HODL

HODL is the strategy of holding crypto for the long term and not selling during drops and panic. The word comes from a 2013 forum post that misspelled "hold".

How it works

In December 2013, during a sharp bitcoin drop, a forum user posted a thread titled "I AM HODLING", misspelling holding. The post became a meme, and the backronym "Hold On for Dear Life" was added later.

The point of HODL is not to chase every move but to hold an asset for years and sit through the drops. It is often combined with DCA, buying a fixed amount on a regular schedule. People who do this are called HODLers.

HODL only works with assets that survive downturns. Holding a coin with no future for years is not a strategy, it is hope. Drawdowns of 70–80% have happened in crypto more than once, and a HODLer has to be ready to live through them.

Example with numbers

You bought $1,000 of BTC at the top, and a year later it was worth $300. If you panic-sold, the $700 loss became real. If you held and the price eventually climbed back above the top, the loss disappeared. But with an altcoin that never recovered, holding would have meant −70% for good.

Common mistake

A common mistake is confusing HODL with stubbornness: holding any coin "no matter what" with money you will need in six months. Only HODL what you believe in for years, and only an amount you will not need to pull out in a hurry. Every so often, check whether the reasons you bought still hold.

Questions and answers

What does HODL mean in simple terms?

It means buying crypto and holding it for a long time, without selling in drops or chasing short-term moves.

Where does the word HODL come from?

From a misspelling of "holding" in a forum post in December 2013. The backronym "Hold On for Dear Life" came later.

Is HODL a good strategy?

For some people, if the asset is solid and the money is spare. But there are no guarantees: many coins people HODLed lost nearly everything.

HODL

How it works

Questions and answers

Related terms

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