In the realm of crypto, it will be no surprise that there’s an abundance of information to be absorbed. One of the more difficult aspects of entry is figuring out and understanding the terms and jargons used by traders.
The word HODL is commonly used on social and news platforms, such as Telegram groups and Reddit threads. Cryptocurrency traders aren’t the only bad spellers. They really refer to HODL rather than HOLD.
HODL The Meaning Of The Word And Tt’s Origins
HODL is a fun backronym which translates to “Hold on for the Rest of Your Life” which dates back to 2013. The phrase HODL first appeared on the internet in the Bitcoin chat forum, when a frustrated trader using GameKyuubi’s username was letting his whiskey bottle speak for itself and wrote the now-infamous thread “I I HODLING”.
The purpose of GameKyuubi’s blog post is to inform the crypto world be aware that, despite the hefty plunge Bitcoin was experiencing it was still a plan to retain their BTC.
What they didn’t realize was that this seemingly innocuous typo would soon become a cult term that was utilized by crypto communities across the globe. HODL began to gain recognition in mainstream media as well as late-night TV as well as being blamed for the development of numerous memes.
Why Would You Want To Hold On Your Cryptocurrency?
The high volatility of cryptocurrency could be beneficial, in the right circumstances. However generally the short-term volatility can be detrimental to novice traders. Some traders, also known as “hodlers” adhere to the concept of hodling, and avoid trading based upon the short-term movements in prices.
This approach is in line with the original philosophy of GameKyuubi, who believe that traders who aren’t experienced are more likely to make mistakes with their trading decisions and ultimately risk losing money, or get less money than they be if they were to hodling their crypto investments.
Short-term trading is typically carried out by investors who have an optimistic view of what they call an “bear market”. They refer to themselves or a specific crypto as “bearish” which indicates that they prefer selling instead of hoard.
Two common traits that traders in short-term trading display are FUD (Fear Uncertainty, Uncertainty and Doubt) that can lead to selling at a low price and FOMO (Fear of Losing Out) that leads to purchasing higher.
Hodling is the best option. Instead of selling, hodlers will be able to free their minds of these pressures as well as other negative emotions that affect profits.
Is HODLing A Good Investment Strategy?
In the context of the swings in price that we’ve observed, cryptocurrencies might appear to be an investment that is risky. If you take the same step back as hodlers did, you can observe the long-term growth in Bitcoin and other coins happen in spurts instead of the steady flow.
The main ingredient in hodling is the ability to be patient, supported by a theory developed by the renowned analysts Thomas Lee, head of research at Fundstrat Global Advisors, who suggests hodling Bitcoin.
Hodlers, along with Thomas Lee, keep an optimistic or “bullish” belief that the price of bitcoin follows an established pattern. Based on past patterns, Bitcoin is a “bull market” which means it will increase yet again, despite having lost nearly 50 percent in value in the COVID-19 pandemic.
In addition to the usual hodlers, there is a group of ardent believers in the concept of cryptocurrency and itself, also known as maximalists.
These crypto-focused investors are convinced that cryptocurrency are likely to eventually take over fiat currency (government issue currencies) and form the base of the future economic structure. To the most extreme the current exchange rate for cryptocurrencies is insignificant and the only choice for them is HODL.
Which Cryptocurrencies Can You Hoard?
Of course, you’re able to keep any cryptocurrency you want. But it’s difficult to determine which cryptos are going to prevail and last long. There is a vibrant range of tokens and coins emerging that are worth checking out There are two that we think stand out in the crypto-related crowd.
Bitcoin remains the most powerful in the cryptocurrency market in regards to users, market cap, and worth despite the many competitors on the market.
It’s the first cryptocurrency that has managed to challenge the established and is the most well-known cryptocurrency around the globe. In the past, many cryptos have been able to surpass Bitcoin in terms of speed of transactions.
However, none of them can match its market value, its quantity of users, and general popularity. Furthermore, Bitcoin usage with merchants is growing by 600% between 2018 until 2019, further insuring Bitcoin into the world of finance according to new data.
Ethereum is the second highest market capitalization, second only to Bitcoin. The cryptocurrency is undoubtedly doubt, among the most successful stories of the cryptocurrency market. With the imminent announcement of Ethereum 2.0, it is likely to propel its platform into new levels.
Ethereum isn’t just another currency It lets users develop applications, known as dApps, using its blockchain technology. ETH is one of the most popular altcoins across the world, and is a favorite with investors and developers alike.
What’s To Come Next In The World Of Hodlers, And Cryptocurrency?
Bitcoin and other cryptocurrencies have seen massive increases and decreases in price throughout the years. Hodlers believe that Bitcoin is likely to increase again after its price drop Some even believe that that now is the best time to invest in BTC.
There are both sides of the argument regarding the long-term viability or eventual demise of the cryptocurrency market. Which side do you fall on?