There are countless terms and abbreviations in the crypto markets, but some of them are both very popular and have a very enjoyable starting point. The term HODL is one of the most popular and enjoyed terms both in terms of its starting point and its usage.
If you are new to the crypto world and come across the term HODL, it will be your natural right to ask what is HODL and what does HODL mean. Because the term does not make any sense on its own, and it is very difficult to learn for people who are not in the crypto world.
In this content, we will convey all the information that can be given about HODL, especially the answers to the questions of what HODL is and what it means.
What is HODL?
HODL; means holding a crypto asset rather than selling it.
As we mentioned before, the word HODL means nothing by itself. There are two legends at the origin of the term HODL.
According to the first myth, during a popular conversation on social media, a user mistakenly wrote HODL instead of the word Hold, and when this term gained great sympathy from all its other users, people started to write HODL instead of Hold.
According to the second myth, the term HODL is an abbreviation. Again, according to this legend, if you ask what HODL stands for, it is abbreviated from the English phrase Hold On for Dear Life.
Which statement you believe or not is up to you, but the two statements have one thing in common, which means holding the cryptocurrency or token unit rather than selling it.
In fact, users who frequently use the term HODL can be divided into two categories. Users in the first category are usually those who do not want to sell for a long time after investing in a cryptocurrency or asset, that is, they want to HODL.
Users in the second category consist of users who never want to sell, no matter how low or how high their crypto money or token falls, and who, in their own words, want to “HODL”.
Since people in the first category are long-term investors, it may be very normal for them to want to HODL, but for users in the second category, HODL means a kind of emotional bond. In other words, users in the second category do not want to sell because they have an emotional bond with the crypto money or token they have.
Users in the second category often do not realize that HODL is an emotional bond. When asked why they HODL, they usually state that they believe that cryptocurrency or token will gain a lot of value in the future and that they do not want to sell it early. In fact, they may seem to think of themselves as long-term investors with this thought, but compared to long-term investors, they have an emotional bond with the crypto asset.
Long-term investors, after receiving the crypto asset they want to HODL, transfer it to a hot or cold wallet and do not follow that crypto asset for at least 1 year, and after a minimum of 1 year, they check the status of their investments and either sell or continue to hold.
On the other hand, investors who HODL keep track of the crypto money or token they own and HODL on a weekly, daily and even hourly basis and follow every fall and every rise. However, at this point, instead of thinking like a trader and constantly buying and selling, they just watch and continue to say HODL, regardless of the result, whether that cryptocurrency or token goes up or down.
What Does HODL Do?
If you have learned what HODL means, you may wonder what HODL is good for or whether HODL is beneficial or harmful. In fact, HODL is completely a decision made by the person’s own will, and whether doing HODL will benefit or harm him depends on the crypto asset he chooses.
In other words, it is wrong to say that HODLing by heart or as if there are definite rules is beneficial or it is dangerous to HODL, because only the crypto asset that is invested determines this. A HODLed crypto asset can gain 100 times the value after 1 year, or it can fall to zero by being deleted from the markets. In this case, the most important point to be considered is which cryptocurrency or token unit is invested and HODLed.