HODL is a well-known term within the cryptocurrency universe that signifies the holding of your digital coins instead of selling them, even if the market is very volatile. The term was born from a typographical error in an online discussion in 2013, where one of the Bitcoin investors wrote “I am hodling” during a time of heavy price fluctuation. The mistake became a phenomenon, and gradually, it was adopted by the crypto community.
HODL today is a term that can be found on the lips of the crypto investors who mainly and purposely speak about it as a long-hold investment approach. The HODLers are those who have the firm conviction that in the long run, the cryptocurrency will be worth a lot, and hence, they do not panic in case of drops in prices, negative news, or even overall pullbacks in the market. They are not looking to cash in on short-term price fluctuations but rather to ride out the storm.
HODLing is a phenomenon that is very prevalent among Bitcoin proponents who regard the currency as a long-term store of value, akin to gold, but in its digital form. It is also a strategy employed by traders who wish to reduce their emotional involvement and hence the tendency of buying when the prices are high and selling when they are low.
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HODLing has the advantage of lowering psychological pressure and preventing incorrect trading decisions; however, it is not a zero-risk practice. Price drops might last for a long time, and not every coin or project will survive. In other words, HODLing means keeping your cool, not paying attention to the short-term noise, and maintaining your long-term belief in the crypto’s worth.