hodl

An Easy Explanation On HODL In Crypto: All Doubts Cleared

HODL is a misspelled word of HOLD, which is a try to avoid the urge to panic sell when the value of BTC drops. It is often utilized in the online digital currency forums or also in the comment section of the YouTube videos that talk about BTC trading. 

The sector that was quickly evolving around BTC at its growing time is used to seeing the prices rise, and the values suddenly began to fall because of an unexpected declaration by the government, many traders were caught off guard. 

Bitcoin is thought to be a revolutionary invention that has already altered the space of finance and will prevail to do so. The real aim of this article was to offer an unbiased view of what the idea of this crypto term is. 

What Is HODLing?

HODL is a word used in the virtual currency world that implies holding on to your tokens or coins rather than selling them. The concept of this word arrived from a drunk post on the BTC Forum about this crypto not being able to be traded but only held for upcoming use.

A Bitcoin extremist is someone who holds that crypto has the highest chance of success in the digital currency space. They think that a certain convention, such as the blockchain of Bitcoin, will control all others and become a standard throughout markets.

Is HODLing A Good Investment?

While this term is seldom used as a slang in the digital currency space, it has often been criticized for being poor advice. This term does not imply anything in respect to investment strategy, but some people think this to be a bullish sign when they view the crypto community and forums. However, there are already some analysts who think that HODLing can be an effective way to lose money. 

What Is The HODL Strategy?

The HODLing strategy is dependent on digital currency investment with the aim of selling. The investor thinks that the value of digital currencies will rise with time, which is the outcome in profit when it is sold at greater values. 

The risk of hodling is that nearly 80% of all the digital currency tokens on the market presently are outright scams and the individuals. HODLers will also have other parameters for choosing an exchange. One of the most crucial parameters is that the exchange is secure. There are various ways to evaluate this. Initially, exchanges that are not controlled are often unsafe as they do not have to disclose entity details. Next, exchanges that offer low fees tend to be unsafe as they cannot offer adequate security for user funds with the prices that they seek.

Can You HODL Stocks?

While HODLing is mainly related to digital currency investors, the purchase and hold investing plan that it portrays is not restricted to crypto investing.

There are many stock investors who “HODL” their investments for a long span of time, even though the values of stocks are almost always less fluctuating compared to the values of crypto assets. Investors in stocks who purchase and hold can gain benefit from long-term price appreciation while facing much fewer price fluctuations than is related to digital currencies.

The Bottom Line

The word HODL is the opposite of FUD. While the word FUD is employed to bring fear into investors, hodling is used to bring hope into them. Now you may wonder why some users are using this term? This is because they are aiming to encourage others not to sell their digital currencies during a downturn in values.


Frequently Asked Questions On HODLing

1. What does it mean to HODL?

This is a word used in the virtual currency world that implies holding on to your tokens or coins rather than selling them. The concept of this word arrived from a drunk post on the BTC Forum about this crypto not being able to be traded but only held for upcoming use.

2. What is a HODL coin?

This is a word used in the virtual currency world that implies holding on to your tokens or coins rather than selling them. There is nothing as such a coin for HODLing.

3. Is HODL a good investment?

This term does not imply anything in respect to investment strategy, but some people think this to be a bullish sign when they view the crypto community and forums.

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