The term HODL first showed up in 2013 on a bitcointalk forum. This was a time when bitcoin surged to a price of over $1000 at the beginning of December in 2013. In just 24 hours, as a response to the Chinese crackdown, the price dropped by more than 39% reaching $430.
After this crackdown, a forum user posted ‘’ I AM HODLING’’. Despite this being a classic typo, it was very entertaining for the community since the user was drunk. He was later trying to correct his typo mistakes by making more. He was ranting about how bad of a trader he is and since he is a bad one he will just hold his coins. In just an hour, the community went hard on the guy by creating memes and having a blast. After that, it just became a widely accepted term and now it is used in the crypto terminology.
HODL since became a term that actually means trading based on short-term price movements. According to GameKyuubi’s drunk forum thread, he believes that ‘’novice traders are likely to botch their attempts to time the market and lose money, or make less than they would by simply holding their coin’’.
Many cryptocurrency users are now simply HODLING and thus fight against the two most destructive actions a trader can do which is FOMO (fear of missing out) or FUD ( fear, uncertainty, and doubt). Other HODL because they believe cryptocurrencies will eventually replace fiat currencies and they will get rich when this happens.
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