I’ve been into crypto and trading now for about a month, so still a complete rookie. I’ve been lurking on this forum for a couple of weeks and have been learning a lot from you guys, so thank you for that.
There’s one thing though which I can’t seem to understand. I see a lot of people say: HODL, don’t sell, it’s not a loss untill you sell it for a loss, price drops are just an opportunity to accumulate more etc. The thing is, I just don’t see the logic behind hodling in a market where the prices are dropping due to upcming events (uncertainty due to the possible changes to Bitcoins transaction capacity), which almost certainly causes prices to fall even further. Please explain to me why one would hodl in the following scenario:
Due to upcoming events and uncertainty in the market, the prices are falling.
Suppose I bought XRP for €500 euro a few weeks ago when the price was €0,21. This gave me (500/0.21=) 2380 xrp.
If I sell this right now for the current price of €0.13, I will get (0.13*2380=) €309.40 euro. That’s a loss of (€500 euro – €309.40) = €190.60.
Now let’s say the price drops further down to € 0.10, and at this point I buy in again for € 309,40. This will give me (309.40/0.10=) 3090 xrp, which is (3090-2380=) 710 xrp more than the 2380xrp I originally got for my €500 euro.
So, in a scenario where it’s quite certain prices will fall, why wouldn’t you want to sell for a loss, only to make more profit further down the road?