What is Hodl in crypto? - A Guide for Beginners

What is Hodl in crypto? The term HODL, which stands for "hold on for dear life," is well-known among cryptocurrency investors. Although some claim that the term "HODL" originated as a humorous misuse of the word "hold," it is really connected to the classic buy-and-hold investing strategy as a means of reducing volatility.

With Market247, let's learn more about What is Hodl and other crypto slang terms.

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What is Hodl?

First, learn the basics about what is Hodl in crypto.

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Investors in cryptocurrencies who refuse to sell their holdings, regardless of price changes, are known as "HODLers." When people refuse to sell their coins despite the price decline during a bear market, it is increasingly commonly used.

Later, the term "HODL" was modified to stand for "Hold On for Dear Life," which refers to holding onto investments despite high market volatility and low market performance.

History of HODL

To better understand what is Hodl in crypto, let’s learn about Hodl's origins.

On BitcoinTalk, a user by the name of "GameKyuubi" first misspelled "HODL." GameKyuubi posted the following in the original "I AM HODLING" BitcoinTalk thread:

I typed that title twice because I knew it was wrong the first time. Still wrong. GF's out at a lesbian bar, BTC crashing WHY AM I HOLDING? I'LL TELL YOU WHY. It's because I'm a bad trader and I KNOW I'M A BAD TRADER.

People who confess they lack the ability to execute short-term transactions, such as scalping, day trading, or swing trading, now adopt HODL as a technique. The phrase "HODL" also served as the inspiration for the word "BUILD," which is frequently used by the cryptocurrency community to describe the many sorts of apps that are being developed inside the blockchain sector.

A strategy and guiding philosophy based on what is Hodl

Hold on for dear life, or HODL has become a phrase among cryptocurrency fans, signifying a long-term strategy for cryptocurrency trading. This strategy supports GameKyuubi's argument in the original article that beginning traders should avoid trying to time the market since they are likely to fail and should instead just retain their coins.

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For bitcoin maximalists, HODL stands for more than a method of controlling profit-eroding emotions like FUD, FOMO, and other similar feelings. Because they think cryptocurrencies will someday replace government-issued fiat currencies as the foundation of all economic institutions, long-term crypto holders continue to invest. If that happened, holders of cryptocurrencies would no longer care about the rates of exchange between cryptocurrencies and fiat money.

The HODL maximalist viewpoint is best represented by a meme, as expected. What are you trying to tell me, that I may exchange my Bitcoin for millions of dollars someday?, says Neo from The Matrix to Morpheus. "No Neo, I'm trying to tell you that when you're ready... you won't have to," replies Morpheus.

What Distinguishes HODL from a Buy-and-Hold Strategy?

HODLing a cryptocurrency is the same as using a buy-and-hold method. You may hold onto a stock despite its volatility if you have faith in the future prosperity of the business. Similar to this, if you think a cryptocurrency will do well in the future, you may store it for an endless period of time through several price changes.

By understanding the above two concepts, we initially have a better understanding of what is Hodl in crypto.

Other Crypto Slang Terms

Along with what is Hodl in crypto, the crypto community has also developed a number of acronyms and buzzwords (sometimes with emojis). The phrases used in meme stock groups and forums also overlap with several of them. A few of these are:

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BTFD (buy the f***ing dip): Purchasing a stock after a short-term decrease in price and intended to be repeated after each such downturn is known as buying the dips.
FUD: False information, unfavorable news, and ominous predictions concerning cryptocurrency should be disregarded by sincere believers.
FOMO (fear of missing out): People are more likely to get into bubbles or bandwagon transactions than they are to regret missing the next big thing.
Hold the line: A battle cry to inspire people to maintain their composure in the face of uncertainty.
Mooning: A stock's potential to grow extremely high—possibly to the moon.
Apes: Participants in the NFT or crypto communities. Some have claimed that this is a result of a meme referencing the film Rise of the Planet of the Apes, but others have argued that the term refers to a group of "stupid apes" that came together to fight the Wall Street elite.
Diamond Hands: HODLing with extreme resolve despite the market collapse
YOLO (you only live once): In other words, why not invest in a crypto token or NTF?
Paper hands: This is a negative remark spoken about those who can't keep their diamond hands. These are viewed as weak, unconvinced people who sell their cryptocurrency too soon.

Disclaimer: This article is only a sharing on the subject of What is Hodl in crypto: it does not endorse any particular company, service, or product. It makes no prior recommendations for trading.

Conclusion

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What is Hodl in crypto? - A Guide for Beginners - FAQs

Who first said HODL?

It is commonly believed that a crypto trader going by the name GameKyuubi used HODL for the first time. He spelled the word "hold" incorrectly when raving in a Bitcointalk forum in 2013 over Bitcoin's price volatility following a recent fall.

What is Hodl ’s pronuaciation**?**

To say HODL, make a long 'o' sound as you would for the word toe, then add a 'dl' sound like you would for the final syllable of the cradle.

What does HODL's opposite look like?

Investors who trade regularly would be the antithesis of HODL, which has come to represent "hang on for dear life," and which some relate to a buy-and-hold strategy. They would be attempting to capitalize on market ups and downs.

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What is Hodl in crypto? - A Guide for Beginners - Market247.io