Crypto can feel like a rollercoaster—exciting highs, gut-wrenching drops. In a space that never sleeps, how do you stay steady? That’s where HODLing steps in—a strategy born from chaos, built on conviction. Best believe HODLing brings out a new way to deal with the volatile market for those seeking challenges and prefer their long-term goal rather than the short term. Curious about its roots or strategy, especially with Real-World Assets (RWAs)? BigWorld unravels HODLing’s role, offering insights to guide your journey through crypto’s dynamic landscape, with a focus on stability and informed decision-making.

1. The Creation of HODLing

HODLing was born from a typo that sparked a crypto revolution. In December 2013, a Bitcoin Talk forum user, named GameKyuubi, posted a passionate rant titled “I AM HODLING.” Frustrated by Bitcoin’s price dips but resolute in his commitment, he accidentally wrote “HODLing” instead of “holding,” urging others to resist selling. The crypto community embraced this raw defiance, transforming the term into a symbol of grit and patience. Today, HODLing is a cultural cornerstone, embodying the resolve to stay steady in crypto’s turbulent markets - a mindset that resonates deeply with BigWorld’s mission to empower long-term thinking.

So, what does HODLing really mean?

HODLing represents buying cryptocurrencies and holding them for years, undeterred by short-term price swings. HODLing is also commonly used as an acronym for the term “hold on dear life”. It’s rooted in belief in a project’s future - whether a decentralized blockchain or an RWA platform tokenizing real estate - and demands resilience through market highs and lows. Unlike day trading’s chase for quick profits, HODLing bets on sustained growth, anticipating that robust assets will gain value over time. RWAs, tied to tangible assets like property or commodities, shine here, offering stability that complements HODLing’s long-term focus. This strategy aligns with crypto’s transformative trends, making it a compelling choice for patient investors.

2. Why HODL Crypto Assets?

HODLing provides a disciplined framework to navigate crypto’s volatility, letting you capitalize on long-term trends rather than reacting to daily fluctuations.

HODLing opens doors to crypto’s broader possibilities. By holding assets through market cycles, you position yourself for recoveries and industry shifts, like the rise of tokenization.

3. What makes a HODLing strategy?

A solid HODLing strategy rests on discipline and preparation. These core components, outlined below, fortify your approach with practical tips to weave in RWAs and other assets:

• Research: Dig deep into cryptocurrencies before committing. For RWAs, scrutinize the underlying assets - real estate deeds, gold reserves, or collectibles - and the platform’s tech backbone. Check whitepapers, team credentials, and market trends to ensure durability. For example, verify an RWA platform’s asset backing and security protocols. BigWorld’s educational content can kickstart your RWA research, offering clarity on project fundamentals.
• Diversification: Spread your bets across sectors to tame risk. Allocate 40-50% to stable assets like RWAs for a steady anchor, 30% to mid-tier projects for growth, and 10-20% to speculative plays for high-risk upside. This mix cushions volatility - RWAs can hold firm when digital assets wobble - letting you HODL with confidence. Adjust allocations based on your risk tolerance, keeping your portfolio lean but varied.
• Security: Lock down your assets with robust storage. Crypto wallets with multi-factor authentication shield against hacks, critical for safeguarding RWAs and other coins. Regularly update security measures and backup keys.

These pillars - research, diversification, security - build a HODLing strategy that’s informed, resilient, and secure, paving the way for long-term success with RWAs as a stable cornerstone.

Read more: How to Set Up and Use a Crypto Wallet for Beginners

4. Why choose HODLing instead of Traditional Buy-and-Hold Strategies?

HODLing echoes the traditional buy-and-hold strategy of stock markets, where investors hold assets long-term to weather volatility. Yet, crypto’s unique traits - high risk, emerging status, and innovative applications like RWAs - set HODLing apart. This comparison clarifies how long-term investing adapts to digital assets versus established markets.

HODLing adapts buy-and-hold principles to crypto’s high-stakes environment, offering exposure to innovations like RWAs while demanding greater risk tolerance. BigWorld’s insights help bridge this gap, providing clarity on crypto’s unique dynamics.

5. Last Words

HODLing is more than a meme - it’s a disciplined path through crypto’s wild terrain. By anchoring your portfolio in rigorous research, smart diversification, and top-tier security, you lay the groundwork for enduring growth. RWAs, with their real-world ties, bolster stability, aligning with the industry’s shift toward tokenizing tangible value - a trend reshaping finance. BigWorld fuels your journey with educational resources and a community diving into AI, blockchain, and digital identity, empowering you to navigate crypto with confidence. Instead of direct advice, we offer tools to chart your own course in this evolving landscape.

HODLing is about patience, but market hype can tempt you to jump in rashly. Discover how to sidestep FOMO-driven decisions and make informed choices for your crypto investments: https://thebigworld.io/blogs/what-is-fomo-key-factors-to-consider-before-jumping-into-a-project