Clear DefinitionsHODL
1 min read
Pronunciation
[hodl]
Analogy
Like planting a tree and refusing to chop it down during storms because you believe it will grow strong over time.
Definition
A slang term originating from a misspelled forum post meaning “hold,” referring to the strategy of holding cryptocurrency assets long‑term regardless of market volatility.
Key Points Intro
HODL embodies a buy‑and‑hold philosophy in volatile crypto markets.
Key Points
Long‑term view: Ignores short‑term price swings.
Psychological anchor: Reduces emotional trading.
Dollar‑cost averaging: Buying at intervals to reduce entry risk.
Community meme: Symbol of crypto resilience and belief.
Example
An investor HODLs Bitcoin through multiple bull and bear cycles, accumulating more on dips.
Technical Deep Dive
HODL strategy performance modeled via time‑series analysis, comparing buy‑and‑hold returns vs active trading metrics (Sharpe ratio, max drawdown).
Security Warning
Holding large positions in hot wallets increases theft risk; use cold storage.
Caveat
HODLing ignores potential opportunity cost of active strategies.
HODL - Related Articles
No related articles for this term.