HODL: Know The Origin Of The Most Confusing Crypto Slang 

Where Did Hodl Come From? 

Beginners, when they read HODL, think it is a misspelling of the word “hold.” HODL points towards the traditional buy-and-hold investment strategy. Truth be told, the term HODL originated from the misspelling of the word “hold”. It is an acronym for “hold on for dear life.”

On the fateful day of December 18, 2013, a trader with the username GameKyuubi (who later admitted to having had a whiskey or two) posted on a Bitcointalk forum:

On December 18, 2013, a trader with the username, GameKyuubi drunk posted on a Bitcointalk forum: “I AM HODLING,” 

The reason was that in the past 24 hours, the Bitcoin price had plummeted 39%, falling from $719 to $438. A year-long bull run followed this. During which, Bitcoin increased from $15 in January 2013 to more than $1,100 in December 2013.

Now, even after the bloodbath, GameKyuubi decided to hold his Bitcoin anyway and avoided trying to time the market. Hence, the rant.

He continued, “WHY AM I HOLDING? I’LL TELL YOU WHY.”

He goes on to say that he is a bad trader, and he knows it, adding, “Yeah, you good traders can spot the highs and the lows … Just like that and make a millino bucks, sure, no problem bro.”

The sentence might be a little confusing, GameKyuubi was expressing common anxiety of traders about managing price fluctuations. 

“You only sell in a bear market if you are a good day trader or an illusioned noob. The people in between hold. In a zero-sum game such as this, traders can only take your money if you sell.”

The slang went viral, and HODL became an internet meme within an hour. Cut to present, HODL is used as a legitimate investing term. HODL is one of the many insider terms used in articles related to crypto. It is among crypto slang, including FUD, Moon, Sats, and HODL. These are important terms that crypto enthusiasts should know.

HODL Token 

Due to the immense popularity of the expression in the crypto community, today, a cryptocurrency called HODL ($HODL) is based on it. The HODL token operates using the Binance Smart Chain, and the HODL token holders can even earn Binance Coin rewards.

The new cryptocurrency exchange aims for less volatility. This it does by adding anti-whale mechanisms and deflationary coin-burning processes to its framework. The goal of the digital asset is to simplify yield farming by creating a digital asset that appreciates with no trading or swapping involved.

The future goal of the platform includes adding gamification and betting applications to the platform, along with an NFT launching tool. 

The HODL ecosystem claims itself to be a user-centric crypto hodling protocol, enabling investors to build serious wealth for themselves. 

Is Hodl A Good Strategy?

Now, hodl can mean two things in crypto discussion online. Investors or Predictors might use it to refer to the HODL token. Or, they may be using it to refer to a particular HODL strategy they’re using to buy or sell crypto. 

The main idea behind the HODL approach is that the investors shouldn’t be just trading based just on the short-term pricing fluctuations. Instead, the investors should hold on to their coins and tokens despite the turmoil. The cryptocurrencies have the potential to pick up, ultimately making up for the losses.

In 2021, the crypto market crashed. Many investors suffered losses after Bitcoin’s price dropped significantly as all their 2021 gains washed out. Not just Bitcoin, popular altcoins such as  Ethereum and Dogecoin suffered notable losses. However, the crash was just temporary as many of the assets bounced back to their pre-crash levels.

Investors who chose to back out at the time of uncertainties suffered losses. However, those who decided to HODL eventually got rewards. As the crypto market renounced, the investors were rewarded with much higher pricing moves.

This shows that the HODLing strategy means way beyond the acronym “Hold On for Dear Life”. It is not just a crypto acronym. It advocates investors to hodl their crypto assets through the extreme situations of the market crash. 

However, it is a personal choice whether an investor wants to hold or not at the end of the day. It is always advised to do due research before arriving at any decision. 

Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.

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