What does HDOL mean in crypto? Hold on for dear life! HODL is a term that has exploded in popularity within the world of crypto and Web 3. HODL is a rallying call used amongst those who feel the best way to achieve a significant return on crypto investments is to hold them long-term. HODL, or hold on for dear life, simply means don’t sell your investment!
The Origin Of HODL
HODL is a term crypto-enthusiasts have been using since just about the beginning of cryptocurrency’s inception. In 2013, on a popular forum known as Bitcointalk, a user known as “GameKyuubi” posted a note in which the word hold was misspelled to read hodl. The post read “I AM HODLING”
This post went on and read like a rant regarding not selling bitcoin at the correct moments which forced the poster to hold their investment for the long run. In 2013, bitcoin saw price swings of over 1000% which meant those who were HODLing were seeing huge unrealized gains. In no time, HODL turned into a viral meme and transformed from a typo into a crypto investment philosophy.
Since this initial misspelling, investors noticed the value that came from holding onto investments for the long-run. Essentially, the mantra that is HODL became an investment technique that actually produced significant returns. Instead of buying the dips and selling the highs, HODLers disregard price swings and hold on to their investments for dear life! This strategy quickly became the favorite tactic of crypto maximalists who don’t want to experience FOMO, or fear of missing out. FOMO will take place when an investor sells a fungible or non fungible token and a price increase follows. The only foolproof way to ensure FOMO does not take place is to HODL according to those who believe the price can only go up with time.
What Else Can I HODL?
The investment strategy of buying and holding is not novel. Many investors in stocks and other assets use this strategy to benefit from price appreciation that takes place long-term. Stock investors understand that however volatile their investments are, they will most likely increase in value the longer they stay in the market. It only took a simple typo to change the buy and hold strategy forever and transform it into a philosophy that crypto investors live by.
In addition to fungible tokens (NFTX), the term HODL has gained popularity in the NFT community. NFTs, or non fungible tokens are digital assets that can be transferred through the blockchain. Much like their fungible counterparts (ethereum, bitcoin, solana, ect.) NFTs gain and lose value over time based on the basic economic principles of supply and demand. As 2021 sparked a bull run for NFT investors, the HODL mentality quickly became a favorite strategy among many involved. If a creator, trader, or developer is feeling bullish, or confident, in an NFT project, they will most likely try to hold on for dear life and attempt to maximize their gains in the long-term rather than sell. HODLing in this sense may not be as lucrative as it was in regard to bitcoin, but many rely on this mantra to avoid FOMO in the NFT space.
Regardless of one’s investment strategy, it is important to have a firm grasp on the terminology used in specific markets. In crypto, the jargon used is unique and much like the market itself, not going anywhere anytime soon. HODL is one of many terms religiously adopted by a plethora of fungible and non fungible token investors alike. When immersing oneself into the world of crypto, it is difficult to miss this jargon, especially HODL. Due to its lingering nature, the HODL mentality has driven so many decisions in crypto and will remain a mantra as the crypto market expands into the future.
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