What Does Bitcoin HODL Mean? – Origin, HODL Strategy, and More
What Does Bitcoin HODL Means?
In other words, a hold is an investment strategy that consists of acquiring assets and not selling them but preserving them in the portfolio to obtain profits when the aid increases in value in the future. This tactic is recurrent in the world of cryptocurrencies.
When a person decides to invest in assets, they must follow an investment strategy to achieve the established objectives. Many designs depend on the type of asset, the desired return and the investment.
Cryptocurrencies have created a rather peculiar investment community with a new investor profile. These investors share their opinions in forums or spend much of their time surfing the Internet to find out precisely as likely the field of cryptocurrencies they are investing in.
The term that we explain in this article is quite striking since it was not used before the appearance of cryptocurrencies. We could say that it is a word created and primarily used among members of the investment community of this type of asset.
Origin of HODL
In 2013, a Bitcoin investor named the alias GameKyuubi created a post on the Bitcointalk forum with the following title: “I am holding”. In his comment, he referenced the strategy that he was following with his investment in Bitcoins.
GameKyuubi emphasized that he was a bad trader, and that is why he was keeping his cryptocurrencies in his portfolio during the wrong time for this type of asset. The name of this investment strategy comes from a typo.
In the financial markets, the word hold is widely used when investors want to maintain a financial asset in the medium – long term to obtain an inevitable return.
Is it Worth Holding Cryptocurrencies?
Compared to other options like trading, holding cryptocurrencies is simple. It is about acquiring a cryptocurrency and storing it, hoping that its value will increase in the long term.
However, the Holding as an investment strategy considers many factors, including the type of project, market acceptance, the future projection of the asset, etc.
In addition to valuing that the cryptocurrency market is young, volatile and still not very predictable. Therefore, the Hodl cannot be considered a profitability guarantee tool but as another investment model in cryptocurrencies, simplified and more essential.
What is the HODL Strategy?
The holding strategy involves acquiring a certain amount of cryptocurrencies and keeping them in the property over time, avoiding trading.
Thus, since the cryptocurrency market is volatile, the investor only needs a long-term uptrend. The hold investment strategy is simple since you do not have to be analyzing the market continuously.
Example of Bitcoin HODL
Let’s imagine that we had acquired Bitcoins in the year 2007. As we can see in the graph, it has experienced an upward trend. Assets start at $7,000 and reach $50,000 in 2021.
Applying the hold strategy, we would have kept the asset until today, obtaining a return of $43,000 for each Bitcoin acquired.
The Bitcoin HODL Today
Today, those who defend the HODL are investors who understand the potential of blockchain technology and cryptocurrencies, especially bitcoin, and not just their chances of short-term profits.
Many say that HODL is not a strategy but rather an attitude, as they believe that cryptocurrencies will substitute money as we know it. For them, holding is a way of preparing for the future.
But while it is much easier to invest with a long-term horizon than to follow charts and daily fluctuations. Each investor should consider their strategies and risk profile.
Understanding the HODL ideology is simple: Buy… don’t sell. As explained in the Gamekyuubi forum post, if you are not an experienced day trader, you will likely lose your crypto in the market.
HODL is a verb and can be used in the same way as a hold.
The most significant difference between someone HODLing Bitcoin and someone holding Bitcoin is their ideology. HODLers are Bitcoin holders to the max (they won’t sell their investments because they believe that cryptocurrency is the future of finance).
HODL as Strategy and Philosophy
If you believe in Bitcoin and not an experience trader, you should HODL.
If Bitcoin becomes a commodity like precious metals, every Bitcoin will trade for six figures. Since only 21 million bitcoins are inflow at one time, the price will continue to rise as more people and institutions know bitcoin as a store of value.
Bitcoin HODL in the Media
You will find the word “HODL” often used on Twitter. If you follow tech gurus like Tyler Winklevoss, you may have seen the term before. Musk tweeted about the time HODL: “Hodl the rain forests!”
Although “hold” is not commonly used outside of cryptocurrency investing, Musk means “Don’t sell the jungles!”
Can You HODL Stocks?
While Holding is generally associate with cryptocurrency investors, the buy-and-hold investing strategy is not limite to crypto investing.
Many stock investors “HODL” their savings for long periods, though stock prices are nearly always less volatile than the prices of crypto assets. Savers in stocks who buy and hold can benefit from long-term price appreciation while experiencing less price volatility than cryptocurrencies.
What is the HODL Coin?
HODL ($HODL) is a cryptocurrency based on the popularity of “HODL” as a look in the crypto public. The HODL token functions using the Binance Smart Chain, and HODL token proprietors can make Binance Coin plunders.
Who said HODL?
The true identity is unknown of the person who inadvertently coined “HODL”. The unique misspelling of the word occurred in a post by the user “GameKyuubi” on the Bitcointalk.org online forum.
What is Bitcoin HODL in Crypto?
HODL can use in any way that the word hold is used. Being a HODLer means that you are a holder of cryptocurrencies, and HODLing implies that you are holding.
Make no mistake: “HODLing” and “holding” are not the same! Holding implies that someone owns Bitcoin and is likely to keep it at least in the medium term. If someone is HODLing, what does bitcoin HODL mean they are not selling their Bitcoin anytime soon. HODLing is for the true Bitcoin believers. HODLers will not sell their investment until Bitcoin is a universal store of value.
I recommend Bitcoin HODL if you hit an ATH as this altcoin will shoot the moon.” – Do you understand this sentence well? If you don’t get it, don’t worry, you’re not alone. The cryptocurrency arena and its growing popularity have spawned its own jargon, with many words and terms. what does bitcoin HODL mean? It could confuse those unfamiliar with it. If you want to take the lead and join the conversation, we’ve put together a guide that explains the technical terms. If so you can use them correctly in your cryptocurrency.