HODL, derived from the word "hold," refers to keeping and not selling your Bitcoin or other cryptocurrency investments. The term originated from a post on an online forum in December 2013 and is true crypto jargon. Over the years, it has become a motto for investors who believe in the long-term value of cryptocurrency and hold on to their investments even in times of market volatility.
Origin of the term HODL
A user of an online Bitcoin forum with the username "GameKyuubi" (real name Mike) made a typo in 2013. That is the real origin of HODL. At the time, the price of Bitcoin had risen from fifteen to eleven hundred dollars that year, before dropping back to around $438. However, this user (who incidentally was inebriated at the time) did not sell and decided to hold his position: "I AM HODLING," he shared on the forum.
Within hours, the first jokes, masses of comments, and memes (funny pictures) appeared. Forum users then renamed HODL as the acronym for Hold On for Dear Life.
HODL as an investment strategy
So although HODL started very corny and unserious, it has since become a strategy of sorts for many crypto investors. Hodlers, with their seasoned experience, are determined not to be disturbed by price fluctuations and keep their crypto even when the market is fickle. This is because it is virtually impossible to time the market to buy and sell precisely.
Besides HODL, there are numerous other crypto jargon terms, such as FOMO (Fear of Missing Out), no coiner (someone without cryptocurrencies), FUD (Fear, Uncertainty, and Doubt), bullish and bearish. These terms are often used in the world of cryptocurrency to describe different situations and behaviors. Most know their origin and use on social media such as X (formerly Twitter) or Reddit.
While it is certainly not a requirement to be familiar with these types of acronyms and jargon, understanding the meaning and background can help with deciphering some social media posts with crypto jargon in them.
The information provided in our articles is intended solely for general informational purposes and does not constitute (financial) advice.