HODL is a term that’s derived from a misspelling of “hold.” It’s basically the cryptocurrency equivalent of the buy and hold strategy. HODL originally appeared in a now-famous post on the BitcoinTalk forum in 2013. The term was a spelling mistake in the title: “I AM HODLING.”
HODLing refers to holding on to investments despite price drops. It’s also commonly used in the context of investors (“HODLers”) who admittedly aren’t good at short-term trading, but want to get price exposure to cryptocurrency. It may also be used for investors who have high conviction in a particular coin and intend to hold on to their investment for a longer period.
The HODLing strategy is similar to the buy and hold investment strategy coming from the traditional markets. Buy and hold investors try to find undervalued assets and hold on to them for a long time. Many investors adopt this strategy for Bitcoin.
If you’ve read our dollar-cost averaging (DCA) article, you know that this would have been a highly profitable strategy for Bitcoin. If you’ve bought just $10 of BTC every week for the last five years, you’d be up more than seven times your original investment!