When bitcoin was $200 it was still considered pretty much nerd money.
When BTC hit $1000 I got a lot of the "its a bubble, you're an idiot" comments.
But right around BTC $16,000 is when I think my inbox started to fill up with serious questions about the bitcoin and how to best get started buying the cryptocurrency.
The FOMO was strong.
FOMO = fear of missing out.
Bitcoin went up from there to almost $20,000 and many people bought in for the first time.
Well guess what?
Bitcoin crashes a lot. Its volatile.
This time is no different.
BTC crashed almost 70% down to about $6,000.
FUD took over.
FUD stands for "Fear, Uncertainty and Doubt".
My Facebook and Twitter feeds blew up.
I got many questions asking if people should sell.
I said if you're not a pro trader you must HODL.
Judging by my social media feeds I don't think too many new bitcoiners listened.
What does it mean to HODL or be a HODLER?
The term “HODL” or “HODLER”, refers to cryptocurrency buyers who buy and hold bitcoin for the long term. In a 2013 bitcoin crash, a bitcoin forum member wrote that he was “hodling” during the crash. He misspelled the word “holding”. Check out the post, its amazing. The hodl misspelling has taken on legendary status in the cryptocurrency niche and HODL has come to mean “Hold On for Dear Life” due to the crazy ride you take when you decide to invest in bitcoin.
Here's the whole text:
"I type d that tyitle twice because I knew it was wrong the first time. Still wrong. w/e. GF's out at a lesbian bar, BTC crashing WHY AM I HOLDING? I'LL TELL YOU WHY. It's because I'm a bad trader and I KNOW I'M A BAD TRADER. Yeah you good traders can spot the highs and the lows pit pat piffy wing wong wang just like that and make a millino bucks sure no problem bro. Likewise the weak hands are like OH NO IT'S GOING DOWN I'M GONNA SELL he he he and then they're like OH GOD MY ASSHOLE when the SMART traders who KNOW WHAT THE FUCK THEY'RE DOING buy back in but you know what? I'm not part of that group. When the traders buy back in I'm already part of the market capital so GUESS WHO YOU'RE CHEATING day traders NOT ME~! Those taunt threads saying "OHH YOU SHOULD HAVE SOLD" YEAH NO SHIT. NO SHIT I SHOULD HAVE SOLD. I SHOULD HAVE SOLD MOMENTS BEFORE EVERY SELL AND BOUGHT MOMENTS BEFORE EVERY BUY BUT YOU KNOW WHAT NOT EVERYBODY IS AS COOL AS YOU. You only sell in a bear market if you are a good day trader or an illusioned noob. The people inbetween hold. In a zero-sum game such as this, traders can only take your money if you sell.
so i've had some whiskey
actually on the bottle it's spelled whisky
(but only if it's payable in BTC)"
So how do you earn your official HODLER stripes?
Bitcoin follows "Fight Club" rules.
If this is your first year in bitcoin, you must get wrecked, or REKT as the hodlers say.
You don't get your official HODLER stripes until you've seen your initial bitcoin investment fall from the sky and you weather the storm. It takes one year minimum. You have to go through at least a couple rounds of the emotional roller coaster the dude above went through.
Unless you're willing to learn the ropes and be a pro trader.
In that case I suggest Trend Following.
So you might want to become a HODLER. At the very least my Facebook feed would look a lot better hahaha. Bitcoin and cryptocurrency have a long life ahead of them.
You can learn all about gold, silver and cryptocurrencies in my online program too, by the way. To check it out, just click on the "Store" link at the top of this website.