A person with a HODL compass.
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Y'all're scrolling through social media, and you encounter someone saying that they're "HODLING" or telling someone else to "HODL." Confused? Here's what the discussion means in the world of cryptocurrency and finance—and why it'southward non misspelled.

HODL = Concur

"HODL" is a cryptocurrency-related slang that stands for the word "concur" misspelled. It frequently refers to retaining crypto assets that y'all own for an extended flow, even throughout a highly volatile market movement. "Hodl" is meant to encourage people to not impulsively sell when a cryptocurrency drops dramatically or rises to get highly assisting to sell.

"HODL" likewise acts as an acronym for "Concord on for honey life." You will oftentimes encounter the term in various cryptocurrency forums and social media circles. Some influencers even encourage their followers to "hodl" various crypto tokens as part of their long-term strategy.

The Origin of Hodl

The word "concord" has been used in finance for a very long time equally part of the buy-and-agree strategy. This investing method involves buying a financial asset and belongings it for an indefinite period of time. This is related to the view that an investor should not be swayed by short-term market movements and look to the long-term view.

The term "HODL" originates from a post fabricated in 2013 on cryptocurrency forum Bitcointalk shortly after a move past the Chinese government acquired the toll of Bitcoin to autumn drastically inside a twenty-four hours. An intoxicated member typed out a postal service entitled "I AM HODLING" in response, detailing his general lousy luck with investing and his desire to keep holding onto his avails in the future.

Before long afterward that incident, the term "hodling" became commonplace in the cryptocurrency enthusiast customs. It made its way into memes and onto social media and became a style of signaling a token owner'southward desire to hang onto their assets.

"Hodl" and Cryptocurrencies

The biggest reason why "hodl" has become such a popular term is the general volatility of the prices of cryptocurrencies. Many cryptocurrency tokens, even relatively stable ones such equally Bitcoin and Ethereum, frequently have very volatile market swings. The cost of these tokens can fall 100% one month and then ascension 300% inside the adjacent few months.

Cryptocurrency prices are too prone to the movements of whales (a term for people or organizations that agree a very large corporeality of a detail token). If fifty-fifty one whale decides to sell a detail token, they could tank the toll entirely.

"HODL" is viewed as a way to combat these swings in price. An nugget-holder who follows the strategy does not sell, even as the market changes. Many people who "HODL" do not fifty-fifty pay close attending to the 24-hour interval-to-solar day marketplace move of cryptos, instead preferring to accept a long-term view of their tokens.

Why Do People "Hodl?"

A pile of Bitcoins
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One of the biggest reasons why people view "hodl" as a viable strategy is their belief in the underlying applied science and the use case behind information technology. Bitcoin and most other cryptocurrencies are based on a technology called blockchain, which has many uses, including a way to safely and anonymously make payments over the internet. Some people believe that Bitcoin is the future of all financial transactions rather than fiat currencies like Dollars and Euros.

For many cryptocurrency owners, "hodling" is an intriguing prospect. The value of a single Bitcoin has gone from nether a dollar when information technology first came out more than a decade agone to five-digit figures in contempo years. Despite loftier marketplace volatility, many cryptocurrency owners believe in the long-term financial prospects of Bitcoin and other tokens. At the same time, many other people believe that buying cryptocurrency is equivalent to gambling.

Many people also believe that the values of cryptocurrencies are improve when people buy and exercise not sell off their tokens. That is why "hodl" is such a well-used term in the community—it'south often said to beginners who might take fears well-nigh holding such a volatile nugget. "HODL" combats what crypto users telephone call "FUD," which stands for "fearfulness, uncertainty, and uncertainty." FUD can include annihilation from naysayers to governments to negative presses on the issue of cryptocurrency.

Using "HODL"

"HODL" is generally only used to refer to cryptocurrencies and non other assets. If you desire to use the term "hodl," reserve it for conversations about these tokens or you could be misinterpreted.

If you run into people telling you to "hodl," there's a good run a risk that y'all've encountered cryptocurrency enthusiasts. Be sure to utilise good judgment in making critical financial decisions, such equally purchasing a cryptocurrency. Never invest more than you can afford to lose.

If you want to learn more nigh cryptocurrencies, start with our guide on Bitcoin.

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