Lendo’s founders realised that many cryptocurrency owners use a #HODL strategy. Now Steven Hopkins, who is COO of Medici Ventures, a business focused on advancing blockchain technology, has published an article at Coindesk, stating that a HODL strategy is the best investment approach to take with Bitcoin and other crypto.
The #HODL hashtag came from one post by member GameKyuubi on the Bitcoin Talk forum who tackled the “should I sell?” question head on. Within minutes the post became a rallying cry for #Bitcoinbelievers and highlighted the best trading strategy for such a volatile asset, which is to buy Bitcoin and hold on to it.
And it is the HODLer community that Lendo’s radical new loans platform supports. It provides the answer — when you need some cash, don’t sell it, use it as collateral for a loan.
Don’t listen to day traders
There is no need to listen to the day traders who mock the HODLers on Reddit and other forums, claiming that they have done better because they sold at the right time and got the most profit from their assets. A study by the Haas School of Business at UC Berkeley entitled “Do Day Traders Rationally Learn About Their Ability?” points out that most day traders lose money. But, most importantly, according to this report and Steven Hopkins, when these traders make some money they always attribute it to their skills, rather than to luck, like the value of Bitcoin skyrocketing.
The HODL strategy is reliable
Hopkins also reminds us that the really skilful investors tend to choose an asset and take a long-term position on it. Warren Buffet is a good illustration of how to get the best return by holding on. When asked what his preferred holding period is for an investment, his answer was “forever.” It’s a reliable investment strategy, which is why HODLing works.
There are two other ideas that will advance cryptocurrencies to consider, and Lendo provides a solution to these as well. One is #BUIDL. Check out how it’s trending on Twitter right now. This new hashtag reminds us that we need to build more uses for it. Practical applications that will make Bitcoin and other cryptos work better. Lendo, for example, doesn’t just facilitate loans against crypto collateral, it will also offer debit cards so you can spend it.
Which brings us to the other new hashtag #SPEDN. For Bitcoin to be useful, we need to be able to spend it. Again, you’ll get the gist of what it’s about by following the hashtag. As @Hydeez411 tweeted: “Definitely paying off my car. I thought about paying off my house, but that’s not the best way to leverage the money, so I’ll keep making payments on it. Then I’ll just keep doing what I’m doing now. #hodl and #spedn as needed.”
Lendo offers solution to trending ideas
Lendo has answered this call by also promising a merchant payment system in the future, so there will be more opportunities to #SPEDN.
As Hopkins says: “This year has seen intense regulatory pressure on cryptocurrencies and its time we stop pretending that HODL was stupid. It isn’t and it wasn’t. Anyone who doesn’t like the HODL mentality needs to give HODLers something else they can do with their bitcoins.”
Check out Lendo — it supports the HODLers, BUIDLers and SPEDNers!