hodl
Crypto slang for holding a cryptocurrency long-term rather than selling during price drops, originating from a 2013 Bitcoin forum typo of 'hold'.
Example
“Despite the 60% crash, the committed investor chose to HODL, refusing to sell his Bitcoin.”
Memory Tip
HODL = Hold On for Dear Life. Buy. Do not sell. Wait.
Why It Matters
Hodling is important for personal finance because it represents a long-term investment strategy that can help people build wealth through cryptocurrency without being influenced by short-term price volatility. Understanding this concept helps investors develop discipline and avoid making emotional decisions that could lock in losses during market downturns.
Common Misconception
Many people mistakenly believe that hodling guarantees profits or is a foolproof investment strategy. In reality, hodling carries significant risk because cryptocurrency values can decline substantially or become worthless, and there is no guarantee of future price appreciation regardless of how long you hold.
In Practice
Consider an investor who purchased Bitcoin at 60,000 dollars per coin in 2021 and watched the price drop to 20,000 dollars in 2022. A hodler would resist the urge to sell at a loss and instead hold their position, potentially waiting years for the price to recover. If Bitcoin eventually returns to 60,000 dollars or higher, the hodler profits, but if it never recovers, they face permanent losses.
Etymology
Originated from a 2013 BitcoinTalk forum post. Now backronymed as 'Hold On for Dear Life'.
Common Misspellings
Buy Bitcoin & crypto with low fees
Related Terms
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See Also
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