The term “HODL” is commonly used by cryptocurrency investors when they refuse to sell their cryptocurrency holdings regardless of the price increasing or decreasing. It is derived from a misspelling of “hold”.
Understanding the term
In the context of cryptocurrencies, the meaning of HODL is to hold on to one’s cryptocurrency holdings regardless of their price increasing or decreasing. It originated from a spelling mistake by a user named ‘GameKyuubi’ on BitcoinTalk who misspelled “I am holding” as “I am HODLING.” HODLing is used during a bear market when traders refuse to sell their cryptocurrencies despite a price drop.
The term HODL has been later expressed as “Hold on to dear life” and refers to not selling cryptocurrency holdings even if there is poor market performance or strong market volatility. A HODLing strategy is similar to a conventional buy-and-hold investing strategy.
Many cryptocurrency traders remain HODLers for the long term, as they believe they will eventually replace government-issued fiat currencies. When that occurs, the exchange rates between fiat and crypto will become irrelevant.
The term HODL is used in the context of cryptocurrency to refer to a strategy of holding onto crypto-holdings through various price fluctuations and volatility. The strategy of HODLing assumes that holding on to crypto assets for a longer period of time can neutralize the volatility of most cryptocurrencies.