Investors who invest in cryptocurrencies identify some strategies to best manage their portfolios. HODL is one of these strategies. This word is actually an English expression. Today, it is used as one of the unique terms of the crypto money market all over the world. What is HODL? How to use the HODL strategy?
What is HODL?
HODL, one of the terms belonging to the cryptocurrency market, means to hold at the cost of your life. A person who does not sell and holds the assets in his portfolio when the markets are down applies the HODL strategy.
A person who holds crypto assets despite the decline believes that these assets will gain value again. This is the main point of the HODL strategy. HODL will not bring profit if the assets in hand will always decrease and remain below the purchase value. For this reason, investors resort to various analyzes for the correct functioning of the strategy.
The HODL strategy is more common in cryptocurrencies such as Bitcoin and Ethereum. Because these cryptocurrencies are well-established digital assets held by many investors and generally appreciated. These cryptocurrencies are usually bought at low value and kept in wallets for a long time.
An investor who wants to HODL keeps the purchased asset in cold or hot wallets. There is no need to check the wallet during the time the strategy is implemented. When the market changes and the bull season begins, the investor watches his wallet. It also ends the HODL strategy by taking a suitable profit.
To HODL is to continue to hold assets in the portfolio. Therefore, the HODL strategy covers a very long period. Doing HODL is more preferable in falling markets. It is continued until the investment instruments rise again and bring profit.
What does HODL mean?
It has emerged from a word written as “hold” in English and used as an equivalent with the meaning of holding. Therefore, it is basically considered as making sure that the investment you have in your hands will be valued in Bitcoin transactions. An investor who said he would do hodl said; He may have wanted to say that he will not sell no matter what happens in the market, that he thinks what he has will appreciate, that he wants to take risks.
For this reason, the investor who uses this term generally does not sell what he has. The term HODL is a term made famous by a post shared by a user named GameKyuubi on the Bitcointalk forum in 2013. In the forum “I’AM HODLING!” By sharing his post with the topic title, it was written that he would keep his Bitcoin despite a very serious decrease in the market.
Since then, this misspelled term has become very popular in the Bitcoin and cryptocurrency world. When someone claims to be hodl or hodl in their speech, it means they think their cryptocurrencies will be profitable someday, if not soon. In summary, HODL is a term that consists of a misspelling of a word that means to hold and hold in English. But you can still see it used this way today, as it became famous as a hodl.
What is the Story?
An entrepreneur commenting on bitcoin and investments posted on a forum in 2013. He shared “I am Hodling” to explain that the bitcoins in his hand will be appreciated and therefore will not sell no matter what. The term appeared after this error.
Although the mistake was to write the word hodl instead of the word hold, this concept was loved and took a place in the literature. From this point on, every investor who wants to explain that he will hold an investment has chosen to explain himself briefly by using this phrase. That’s why he was so loved.
Someone who uses the word hodl means to express that he is expecting a large amount of profit, even if it is not valid for the moment. For this reason, a bitcoin investor who says he has hodl will not think of selling his holdings definitively.
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Hello there! My name is Oktay from Tokensboss editors. I introduce myself as a business graduate and writer. I have been doing research on cryptocurrencies and new business lines for over 2 years.