Hodl, a misspelling of 'hold', is a slang term in the crypto community for holding onto a cryptocurrency long-term regardless of price volatility, reflecting conviction in its future value.
Hodl refers to the investment strategy of holding onto a cryptocurrency for the long term, regardless of price volatility and market conditions. This approach is based on strong conviction in the fundamental value and future potential of the cryptocurrency. Hodlers typically ignore short-term price movements, focusing instead on the technology's long-term adoption curve and value proposition. This contrasts with trading strategies that attempt to profit from market timing and short-term fluctuations. The strategy embodies the belief that cryptocurrencies are still in their early adoption phase and that patient investors will be rewarded as the technology matures and gains mainstream acceptance.
"Despite the volatile nature of the crypto market, many Bitcoin investors choose to hodl their coins, believing in its long-term potential as a store of value and hedge against inflation."
"Some investors hodl Bitcoin Cash due to their belief in its utility for everyday transactions, scalability advantages, and growing merchant adoption, expecting these fundamentals to drive long-term value."
"After experiencing multiple market cycles, veteran hodlers often recommend that newcomers avoid making emotional decisions during price volatility, suggesting they focus on technological fundamentals rather than short-term price action."
As a meme, 'hodl' has become a rallying cry in the crypto community during market downturns, encouraging investors to resist the urge to panic sell and instead maintain conviction in their investments. The term has spawned numerous variations, memes, and merchandise, becoming part of crypto culture. It represents emotional resilience and community solidarity during volatile market periods. The meme frequently appears in social media, forums, and cryptocurrency events, creating a sense of shared experience among investors facing similar market challenges.
"During market crashes, 'hodl' posts often flood cryptocurrency forums and social media platforms, encouraging investors to keep their faith in their investments despite temporary price declines."
"The 'hodl' mentality has helped many investors weather multiple crypto market cycles, allowing them to benefit from the long-term appreciation of assets like Bitcoin, Ethereum, and Bitcoin Cash despite periods of significant volatility."
"The cryptocurrency community has created countless 'hodl' memes featuring characters from popular culture grimly holding onto their investments through market storms, providing both humor and psychological support during downturns."
The term 'hodl' originated from a 2013 post on the Bitcoin forum Bitcointalk, where a user named GameKyuubi misspelled 'hold' in a passionate, late-night rant titled 'I AM HODLING'. In this now-legendary post, the author admitted to being drunk but expressed determination to hold Bitcoin despite a sharp price drop, acknowledging his lack of trading skills. The community quickly embraced the typo as an acronym for "Hold On for Dear Life," though this was a retroactive interpretation. This moment of authentic frustration during a Bitcoin price crash resonated with the community and transformed into a cornerstone of cryptocurrency culture.
"The term 'hodl' was born from a Bitcointalk forum post titled 'I AM HODLING', where the user acknowledged their typo but decided to keep it due to its fitting representation of holding on even in tough times."
"The original 'hodl' post occurred during a Bitcoin price crash in December 2013, when Bitcoin dropped from over $1,100 to around $600, testing the resolve of many early adopters."
"The 'hodl' meme transcended the original Bitcoin community and became equally embraced by Bitcoin Cash supporters and other cryptocurrency communities as a universal expression of long-term conviction."
Beyond just a strategy or meme, hodling represents a philosophical approach to cryptocurrency investment based on fundamental beliefs about monetary systems. Many hodlers believe cryptocurrencies offer advantages over traditional financial systems including censorship resistance, limited supply (for some coins), permissionless transactions, and protection against currency debasement. This conviction enables them to maintain positions despite extreme volatility. The hodl philosophy often intersects with broader beliefs about financial sovereignty, decentralization, and the future of money.
"Hodlers often cite the fixed supply of Bitcoin (21 million coins) or the utility-focused design of Bitcoin Cash as reasons for their long-term conviction, viewing short-term price volatility as irrelevant to the fundamental value proposition."
"During the 2018 bear market, hodlers who maintained their positions despite 80%+ drawdowns were eventually rewarded in subsequent years as the cryptocurrency market reached new all-time highs."
"Many Bitcoin Cash hodlers are motivated by the vision of peer-to-peer electronic cash that enables global financial inclusion, believing that its scaling approach will ultimately lead to widespread adoption for daily transactions."
The hodl approach contrasts with other cryptocurrency investment strategies such as trading, staking, yield farming, and active portfolio management. While hodlers typically make minimal transactions and focus on long-term value accumulation, traders attempt to profit from market volatility through frequent buying and selling. Some hodlers implement a hybrid approach, holding a core position long-term while trading with a smaller portion of their portfolio. Each strategy has different risk profiles, time commitments, tax implications, and psychological requirements.
"While traders might execute dozens of transactions daily to capitalize on price movements, committed hodlers may go years without selling, regardless of short-term market conditions."
"Some Bitcoin Cash users balance hodling with actual utility, storing a portion of their holdings long-term while actively using another portion for transactions, showcasing its dual capability as both an investment and a payment system."
"Dollar-cost averaging—regularly purchasing small amounts regardless of price—complements the hodl strategy by reducing the impact of volatility and removing emotional decision-making from the investment process."
All terms and definitions may update as the Cryptionary improves.