A Brief History of the Word HODL
"HODL," is a term repeatedly used in the cryptocurrency world, created years ago from a typo. It's also typically come to stand for "hold on for dear life" among crypto investors.
Cryptocurrency is a kind of digital currency backed by blockchain technology. It works as a form of dealings and can also be kept as an asset or investment. The main feature and advantage of cryptocurrency is decentralization since it is not administered by a unique central source such as a country's central bank. Some examples of cryptocurrencies are Bitcoin, Ethereum, Ripple, etc.
2013 was a big year for Bitcoin. The price rushed from $15 in January of that year to over $1,100 at the beginning of December, which gave a return of 7,230%. In addition to it, in that same month, a drunken user posted an entry titled "I AM HODLING" in a bitcoin forum; the post was loaded with typos and phrases in all caps.
Take a look at the original post:
"I AM HODLING"
"I type d that tyitle twice because I knew it was wrong the first time. Still wrong. w/e," WHY AM I HOLDING? I'LL TELL YOU WHY, It's because I'm a bad trader and I KNOW I'M A BAD TRADER. Yeah you good traders can spot the highs and the lows pit pat piffy wing wong wang just like that and make a millino bucks sure no problem bro."
GameKyuubi was the author.
The typo "HODL" started to circulate between the crypto community and soon became the internet slang to point out when a person holds bitcoin rather than sells it. Later, the term was extended to include other cryptocurrencies.
"Hodling" became some of the most popular cryptocurrency slang and also served as an uncomplicated strategy for traders, given the volatile essence of the crypto market. This method enables investors to avoid the loss from the short-term volatility of cryptocurrencies and gain returns from long-term value growth. Although the "hodling" part is theoretically less risky than trading, investors still need to evaluate the risk of laws and regulation changes and the public's viewpoint.
For cryptocurrency extremists, HODL symbolizes more than a method for escape from FUD (Fear, Uncertainty, and Doubt), FOMO (Fear of Missing Out), and other profit-eroding feelings. Long-term crypto HODLers remain loyal to it because they think that cryptocurrencies will someday substitute government-related currencies as the foundation of all economic systems.