#HODLTradingStrategy The HODL (hold on for dear life) strategy is mostly used by crypto traders to purchase and hold cryptocurrency in the long term. Regardless of market fluctuations, traders following this strategy hold onto their trading positions as they anticipate that the process will move in their favor over time. Traders need to maintain patience, as panic selling during downturns is not a choice when using the HODL strategy.

How to use HODLing in crypto trading?

Research and select the cryptocurrencies.

The first step is to research cryptocurrencies and choose those with long-term potential. Traders need to consider factors like the project's technology, team, use case, community support, market adoption, and more.

Establish an investment plan

Since the HODL strategy is a long-term strategy, traders must ensure that they set goals and timelines for the long haul. Traders can determine the percentage of their portfolio they want to allocate to cryptocurrency and leave it aside for a few months or years to reap gains. Only invest the money the trader can afford to lock up for an extended period of time.