What does HODL mean in Cryptocurrency? Why should you HODL?
HODL is one of the commonly used terms in the crypto community. Often new folks wonder what is hodl exactly and why this turns out a best form of defence for the volatile crypto market? Let’s understand from the very beginning.
It turns out that, HODL was actually originated from a misspelling of the work “hold”.
Seven years ago, an enthusiastic Bitcoin talk forum user by the name of GameKyuubi posted an unfortunate trading decision that he took during the volatile price rally in December 2013.
Apparently, as you can see in the image attached below, he stated that “I AM HODLING” in an effort to communicate from that point on that he would rather prefer to hold his bitcoins instead of selling them in the market conditions. Within a few hours, his typing error found its way into other Bitcoin forums in the form of memes and GIF’s essentially giving birth to a new phrase “HODL”.
To this day, all the Bitcoin long-term followers and even the industry influencers have used the term “HODL” to remind the community to stay strong during the volatile market conditions and price movements. As GameKyuubi wrote, “In a zero-sum game such as this, traders can only take your money if you sell’.
That statement above makes Hodling a form of defence against wild market fluctuations.
That takes us to other crypto slang terms which you should know
FUD: Or “Fear, Uncertainty and Doubt” is a term that describes the emotions which can be felt by the investors during volatile market movements when negative news circulates and uneasy moments start evolving in the market like some country planning to ban Bitcoin. The next moment panic selling starts and the price starts to dump. It’s a part of the normal market cycle.
Stacking Sats: “Sats” come from the term “satoshis” derived from Satoshi Nakamoto, the anonymous founder of Bitcoin. “Sats” are the smallest fraction of a bitcoin that is equal to 0.00000001 of BTC. Stacking Sats is a term that denotes the act of regularly accumulating bitcoin in small amounts.
To the Moon: When the price of Bitcoin or any other altcoin starts increasing steadily over a short period of time, investors start using the term “To the Moon” to illustrate the uptrend.
REKT: Often this term denotes a bad trade when investors have made a bad trade and has in general lost a bunch of money in the process.
Whale: Referring to a large bitcoin HODLer/investor. “Whales” typically hold a substantial amount of bitcoin. Thus, when a whale buys or sells bitcoin, its influence can be so strong as to make the market price move significantly upward or downward.
That was all for today folks, I hope this article was simple and easy to understand 🙂