HODL: What Does HODL Mean?
If you are new to the crypto space and have asked around for crypto advice from the gurus, you’ve probably heard the term HODL at least once or twice. Either someone told you to HODL your Bitcoin or HODL your crypto even when the price drops. But, of course, you had no idea what they meant.
Well, in this article, we will discuss precisely what HODL in cryptos means. What’s more, we will cover how you can HODL your cryptos and why you need HODL. And without further ado, let’s get to it!
What is HODL?
Essentially, HODL in cryptos means to hold on and not sell your cryptos. The popular slang in the crypto world was derived from a drunken rant on a Bitcoin forum in 2013. In the discussion, someone posted messages where they had misspelled the term hold, but the readers interpreted it as an acronym for ‘hold on for dear life.’
Today, the term has become a meme of sorts. And when the Bitcoin prices are very volatile, the Bitcoin buyers will often say HODL. But in either case, the sentiment still remains. In essence, the term attempts to describe that in a bear market, traders will only take your money if you sell. And in a situation where you sell when prices are volatile, all the money will be in favour of traders.
How do you HODL?
When it comes to HODL, the idea is always to buy low then resist selling your crypto even if you see the prices rising. Typically, people make money by selling and buying coins as the prices fluctuate.
However, these trading activities are what triggers the fluctuation of prices in the crypto market. The forces of supply and demand mostly influence the prices of different cryptos. With the increase in demand, the prices tend to push upward, while significant selling pressure tends to push the prices down.
That can be such a tricky game as traders often have such a hassle getting the right timing to make their transactions and maximize their profits. All in all, when you choose to be a HODLER, you practically ignore all market fluctuations and hold on to your cryptos.
Why Should I HODL?
The thing with HODL is that everyone has a different endgame. Some people will say that you need to HODL until your coins are worth a sum that makes you contented, then you can sell and make profits.
However, there is always a chance that the prices may continue rising after selling your cryptos. And at such a point, you may want to rethink your decision. Other people will say that you HODL until the cryptos you have become a spendable currency. And at such a point, you will never have to worry about selling the coins back.
Therefore, you will be able to spend what you have as is. All in all, you need to remember that not all coins are created equally. Also, when it comes to cryptos, no one can tell what the future will look like. On top of that, there is no guarantee that the coin will eventually become a full-fledged currency.