eToro
By eToro

61% of Bitcoin hodlers could sell at a profit

According to The Block, up to 61% of Bitcoin hodlers could sell at a profit. Towards the end of the year, should Bitcoin prices stay about $8,000 per coin, 61% of hodlers could sell in their cryptocurrency. The Block looked at the overall potential to sell at a profit, with regards to both old adopters, and new traders. 

What is hodling? 

So, what exactly is hodling? According to eToro, to hodl is to “to hold on to your coins, even when the market dips, rather than sell up and cash out.” If you don’t have a lot of time for trading on your hands, this is most likely the strategy for you. Some of the most successful Bitcoin hodlers include the Winklevoss twins and Satoshi Nakamoto (the founder and creator of Bitcoin). 

INVEST IN BITCOIN NOW
Your capital is at risk.

Hodling Bitcoin and other cryptocurrencies is a pretty surefire way of earning profit on your coins. Riding out the fluctuations of the market is preferable to selling at a low because you’ve given into FUD (fear, uncertainty, and doubt). Particularly when it comes to Bitcoin, hodling is almost always the long-run way to go. 

Bitcoin hodlers to sell at a profit

Around half of the addresses found to be “in the money” were actually new adopters. In fact, whales were found to make up a very small fraction of potential gainers. Those who entered into the market at low four-digit Bitcoin values were found to have the biggest potential for gain. 

Losers are made up of those who bought at all-time high prices, and those that bought BTC at the peak of smaller rallies. Losing addresses make up 29% of all addresses, and are comprised mainly of those that bought at the top. Still, 61% of Bitcoin hodlers could sell at a profit, which is definitely not to be overlooked. 

However, Bitcoin prices are volatile and there’s still the potential for losers to lock in profits. With a bull-run almost certainly imminent, Bitcoin value could cross the threshold it set in 2017 and enable those who bought near the top to earn a profit. 

INVEST IN BITCOIN NOW
Your capital is at risk.

Bitcoin scares with a bearish turn 

In the past week or so, Bitcoin has seen a slight downward trend in price. Now, it seems as though Bitcoin could go below $7,000, and cause another group of “hodlers” to become “losers.” At this price, the Bitcoin fear and greed index has plummeted by 32 points, which shows that people are feeling some fear, uncertainty and doubt. With that being said, even bigger slumps have been followed by rallies, so there’s no reason to panic. 

Bitcoin hodlers actually help to diminish value slides. However, as soon as price appreciation occurs, there is usually a mad scramble of owners trying to sell their coins at more favorable prices to turn a BTC profit. 

Overall, if you’re new to Bitcoin, the general idea would be to maintain patience and avoid panic-selling at a low. 

How to Hodl

Hodling is probably the simplest and most effective crypto asset trading strategy out there. We know that 61% of Bitcoin hodlers could sell at a profit, and that’s an incredible endorsement of the effectiveness of this strategy. What’s important is that new traders learn to interpret the fluctuations of the market, and not give into FOMO or FUD. As we enter into a bull run, the Bitcoin value will climb and BTC profit for more hodlers will too. 

INVEST IN BITCOIN NOW
Your capital is at risk.

Buy Bitcoin, or learn to trade the crypto asset market with eToro, the world’s leading social trading platform. Learn more at etoroprod.wpengine.com 

Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors. Other than via CFDs, trading cryptoassets is unregulated and therefore is not supervised by any EU regulatory framework. Your capital is at risk.