# Understanding HODL: How "Hold On for Dear Life" Shapes Crypto Investing

## What Does HODL Mean?

HODL, originally a typo for "hold," has morphed into an investment strategy acronym for "hold on for dear life," echoing a long-term commitment among cryptocurrency enthusiasts.

The term emerged from a now-legendary 2013 Bitcointalk forum [post](https://bitcointalk.org/index.php?topic=375643.0), where user GameKyuubi urged others to retain their [Bitcoin](https://www.investopedia.com/terms/b/bitcoin.asp) amidst drastic price volatility, declaring that they were deliberately "HODLing." This simple typo quickly became a rallying cry for those believing in the potential resilience and long-term value of Bitcoin and other cryptocurrencies.

### Key Takeaways

*   HODL, originally a misspelling of "hold," has become a well-known strategy among cryptocurrency investors, symbolizing the practice of holding onto assets despite market volatility.
*   The term "HODL" gained prominence from a humorous 2013 Bitcointalk forum post by user GameKyuubi, who advised holding Bitcoin due to the unpredictable nature of trading.
*   Despite the frequent and often extreme price swings of cryptocurrencies, HODLing embodies a philosophy of long-term investment based on the belief in the future potential of crypto assets.
*   Beyond its use in cryptocurrency circles, the HODL strategy mirrors traditional buy-and-hold strategies in stock investing, focusing on long-term growth rather than short-term gains.
*   HODL has not only become a slang term in the crypto world but also names a DeFi token on the Binance Smart Chain, rewarding users who maintain their positions.

![HODL](https://www.investopedia.com/thmb/QThkOj6kRUJDD_j45VV0aIiRlec=/1500x0/filters:no_upscale():max_bytes(150000):strip_icc()/terms_h_hodl_FINAL_-617cf51c77b64b7e8122d84dcc5b9a6f.jpg)

*— Investopedia / Daniel Fishel*

## Understanding the HODL Phenomenon

On Dec. 18, at 10:03 a.m. UTC, Bitcointalk forum user GameKyuubi posted an intoxicated, typo-filled rant about his poor trading skills and decision to hold onto his Bitcoin.

> **I AM HODLING**

> I type d that tyitle twice because I knew it was wrong the first time. Still wrong. w/e," GameKyuubi wrote about the now-famous misspelling of "holding." "WHY AM I HOLDING? I'LL TELL YOU WHY," he continued. "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 concluded that the best course was to hold, since "You only sell in a bear market if you are a good day trader or an illusioned noob. The people in between hold. In a zero-sum game such as this, traders can only take your money if you sell." He admitted to drinking whiskey and discussed the spelling of "whisk(e)y." 

Within an hour, "HODL" had become a meme. Initially, the memes generated referenced the epic battle movies "300" and "Braveheart", but there are now countless HODL memes floating around the internet.

> **Fast Fact**
>
> Bitcoin and other cryptocurrency prices are notoriously volatile, but HODLers ignore large price swings and continue to HODL.

## HODL as a Long-Term Investment Strategy

HODL, as an acronym for "hold on for dear life," has become a mantra among crypto enthusiasts denoting a long-term approach to [cryptocurrency](https://www.investopedia.com/terms/c/cryptocurrency.asp) investing. This approach echoes GameKyuubi's idea that novice traders often fail in market timing and should simply hold their coin.

For cryptocurrency maximalists, HODL is more than just a strategy to curb [FOMO (Fear of Missing Out)](https://www.investopedia.com/deal-with-crypto-fomo-6455103), FUD (Fear, Uncertainty, and Doubt), and other emotional responses. Long-term crypto HODLers stay invested because they believe:

*   Cryptocurrencies will eventually replace government-issued [fiat currencies](https://www.investopedia.com/terms/f/fiatmoney.asp) as the basis of all economic structures. Should that occur, then the exchange rates between cryptocurrencies and fiat money would become irrelevant to crypto holders.
*   Cryptocurrencies will continue to rise in value because of the former belief, and they will become rich.

Predictably, a meme best captures this HODL maximalist philosophy. Neo from "The Matrix" asks Morpheus, "What are you trying to tell me, that I can trade my Bitcoin for millions someday?" Morpheus responds, "No, Neo, I'm trying to tell you that when you're ready … you won't have to."

## Best Practices for HODLing Cryptocurrency

According to these principles, the best time to HODL is always. A true believer would always hold on to their tokens, even if markets crash or become extremely volatile. HODLing becomes an ideological belief in the long-term prospects of blockchain technology, cryptocurrencies, and their communities.

> **Fast Fact**
>
> The VanEck Bitcoin Trust, formed in January 2024, uses the ticker "HODL."

## Exploring Popular Crypto Slang and Acronyms

The crypto community has adopted several acronyms and terms (often with accompanying emojis) in addition to HODLing. Many of these also overlap with terms used in [meme stock](https://www.investopedia.com/meme-stock-5206762) communities and forums. Some of these include:

*   **FUD** (fear, uncertainty, doubt): Misinformation, negative headlines, and dire predictions about crypto, which should be ignored by true adherents.
*   **FOMO** (fear of missing out): People jumping onto bandwagon trades or buying into bubbles rather than regretting missing the next big thing
*   **Diamond Hands** **💎🤲**: Exhibiting extreme fortitude in HODLing, even as markets crash
*   **Hold the line**: A battle cry to encourage others to stand firm with diamond hands in the face of [volatility](https://www.investopedia.com/terms/v/volatility.asp).
*   **Paper hands** 🧻🤲: This is a derogatory slur leveled against those who fail to maintain diamond hands. These are perceived as weak individuals without conviction who sell their crypto too quickly.
*   **Mooning** 🚀🌙: The idea that a stock will rise extraordinarily high, as if to the moon.
*   **Apes 🦍**: Members of the crypto or NFT community. Some have attributed this to a meme related to the movie "Rise of the Planet of the Apes"_,_ but others have suggested that the label comes from the banding together of “dumb apes” to take on the Wall Street elite.
*   **BTFD** (buy the f\*\*\*ing dip): [Buying the dips](https://www.investopedia.com/terms/b/buy-the-dips.asp) means going long on crypto after its price has declined in the near term and is meant to be repeated after each such drawdown.
*   **YOLO** (you only live once): As in, why not buy into a crypto token or NTF?

## Applying the HODL Strategy to Stock Investments

While HODLing is generally associated with cryptocurrency investors, the [buy-and-hold investing](https://www.investopedia.com/terms/b/buyandhold.asp) strategy that it represents is not limited to crypto investing.

Many stock investors "HODL" their investments for long periods of time, although stock prices are almost always less volatile than the prices of crypto assets. Investors in stocks who buy and hold can benefit from long-term price appreciation while experiencing much less price volatility than is associated with cryptocurrencies.

## The HODL Coin

HODL may also refer to a DeFI token on the Binance Smart Chain (BSC). HODL Coin (HODL/$HODL) was launched in May 2021. Much like the term itself, HODL encourages users to hold onto their tokens for rewards in the Binance coin (BNB) that are distributed every three days. Rewards come from transaction taxes on sales, purchases, or transfers of HODL tokens. The tax amount is converted into BNB tokens, and a percentage of the gains are redistributed to users from the collective liquidity pool.

## What Does HODL Stand for?

"HODL" originated as a misspelling of "HOLD" (written in all caps), in an online post by an early Bitcoin investor. But "HODL", as it has gained popularity among crypto enthusiasts, has come to mean "hold on for dear life". Crypto HODLers, like buy-and-hold stock investors, pride themselves on "holding on" by not selling their cryptocurrency, no matter what happens in the crypto markets.

## Who Started the Term HODL?

The true identity is unknown of the person who inadvertently coined the term "HODL". The original misspelling of the word occurred in a post by the user "GameKyuubi" on the Bitcointalk.org online forum, at 10:03 a.m. UTC on Dec. 18, 2013.

## Why Do They Say HODL Instead of Hold?

HODL was a typo in a forum post title that quickly caught as a term that means hold on in the early cryptocurrency community.

## The Bottom Line

HODL is used in the crypto community to refer to a strategy of holding onto bitcoin holdings through its various price fluctuations and volatility. The acronym originates from a misspelling of "holding" by an online forum user. Typically used by Bitcoin maximalists, a HODLing strategy is similar to the conventional buy-and-hold investing strategy. HODL is also the name and symbol of a token on cryptocurrency exchange Binance's Smart Chain.

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> **Article Sources**
>
> 1.  Bitcointalk.org. "[I AM HODLING](https://bitcointalk.org/index.php?topic=375643.0)."
>     
> 2.  VanEck. "[VanEck Bitcoin Trust (HODL)](https://www.vaneck.com/us/en/investments/bitcoin-trust-hodl/overview/)."
>     
> 3.  Hodltoken.net. "[Frequently Asked Questions](https://hodltoken.net/faqs)."