the market value of a currency, the hodler can simply play the role of an observer of the real development of the industry with the help of this technology and, more importantly, remember that his role is not to be active in everyday play, but as a long-term player in the market.

 

Hodler's role in the future of fintech

The freedom that comes with bitcoin technology as opposed to traditional financial practices is another major advantage hodlers enjoy. The luxury of being away from central government involvement and money transfer permits that people earn so hard, ensures independence from government. The Bitcoin network was designed in such a way that no financial institutions or banks could influence the transfer of money, ensuring a free flow of funds.

Hodling is a culture that relies on the future development of the crypto industry and a shortage of coins, that someday the market value of their assets will rise significantly and make them active participants in the future financial technology industry. With the same hope, hodlers are also choosing to invest in altcoins, which currently have little value in the market, but due to a scarcity factor, have upside potential in the future.

Confidence in blockchain technology, which underpins trust in cryptocurrency, is another important factor shaping Hodler culture. Its ability to use and integrate with other technologies makes hodlers invest in cryptocurrency.

Hodlers are forward-thinking people with a futuristic drive to stick with Bitcoin and other cryptocurrencies as investments. This protects them from the daily ups and downs of the currency's market price, while maintaining their active presence in the industry. As mentioned above, the hodling culture mainly exists due to the lack of a number of existing cryptocurrencies.

The potential for some of them to gain a higher market price and play an important role in future financial technologies gives them every reason to continue investing in foreign currency. Keeping investments in the decentralized nature of cryptocurrencies and away from government control is a long-term guarantee that they will be treated as valuable assets and secure their place in the future of fintech.