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If you know anyone who invests in cryptocurrency, you may have heard the term HODL once or twice.
You probably thought it was a word being mispronounced. Or a foreign language word.
It’s neither though.
HODL (sometimes written as hodl) is a crypto term that some people think is an acronym, likely because it’s usually seen in all caps. As an acronym, some believe it means “hold on for dear life,” a nod to the rollercoaster ride of volatility that Bitcoin began to see in 2013.
However, its true origin occurred on the Bitcoin Forum message board in December 2013. A drunken participant posted that he was holding BTC rather than selling. His subject line, however, contained a typo:
“I AM HODLING”
The term soon took on a life of its own, even though the poster explained later that he’d been drunk at the time and mistyped “HOLDING.”
So now, to HODL crypto means to hold a cryptocurrency rather than selling it, even during a downturn.
During price increases, you’ll come across “HODL to the moon!” and similar enthusiasm.
The person who’s holding all that crypto? He or she is a HODLer.
Still confused? I don’t blame you.
Let’s use the stock market as an example.
A speculator in the stock market is someone who’s looking for one gigantic score that has the chance to make him or her millions.
A trader is someone who’s in and out of the market, often several times a day (e.g., a day trader). This person’s goal is to make a living from small wins, repeating that process over and over again. And, if he’s lucky, having the occasional big win.
An investor is someone who buys a stock and holds it for the long term, especially if it’s a dividend-earning stock. He or she may buy and never sell those stocks, eventually bequeathing them to heirs.
The crypto world also has speculators looking to make a big score. And it has traders who are in and out of crypto assets regularly, looking to create a sustainable income.
And there are the crypto world’s equivalent of investors — HODLers, who buy and rarely sell.
It’s less painful to HODL crypto now, even when pretty much every coin and token sank and stayed down in May 2022.
Now, HODLers can earn interest (often called rewards) on the crypto assets they’re HODLing.
My preferred rewards platform is Freeway, a safe, secure platform that lets me earn up to 43% on my crypto and fiat assets. Compared that to what you earn keeping funds in a bank savings account.
And I don’t stress out as much as I used to when crypto prices go down.
Click here to learn more about Freeway, and why I like it so much.