If you spend metre speech cryptocurrency enthusiasts, you May have been told to HODL your bitcoin. HODL means "Don't sell your cryptocurrency!" But why not just say hold, and where did the term HODL come from?
What is HODL?
The term HODL originated from a meeting place post in 2013 written by Gamekyuubi. This drug user, intelligibly intoxicated, entitled his post "I AM HODLING." Atomic number 2 meant to title his piece "I am holding," and this was far from the only spelling error in his post.
Although just a spelling error at the time, HODL has get along an ideology for many crypto investors. In the stake, the author rambled about how you tush't lose your cryptocurrency to the market if you don't patronage it. At the time, Bitcoin traded for only $100.
Investors who took this advice in 2013 bought Bitcoin in the 3-digit range and have HODLed their bitcoin always since. Each bitcoin these HODLers own is now worth over $44,000.
HODL Meaning
Understanding the ideology of HODL is simple: Grasp for dear life –– don't sell. Equally explained in Gamekyuubi's forum post, if you're non an toughened day dealer, then you'll likely miss your cryptocurrency to the market.
HODL is a verb, and it can make up put-upon the same way A the word "hold." The biggest difference between someone WHO HODLs bitcoin and someone World Health Organization holds bitcoin is their ideology. HODLers are bitcoin holders to the max –– holders who won't deal their investments because they believe that cryptocurrency is the future of finance.
HODL as a Strategy and Ism
If you really believe in Bitcoin and aren't an experienced trader, you should HODL. If Bitcoin does get ahead a mainstream trade good like precious metals, then each bitcoin will trade in for 6 figures. Because 21 trillion bitcoin will always circulate, the price will carry on to rise as long as more citizenry and institutions recognize Bitcoin as a fund of value.
With Tesla CEO Elon Musk recently announcing that Tesla has added $1.5 billion of bitcoin to Tesla's counterweight sheet, more corporations will likely consider Bitcoin as a valid reserve asset. If Bitcoin becomes a mainstream reservation asset, HODLing your cryptocurrency could give you big returns.
You'll find the word "HODL" used often on Twitter. If you conform to tech gurus like Tyler Winklevoss, you May have seen the term before. This month, Tesla CEO Elon Musk has tweeted about the term HODL tweeting: "Hodl the rainforests!!" Although "hodl" typically ISN't used outside of crypto investments, Musk means "Don't sell off the rainforests!"
Knowing When to HODL
You should HODL if you aren't assured you buns beat the market by trading your cryptocurrency. If you believe in Bitcoin, its futurity price potential makes swinging trading crypto much riskier.
Investors who shouldn't HODL include swing traders and short-condition investors. Some investors buy crypto during bull markets to hear and build quick profits, even if they don't believe in the long-term sustainability of cryptocurrency.
You want to accumulate Bitcoin during bear markets. Historically speaking, Bitcoin dips down between 80% to 90% each birth food market, simply so returns to break all-time highs old age later. Over the historical 10, Bitcoin's price has risen an normal of 200% annually, proving a profitable HODLers' scheme.
That being aforesaid, nobody knows where the price of Bitcoin is headed. To get a sense of Bitcoin's price cu since its origination, IT's good to use a index chart to account for volatility. For each one candlestick in the chart below represents 1 month of Bitcoin's price –– the long-term trend makes a disenchanting case for HODLing.
Become a HODLer
The first section about becoming a HODLer: Information technology's easy. All you want to do is set up a crypto brokerage firm account and purchase bitcoin, then just HODL.
Planning to invest a mickle of money in cryptocurrency? You should purchase a ironware wallet. A computer hardware wallet stores your crypto connected a physical device non connected to the internet so IT's impossible to hack.
Some good choices for crypto exchanges let in Coinbase, eToro and Gemini. These exchanges offer mobile apps indeed you can pull off your cryptocurrency active. All 3 of these platforms have simple user interfaces, so they're great for beginners.
How are HODLers Supposed to Know When to Sell?
You should base when to sell your bitcoin happening your goals as an investor. In cosmopolitan, you'll find 2 types of Bitcoin HODLers, both with their personal sets of goals. Some types of HODLers aren't just bitcoin holders, they are long-run believers in Bitcoin and truly think apiece Bitcoin leave be worth 6 figures or more downwards the line.
"When Lambo" HODLer
The term "when Lambo" is a cryptocurrency joke used when discussing the price of bitcoin. When Lambo right means "When could I get a Lamborghini?"
"When Lambo" cryptocurrency HODLers base when to sell their bitcoin connected if they can open a Lamborghini with their investment.
"Bitcoin Maximalist" HODLer
Bitcoin maximalist HODLers truly believe bitcoin is the future of finance. They South Korean won't sell their bitcoin because they are sold-out on the idea of a decentralized business system of rules and just 21 jillio bitcoins ever organism minted. If bitcoin ever were to contain over the financial arrangement, Bitcoin would cost worth millions of dollars.
Is HODLing Legitimate?
You must be thinking that HODLers need to manage their expectations. The cost trend makes a convincing argument for a Sir Thomas More expensive bitcoin, simply it's a signifier claim that it will hit anywhere near $1 million anytime soon.
At the end of the day, HODLers are right mass who real believe in bitcoin. To many HODLers, holding bitcoin is more than vindicatory an investment. Since HODLers believe that cryptocurrency is the future of finance, HODLing crypto in its infancy makes them feel part of something revolutionary.
Frequently Asked Questions
Where did the term "HODL" come from?
1
Where did the condition "HODL" come with from?
asked
Ryan McNamara
1
The term originated from a put up on bitcointalk.org in late 2013. The post spread around the bitcoin biotic community soon after it was posted because people institute the post humorous.
Answer Link
answered
Benzinga
What does HODL stand for?
1
What does HODL stand for?
asked
Ryan McNamara
1
HODL means "hold back," but some people claim it's also an acronym. HODL as an acronym stands for "hold on for dear life." Bitcoin historically dips over 80% in bear markets earlier reversive ultimo its all-time highs, and this is why many crypto investors bu HODL.
Answer Link
answered
Benzinga
What is HODLing in crypto?
1
What is HODLing in crypto?
asked
Ryan McNamara
1
HODL can be utilised whatever way the word restrain is used. Being a HODLer substance that you are a cryptocurrency holder and HODLing means that you are holding.
Don't exist mistaken –– "HODLing" and "holding" are not exactly the same! Holding simply implies that someone owns bitcoin and you probably detainment it for at to the lowest degree mid-term. If someone HODLs, then you don't sell your bitcoin anytime before long. HODLing is for true believers of bitcoin. HODLers South Korean won't sell their investment until Bitcoin is a mainstream universal lay in of value.
Answer Link
answered
Benzinga
Benzinga crafted a specific methodological analysis to rank cryptocurrency exchanges and tools. We prioritized platforms founded on offerings, pricing and promotions, client service, mobile app, user feel and benefits, and security measures. To see a super breakdown of our methodology, please visit go through our Cryptocurrency Methodology page.
What Does HODL Mean? • Where Did it Come From? • Benzinga
Source: https://www.benzinga.com/money/where-did-hodl-come-from/
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