Why HODL is the Best Option for Token Holders?
People who participate in ICO want not only to support the project, but also looking forward to get some profit. Some of them hold tokens as long-term investment, some rush to the exchanges right after listing to an exchange to sell as soon as possible. The main goal here is to get at least some part of money they have spent back. Some contributors are afraid that price of a token will fall and want to insure themselves against losses. Obviously this plan is not the best one looking at the long-term perspective.
People are so afraid to lose money later, that they are ready to lose money now by selling tokens even cheaper that they have purchased it. In this case, what is the point of taking part in ICO? If you are not ready for any market fluctuations then just don’t invest. We all know that investments are always risky. But if you have decided to make one, then at least try to make the most of it — don’t just sell tokens at the first sign of instability. The main idea is to sell at a higher price than you have bought and not vice versa.
The most essential decision you make before participating in ICO is choosing a project. If you have chosen one in which future you believe and you witness its continuous development after the end of ICO, so after some time the price of tokens will become stable. There is no reason why its tokens may depreciate if it is fulfilling the plan of future development and working successfully. If project has reasonable distribution of tokens plus not less important characteristics, such as explicit roadmap, professional team, a working product, then you don’t need to worry about token price fluctuations.
It’s absolutely normal when after listing token on exchange the price falls or fluctuates. But if you will have patience and wait, you may attain a real profit. Volatility is one of the main features of cryptocurrency. You must be ready that price can fall just in few minutes as it can grow at the same speed. In fact, it is unreasonable to sell your tokens at low price right away for a quick profit. In this case you will just lower token price in a long-term perspective. Contributors who are goal oriented and willing to make real profits know that token value depends on how they act on exchange’s field. Many experts agree that it’s even better not to sell tokens in the first half-a-year after listings — this is the period when tokens’ price is maximally unstable.
There are many cases when token price falls right after listing on exchanges, but then in few months goes up. Reliable projects give revenue in a long-term perspective. You don’t need to beware for tokens’ price fluctuations — just HODL for some time till the market settles down. Do not haste to sell it giving into general panic. Patience is the key to make profit from ICO investments. Do not race after quick money and eventually you will get even more than you expected.