I received a question this morning about a crypto coin and he was asking if it “was worth it to Hodl?” The word Hodl means Hold On for Dear Life. I thought the answer to this was worth sharing with everyone as it is important for every investor to understand. Over a thousand Crypto coins have failed. If you invest in a new coin your chances of failure (coin going to zero) is extremely high. On the flip side, your chances of getting rich increases dramatically. The late John McAfee said about the space “It’s easier for a coin worth less than a penny to go to a dollar, than it is for a coin worth $1 to go to $100.”
This is the only market I’ve ever seen where 100x returns are fairly common. My advice would be this: Do your due diligence on any investment vehicle before you invest. Only invest money you are comfortable losing, and finally…. If you aren’t willing to Hold on to a coin for a few years and ride through the volatility then this space isn’t for you. There will be ups and downs, you will lose money, you will make money. If you educate yourself you will understand that this movement isn’t only about money, but about an idea. That idea is that a currency has the ability to exist outside of government control. That a store of value can exist digitally and be both trustless and verifiable.