Introducing PoolinWallet Automatic Investment Plan (AIP) Tool “HODL Plan” – Poolin Wallet

Key Takeaways:

HODL Plan is a crypto AIP tool for investing Bitcoin and Ether.
It’s for everyone! You can correctly master and deploy your own plan.
The AIP has been proved to be a simple yet effective strategy for successful investments.
The earlier you start your HODL Plan, the better.
“If you can’t hold, you won’t be rich.”

Some Knowledge Worth Knowing About The AIP (HODL Plan)

What is it?
It is an automatic tool that empowers you to invest a preset amount of money in a selected investment target regularly over long periods of time. It empowers individuals to save, invest, and grow money towards financial freedom. In this article, let’s narrow down the investment target to Bitcoin and Ether, both traded in pairs with USDT.

For example, you could set up a plan that purchases 150USDT (the preset amount) worth of Bitcoin (the selected investment target) every week (regularly) till the next-next halving of Bitcoin (over long periods of time).
Does it work?
It is simple and brutal, yet effective under some premises.

First and foremost, the investment target chosen for AIP should be one that can grow sustainably over the long term. There is no doubt that Bitcoin falls into this category. Second, focus on the overall trend. To put it simply, plan for the long term. The longer the AIP is executed, the greater the return. People are reluctant to persevere after seeing losses in their short-term AIP. They need to understand that losses are most likely to occur in the early stage and may even last for an extended period. However, as time gets longer, the value of assets will outweigh costs and will grow remarkably faster than the rate at which the AIP invests. Last but not least, knowing that success belongs to persevering. “If you can’t hold, you won’t be rich.”
Why does it work?
In a nutshell, it maximizes the return by reducing the cost.

For example, an AIP that invests a fixed amount of USDT at periodic intervals will buy more satoshis when the price of Bitcoin is low or buy fewer satoshis when the price of Bitcoin is high). It helps to ride out the fluctuations in the Bitcoin price. The strategy applied here is called Dollar Cost Averaging (DCA).

Under DCA, the average cost you paid per share in any AIPs is a harmonic mean. Based on the HM-GM-AM-QM inequalities of mathematics, the harmonic mean always shows the lowest value among the four kinds of average. That is to say, the AIP allows you to acquire assets at the lowest cost, or at the Long-run Average Cost (LAC), which is an optimal strategy.

Besides, the nature of AIP addresses the issue of insufficient capital that often comes with those one-off investments.
How long is the long-term?
(This point may not be completely true or likely become uninstructive in the future, it is for information purposes only.)

Long-term should be clearly defined for practice intentions. In the case of Bitcoin regular investing, any time horizons longer than two successive & full market cycles can be considered as long term. A full market cycle is all about historical narrative and typically consists of a downward trend, a sideways trend, and an uptrend, end-to-end. A classic full market cycle of Bitcoin (roughly 4 years) began in December of 2013 and ended in December of 2017, during which Bitcoin first dropped from the former historical high of $1,280 and then claimed an ATH of $19,800.

However, the length of a full market cycle is dynamic rather than static. As the level of global economic coordination increases, the length will constantly be being shortened. To conclude, the long term is about 6 to 8 years.
When is the best time to start?
Cultivating a long-term perspective. Starting now better than later.

The AIP retains its effectiveness over the long run even if you start from the worst scenario.
How do I set its frequency?
The frequency of AIP does not matter at all in the long run. Just choose whatever fits your capability and investment goals. HODL Plan offers three AIP commonly used frequencies, which are daily, weekly, and bi-weekly.

Something Innovative About The HODL Plan

Please note that any efforts to improve the strategy of AIP are futile. The “innovations” of HODL Plan mentioned hereinafter refer to several customized settings in addition to the AIP.

Intuitive & Straightforward Setting-up.
Smart Transfer & Settlement
This feature makes it easy to set up transfers from Earn orders when series execution and automatic deposit into Earn orders on settlement. This greatly reduces the opportunity cost of idle funds.
Customized Price Ceiling
Set a maximum price limit on the execution of each series of the HODL Plan. When the price of investment targets hit the limit, purchases of the certain series will not be executed.
Backtesting
This feature gives you a holistic sense of how powerful an AIP is and helps keep you on track toward reaching your HODL goals using existing historic stats.
Spare Change Friendly
The minimum amount available for each execution is 20USDT, which means that smaller investors can dollar-cost average into the Bitcoin and Ethereum positions.