Popular Opinion
There has been a popular opinion that people only lose when they realize their loss. This idea intends to define the concept of HOLDING. If you HODL and bear with the volatility, you will eventually reap your reward. Bitcoin and Ethereum's price fluctuations over the past years have perfectly validated the above statement.
However, few realize this statement is CONDITIONAL
Why is it conditional? It works for Bitcoin, Ethereum, and others, right? Yeah, but these projects that eventually come back share the common denominator that it is being valued and trusted by the majority. People believe in its intrinsic value or the team's vision.
Look at one of the meme coins
Take Loser Coin for example. Do you think it will ever come back to its peak or anywhere close to that? It might but with extremely low likelihood, making investing in such is no different from gambling.
Conclusion?
Thus, we may reach the conclusion: the project that is composed of a great team as well as accepted by the mass should be HODL. However, let's be more succinct and say the project that fits your vision/standards should be HODLed.
"Everyone knows this, Howard."
"What are you trying to say?"
This rule seems elementary but people always act against it.
Let me ask you a simple question: Have you seen anyone who invested in something so much and down a lot but refused to exit?
Their argument is exactly our topic at the beginning "You only lose when you realize your loss."
One analogy of this argument is: During an exam, you know you are going to fail it, but the person next to you tells you if you don’t turn it in, you will never fail. The result for this exam-taker will be either turning in the exam and getting a bad grade or never turning in and getting a zero.
What would you do?
I would at least turn it in. At least I want to leave with something.
How does it apply to NFTs?
If you see a project is failing/deviating from your original expectations, you should rather get out asap than HODL and pray for the miracles.
Many in the space fail to gather the courage of doing this just as they fear admitting their mistake. A friend of mine called Rex was a strong believer in Creature World and heavily invested in the project. (With total investment over 30E as a college freshman.)
After seeing deviations from his vision, he immediately realized all his loss and put what remains into a project he believed, Doodles.
Rex's example appears shocking to many. Many will never have the courage to do what he did. They were criticizing him for not being responsible for his asset. However, in my opinion, the real irresponsibility is sticking to the projects you see will fail and being reluctant to take a loss.
The real conclusion
Exiting a failing project and realizing a significant amount of loss takes courage but you will feel more relieved after you take the action as you are no longer being slaved by your mistake.
The NFTs and crypto space in general never lack opportunities. You will come back, just a matter of time.
Also, no one is born to be a trading genius. Go ahead to pay your tuition and learn (also have fun)!
The thread was originally posted on Mar 10, 2022 on Twitter
Orginal Twitter Post:
https://twitter.com/Howard27836449/status/1502106890762952705?s=20&t=iaLGYn34PS4_1gwerNz2rA