What does HODL mean?

Hold on for dear life

HODL is a term commonly used in the world of cryptocurrency to denote the practice of holding onto a cryptocurrency for a long time instead of selling it when the price spikes. It’s like a mantra for investors who are in it for the long game and are not swayed by short-term market fluctuations.

The term came into being through a funny incident on a Bitcoin forum. The user, who went by the name of “GameKyuubi”, made a spelling error and wrote “hodl” instead of “hold” in a post on the 18th of December, 2013. He was explaining why he is holding onto his Bitcoin rather than selling it when the market price was high.

The Bitcoin community found this misspelling amusing and started using it as an acronym in memes. As these memes spread across the internet, ‘hodl’ became a popular term symbolizing the strategy to hold onto cryptocurrencies despite the volatile market prices.

The term HODL is now commonly used in financial articles about cryptocurrencies and on financial forums. You might even hear it from your hipster friend who is into cryptocurrency trading. Even tycoons like Elon Musk have used the term. Musk, for instance, included a trophy inscribed with the word ‘HODL’ in a tweet about selling an NFT of his song about NFTs.

While HODL is primarily used to describe the strategy of holding onto cryptocurrency for a long time, some people also use it as a replacement for the word ‘hold’ when discussing cryptocurrencies in general.

Example for using ‘HODL’ in a conversation

Hey, have you heard about this HODL thing?

Yeah, it’s all about holding on to your cryptocurrency for the long term instead of selling.

Exactly! It’s like “hold on for dear life”.

Haha, yeah! It started as a misspelling of “hold” in a Bitcoin forum.