A crypto everyday life without HODL is impossible today. What perceived as a typo in a forum post quickly gained immense popularity. As an investment tip, HODL is a serious piece of advice in case you get cold feet again when the price collapses.
However, there are still numerous reports and forum posts on the Internet that call into question the usefulness of HODL. Today, we’re about to briefly consider key five reasons that show why HODL is worth it. Let’s get started!
Reason #1 Save Taxes
HODL avoids waste taxes by 25 percent. Profits from the purchase or sale of cryptocurrency are taxable. The reason for this is a speculation tax. If the holding period is longer than a year, all income is tax-free. Hardware wallets are best for secure HODLs.
Reason #2 Generate Passive Income
With a comparatively small amount of time, HODLers research for a suitable and permanent project in which they want to invest. After an investment, the coins remain untouched. If the project finds adaptation among people, a price increase, as well as profits, can be expected in the long term.
Reason #3 Rational Action
Anyone who stands up for HODL from the start is well aware that considerable price fluctuations may take place. If a crypto project maintains its published roadmap and steady progress can be seen, premature sales in the event of a possible price collapse will be irrational.
Reason #4 Tampering Prevention
The crypto market is still very volatile. Large investors can help cryptocurrency prices crash or rise with little effort. HODLers keep calm. Based on their extensive preliminary research, they know that their investment will increase in the long term. HODLers always take into account possible bad investments.
Reason #5 Future Earnings
Cryptocurrencies are based on blockchain technology. This technology is used to solve problems in the real world. If the chosen crypto project is launched in the near future, a price increase can be expected.
What other reasons to HODL cryptocurrencies do you know? Feel free to share your knowledge in the comments!