HODLer: Choose your Specialty

Now that you know what and how to act during various phases of uptrends, ranges, and downtrends — let’s now focus on how exactly to make the best decisions possible by looking at the different types of a HODLer that you can be. 

 

  • The Pure HODLer
  • Be the type of HODLer that never sells under any circumstance 
  • Lend your BTC on a platform you deem the most safe (If American: Gemini, otherwise: FTX) 
  • Not recommended unless you want your future great grandkids to be the ones to sell your Bitcoin for anything meaningful

 

Action Steps

  1. Using DCA over a long period of time, use 50% of your capital to buy BTC right away and the other 50% to place bids far lower
  2. Lend the BTC you have on a safe centralized exchange

 

 

  • Bitcoin Maximalist 
  • Be the type of HODLer that has the sole goal of making trades to increase their BTC holdings safely
  • If unsure about price’s direction, just lend USD or BTC
  • Doesn’t want to withdraw USD or build up USD reserves but instead would rather just find ways to increase your BTC by any means necessary

 

Action Steps

  1. Start your spot capital with 50% BTC and 50% USD and begin lending both immediately
  2. If price is in a downtrend and you believe price will continue to fall, sell your BTC such that 80%-100% of your spot capital is in USD and then place bids lower or put the extra USD back into lending so you can buy more BTC later
  3. If price is in an uptrend and you believe that price will continue to rise, buy BTC such that 80%-100% of your spot capital is in BTC and put that BTC back into lending while keeping your USD ready to be deployed to buy BTC

 

  • Salaried HODler
  • Be the type of HODLer that maintains a set BTC amount but can also increase your USD by selling BTC and buying the same amount back cheaper
  • Lend USD if bearish without a price target (no limit order), lend BTC if bullish 
  • If you have a price target, set orders such that you maintain the same amount of BTC invested at all times
  • This extra USD can be withdrawn to your bank, ie. a salary

 

Action Steps

  1. Start your spot capital with 50% BTC and 50% USD and look out for volume patterns and signs of trends forming on the timeframe of your choice
  2. If you believe that price will be in a downtrend, sell all of your BTC and set bids to buy the exact same amount lower
  3. Withdraw extra USD to your bank

 

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