HODL, what this crypto slang term really means
When entering the cryptocurrency world, it is no surprise that there is a great deal of information to learn. One of the most confusing aspects upon entry is understanding and decoding the terminologies and jargon used by traders.
The concept of “HODL” originated from a typo of “HOLD” (spelled all in caps) in an online post by an early Bitcoin investor, and since then HODL has gained popularity among cryptocurrency enthusiasts, coming to mean “holding on for dear life” (from the English “hold on fo dear life”).
Those who hold on full of pride are referred to as the HODLers of crypto. Not selling their cryptocurrencies such as bitcoin, ethereum, bitcoin cash or other altcoins, regardless of what happens in the cryptocurrency markets, even if they make a huge profit is their philosophy, their belief.
What are the origins of HODL
It went like this in a nutshell. On the morning of December 18, 2013, Bitcointalk online forum user GameKyuubi posted a rant, allegedly drunk and full of typos, about his poor trading skills and his determination to simply hold his Bitcoin from then on. So then he wrote “I am holding,” which translated into Italian means I am keeping (the bitcoin), I am holding it, not selling.
GameKyuubi concluded that the best thing to do was to hold, since in a down market (bear) you only sell if you are a good day trader or a deluded noob. So he then confessed to drinking some whiskey and commented briefly on the spelling conditioned by alcohol vapors.
From there on it became history. Within an hour, “HODL” became a meme that went viral in no time. Back in the day, the memes generated referred to the Hollywood movies of epic battles 300, Achilles, Braveheart, but today there are countless HODL memes circulating on the Internet. Many HODL memes now refer to characters from television series such as Hodor from Game of Thrones. We are sure you have seen many of them maybe marks fully understand the meaning.
HODL as a financial strategy and philosophy of life
HODL has become a mantra among crypto enthusiasts indicating a long-term approach of investing. This approach reflects GameKyuubi’s thinking that novice traders are likely to get the market timing wrong and should simply hold on to their cryptos.
For crypto fanatics, HODL represents much more than a strategy to keep FOMO ( from “Fear of Missing Out” meaning fear of missing out), FUD (Fear, Uncertainty, and Doubt meaning fear, uncertainty, and doubt), and other profit-sapping emotions at bay.
HODLers believe that cryptos will eventually replace fiat currencies issued by governments as the basis of all economic structures. They are the ultras of cryptos. If this happens, one of the consequences is that exchange rates between cryptocurrencies and fiat money would become irrelevant to crypto holders.
Predictably, a meme best captures this maximalist HODL philosophy. Neo from the Matrix asks Morpheus, “What are you trying to tell me, that one day I will be able to trade my bitcoins for millions?” Morpheus replies, “No Neo, I’m trying to tell you that when you’re ready…you won’t have to.”
When to do HODL
Based on these principles, the best time to HODL is now, always and forever. A true believer would always keep their tokens, their virtual coins, even if the markets collapse or become extremely volatile. HODLing becomes an ideological belief about the long-term prospects of blockchain technology, cryptos and the communities that have formed around them, so as we said above the true believers, the ultras of cryptos.