What is HODLing?
What does it mean to hodl?
TO HODL (verb: hodling, hodled) means to preserve your cryptocurrency coins, even if their price is rapidly going down.
Used in a sentence: ‘’Even though BTC price fell below $8k today, I decided to hodl and not to sell.’’ As seen in this example, the opposite of hodling is selling.
Facts to remember:
- Term hodling was first used on Reddit as a typo
- Opposite of hodling is selling
- Hodling is a buy-and-hold strategy
Term ‘hodling’ was first used on Reddit on 12/18/2013 when a user called GameKyuubi created a post with a typo in the title: ‘I AM HODLING’. This simple typo went viral and soon evolved into a term used in the everyday lives of crypto traders and hodlers.
Due to the high volatility of the cryptocurrency market, traders often see ‘a red day’, when the price of the cryptocurrency they are holding is dropping. At that moment, they are faced with a difficult decision – to hodl or not to hodl. There are traders who ‘hodl no matter what’, the ones that have faith the value of their cryptocurrency will go up in time and are in it for the long term gain. Others, faced with the psychological pressure of losing their assets, simply sell them to interested buyers.
GameKyuubi did not sell, he hodled. On the infographic below, you can see the BTC price on the day his post was created was $654. Today, the price of one BTC is $8,335.
Even though the term emerged from Bitcoin, hodling is nowadays applicable to all cryptocurrencies (ANCT, ETH, XRP, LTC, BCH, EOS, etc). Firstly used as a joke, this term is now not just used in practice, but it is also a differentiation method. E.g. If you correct trader’s spelling when he writes ‘hodl’, they will know you don’t have experience in crypto trading and that you are probably new to the world of cryptocurrencies.
Are you a Hodler, and which cryptos are you keeping in the piggy bank these days? Discuss it in the Anchor Telegram Community >>
Disclaimer: The information provided in this post is not legal, accounting, or financial advice. I am not a lawyer, accountant, or financial advisor. I am not registered as an investment adviser with any federal or state regulatory agency. The Information should not be construed as investment or trading advice and is not meant to be a solicitation or recommendation to buy, sell, or hold any cryptocurrencies.