HODL means that users keep their savings for a long time despite the fluctuations in the cryptocurrency market. A person who does not sell and holds the assets in his portfolio when the markets are down applies the HODL strategy.
For the first time in 2013, a user made a typo when using the word HODL on Bitcoin forums and wrote that he will keep the cryptocurrencies in his virtual wallet despite the depreciation of Bitcoin.
Despite being misspelled, this term is liked by users who trade in the cryptocurrency market and users who want to keep their investments use this expression. Then the name of this strategy Hold On For Dear Life It begins to be used as an abbreviation of the sentence and means to hold on to your life. In other words, the investor’s HOLD is to hold the crypto money in his hand, even if the value of the crypto money he invests in decreases, even if he has negative news, even if the economy is bad, even if there is a lot of fluctuation in the market, without worrying about them and without losing his faith.
When the word HODL is used; Instead of selling the assets that have started to lose value, it is aimed to regain value by keeping them on hold for a long time.
The HODL strategy is more common in cryptocurrencies such as Bitcoin and Ethereum. Because these cryptocurrencies are well-established digital assets held by many investors and generally appreciated. These cryptocurrencies are usually bought at low value and kept in wallets for a long time.
How is HODL Made?
A person who holds crypto assets despite the decline believes that these assets will gain value again. This is the main point of the HODL strategy. If the assets in hand will always decrease and remain below the purchase value, HODL will not bring profit. For this reason, investors resort to various analyzes for the correct functioning of the strategy.
An investor who wants to HODL keeps the purchased asset in cold or hot wallets. There is no need to check the wallet during the time the strategy is implemented. When the market changes and the bull season begins, the investor keeps track of his wallet. It also ends the HODL strategy by taking a suitable profit.
