The now infamous drunken BitcoinTalk post titled “I AM HODLING” (circa 2013) speaks to a greater truth: hold on to your Bitcoin.
Do Not Let It Go
2013 saw Bitcoin’s value halved, after its first bubble, beginning a long trend bear market. While the post was rife with spelling errors and overly emotional, it sparked not just a meme but a new strategy on trading.
Not spending your coin can be difficult, especially in a gut-wrenching market drop. Who doesn’t want to save what little value it has left? But despite your fickle humanity, hold onto your coin.
This advice has proven well placed considering Bitcoin’s repeated bubble and bust with a steady incline in value. If you change your mindset, it could prove greatly valuable.
Bitcoin developer and controversial diehard Jimmy Song have been there since 2011. As an educator, he can and has imparted great wisdom on his favorite cryptocurrency with the mantra of holding on to your coin.
As a crypto prone to a long-term bearish market, this dull and even scary advice is spot on. Not just for 6 months or a year, it’s not about making quick money. Hold on for 5 years or more.
The volatility of this market means it’s hard to predict when the best time to sell is with making the most for your coin. But the steady rise in value makes it best to just keep holding on. As the song told Decrypt, it is all about the long term.
“If you hold five years you’re going to look like a genius.”
Even Warren Buffet, whose views on the rise of cryptocurrencies is notoriously skeptical, says the same thing about the stock market all the time:
“The stock market is a device to transfer money from the impatient to the patient.”
Don’t Be Just Another Silent Watcher
Fostering the Bitcoin ecosystem is another big suggestion Jimmy Song espouses. Being aware of prices is important but it does not need to be your main focus. Get the word out about Bitcoin. Talking about it in online forums or social media, even explaining it to friends and family can go a long way towards improving its viability and value long term. In other words, word of mouth.
Artists have picked up on this, with advice from Song about connecting human emotion to it by focusing their art on it. French painter Pascal Boyart has infamously hidden 1k worth of coin in one of his works, for example. Or there’s Trevor Jones who has used augmented reality art to further Bitcoin’s popularity.
Investing Is For Extra Money, Not All Your Money
Andreas Antonopoulos is a great example of someone who put more into Bitcoin than he could afford, resulting in having to sell just to pay rent. Now a figurehead, he also espouses this important investment advice.
In the words of a song,
“Make sure you [have] income [outside of your investments so that] you’re not getting squeezed out of your bitcoin.”
Also, never openly judge a public speaker if you do not know the full story:
I did invest, Roger. Then I sold in 2013 to pay my rent. I didn’t have disposable income to work for two years without pay and invest at the same time. I should’ve gone into more debt, but that would have been irresponsible towards my family who I supported
— Andreas M. Antonopoulos (@aantonop) December 5, 2017
“Not your keys, not your money”?
This quote is tailor-made for the world of crypto.
Many investors keep their coin in exchange but they frequently and publicly get hacked. There is only one way to ensure safety from court battles and theft according to a song,
“Secure your keys and don’t keep your money on exchanges.”
Always store your coin on your own software/hardware wallet and never lose your keys.
As he is known for saying, Bitcoin is the only coin worth investing in. It is the biggest and the original with all the potential of outliving all the others.
Where investments in stock markets require diversity to be truly valuable and safe, in cryptocurrency Song advises to only invest in Bitcoin. This comes from paranoia about altcoins possibly being manipulated by small teams of developers or the companies that control them.
“Be careful with altcoins because they’re all centralized. A lot of them hard fork, they can take money away, then can redistribute, they can inflate, then can do all those things.”
And with pressure on teams, they could “print more money and steal from you or do something weird. So be very careful.
The Ballad Of Song
Whatever your opinion of Jimmy Song’s passion, he has made a lot of money off Bitcoin. He espouses the same ideas of many other top investors, both within and outside of cryptocurrencies, and centers his income and life on teaching them to others, spreading the word for everyone to learn from.
It may be time to listen.
HODL on to your coin.