Looking at Bitcoin's current price of $44,500, it's funny how this is pretty much the same price level that we had entering 2022. In some ways, it is as if the recent harsh drop down to 32k never happened, and is already irrelevant. Instead, one could even view it as a positive thing, as it could suggest that we've now hit a higher bottom than the previous one in the summer, and could thus be on our way to greater heights. Yet, despite us being back to where we started this year, the past month has surely caused a great amount of stress to a lot of people all over the world.
To the large number of people who bought their first coins north of $50,000 BTC this fall based on the many promises they may have read online about it going to $100,000 before the end of the year, this will have been their gut-wrenching roller coaster drop. I wonder how many of these buyers with hopes of short-term gains were able to, or interested in, HODLing those coins when the market instead turned downwards at the end of 2021 and the start of 2022?
Whatever percentage of people that may be, it for sure includes many who will have experienced what HODLing really feels like:
2022 seems likely to become a volatile year
As mentioned in a recent post that I made, everything about 2022 looks to me like it is going to be a highly volatile year. Not only in crypto, but also for the main stock indexes. The past two years have been extraordinary in several ways, both with regards to the pandemic-related stimulus as well as the absurd stock market growth. It should be no surprise, therefore, that many are anticipating a market correction. Additionally, there are plenty of warning signs aside from this rapid growth, namely inflation, supply chain issues, and expected hikes in key interest rates. The result is a market where people are anxious and full of fear, uncertainty, and doubt (FUD), and thus more likely to make impulsive and emotional sales should there be hints of a crash coming.
Yet, the record stimulus and low-interest rates have also flooded the market with money and put people in a position where they don't want to hold cash in the bank. Sprinkle a little bit of greed and FOMO, having seen how well the market performed the past two years, and we may have got the perfect balance between emotional buying and selling.
And as we've seen these past few months, the crypto market is not as detached from the stock market as it used to be. Fear of tech stocks in particular falling does carry over to some extent to the crypto market, as big hedge funds look to get rid of their more risk-heavy assets first when bracing for a bear market, opting instead to sit tight in seemingly more secure companies earning dividends.
HODLing the waves while buying the dips
With all that, 2022 will likely be a year where people's ability to sit still and HODL during the waves will be put to a test. Not just for Bitcoin and crypto holders, but for your everyday index fund buyer as well. Speaking for myself, I like to focus less on the day-to-day price action, and more on my day-to-day effort to increase my revenue streams in order to continuously buy in with more, especially when prices are lower.
So to repeat a sentence that I wrote in an earlier post that I felt summed up my advice really well:
It's much easier to be HODLing if you spend more time BUIDLing new revenue streams and side earnings than you do looking at charts.
So again, sit tight, hustle on, buy in over time, and find enjoyment in the process itself. I’m sure that this year, while it will shake up a lot of people, will also train a new generation of committed HODLers that will add to the foundation seen as the bottoms of each market cycle. After all, that’s the growth in value that really matters.
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The worst part is that it can feel boring, until a dump or pump happens to remind you how quickly things can change.
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I miss the hopes and dreams of the November pump!
Most of all, I'm just curious to see how the psychology of expected market cycles and history repeating itself will stand up against the exciting new development news I k ow will be coming to crypto, and Bitcoin in particular, this year.
Im mostly bullish despite many thinking we're in a bear market.
Yeah I thought of the same thing too,I feel the bear era is not yet over despite the fact the market is going well now.so I feel there is still every inclination that those that bought the dip hoping that when it bounces back they will be cashing out might not most especially those that bought the dip earlier.although in crypto anything is bound to happen.
For now we don't know were BTC is going. We are expecting it to bull this year.
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I agree with the only difference this year there are so many more staking opportunities to take advantage of.
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Time in the market will always beat timing the market. Dollar cost averaging is the way.
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Been playing the hodl game since 2011 and stacking when the prices dip. So far I have to say that's paid off well. It's a little different now in terms of how many token options there are now compared to before so it's almost like playing stocks you really gotta do your research. Hive seems like one of those very solid bets though that keeps growing. It's a wild ride and you for sure have to keep your emotions in check.
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That's what it's all about, friend, to enjoy our time here and by being constant we will have benefits in the very near future.
Definitely agree! Makes you more emotional if you're only looking at charts for long hours leading to forced trades
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I think 2022 is going to be a boom year with Cypto taking off alot more. The market already looks like it is verging on an outbreak. But who knows with these things?
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2022 has so many opportunities in it, buying and holding is one thing, buying and using is another thing. Those that will enjoy 2022 will be those who know what they’re buying and how to use it. Using money to make money to make more money is the mantra for 2022. Buckle up
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Plays with the emotions, but timed correctly lets you double the stack!
if you know 100% you are not going to need the money you put into Bitcoin until a certain date, there is the option in the Bitcoin transaction to lock the bitcoin so you cannot spend it until the date specified. This way it is easier to hodl ;)
Insert mandalorian meme gif thingy
Gotta keep remembering that market timing is so hard, and even if getting it right most of the time works the few times you miss can negate all the extra gains it brought.
When trying to buy the dip at least you only need to time it somewhat correct once :-P
Although with indexes I really just DCA monthly, all automated so I don't have to look at all, crypto keeps me distracted enough too hehe
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