Learn about Bitcoin
How to Hodl: a Guide to Saving in Bitcoin
If you read that title and felt the urge to correct the spelling, this article will set you on the right track. HODL on tight as we take a trip into the exciting and explosive world of investing in Bitcoin. We discuss how to secure Bitcoin for the long-term (hodling), Trezor wallets, and what every crypto curious no-coiner needs to survive and thrive in the crypto world.
The word hodling was created accidentally when an online post back in 2013 went viral after a bitcoiner tried to say — supposedly drunk at the time — that he would be holding on to his tokens. The term quickly became an official Bitcoin term for not selling your crypto but holding onto it as an investment, even when the markets rock.
If you’re new to Bitcoin culture, you’ve started at the right place. Trezor Blog covers all the terminology, hardware, and tech you need to feel comfortable in this thriving online community. We’ll have you slanging your way around the Bitcoin forums like a pro in no time.
Hodling is patience through security
Our aim is to help newcomers understand the pros and cons of trading Bitcoin and how you can safely HODL your tokens using Trezor as a long term investment.
Looking at the short but explosive history of Bitcoin, it’s an investment you can’t afford to miss. On the flip side, it’s also under constant attack from criminals due to its immense value. Minimize your risk with trusted tools that safeguard your tokens from online threats, all in one compact device - the Trezor hardware wallet.
Bitcoin grew from $0.0008 to over $40,000 per coin in around 10 years, which explains the opportunistic attempts to steal from Bitcoin wallets. Stick around and we’ll cover the knowledge and tools needed to avoid security breaches and potential losses when buying your first coin.
How Bitcoin works
The history of Bitcoin is as enthralling as the digital tokens themselves. An unknown entity (or person) only known as Satoshi Nakamoto stirred up the worldwide banking scene in 2008 by inventing the first decentralized cryptocurrency.
Each Bitcoin exists on the internet as a piece of code that is controlled by a digital wallet application on devices such as your PC, laptop, tablet, or phone. Your wallet grants access to your bitcoins, so make sure you protect it.
Bitcoin can be sent to places on the network controlled by other crypto wallets, whose owners can be anywhere in the world. You can also send fractions of Bitcoin, which is more practical due to its immense value. All Bitcoin transactions globally go onto a publicly-shared list that’s referred to as the blockchain.
Should you trade crypto or just hodl?
When you choose to HODL your bitcoins, you are deciding to not sell it even if the market destabilizes and your investment loses significant value over a predicted longer term.
Most crypto-experts support hodling, and the reasons they do are evident in Bitcoin’s performance over more extended investment periods. Although most traders lose money, Bitcoin has been profitable to ‘hodl’ for 99.9% of the days it has existed.
If you bought $1000 worth of Bitcoin when it launched in 2009 and hodled, through the many peaks and crashes, your investment would now be worth tens of billions of dollars. It sounds too good to be true, but those are the facts. There are numerous Bitcoin millionaires because they chose to remain patient and calm when the markets rocked, and many more who sold too early.
There are various methods and tools to consider for safeguarding your tokens in the long run. Trezor is the original purpose-built offline hardware wallet and has an excellent success rate. It not only lets you start using crypto from the first day, but it also protects your private keys and tokens offline (in cold storage) and out of danger. It’s an easy one-stop solution to buy and save cryptocurrency for the long term, safely.
How to hodl successfully
Stay informed
Knowledge is critical, and you should stay up to date by reading as many trusted articles, blogs, and news reports about Bitcoin as possible.
Consider joining one of the numerous online crypto communities like Bitcointalk where long-time Bitcoiners discuss news, tips and ideas daily. Publications such as Trezor Blog and Gradually, then Suddenly are trusted sources that will keep you posted on exciting developments in the fast-paced world of crypto trading and saving.
Time is money
To build a long and successful career in crypto, patience is vital. Volatility can create huge short-term gains or losses, and adopting a low time preference (thinking long-term) will serve you well in the long run.
- DCA (dollar-cost averaging) is an easy and manageable way to get started in BTC trading. It can be a straightforward method to offset risk as you pre-determine a regular and set investment into BTC. You can opt for buying $20 per week, as an example.
- If you prefer a timed entry, that’s also fine; either way, make sure you withdraw your purchase to a secure wallet, such as Trezor.
- If you’re buying to save, use a low fee for any withdrawals from exchanges. It will take longer to confirm, but why the big rush? Check the current state of the network and aim for the lowest fee shown.
Be vigilant when buying crypto
Only use trusted exchanges with superior track-records. There are many good exchanges to choose from but do not count on them to protect your coins in the long run. This is a bad idea, as the exchange can be hacked or otherwise lose your funds. Trezor Suite lets you have coins deposited directly to your hardware wallet so they never leave your custody.
- If buying all at once, try not to worry about missing out on price pumps; they can reverse quickly. Once you have Bitcoin, don’t invest into other cryptocurrencies based on price movements alone — always research them for yourself.
- Coins with low volume are often easier to manipulate. Watch for Pump and Dump (PnD) schemes, where prices are drastically inflated and then supply is dumped on unsuspecting buyers.
Follow sound security practices
The most important thing you must do is to back up your keys, preferably using Shamir secret sharing. Never share your seed words or enter them on a device other than your Trezor.
As long as your seed is secure, your coins are safe. Improve your privacy by:
- Make use of privacy tools such as the Tor Switch in Trezor Suite, to mask your connections.
- No matter how tempting it is, do not speak about your holdings and never share identifying data online.
- Keep your Trezor device in a safe place. Keep your seed even safer.
What is Trezor?
Trezor came to being when Pavol “Stick” Rusnak and Marek “Slush” Palatinus attended a Bitcoin conference in Prague, 2011. At that stage, all the best IT gurus were scrambling around to find solutions for safeguarding this precious new commodity online.
Dubbing their pet-project ‘PIGLET,’ these two programmers created the first stand-alone solution to safely store Bitcoins by keeping your private keys (a sort of password to access your crypto-wallet) offline. The rest was cryptocurrency history. Since the first Trezor hit the market, hundreds of thousands have been sold globally and offer a trusted and secure method for buying, selling, and storing Bitcoin.
When should I buy a Trezor hardware wallet?
If you’ve lost Bitcoin in the past or due to an exchange breach or losing access to your wallet, you’re in the market for a Trezor. Equally, if the thought of that happening keeps you up at night, or you’re just now considering investing in your first coins, our trusted all-in-one Bitcoin solution makes it simple to protect your crypto. It’s always safer to hodl in a hardware wallet as your keys never touch a network.
How to buy Bitcoin via Trezor
Although many traders only use traditional exchanges to acquire Bitcoin, we’ve made it simpler and safer. By using Invity in Trezor Suite for all your buying, trading and spending, all the control is in your hands. This is a secure platform from SatoshiLabs, where you can compare prices and deposit coins directly to your wallet from trusted exchanges with excellent records.
It’s a quick and straightforward process:
- Connect your Trezor to your PC or laptop and open the Trezor Suite interface.
- Click on the ‘Trade’ option in your accounts menu, this will display the ‘Buy’ tab, where you can state how much you would like to spend.
- Click ‘compare’, and select your preferred payment method and exchange.
- Confirm your wallet address and proceed to the exchange’s website. You will need to create an account with the exchange if it’s your first time.
- Complete the purchase with the exchange by following the prompts. Your coins will be sent directly to the address you supplied.
How to locate your wallet address for other exchanges:
- Open your wallet account for the currency you’re buying.
- Navigate to ‘Receive’ and select ‘Create new address’> ‘Show full address.’
- Confirm your wallet address on your Trezor device > ‘Continue.’
- Copy and paste your wallet address to the exchange and then double-check it exactly matches the one you copied.
Why you should hodl using Trezor
Many BTC traders regret not holding for the long term, but it’s never too late to get back on track. Speculations amongst the world’s economic giants are spiraling upward, predicting that Bitcoin will increase to hundreds of thousands per coin in the next decade, or sooner. Even if you’ve lost coins in the past due to inadequate security protocols, rest assured that Trezor will minimize your risk exponentially and ensure you can reap the rewards of your patience.
Keep in mind that there are a limited number of Bitcoins available, and you might not have an opportunity to repurchase them at a later stage. With the increased attention on successful crypto platforms and tools, such as Trezor, Bitcoin’s popularity is skyrocketing daily.
The time to invest in your future is now. Using Trezor, you can think about the long term: we’re committed to providing continuous and safe support that lasts as long as you can hodl. Time is on your side; get started using cryptocurrency today with Trezor!
