The Meaning of HODL
HODL, a misspelling of “hold,” refers to buying and holding cryptocurrency like Bitcoin. Crypto investors use it to mean “hold on for dear life.”
The name came from a 2013 Bitcointalk forum post with a mistake. 2013 Bitcoin prices fluctuated, peaking at over $950 in December 2013 from a little over $130 in April. The poster advised “holding” and not selling.
What Is HOLDING?
On December 18, at 10:03 a.m. UTC, Bitcointalk member GameKyuubi wrote an intoxicated, rambling, and typo-filled tirade about his destructive trading abilities and decision to keep his Bitcoin.
HODLING
Typing the title twice was necessary as it was incorrect the first time. Still incorrect. w/e,” GameKyuubi commented regarding the now-famous typo of “holding.” Why am I holding? I’ll explain “continuing. I’m a poor trader, and I know it. You, good traders, can recognize the highs and lows, pit pat puffy wing wong wang, and make a million bucks no problem, dude.
GameKyuubi advised holding “Only excellent day traders or illusioned noobs sell in bear markets.Betweeners hold. A zero-sum game like this allows merchants to only take your money if you sell.” He admitted to drinking whiskey and momentarily debated whisk(e) y’s spelling.
In one hour, “HODL” became a meme. Initially, memes referencing 300 and Braveheart emerged, but today, several HODL jokes are online. Many HODL memes now mention Game of Thrones’ Hodor.
Although Bitcoin and other cryptocurrencies are volatile, HODLers ignore substantial price movements. Simply HODL.
HODLING: A Strategy and Philosophy
Crypto fans sometimes use the phrase “HODL,” which stands for “hold on for dear life,” to refer to a long-term strategy for cryptocurrency investing. This strategy follows GameKyuubi’s initial article that beginner traders would fail to time the market and should keep their currency.
For bitcoin maximalists, HODL goes beyond reducing FOMO, FUD, and other profit-eroding emotions. Many long-term crypto investors predict that cryptocurrencies will eventually replace government-issued fiat currency as the foundation of economic organizations. If this happens, the exchange rates between cryptocurrencies and fiat money would become irrelevant for crypto holders.
Unsurprisingly, memes best represent the HODL maximalist viewpoint. In The Matrix, Neo asks Morpheus, “What are you saying, I can trade my Bitcoin for millions someday?” he says, “No Neo, I’m trying to tell you that when you’re ready … you won’t have to.”
when HODL
These ideas suggest HODLing now, always, and forever. True believers would keep their tokens even if markets fall or become volatile. HoDLing becomes an ideology concerning the future of blockchain technology, cryptocurrencies, and their communities.
Other crypto lingo
Besides HODLing, the crypto community has developed other acronyms and terminologies (sometimes with emojis). These phrases sometimes overlap with those of meme stock groups and forums. Among them:
- True crypto enthusiasts should disregard misinformation, unfavorable headlines, and apocalyptic prophecies (FUD).
- FOMO: People impulsively purchase into trends or bubbles to avoid missing out on the next great thing.
- Diamond Hands: HODLing with extraordinary fortitude during market crashes.
- Hold the line: A battle cry to hold steadfast with diamond hands during instability.
- Paper hands: A disparaging term for persons who lack diamond hands. These are weak, unconvinced crypto sellers.
- Mooning: The belief that a stock will soar unusually high, like to the moon.
- Apes 🦍: Crypto/NFT community members. Some credit this to a meme from the movie Rise of the Planet of the Apes, while others attribute it to a group of “dumb apes” challenging the Wall Street elite.
- The “BTFD” strategy involves buying a stock following a short-term price decrease, with the goal of repeating the strategy after each slump.
- You only live once (YOLO): Why not invest in a crypto coin or NTF?
HODL Stocks?
Although HODLing is commonly linked with cryptocurrency investors, the buy-and-hold approach transcends crypto trading.
Although stock prices are less volatile than crypto assets, many investors “HODL” for extended durations. Stock investors who buy and hold can profit from long-term price increases without the volatility of cryptocurrencies.
The HODL Coin
HODL may also refer to a Binance Smart Chain DeFI token. HODL Coin debuted in May 2021. As the word implies, HODL encourages users to hold onto their tokens for Binance currency (BNB) incentives every three days. The incentives come from taxes on user transactions such as Hold on for Dear Life token sales, purchases, and transfers. Users receive a share of the profits in BNB tokens from the communal liquidity pool for the tax amount.
HODL Means What?
An early Bitcoin investor misspelled “HOLD” (in all capitals) as “HODL” in an online post. However, crypto fans now use “HODL” to indicate “hold on for dear life.” Crypto HODLers, like buy-and-hold stock investors, pride themselves on “holding on” regardless of market conditions.
Did someone say HODL?
The accidental coiner of “HODL” is unknown. “GameKyuubi” was posted on Bitcointalk.org at 10:03 a.m. UTC on December 18, 2013, with the original typo.
How Are HODL and Buy-and-Hold Strategies Different?
The difference between Bitcoin HODLing and buy-and-hold is none. You HODL a stock through turbulence if you think the firm will succeed. You may hold a cryptocurrency through many price swings if you think it will do well.
What’s HODL Coin?
The crypto community’s use of “HODL” inspired the name of HODL ($HODL). Binance Coin incentives are available to HODL token owners utilizing the Binance Smart Chain.
The Verdict
HODL means “Hold On for Dear Life.” The crypto community uses it to describe retaining Bitcoin through price changes and volatility. An internet forum member misspelled “holding” as the acronym. Bitcoin maximalists employ HODLing, a buy-and-hold investing approach. Hold on for Dear Lifemay also refer to Binance’s Smart Chain token. Binance currency users can receive prizes by putting tokens in a liquidity pool.
Conclusion
- Hold on for Dear Life is crypto slang for indefinite buy-and-hold.
- They are not selling in turbulent or falling markets.
- It might indicate “hold on for dear life.””
- A 2013 internet article typoed “holding” as “hodling” to create Hold on for Dear Life.
- Many Bitcoin and crypto lovers believe it now.
