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HODLing (holding aka not selling) your Bitcoin is simple, but it isn’t easy when the price drops 50% in a few months like it just has. HODLing through significant price dips (and even price spikes) takes mental fortitude and can be made more accessible by increasing your Bitcoin conviction.
The Mental Game
Bitcoiners need to be mentally tough. No one can predict where Bitcoin’s price is going in the short term, and it tends to do the opposite of what you think it will do. One minute, you might be so bullish that you believe the price is about to 3x, and the next thing you know, it drops 80%. One effective method to overcome the desire to sell your bitcoin is to consistently dollar-cost average (DCA) at all prices so that you don’t know your cost basis (the average price you purchased all your bitcoin). If you don’t know whether you’re in the green (profit) or the red (loss), then you are less likely to panic and sell your bitcoin when the price drops significantly or take profits when the price moons (goes high).
1 BTC = 1 BTC
If you can change your mindset to not think about things in dollar terms anymore, this can help you immensely. One day, when the unit of account and world reserve currency is bitcoin, we will be able to spend our bitcoin anywhere. Why wait? Start spending some of your bitcoin here and there. Trust me; it’s fun! One of the best ways to increase adoption is to use bitcoin. And remember, the amount of bitcoin you own is your share of the 21 million bitcoin pot. All the value in the entire world will flow into Bitcoin. Keep stacking.
If you think it’s difficult to HODL through price dips, you’ll soon find it even harder to HODL through massive price increases. It can be quite a thrill to double or triple your net worth in a short time, and it takes a lot of willpower to realize that HODLing longer will help you even more. Never brag to anyone about how much bitcoin you have, and don’t reveal how you store your bitcoin. Stay humble, educate yourself, and stack Sats.
Take A Break
If you get overwhelmed or too concerned about the price dropping, I suggest you take a break from Bitcoin. Even a couple of days away will do wonders for your mental health. Everyone needs a hard reset every once in and while. Don’t check the price. Don’t go on Twitter. Set your auto DCA and forget about it. Go outside. Start a new hobby. Reach out to some friends. Call your mom. When you return to the Bitcoin space, you have a sense of refreshment and eagerness to learn more. You can take comfort knowing that in Bitcoin’s 13-year history, not a single person who HODL’d at least four years lost money. It pays to HODL!
In fact, according to Wicked Smart Bitcoin’s analysis below, no matter when someone bought any bitcoin, if he/she then HODL’d for 1461 days then he/she is in profit.
Learning more about Bitcoin is a fantastic way to increase your Bitcoin conviction, and it will reduce your worry over price volatility. A great place to start learning is Twitter Spaces. DjSaToShi18 of Satoshi’s Journal, hosts Spaces every Monday, Thursday, and Saturday from 8 pm-11 pm (EST). Mondays are catered towards answering lesser experienced Bitcoin questions, Thursdays include an interview of guests recording their Bitcoin journeys, and Saturdays are more chill, akin to a Bitcoin hangout session.
Another great place to learn more about Bitcoin is my Bitcoin Education Discord community of 320+ members of varying Bitcoin experiences. Inside this platform are 20,000+ hours of research organized into channels. We have channels on Bitcoin’s properties, mining, node operation, cryptography, and more! We talk about Bitcoin every single day.
Additionally, you will improve your mental toughness by sharing your knowledge with others. One of the best ways to retain knowledge is to teach what you know about Bitcoin to your friends and even strangers. The more you talk about Bitcoin, the better you’ll understand it and further adoption. There’s nothing that increases my conviction more than orange-pilling someone. You realize that Bitcoin adoption is unstoppable, and in due time, everyone will be on board.