Your presence here shows you’re a newbie wanting to brush up on your crypto knowledge. Although this blog post might not clear away all your misconceptions or confusions about crypto processes and functions, you will have a clear understanding of HODL by the end of this article. So keep reading to learn more.
What Exactly is HODL?
Put simply, HODL simply refers to holding on to your digital assets. This term burst upon the scene accidentally when a drunken trader posted a message asking other forum members to hold their BTC. He misspelled the word ‘’Hold’’ as ‘’HODL’’ and forum members understood it as ‘’Hold on for Dear Life.’’ This is how this term came into being.
By HODLing, you won’t opt to increase the number of digital currencies you own. Instead, you will wait for the cryptocurrencies to go up to earn huge profits. Since cryptocurrencies are highly volatile, they offer great opportunities for crypto traders to make short and long positions frequently. However, holding can offer more safety and security to investors, as they are less likely to be affected by short-term volatility and can reduce their odds of buying high and selling low.
Holding is a great way to avoid realizing loss caused by short-term volatility. The huge gains from long-term appreciation are what make investors go for holding strategy. It is a very popular strategy among crypto investors and traders all over the world. It is the perfect choice for any trader. It might not sound as effective as day trading, but it helps you avoid the risk of huge losses.
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Michael is a cryptocurrency blogger who writes about the latest developments in blockchain technology. He has been blogging for over 4 years and his posts have been read by people from all around the world. His blog covers a wide range of topics, such as trading advice, new ICOs to invest in, and how blockchains can be used outside of cryptocurrencies. Michael also enjoys writing about more technical aspects of cryptocurrencies and blockchain technology.