HOLD or HODL?
By BIDITEX Exchange on The Capital
On cryptocurrency Reddit threads, Telegram groups, WhatsApp messages, and Slack channels, you must have noticed people misspelling “HOLD” as “HODL” despite having an auto-correct feature on their phones or computers.
But, do both these words mean the same thing, or not? Let’s find out together!
What is HODL?
The very first time the term HODL appeared on the Bitcoin talk forum was in 2013 and came from a member named GameKyuubi under the thread “I AM HODLING”.
From the look of the post, he was drunk and wanted to convey the fact that he was holding his BTC despite the serious fall that had just happened.
Since then, this misspelled term became very popular in the Bitcoin and cryptocurrency world. Whenever a person says in a conversation that he/she is hodling or suggests to hodl, it means that they believe their coin will be profitable one day, if not today.
So basically, “HODL” was originally a typo which has now popularly earned the status of a humorous backronym: “HODL” — “Hold on for dear life”.
What is HODLING?
So, what exactly is hodling? To hodl is to “to hold on to your coins, even when the market dips, rather than sell up and cash out.” If you don’t have a lot of time for trading on your hands, this is most likely the strategy for you. Some of the most successful Bitcoin hodlers include the Winklevoss twins and Satoshi Nakamoto (the founder and creator of Bitcoin).
Hodling Bitcoin and other cryptocurrencies is a pretty surefire way of earning a profit on your coins. Riding out the fluctuations of the market is preferable to selling at a low because you’ve given in to FUD (fear, uncertainty, and doubt). Particularly when it comes to Bitcoin, hodling is almost always the long-run way to go.
Bitcoin Hodlers to sell at a profit
Around half of the addresses found to be “in the money” were actually new adopters. In fact, whales were found to make up a very small fraction of potential gainers. Those who entered into the market at low four-digit Bitcoin values were found to have the biggest potential for gain.
Losers are made up of those who bought at all-time high prices, and those that bought BTC at the peak of smaller rallies. Losing addresses make up 29% of all addresses and are comprised mainly of those that bought at the top. Still, 61% of Bitcoin hodlers could sell at a profit, which is definitely not to be overlooked.
Hodling is probably the simplest and most effective crypto asset trading strategy out there. We know that 61% of Bitcoin hodlers could sell at a profit, and that’s an incredible endorsement of the effectiveness of this strategy. What’s important is that new traders learn to interpret the fluctuations of the market, and not give in to FOMO or FUD. As we enter into a bull run, the Bitcoin value will climb and BTC profit for more hodlers will too.
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