HODLing, or holding onto digital assets for the long term, is based on the belief that these assets will appreciate in value over time. While the strategy carries some risks, it offers several potential benefits for investors:
Long-term growth potential
Helps avoid panic selling
Boasts lower transaction costs
A simple strategy to execute
However, there are still certain risks attached to holding digital assets. For example, a government or international body announcing changes to how crypto is regulated may cause an asset’s value to soar; it may also trigger the opposite. Investors should always stay updated with industry developments and keep an eye on wider market trends and forces.