"Hodl" is a term that has become synonymous with cryptocurrency investing and stands for "holding on for dear life". The term describes the practice of not selling positions in various cryptocurrencies in the hope that the price will rise.
The term originated from a typo in a bitcoin forum post where a user meant to write "hold" but mistakenly typed "hodl" in December 2013. Since then, it has become a popular investment strategy among cryptocurrency enthusiasts. Hodling involves buying a cryptocurrency and holding it for an extended period of time, regardless of market fluctuations. The goal is to reap the benefits of a long-term investment.
The HODL strategy
One of the main benefits of hodling is that it removes emotion from the investment process. By committing to a long-term strategy, investors can avoid making impulsive decisions based on market fluctuations or FUD (Fear, Uncertainty, Doubt).
Hodling is also a way to support the broader cryptocurrency community. By holding coins, investors help create a stable and sustainable market, rather than contributing to short-term speculation and price volatility. This ethos contrasts with short-term speculations, as HODLers prioritize the creation of a sustainable and flourishing crypto ecosystem.