Hello my fellow bloggers! Have you ever wondered, how many Bitcoin users are hodlers and how many are traders? Let’s dive in and check some data.
Source
At first, we need to define who is who. The common definitions of hodlers, cruisers and traders is given below.
- Hodlers are passive investors that have held the asset for more than 1 year.
- Cruisers have a holding period of 1 to 12 months. Usually these are short term investors or people who need crypto for a certain purpose.
- Traders hold the asset for less than 30 days. Buy low, sell high.
Ok, now as all terms are set, let’s look at some charts. Here is the chart showing all three groups of BTC users:
Source
As you can see, traders form the smallest group. Less than 14% of addresses move BTC in less than a month since it was bought. Hodlers are the biggest group among all addresses. More than 60% of address haven’t moved their funds in the last 12 month. It seems BTC belongs to believers. These people are either true believers Bitcoin will dominate finance world or at least want it to bring a life changing wealth. I find this very inspiring. Cruisers or traders may drop BTC when correction comes (especially traders, they will dump for sure). Hodlers have a stronger hands. They hodled through March 2020 deep, they will hodl now if BTC price will drop by 5-10k USD while failing to break through 50k barrier ( I don’t think this will happen, but still nice to see Bitcoin army strong).For Ethereum the picture is similar. Around 54% are hodlers (excluding gas fees for non-ETH transactions). Smaller crypto currencies have less hodlers, but these are more risky assets anyway. It is logical that less people believe in a long term success of these projects.
Are you a Hodler or a Trader? Let me know in the comments below!
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I’m not a financial of any kind. I encourage you to check all information yourself and make decision only based on your own opinion. All articles are created for solely entertainment purpose.
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