My 4 Step HODL Strategy for investing in Bitcoin and Cryptocurrencies

I’ve tried day trading many times in the past 5 years. I’ve had some success, but mostly failures. The only successful strategy that’s worked for me is to HODL.

4 Easy Steps Version – TL;DR:
1) Pick your currencies.
2) Buy what you can afford.
3) Set a Goal or Goals
4) Cash Out!

The Details:
1) Pick your currencies
Do some research and pick currencies that you believe in. You might like the technology behind them, the development community, their website and marketing, your friend’s recommendation, the coins objectives, their transfer fees, etc… Do your own research and pick what you like. 

2) Buy what you can afford.
Ya gotta put something in, to get something out. Setup a plan that doesn’t kill your finances, but that is worth the risk. I think cryptos are still high risk. But, with the risk, becomes the reward. Do this on an automated schedule. I have a weekly schedule on Coinbase.com (this is my referral link – if you sign up, you and I both get $10 USD)
*Remember, don’t spend more than you can afford to lose. Losing can definitely happen.

3) Set a Goal or Goals!
As your portfolio grows, try not to get stuck in an “I Need More” mantra. The process of growing your portfolio is addictive. But, what good is more ‘fake money’ if you don’t use it? Make some hard goals and stick to them. I.e., when my portfolio gets to X amount, I’m going to sell 10%, 50%, or 90% and pay off a loan, buy a car, pay your mortgage down, go on vacation, etc… Realize your gains and pull some profits out. You might not reach your goal for a few months or years. If you’re like me, you’ll get addicted to watching the numbers. You’ll open your portfolio first thing in the morning to see how the other side of the world impacted your portfolio.

4) Cash Out!
Keep going until you reach your goal. The crypto ride is quite a roller coaster and very addictive. Remember your goals and don’t get caught when your portfolio drops 20-25% in one day. I’ve watched this happen many times and it always rebounds. Maybe it won’t someday – but I don’t see this happening anytime soon. Sometimes it doesn’t instantly, but it does rebound in a couple days, weeks or even months. Finally, when you reach that goal, cash out! It took me days and a final 45 minutes looking at the sell button, GDAX, etc… “what if my portfolio is 10x in a year, why should I sell now?” You’ve made your goals, you reached them, it feels good to take the money off the table and enjoy it. Having more virtual digits and counting them is certainly fun, but take a moment and enjoy your success and cash out. Now, you can make a new goal and go back to step 1. Happy HODLing…

Unless cryptos go away, you’re going to see gains from a solid long-term HODLing strategy.

I used the same system above to pay off my house last week.
1) I bought into BTC, ETH, and RDD. I had a LTC, XRP and other alts but eventually consolidated.
2) I invested a little bit every week. Whenever I got a bonus of some extra money, I would buy more BTC.
3) I made a goal of 2X my mortgage.
4) When I reached my goal I sold. I’ve reset and created a new goal.

These are exciting times!