WHAT THE “HODL” MEAN IN CRYPTO?

HODL is short for “hold on for dear life” and it’s a popular term among crypto investors. Although it looks like a funny misspelling of the word “hold” — and some say that’s how it began — HODL is actually anchored in the traditional buy-and-hold investment strategy.

The hodl cryptocurrency strategy has been utilized by many cryptocurrency investors who do not want to deal with too much information or hassle regarding getting the most out of their assets & tokens. It is one of the simplest methods through which you can invest in cryptocurrencies.

HODL represents a strategy where a cryptocurrency investor focuses on the long-term value of a specific currency with the belief that the cryptocurrencies will eventually replace government-issued FIAT currencies.

For those who invest in cryptocurrency, HODL has become a banner proclaiming their long-term allegiance to digital currency. In Reddit or Discord forums, those who buy and hold crypto might call themselves “HODLers” and talk about the virtues of having “diamond hands.” These phrases indicate their stated unwillingness to sell volatile assets such as crypto. These terms stand in contrast to “paper hands,” those who are willing to sell when volatility ratchets higher.

The basic hodl meaning can apply to a buy-and-hold strategy when talking about bitcoin or other cryptocurrencies as well. Again, the idea is to “hold on for dear life” rather than selling off cryptocurrency in a panic if volatility increases.

At the core of the hodl approach is the idea that crypto investors shouldn’t be trading based solely on short-term pricing moves. Instead, cryptocurrency investors should hold on to their coins or tokens, riding out periods of volatility as they come and go. Even though cryptocurrencies may dip, pricing still has potential to rebound, making up for losses over time.