HODLING. When investors purchase cryptocurrency with the intent of deriving long-term price appreciation, the objective is to incrementally increase BTC holdings over time. The thinking behind this methodology is rooted in the demand/supply function. The supply of Bitcoin is limited to 21 million BTC, and there are currently 18,163,812 Bitcoins in circulation, with 86.49% of Bitcoins already issued.
By deduction, steady demand will invariably lead to higher prices when supply is limited. HODLING is one technique used by adoptees to engage in the crypto market. It assumes a linear progression of the pricing mechanism. The expectation is that long-term appreciation in prices will ensue, allowing investors to benefit from holding this cryptocurrency. It works in a similar fashion to traditional stock market investments where you buy low and you sell high.
Crypto Traders Leverage BTC Price Movements
At a price of approximately $8700 per unit BTC, it is difficult for individual traders and investors to buy complete units of…