Many newcomers to the crypto space can't escape one curse—the "HODL" strategy. The seemingly simple "hold and endure" approach is actually gambling against the market, and the odds are never in your favor.

Imagine Bitcoin at the 100,000 level. You shorted it but didn't set a stop-loss. How many possible outcomes are there next? The market could surge, causing you to get liquidated instantly. Or it could rise to a level that scares you, prompting you to cut your losses and exit, suffering a heavy loss. If luck is on your side, the market might rise then fall, giving you a chance to break even. Or the market could drop directly, and a small decline would make you profit. The most ideal scenario is the market crashing, and you making a big profit.

Where's the problem? There are only two endings for a HODL trader: either hold until the market recovers to break even and then stop, or get liquidated. Or they only dare to exit if they are in profit at the time of opening the position. Over the long run, your profit and loss ratio makes no sense—winning small when you win, getting liquidated when you lose. That's even less profitable than gambling at Macau; they can win 100 bucks by betting 100 bucks.

HODLers take such huge risks, but in the end, only gain tiny profits. Basically, this kind of trading is a loss.