what is hodl

A BTC HODLer is a true believer who buys bitcoin, stores it for long-term investment, and does not check price fluctuations or market volatility. These HODLers have a disciplined and long-term approach toward their investment. Many are still cryptopia estimates 9% of total assets stolen during january hack skeptical about whether cryptocurrency can survive market instability, security, and scalability issues. However, many HODLers believe that there is a future where crypto will finally emerge as a reserve currency for all digital assets.

Alternatives to HODLing

It is important to know when the right time is because this metric varies from one individual to another. If these goals are achieved, the coin holder can sell at any price in the market; otherwise, they continue to HODL. Instead of buying low to sell high, i.e., timing the market, he would start HODLing onto his currency and not selling. “In a zero-sum game such as this, traders can only take your money if you sell,” he wrote. It is, however, more difficult to engage in market timing strategies in crypto where price volatility is high.

Is HODLing the future of crypto investment?

  1. “I believe this is crucial for new investors because they are more likely to act emotionally or impulsively,” Porter says.
  2. Amid the bear market, the HODL meaning and culture are growing exponentially, demonstrating investors’ belief in the long-term impact of cryptocurrencies on the global financial system.
  3. The price surged from $15 in January of said year to over $1,100 at the beginning of December, which delivered a return of 7,230%.
  4. The original 2013 Bitcointalk post (Pic. 1) that popularized “HODL” was titled “I AM HODLING”.
  5. It can be difficult for even professional traders to time short-term trades.

The HODL approach has been rewarding for long-term investors in Bitcoin, Ethereum (ETH) and other leading cryptocurrencies, as it’s helped them navigate extreme fluctuations in the crypto market. Additionally, HODL can refer to the HODL token on Binance's Smart Chain. The token's purpose is to incentivize investors for hodling, or holding onto, their tokens.

what is hodl

The History of the Term ‘HODL’

“HODL can be employed, particularly when the market is declining, to assist investors in avoiding the urge to sell in a panic,” Porter says. The “Oracle of Omaha” famously encouraged investors never to own a stock for 10 minutes that they wouldn’t be comfortable holding for 10 years. Some popular NFT marketplaces include OpenSea, Rarible, and SuperRare, each offering a unique selection of NFTs catering to different tastes and investment strategies. Exploring these platforms can help you find hidden gems and under-the-radar opportunities, perfect for HODLing.

What is a BTC HODLer?

HODLing is an investment strategy derived from the traditional financial world where it is referred to as buy and hold. But in general, the idea of investing for long-term, rather than short-term, gains is not a new one. HODL ($HODL) is a cryptocurrency that was named based on the popularity of “HODL” as an expression in the crypto community. The HODL token operates using the Binance Smart Chain, and HODL token owners can earn Binance Coin rewards. Much like the term itself, HODL encourages users to hold onto their tokens for rewards in the Binance coin (BNB) that are distributed every three days. The rewards are generated from taxes collected on transactions made by users, such as sale, purchase, or transfer of HODL tokens.

The idea is to purchase stocks and hold onto them for a long period, regardless of market fluctuations. Amid the bear market, the HODL meaning and culture are growing exponentially, demonstrating investors’ belief in the long-term impact of cryptocurrencies on the global financial system. Others view the HODL meme as a ‘cult’ that blinds the HODL community, leaving them exposed to issues around legitimacy and the challenges cryptocurrencies face.

This guide explores everything you need to know about the term, from its origin, the benefits and risks of adopting this strategy, and its relevance to crypto culture. You might have encountered communities speaking about HODLing, and perhaps you assumed it was just a misspelling of “holding.” If so, you thought wrong. Low cap coins are ideal for pump and dump schemes since instigators do not need to make huge investments to achieve the desired price action. The term whale means a very large marine mammal that lives in the ocean. In crypto, the term is used to refer to individuals or institutions with an outsized investment in a particular asset. To shill is another common term within the social media circles of crypto enthusiasts which means to selfishly promote a coin or token.

It's worth noting that day trading and hodling are not mutually exclusive investment strategies. Ultimately, it's essential to weigh the pros and cons of each strategy and determine what works best for your investment goals. HODLing means resisting the urge to sell your digital assets, even when the crypto markets are notoriously volatile.

If you plan to buy crypto and HODL, ensure to research a project thoroughly. Hence, HODLers also believe that holding their assets for the long term will stabilize the crypto market. Afterward, there will be demand for digital assets, which will raise their assets’ value https://cryptolisting.org/ and lead to substantial gains. However, there are still certain risks attached to holding digital assets. For example, a government or international body announcing changes to how crypto is regulated may cause an asset’s value to soar; it may also trigger the opposite.

Value investors rely on fundamental metrics like price-to-book, price-to-earnings and price-to-sales ratios to estimate the intrinsic value of a stock. There’s no question the HODL strategy has paid off well for GameKyuubi and other Bitcoin investors that have held onto their crypto investments. Both have their advantages and disadvantages, and the choice between those strategies will depend on your personal investment goals, risk tolerance, and trading experience.

The term HODL embodies the philosophy of buying and holding onto cryptocurrencies, regardless of market fluctuations or temporary setbacks. Instead of trying to time the market, HODLers believe that long-term holding will ultimately result in significant returns. It is used in the crypto ecosystem to refer to a strategy of holding onto bitcoin holdings through its various price fluctuations and volatility. The acronym is a misspelling of the word “holding” by a user on an online forum.

The term “HODL” first appeared in an online cryptocurrency forum in 2013 as a misspelling of the word “hold” — a typo that readers quickly embraced. And given Bitcoin's latest bout of volatility, HODL remains relevant a decade later in 2023. HODL is an acronym that stands for “hold on for dear life.” It’s a humorous misspelling of the word “hold” that has evolved into a popular meme and investment strategy among crypto investors.