Passive holding refers to an investment strategy where individuals or entities acquire and retain digital assets for an extended duration, largely disregarding short-term market fluctuations. This approach prioritizes long-term value appreciation over active trading or market timing. Holders typically believe in the fundamental long-term prospects of the asset and its underlying technology. It minimizes transaction costs and the emotional impact of market volatility.
Context
Passive holding, frequently termed “HODLing” within the crypto community, is a widely adopted strategy reflecting conviction in the long-term value proposition of digital assets. Its prevalence influences market supply dynamics, as a substantial portion of assets is removed from active trading. Discussions often concentrate on the advantages of compounding returns versus the risks associated with extended market downturns.
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