TO HODL OR NOT TO HODL- an XRP love affair
To hodl or not to hodl, That is the question, to answer it, we have to dive in a little bit. First off let me say I am not a financial advisor so don’t do anything I say in this article unless you DYOR. If you want to research more and deside for your self. Now that being said I am diversified, I’m not all in on the beloved XRP. Xrp is my love story. But all love stories don’t end like they do in Hollywood. Just because a love story has a bump road is it less worthy of a Hollywood ending romance?? I think not, XRP is my largest bag and will grip it tight but I am in over 14 different stocks and crypto projects. I was in more but recently consolidated some holdings. I don’t have the stomach for centralized investing or betting on one horse so to speak. I diversify, if a few of my investments do poorly for a time then the others will pull up the slack and keep me growing ... hopefully 🤞🏻
Let’s take the king of investing , Warren Buffet, Buffett is used as an example by many people including the media and financial advisors of the world as to why you should buy and hold. Now when you buy and hold a stock or crypto people think you buy it and hold it no matter what. It does not matter if there is good news or bad news, Biden or Trump president, a recession or an economic boom. You hold the stock through good times and bad. Basically true, but this is not entirely true. Buffet doesn’t buy and hold per say. He buys a stock or company after and only after a heavily calculated risk has been done. He knows what he is buying and that’s why he bought. We will call them reasons A,B & C for why we invested in something.
After the risk assessments you buy and hold, hold through anything and everything, no matter what .... EXCEPT if something changes from your original risk assessment, if reasons A,B,or C change. Then it’s time to reevaluate and maybe pull out.
How do I relate to this ? I have researched and have done risk management for a stock call HIVE, I had big hopes for this stock and think the potential is there for some really massive returns. HIVE.V -Hive Blockchain, I’ve been invested for quite a few years. At one point I was all in on my stock portfolio in Hive, but the fears got the best of me a little while ago when Genesis Mining was trying to do a hostile takeover of Hive in the spring of 2019. Shares dropped from .80 cents to .08 cents in about 5 months. I was terrified. Now when this happens I reacted on my emotions, instead of referring back to why I invested in the first place, my calculated risk. I should of sat there and drank my coffee.
But no I start to freak the fuck out and panic.
Has anything changed in the company from the original vision? -NO
Are things still moving forward? YES
Is current stock price reflected in the company’s worth ? -NO
Even if a hostile take over takes place, new leadership. I wasn’t tied to the old leadership. So does this change my view on this stock? – NO
So WHAT DO MY EMOTIONS DO, they take control. I panic and freak out. Scared to death that this is going to zero, I decide to derisk my portfolio. At this point,In my spare time I have been looking into other stocks I researched previously, so I dove deeper in. Make my decisions and reallocate funds. I leave about a 15% investment into hive. Sure over the last year these stocks have made money.
How did the move turn out with the stocks? Over all not bad, did I make money? Yes I did very well actually but not as well as if I left it in Hive and I mean all in HIVE. If I would have stuck to my gut and research I would have $3,625,000 today in HIVE.
Now, I WISH !
I kept wanting to buy back into HIVE, but was alway scared it would drop. I should have just held on tight with both hands.
Again I believe in HIVE, I think it’s an ever growing business model. Hive is going green and mining will be renewable in the near future. One concern would be proof of work, if the world ever moved away from planet killing proof of work. Then we’ll I would re-evaluate.
Another example of holding when you have done your research is Amazon. They dropped in the dot com bubble burst of 2001 from $100 to around $5. It was rumoured that family and friends were the only ones to hold on, everyone bailed and ran for the hills. Again if you believe in the project and tech then you don’t sell. If A,B & C have not changed then You hold and buy more if possible. Consider a dip a gift. So where is this going? Yes you guessed it XRP.
So has anything changed in the use case for XRP? – NO
Has anything changed in the business model for ripple ( the largest use case) ? -NO
Bad management, bad decisions, bad choices – OH HELL YES . But hasn’t changed anything with in company model. I’m acting not with my emotions. Sure I re-evaluated when the lawsuit against ripple was announced, I chose to hodl. Could XRP be a security? Sure, I really don’t think it is. Maybe it was but not now. They (ripple) have worked to make sure it’s not. A long time ago I diversified. Crypto is so volatile that I really feel all your eggs in one basket is a bad idea. From that everything else is up huge in comparison to my XRP holdings.
OVER THE LAST YEAR
ADA and XLM are up 600%
VET up 450%.
SHA up 700%
SOLO up 230%
ALGO up 100%
EHRT up 85%
These are my wins, sure there are losses and projects I left too early. The amount of money I have lost because I tried jumping around early in my learning makes me.. well ... I’m not sure if I should 🤬 or 😭 but I’ll save those stories for another post.
At times do I feel like abandoning the XRP ship, sure, it’s natural to have self doubt. Holding XRP through this shit storm is a calculated risk and I’m willing to take it. And let’s be honest the FUD on Twitter makes it even harder. This last year, again yes I made money. But just like with Hive, in 5 years from now I feel if I calculate how much money I would have made if I would have all my money in XRP..... I think I’d be sadly disappointed. But diversification is safety. Anything in crypto is possible.
Uncertainty every where you turn, If Satoshi cashed in his million Bitcoin’s tomorrow he would run away with roughly 40 billion dollars. Bitcoin price would plummet not only from the sale but as news that the founder has cash in and seems to abandon the Bitcoin project. Mass hysteria is the result.
Ripple abandons XRP and uses stellar instead ? Possible ? Sure it is ... it’s crypto, the Wild West. Be careful out there anything can happen, do not take a word I say and act on it. Do what is right for you and your family. Every situation is completely different.
Truth is, invest your money in the crypto projects and Stocks you believe in. Leave it for 5 -10 years..... fuck off and enjoy your life. Get your head out of your phone and computer. Hodling is damn hard, better off to put it out of site out of mind. For me trying to day trade and buy low and sell high more often than not results in me doing it wrong and losing some of my bag ... so I practice the art of the HODL, 5 years when you come back, check your ledger you will have plenty of money and damn near die. I just keep adding as I can .. $50 here, $100 there ...
I HODL AND ADD, THAT IS MY PLAN
Time in this case is our friend, Over time damn near everything goes up, damn near......
THIS IS FOR ENTERTAINMENT PURPOSES ONLY 😎
Thank you for reading, untill the next one