Holding to zero is worse than paperhanding

Paperhanding is selling your coins without holding for long. You sell when you have the slightest dip or slightest pump, this done out of fear. You will notice that this was done when you newly started trading, you were too weak to crypto game. It’s seen as a weak move, I am sure a lot of us must have been in this situation. When you are paperhanding, you seem to either be stuck in your trading goals or be moving backwards where you make losses because you are too scared of the dip loss to wait for the market to recover and make profit. But at the end of the day you still have your capital with you. This is the only place where the first rule of investment is being respected, and the first rule of investment is no matter what, always protect your capital.

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Opposite of paperhanding is Diamond handing, this is when you hold a crypto asset no matter what, no matter the market cycle, you still hold. It’s like being in a cult, we call people in such situations Maxist, they are ready to defend that crypto project with their last blood and also invest their last dollar in the crypto project. This has an advantage, and this also has a disadvantage, the advantage is that if the crypto project you are Diamond handing booms and pumps, you will be rewarded handsomely, your life will change. Take a look at bitcoin, Ethereum and BNB holders who have been holding since day 1, their lives have changed and they are worth a lot, even though their money is known to be calculated based on unrealized gains and profits.

But unfortunately if the crypto asset you have been Diamond handing goes down to $0 or loses 99% if it’s value, like Luna and UST did to Lunatics(the name they call thierselves and their maxist) they lost all their money. Lots of people watched their millions of dollars turn into something worthless, all because they were Diamond hands and refused to sell because of the faith they had in the coin. After they lost and realised that they made a mistake holding for so long, they started wishing they had sold. They literally almost held to zero, this is the advantage and disadvantage of being a paper hand or a Diamond hand.

Posted Using InLeo Alpha