Holder
Holders. Investors who (almost) never lose a trade. Out of the four personalities, this one has the highest success rate.
It’s surprising how holding is so simple, predictable, and yet effective. Because only holders can buy “at the top” and still make big money. Their secret to time the market is to always be in the game, so they cannot miss out.
“I could either watch it happen or be a part of it.” — Elon Musk, Spacex Founder
Holders don’t look to trade for a living, but rather be part of projects with 100x potential. And while holding isn’t the most profitable strategy, they can still multiply their portfolio without ever worrying about the market.
In the end, it will go their way.
Faithful Till The End
Holders believe in the project’s vision. It may take a while before they choose that one project. But when they do, they will hold, at least, until it becomes more successful.
Even if it takes a long time, they’d rather keep the coin than miss out on potential growth. It’s a matter of time.
Dare To Differ
When most traders react to market trends, holders stay resolved on their strategy. They hold even if the price moves far from their goals. It’s not an easy decision.
But it’s the same mindset that often makes investors successful. Those who dare to differ popular belief are always ready for the next cycle.
Recommended Coins
The whole crypto market favors the holder. There’s no wrong choice, whether you like DeFi coins or game tokens, micro or macro caps.
Within the Top 50 list holders should not ignore Ethereum, Solana, Cardano, PolkaDot, Avalanche, Fantom, Mana, FileCoin, even Bitcoin.
And if you’re comfortable buying at their current price, consider the coins within their ecosystems, as they offer better upside. To name a few big ones: MoonRiver (in DOT), Raydium (in SOL), Joe (in AVAX), Enjin (in ETH).
When a coin like Bitcoin goes up, most of the top 25 tokens also do. So if you don’t know which one to pick, it’s safe to buy multiple. At least most of them will sell high.
Holder Pros
Effective Long Term
Holders invest long-term. Once they find a project they like, they stay until they get the results they want. They’re patient when the coin doesn’t appreciate (yet) unless the fundamentals change.
Holders make money because (1) they base on long-term predictions and (2) take their time. So the longer they hold, the higher is the chance of reaching your target price.
Low-Risk Approach
Holders don’t need to be right to succeed. If they expect a coin to go up and it doesn’t, you just wait until it does. If you get in early, your cryptos will appreciate anyway.
Holders reduce their risk because they don’t respond to selling pressure. They don’t mind waiting for profits. They can’t be wrong if they don’t sell.
Time-Efficient
The holder mindset is binary: do nothing unless the market goes in your favor.
Unlike day traders, holders make few decisions and spend little time on the investment. They don’t need to adapt their strategy due to its simplicity.
Of course, it’s only time-efficient if the token moonshots. If you’re waiting for years, it needs to grow enough to justify the wait. Or else, it could be a waste of time.
Holder Cons
Impulsive
Except for long-term investors, traders rarely choose holding. When they do, it’s because they have no choice. They often buy at the top and refuse to accept the loss.
If you want to hold long-term, what sounds more promising? Buying the coin moving sideways, or the one moving up? The problem is, uptrends are the time to sell.
The higher you buy, the longer it may take to recover.
Indecisive
Holders believe that doing nothing is the answer. If the price falls, they wait for a trend reversal to save their portfolio. But what if it goes up?
When holding makes you money, it tricks you to believe it will continue to do so. It’s hard to justify selling, so you hold instead and miss the chance.
It’s not a big deal until they look back at all the money they could have made (or not lost) if holders were more decisive.
Money Over Time
Holders want to be right more than making money, no matter how long it takes. Instead of missing out, they’d rather hold until they profit. But by doing this, they miss out on other projects.
When holders choose not to lose money, they choose to lose time. Thus missing opportunities with faster growth. And even if you wait, there’s no guarantee you will sell at the top.
Strengths
How to play on your strengths as a holder?
Early Investing
Early holders can make more in a year than swing traders. Who else has the patience to go through months of silence?
If you look at the yearly chart of the top-20 coins, most of them are up. If you bought at the top a year ago, you made 4x–10x (even Bitcoin). And if you’re good at micro-cap investing, that’s 50x-200x.
Because it’s just one buying decision, holders should take the time to learn as much as possible about the project. If you’re going to invest time, you want to research and make sure it’s worth the wait.
Entry Strategies
Parabolic coins catch traders by surprise because they only pay attention when they rally. These typically launch at inflated prices and then flat out for months before exploding. And if holders buy at the plateau, they WILL profit sooner or later.
Always backed by fundamental analysis.
Discipline
Holders stay focused after their decision. They may take a long time to choose the right coins. But once they buy them (no matter which one), they rarely go back on their decision.
Either by choice or accident, holders stay confident in their decision. Even when the market goes the opposite direction. In the worst case, they can forget about it, come back years later, and find a pleasant surprise.
Weaknesses
What blind spots to watch out for as a holder?
Low Variety
When you want to hold, what’s the first thing you think about? Usually, it’s one or two big projects and nothing else. But you could also hold a dozen coins to spread the risk.
Holding a bunch of popular coins is still risky, as they’re typically correlated to Bitcoin. If they all move in the same direction, that’s the same as holding only one. If buying the top 10 coins, at least wait for the price to bottom out.
Why hold a coin for years and only to find out it was the wrong choice? While markets go up in general, it can still happen. To minimize risk, holders should find non-correlated tokens instead.
Shallow Strategy
When holders like a project, they like to go all in. And if they ever want to sell, they exit all their positions. It’s either 100% in or 100% out (instead of, say, selling 10% of tokens).
It’s hard to make big decisions like these because there are pros and cons to everything. It’s easier to feel confused when given a binary choice. And while you weigh the pros and cons of each, you miss the chance to trade the coin.
Opportunity Cost
Holders seem to value guaranteed returns over the amount. They wonder when they will profit or break even. When the question is: What will make me the best returns today?
Opportunity cost is what you miss out on by locking your funds at the wrong time. When you focus on one project, you may forget that there are opportunities everywhere. Whether you want to get rich or break even, is holding the fastest way?
Conclusion
With so many choices, how do you find the best crypto strategy? Whatever it is, it only works if you apply it. To do so, it has to match with how you think:
Holders can get high returns for doing nothing. But the risk of losing money is also real, no matter how small. To make sure it’s worth the wait, hedge your bets.
Don’t just buy one project. Plan your entry/exit strategy. And don’t let the FOMO lock you away from better buying opportunities. With patience and discipline, your time to shine will come.
Massive adoption hasn’t happened yet. So while you may feel late on the current cycle, you can get in now and be early for the next one.
When you play on your strengths and plan for weaknesses, you give yourself the best possible chance for success.