Meaning of HODL is a very important concept in the field of cryptocurrency, which every crypto enthusiasts must be knowing about. If you observe the term closely, then it will remind you of a word which is used in the writing sentences. Let us give you a hint; it is a word which means to grab something. Yes, the term is ‘hold’. But don’t think that the word HODL is misspelt of the latter word hold, no it is not. Instead, it has been derived from it and has a different meaning. In short, the term signifies buy and holds strategies related to cryptocurrencies, including Bitcoin.
HODL is a slang that focuses more on holding than to selling of cryptocurrencies. This is the definition of What is Hodl In Crypto. So if you are interested to know other related topics like HODL real-time cryptocurrency, then better read the blog and gain some valuable information about it.
What is Hodl In Crypto or Meaning Of Hodl
If you are not much abreast with HODL news, then you will come to know that the term ‘HODL’ made its debut in the year 2018 on the Bitcoin Talk Forum. The credit behind the launching of the HODL goes to the person who had mediocre skills in trading and had posted a misspelt word ‘hold’ to ‘hodl’.Since then it became much popular with memes. Bitcoin, who became a popular cryptocurrency, made a steep rise in the initial days of December. But later on, it was found that the price of the Bitcoin fell sharply from high to low.
It is said that the title had been written twice and was misspelt. The person who wrote it knew it. He gave a reason for his unpopular misspelling of the word which reads ‘holding’, which stated the person himself being a pathetic trader by confessing it. This person was aware of the fact about the traders, who are good at trading and can easily spot the lows and highs in the business. They are also efficient enough to earn a million bucks. The person even stated that only a fine trader or an inexperienced beginner could make a mistake in the bear market by selling. But if it is done, then all the money gets into the favour of the traders.
Ever since the word HODL became popular, it paved its way by turning into memes. Iconic Hollywood movies provided the initial source material. Currently, if you search on the internet, then you will find many memes on the HODL.
Is HODL A Finest Strategy?
If you understand the meaning of HODL, then you must know its strategy as well. Everyone has a query that which are the best cryptocurrency to Hodl.HODL has become the perfect example for cryptocurrency investing, which evades short-term price trading. It all reflected the logical approach of the person who introduced it. Traders who seem new and inexperienced make a mess and make less money or even lose it than to hold the coin. Bitcoin’s long-term volatility follows a logic that defines ‘Short-term swings aside’. It can be explained through an example when the price of the Bitcoin went up on previous years, But in the same following year, its price got steeped down. The rise and fall of the price continued many times.
However, hodlers absolve themselves from such predictions and fluctuations. Instead, they prefer hodl to face off disastrous factors like FUD that leads to low selling and FOMO, which indicates high in buying. Those who completely favours cryptocurrencies considers HODL to be more than just a strategy and making its dominance over the profit eroding factors like FOMO and FUD and others. These hodl crypto believers are of the view that fiat currencies may get overshadowed by the cryptocurrencies, leading to establishing the base of economic structure. It is because, for them, the cryptocurrencies fiat exchange rate is not relevant at all.
If you are reading about HODL as a strategy, then let us tell you that it is linked to the acronym indicating ‘hold on for dear life’. In 2013, the term was derived from an unexpected typo. In the current financial scenario, HODL has become a remarkable strategy for trading for many blockchain enthusiasts and traders of cryptocurrency as well. Regardless of current price volatility, they are much keen to keep the coins for an unlimited period. However, it raised the doubt amongst the HODLers regarding crypto trading strategy, when the value of many crypto coins dipped recently. Even the most popular digital cryptocurrency, the Bitcoin too got affected with fall in its price.
While knowing the meaning of HODL as a strategy, you must be familiar with the uncertainty involved in cryptocurrency. Many experts believe that the unpredictable rise and fall of crypto prices drag the interest of traders, who are fascinated for quick gaining. If we date back to previous years and delve into to know the cryptos historical prices, then we will come to know that there had been many ups and downs. However, in general, the prices were often got upward.
How To Identify Promising Assets
HODL has been successful in terms of trading in cryptocurrencies, but mere getting limited to investing in the single asset is not enough. Also, one cannot be relaxed as it has become much more complexed. If you go back to the year 2013, then you will find that there were only limited cryptocurrencies in comparison to the current year. Now, there are more than a thousand cryptocurrencies.
Also Read: What is the Easiest Way to Buy Cryptocurrency?.
The concerning issue is how to identify the assets which seem promising amongst the altcoins. Well, this problem can be resolved by market indices. Till now, the cryptocurrency market had no ideal tool, but all kudos to some projects that favoured cryptocurrencies, which have brought remarkable changes into it. Among the list of cryptocurrencies including ADA, Binance, XRP, Bitcoin is known to be the best cryptocurrency to HODL.
So this was all about the meaning of HODL as a strategy. HODL has become a much popular trading strategy, which has gathered many blockchain enthusiasts and traders of cryptocurrencies as the main supporters. We introduced you about the person who was behind the launching of this term and how the misspelt word of hold became so much popular in the cryptocurrency world. It made its beginning in the year 2013 on Bitcoin Talk Forum. In the current scenario, HODL is regarded best for cryptocurrency investing. It helps in evading moves on short-term price trading. For many crypto believers, HODL is efficient to overcome the profit eroding factors like FOMO and FUD.