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HODL
H
Definition
A long-term investment strategy of holding onto an asset despite market volatility, originating from a misspelling of 'hold'.
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Concept Diagram
Key Takeaways
1
HODL is a long-term strategy of holding despite extreme volatility and drawdowns
2
It originated from a 2013 forum typo but became an institutional philosophy
3
Professionals HODL base-layer assets like BTC and ETH while trading altcoins for profit
4
The goal is to accumulate more HODL position through active trading gains
Practical Example
If you HODL'd 1 BTC bought at $300 in 2015, it would be worth over $60,000 by 2024 - a 200x return that required nothing but the discipline to not sell during multiple 80% drawdowns.
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Related Terms
Trading
DCA (Dollar Cost Averaging)The practice of investing a fixed amount of money in an asset at regular intervals, regardless of the price, to reduce volatility impact.
Strategy
Bear MarketA sustained period of falling asset prices, typically characterized by negative investor sentiment and high volatility.
Strategy
Bull MarketA sustained period of rising asset prices, often driven by high demand, institutional adoption, and positive macro conditions.
Strategy
FOMO (Fear Of Missing Out)The psychological driver where traders make impulsive decisions to buy assets during a rally to avoid missing potential gains.
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