Hodling is Obsolete. It’s time to earn more crypto on our crypto

The crypto hodling strategy is quite popular. I’ve been doing it myself for many years. For those unaware — it is a method of buying Bitcoin, or any other cryptocurrency, and holding it as long as possible, in favor of long-term returns. While you are hodling, the cryptocurrency held is generally locked away in cold storage, making it unavailable for any purpose.

Even though there have been proven returns through this strategy, such as during the 2016 and 2017 bull market, there is no consistency of good returns over the long term. I’m here to tell you the strategy is obsolete, and introduce you to strategies I’ve been benefiting from for a long time now.

What are the pitfalls of Hodling?

2. A Hodler, if not experienced, might not know when to Hodl and when to not. Even when it is time to make profits, the investor might “just Hodl” the assets for a little longer, and might end up reaching the lower margin again. Hodling indeed results in high returns, but without the knowledge of when to sell, you might miss out on the right time, and end up losing money. You can’t make profits if you don’t take the chance.

This makes us wonder if other crypto strategies yield better returns while still not requiring as much effort as active trading.

Crypto Staking

Now let us look at the advantages of Staking over Hodling.

  1. When you are Hodling, your price is going to go up over time, but there is no increase in the number of coins. Whereas, while Staking, seeks to add more coins which in the end adds more value to the user. This extra sum of the coin is generally awarded to the user by keeping the coins locked within the system.
  2. The retention impact of Staking is way more than that of Hodl. How does this happen? When the Staking is higher, the rewarded value will be higher too, further resulting in a greater subsequent impact on the dynamism of the cryptocurrency.
  3. Hodling yields good results only when you are investing long-term. For people looking for great results through short-term investments, Staking is probably the best option.
  4. By Hodling, the number of cryptocurrencies you own is not going to grow. This means that you will only get a good yield if the cryptocurrency grows in price. On the contrary, when Staking, even if the price grows lower than the coin, having more coins can result in a higher yield.
  5. Hodl is a simple strategy to apply compared to Staking. Staking today has so many options that we could well see it as an advantage, for example, Staking a liquidity provider may be something that many consider positive.

Crypto Lending

Crypto Lending is similar to traditional lending in finance, which involves lending digital assets through crypto banks and exchanges. Digital assets can be used as collateral on fiat or stablecoins, and the lender provides assets required for the loan, in return for interest. Now let us see how Lending is better than Hodling.



Safety of Funds

By now, it should be quite evident that crypto hodling is not the only strategy that could be used to get profitable returns. Crypto Staking and Lending provide equally great opportunities on their own, in yielding high value, in the comparatively lesser time frame.

A blockchain enthusiast and entrepreneur’s musings on the next big revolution since the Internet.