Introduction
Bitcoin investment is becoming a new trend in the investment industry. People are finding it easy to invest in Cryptocurrencies and Bitcoin. These assets have seen a millionth-time price evaluation in the last decade. This has made the investors and traders flock to the Crypto trade industry.
Over the last decade, the Crypto trade market has seen several changes and price evaluation. Regarding the Crypto trade market, everyone has their own thoughts. Some believe that Cryptocurrencies are just bubbles that can burst at any moment; hence, investing in them is equivalent to throwing your money in water.
When we were studying the Crypto trade market’s working, we came across two terms that caught our attention: FOMO and HODL. In this article, we will discuss these terms and how they affect Bitcoin investment as a whole.
What Is FOMO?
The term FOMO has become quite popular in the recent market. FOMO stands for “Fear of Missing Out.” This concept was coined just recently. It means that people are taking action just to survive in the industry. There are some situations that give off a sensation saying that if you miss out on this opportunity, you will not get it back.
How Does FOMO Develop?
We all know that for humans, information collection is very important for survival. The better you can collect the information; the better are your chase for survival. This is an inherent ability of mankind. And it subconsciously works whenever we feel we are in danger.
Though today we do not need our survival instinct, it still gets stimulated with our decision making and boosts the quality of life. It is always better to know what is going to happen to have the upper hand over your competitors.
What Is HODL?
HODL is the term derived from misspelling the term HOLD. It is the method of buying assets (Cryptocurrencies) and then holding them strategically to make a profit. Most of the Crypto trade industry investors follow this method to make a profit out of the Crypto investment.
Why Hodling Bitcoin Pays Off?
Bitcoin is creating new records every time it moves forward. The Bitcoin price has increased from $7000 to $29,000. Seeing how Bitcoin has performed even in the pandemic it has softened many of the critics.
Economist Nouriel Roubini was a film critic of the whole existence of Cryptocurrencies. However, after seeing the Bitcoin’s price evaluation’s positive accelerated curve, he has also started believing Bitcoin to be a partial store value.
Hence, one thing is certain that Bitcoin and Cryptocurrency perform well when they are HODL.
What Drives Investors Towards Bitcoin Investments?
By now, you know the basic difference between HODLing and FOMO. These two factors play an important role. There are investors who want to make a profit out of the Crypto trade based on FOMO. FOMO is the scenario where people start investing after seeing market trends. Investors who are controlled by FOMO accrue losses more often.
However, with HODLing, the whole practice is quite simple. You buy Crypto assets and forget about it until you find that the price is high enough to make a profit. This method is helpful for investors who are not confident in analyzing the fluctuation of the market. If an investor believes that the Cryptocurrency price will increase in the next year, he/she can simply buy and hold it for the next year. As simple as that.
Take Away
The Crypto trade market is filled with two types of investors and traders. The first kind of investors wants to profit from small fluctuations and are well-versed in market analysis. And the second kind of people are long term investors and like to hold their assets. Both the investors have their own strengths and weaknesses and use those to survive in the investment market. Visit the BitBolt and know what kind of investors you are.
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