What Does HODL Mean?
HODL is a term derived from a misspelling of "hold," in the context ofbuying and holding Bitcoin and other cryptocurrencies. It's also commonly come to stand for "hold on for dear life" among crypto investors.
The term originated from a 2013 onlinepost to the Bitcointalk forum where the typo appeared. The price of Bitcoin in 2013 was volatile at the time, surging to over $950 at the beginning of December, 2013, up from just over $130 in April of the same year. The poster encouraged people not to sell and that they were "hodling" [sic].
Key Takeaways
- HODL is a crypto slang term meaning to buy-and-hold indefinitely.
- It implies not selling when markets go down or become volatile.
- Sometimes it is said to mean "hold on for dear life".
- HODL originated from a typo of "holding" as "hodling" in a 2013 online post.
- Today, it is a core tenet of many Bitcoin and crypto believers.
:max_bytes(150000):strip_icc()/terms_h_hodl_FINAL_-617cf51c77b64b7e8122d84dcc5b9a6f.jpg "HODL: The Cryptocurrency Strategy of \"Hold on for Dear Life\" Explained (1)")
What Is HODLING?
At 10:03 a.m. UTC on Dec. 18, Bitcointalk online forum user GameKyuubiposted a purportedly drunk, semi-coherent, typo-laden rant about the user's poor trading skills and determination to simply hold his Bitcoin from that point on:
I AM HODLING
I type d that tyitletwice because I knew it was wrong the first time. Still wrong. w/e," GameKyuubi wrote about the now-famous misspelling of "holding." "WHY AM I HOLDING? I'LL TELL YOU WHY," he continued."It's because I'm a bad trader and I KNOW I'M A BAD TRADER.Yeah you good traders can spot the highs and the lows pit pat piffy wing wong wang just like that and make a millino bucks sure no problem bro.
GameKyuubi concluded that the best course was to hold, since "You only sell in a bear market if you are a good day trader or an illusioned noob.The people inbetween hold. In a zero-sum game such as this, traders can only take your money if you sell."He then confessed he'd had some whiskey and briefly mused about the spelling of whisk(e)y.
Within an hour, "HODL"had become a meme. Initially, the memes generated referenced the epic battle movies 300 and Braveheart, but there are now countless HODL memes floating around the internet. Many HODL memes now reference Game of Thrones'Hodor.
The prices of Bitcoin and other cryptocurrencies are notoriously volatile, but HODLers disregard even large price swings. They simply HODL.
HODLING as a Strategy and GuidingPhilosophy
HODL, as an acronym for "hold on for dear life," has become a mantra among crypto enthusiasts denoting a long-term approach to cryptocurrency investing. This approach mirrors GameKyuubi's rationale in the original post that novice traders are likely to botch their attempts to time the market, and should simply hold their coin.
For cryptocurrency maximalists, HODL represents more than a strategy for reigning in FOMO (Fear of Missing Out), FUD (Fear, Uncertainty, and Doubt), and other profit-eroding emotions. Long-term crypto HODLers stay investedbecause they believe that cryptocurrencies will eventuallyreplace government-issued fiat currencies as the basis of all economic structures. Should that occur, then the exchange rates between cryptocurrencies and fiatmoney would become irrelevant to crypto holders.
Predictably,a meme best capturesthis HODLmaximalistphilosophy. Neo from The Matrix asks Morpheus, "What are you trying to tell me, that I can trade my Bitcoin for millions someday?" Morpheus responds, "No Neo, I'm trying to tell you that when you're ready … you won't have to."
When to HODL
Based on these principles, the best time to HODL is now, always, and forever. A true believer would always hold on to their tokens, even if markets crash or become extremely volatile. HODLing becomes an ideological belief about the long-term prospects of blockchain technology, cryptocurrencies, and the communities that have formed around them.
Other Crypto Slang Terms
The crypto community has adopted several acronyms and terms (often with accompanying emojis) in addition to HODLing. Many of these also overlap with terms used in meme stock communities and forums. Some of these include:
- FUD (fear, uncertainty, doubt): Misinformation, negative headlines, and dire predictions about crypto, which should be ignored by true adherents.
- FOMO (fear of missing out): People jumping onto bandwagon trades or buying into bubbles rather than regretting missing the next big thing
- Diamond Hands 💎🤲: Exhibiting extreme fortitude in HODLing, even as markets crash
- Hold the line: A battle cry to encourage others to stand firm with diamond hands in the face ofvolatility.
- Paper hands 🧻🤲: This is a derogatory slur leveled against those who fail to maintain diamond hands. These are perceived as weak individuals without conviction who sell their crypto too quickly.
- Mooning 🚀🌙: The idea that a stock will rise extraordinarily high, as if to the moon.
- Apes 🦍: Members of the crypto or NFT community. Some have attributed this to a meme related to the movieRise of the Planet of the Apes,but others have suggested that the label comes from the banding together of “dumb apes” to take on the Wall Street elite.
- BTFD (buy the f***ing dip): Buying the dipsmeans going long on a stock after its price has declined in the near term and is meant to be repeated after each such drawdown.
- YOLO (you only live once): As in, why not buy into a crypto token or NTF?
Can You HODL Stocks?
While HODLing is generally associated with cryptocurrency investors, the buy-and-hold investing strategy that it represents is not limited to crypto investing.
Many stock investors "HODL" their investments for long periods of time, although stock prices are almost always less volatile than the prices of crypto assets. Investors in stocks who buy and hold can benefit from long-term price appreciation while experiencing much less price volatility than is associated with cryptocurrencies.
The HODL Coin
HODL may also refer to a DeFI token on the Binance Smart Chain (BSC). HODL Coin (SHODL) was launched in May 2021. Much like the term itself, HODL encourages users to hold onto their tokens for rewards in the Binance coin (BNB) that are distributed every three days. The rewards are generated from taxes collected on transactions made by users, such as sale, purchase, or transfer of HODL tokens. The tax amount is converted into BNB tokens and a percentage of the gains is redistributed back to users from the collective liquidity pool.
What Does It Mean to HODL?
"HODL" originated as a misspelling of "HOLD" (written in all caps), in an online post by an early Bitcoin investor. But "HODL", as it has gained popularity among crypto enthusiasts, has come to mean "hold on for dear life". Crypto HODLers, like buy-and-hold stock investors, pride themselves on "holding on" by not selling their cryptocurrency, no matter what happens in the crypto markets.
Who First Said HODL?
The true identity is unknown of the person who inadvertently coined the term "HODL". The original misspelling of the word occurred in a post by the user "GameKyuubi" on the Bitcointalk.org online forum, at 10:03 a.m. UTC on Dec. 18, 2013.
What Is the Difference Between HODL and a Buy-and-Hold Strategy?
There is no difference between HODLing a cryptocurrency and a buy-and-hold strategy. You can HODL a stock through its volatility because you believe in the company's future success. Similarly, you can hold a cryptocurrency for an indefinite length of time, through multiple price changes, because you believe that the coin will do well in the future.
What Is the HODL Coin?
HODL ($HODL) is a cryptocurrency that was named based on the popularity of "HODL" as an expression in the crypto community. The HODL token operates using the Binance Smart Chain, and HODL token owners can earn Binance Coin rewards.
The Bottom Line
HODL is an acronym for "Hold On for Dear Life". It is used in the crypto ecosystem to refer to a strategy of holding onto bitcoin holdings through its various price fluctuations and volatility. The acronym is a misspelling of the word "holding" by a user on an online forum. Typically used by Bitcoin maximalists, a HODLing strategy is similar to the conventional buy-and-hold investing strategy. HODL may also refer to the HODL token on cryptocurrency exchange Binance's Smart Chain. Users can earn rewards in Binance coin by depositing their tokens in a liquidity pool.
As an avid cryptocurrency enthusiast and expert with a deep understanding of the blockchain ecosystem, I can attest to the significance and origin of the term "HODL." My knowledge extends beyond the basics, encompassing the historical context, cultural impact, and its integration into the broader cryptocurrency community.
The term "HODL" originated from a misspelling of the word "hold" in a 2013 Bitcointalk forum post by a user named GameKyuubi. This post, riddled with typos and expressing the user's determination to hold onto their Bitcoin despite market fluctuations, gave rise to the term. The post humorously explained that the user was a bad trader and believed that in a zero-sum game, only good day traders or naive individuals sell during a bear market.
The concept of HODLing has evolved into a core tenet for many Bitcoin and cryptocurrency believers. It represents a strategy of buying and holding assets indefinitely, even during market downturns or extreme volatility. The term has also been interpreted as an acronym for "hold on for dear life," emphasizing the commitment to long-term investment.
The HODL philosophy is rooted in the belief that attempting to time the market is challenging, especially for novice traders. GameKyuubi's original rationale was that those in-between, neither expert traders nor illusioned newcomers, should hold onto their assets. This approach has become a guiding philosophy for crypto enthusiasts who believe in the long-term potential of blockchain technology and cryptocurrencies.
The HODL mentality is not limited to Bitcoin; it has become a widespread strategy applied to various cryptocurrencies. HODLers remain invested despite the notorious volatility of cryptocurrency prices, displaying resilience and a commitment to the long-term vision of the technology.
In addition to HODL, the crypto community has adopted various slang terms and acronyms. Some of these include:
- FUD (Fear, Uncertainty, Doubt): Refers to misinformation, negative headlines, and dire predictions about crypto, which true adherents are encouraged to ignore.
- FOMO (Fear of Missing Out): Describes the phenomenon of people joining bandwagon trades or buying into bubbles to avoid missing out on potential gains.
- Diamond Hands 💎🤲: Signifies extreme fortitude in HODLing, even during market crashes.
- Hold the line: A battle cry encouraging others to stand firm with diamond hands in the face of volatility.
- Paper hands 🧻🤲: A derogatory term for those who sell their crypto too quickly, perceived as weak individuals without conviction.
- Mooning 🚀🌙: Describes the belief that a stock or cryptocurrency will rise extraordinarily high, as if to the moon.
Moreover, the article touches on the universality of the HODL strategy, noting that the concept extends beyond cryptocurrencies to traditional stock investing. While associated with crypto, the buy-and-hold strategy is applied by stock investors who hold onto their investments for long periods.
The article also introduces the concept of the "HODL Coin," a cryptocurrency on the Binance Smart Chain that rewards users for holding onto their tokens. This aligns with the broader HODL philosophy and encourages users to maintain their positions for potential rewards.
In conclusion, HODL has become a defining term in the crypto space, embodying a strategy and guiding philosophy for long-term investment. It has permeated the culture, giving rise to memes and influencing the behavior of crypto enthusiasts worldwide. The HODL mentality extends beyond Bitcoin, shaping the approach of investors in various cryptocurrencies.
