Hodl is a slang word that emerged from the world of cryptocurrency. It was originally used as a typo when people were talking about holding their Bitcoin investment; instead of saying “hold,” they accidentally wrote “hodl.”
If you’re new to cryptocurrency, it might be hard to imagine the kind of person who would make such an error, but for many people who are considering getting into Bitcoin, “hodl” is regarded as a funny typo. Nowadays, hodl has evolved into its own language—people often use it to describe investors who hold onto their Bitcoin, rather than selling it at every opportunity.
Because there are so few ways to invest in cryptocurrency and so much uncertainty about how the market will change in the future, hodl has become synonymous with holding onto investments even if they seem like bad ideas at first glance.
But these days, hodl has taken on a new meaning—it’s more than just a taunt. It’s now used to express a lifelong commitment to holding the currency for the long haul, which is basically the only way to reap huge gains from investing in cryptocurrency. It is also known as Hold On For Dear Life.
What Does It Mean To Hodl?
There’s a lot of confusion in the crypto community about what it means to hodl, or “hold on for dear life.” Some people have thrown around the term so much that they’ve forgotten where it came from and what it actually means.
The term was originally coined by an anonymous person or persons on the BitcoinTalk forums, and the meaning is a little more nuanced than most people think. Hodling is holding on to your precious coins through volatile market activity and big dips—which are a natural part of the market cycle.
It doesn’t mean that you’re never going to sell your coins, but it does mean that you’re not going to sell them just because the price drops. You’re going to hold onto them because you know that there are plenty of reasons why it’s worth investing in and holding onto crypto.
It’s important to remember that the term has developed into something much larger than just a misspelling of “hold”—it’s now an ethos that encompasses more than just banking on Bitcoin’s value continuing to rise. It means being invested in its success and supporting it in any way that you can.
Hodling is also another way to refer to someone who is investing or trading cryptocurrency—this person is called a hodler because they’re holding onto their cryptocurrency instead of selling it, even though the price could fall at any time. Sometimes people will call themselves hodlers even if they’ve taken some profits along the way.
HODL may have started out as a typo, but it’s morphed into a meme that’s used to encourage people who’ve lost faith in the cryptocurrency market. It’s come to mean “hold on for dear life” because the market is so volatile and its potential for immense growth so great that you shouldn’t risk selling your coins for less than you want.
For example, rather than spending the money you earn from cryptocurrency mining or trading on goods and services, you could use it to buy arbitrum. Arbitrum is an asset-backed token that offers a variety of benefits such as lower fees and direct-to-bank payments, which means that it can help you save time and money when transferring funds. If you are wondering how to buy arbitrum crypto, it is available in major exchanges and in coinmarketcap.com.
Hodling As An Investment Approach
HODLing—or “Hold on for dear life”—is an investment strategy involving not selling an asset that’s appreciating, even if that asset has seen a significant rise in value. The idea is to hold onto the asset for as long as possible, even if you could be earning more with other investments.
The strategy is considered controversial because it requires a lot of conviction and determination—the conviction that you’re right about the price going up and the determination to stick with that decision until it does. But those who advocate the strategy say it can be profitable in the long run if done correctly, and they compare it to other kinds of investment strategies that are based on similar principles.
HODLers also say that HODLing avoids the stress and emotional turmoil people experience when they sell assets too soon and watch their investments go up in value without them. HODLing is often used in reference to cryptocurrencies like Bitcoin, but the underlying principle can apply to other kinds of assets as well including baby doge coins. You can purchase these crypto assets in many crypto exchanges in case you want to know how to buy a baby doge coin (BABYDOGE).
This hodl culture is built into the ethos of the cryptocurrency world: it has been coined as a mantra—to hold onto your digital currency, no matter what happens to its price. It’s a mentality, but it also has become an identity—you’re either hodling or you’re not; you’re either “in” or you’re “out.”
The hodl culture is a culture of people who hold onto their cryptocurrencies, even during a market crash. Hodlers are commonly called hodlers because they hold their cryptocurrency like an elderly man would hold a baby, lovingly and with care.
Hodling was originally started by a Bitcoin investor named GameKyuubi and became popularized on the BitcoinTalk forum by user named wolong. The term hodl was then popularized by Vitalik Buterin, the founder of Ethereum, in December 2013 when he wrote a blog post titled “Ethereum Hardfork Wishlist”
In the post, he uses the word hodl to describe holding onto cryptocurrency (hard forking is creating a new version of Ethereum).
In the crypto world, there are two types of hodler: long-term hodlers and day-traders. Long-term hodlers are investors who will never sell their crypto holdings, no matter how much the price drops. Day-traders typically buy low and sell high within 24 hours. They do this with multiple trades to increase their profits. They believe that they can beat the market by doing this over and over again.