What is HODL, What Does It Mean?

HODL means that users keep their savings for a long time despite the fluctuations in the cryptocurrency market. A person who does not sell and holds the assets in his portfolio when the markets are down applies the HODL strategy.

First, in 2013, a user made a typo when using the word HODL on the Bitcoin forums and wrote that he would keep the crypto money in his virtual wallet even though Bitcoin was losing price.

Despite being misspelled, this term is used by users who want to keep their spending and investments for the sake of users who process in the crypto money market. Then the name of this strategy Hold On For Dear Life It begins to be used as an abbreviation of the sentence and means to hold on to the value of life. In other words, the investor’s HOLD is to hold the crypto money in his hand, even if the value of the crypto money he invests in decreases, even if he has negative news, even if the economy is terrible, even if there is a lot of fluctuation in the market, without worrying about them and without losing faith.

When using the word HODL; Instead of selling the assets that have started to lose value, it is aimed to gain value again by keeping them on hold for a long time.

The HODL strategy is more common in cryptocurrencies such as Bitcoin and Ethereum. Because these cryptocurrencies are fundamental 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.

How is HODL Made?

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 make a profit if the holdings will always decrease and remain below the purchase price. For this reason, investors resort to various analyzes for the real functioning of the strategy.

An investor who wants to HODL keeps the purchased asset in cold or hot wallets. There is no need to audit the wallet as long as the strategy is implemented. When the course of the market changes and the bull period begins, the investor follows his wallet. It also ends the HODL strategy by taking a suitable profit.

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