HODL is a term commonly used by crypto assets investors who refuse to sell their crypto assets regardless of an increase or decrease in price.
What does hodl stand for, and how does the phrase “Hold On for Dear Life” or “hold on to the good life” give HODL a deeper meaning? For many investors, it is easier to understand this term in the context of another familiar investment term: buy and hold.
If you’re wondering whether to “hold stock,” for example, then you’re basically talking about a buy and hold strategy. Buy-and-hold investors will buy stocks and other securities with the intention of holding them for the long term. This is regardless of market volatility.
The goal is to deal with the ups and downs of the market with a view to long-term gains, because history shows that over time the stock market will go up. Or in other words: you want to keep the stock instead of selling it, if the market is unstable. This is a common tactic used by value investors.
But what does this term stand for when it comes to crypto assets? This could be one of two things.
First, the basic meaning is that it can be applied to a buy and hold strategy when talking about bitcoin or other crypto assets as well. Again, the idea is to “hold on to the good life” rather than selling cryptocurrencies in a panic if volatility escalates.
The second meaning of hodl can refer to a specific type of crypto assets token.
HODL is one of the most used breaking news in the community or for crypto investors. Now, you don’t have to worry anymore when you meet this, both when reading and communicating with people who are studying crypto assets too. Hopefully useful and get your insight.