Bitcoin HODLers pursue the right strategy - Binance Research
- Binance Research published statistical data on Bitcoin growth.
- Holding is considered the most effective strategy.
Holding (or HODLing) bitcoin remains one of the best strategies in the current market conditions, according to the latest statistics compiled by Binance Research. The experts point out to the fact that bitcoin moves significantly only during several days within a year. Thus it sounds reasonable to hold not to miss the short-lived rally.
Considering that double-digits gains do not happen very often and they are hard to foresee, Binance Research experts suggest that HODLing may be the best strategy for the long-term investors.
"Not holding Bitcoin on Dec, 7 2017 means you would have missed its largest daily absolute gain of $3,608 (25%)," the team wrote on Twitter.
However, this medal has its reverse as large downside movements also happen all of a sudden.
"Not selling Bitcoin on Jan 6, 2018 means you would've missed its largest monthly drop of 65%. Followed by even more drops until it hit a whopping 85% drawdown. HODLing is a nice meme but not exactly a rational value preservation strategy," a Twitter user Joe007 wrote in a comments to Binance post.
While BTC/USD has recovered from the recent bottom and gained over 130% since the beginning of the year, it is still much lower from the peak reached at $19,900 in December 2017.
At the time of writing, BTC/USD is changing hands at $8,545. The coin has lost about 3% of its value on a week-to-week basis, though it is still 5% higher than a month ago.
BTC/USD, the daily chart
Author
Tanya Abrosimova
Independent Analyst
