In my "Crypto Whiteboard 101" series, I explain the most important cryptocurrency topics in less than two minutes. In today's post, we answer the question "What does it mean to HODL cryptocurrency?"
Although you're free to watch the video for a more detailed analysis, HODL is a cryptocurrency acronym that means Hold on For Dear Life. People who "HODL" a cryptocurrency generally have a long term outlook and want to hold onto the cryptocurrency regardless of short term market fluctuations. This stands in contrast to someone that frequently trades in and out of positions or someone who sells cryptocurrency at the first sight of bad news. Someone who "HODLs" cryptocurrency is likely to agree with the phrase "the trend is your friend" and point out that although cryptocurrency does have short term volatility, the long term trend has been quite bullish.
Although the term HODL is revered in many crypto circles as an unwavering commitment to the future of cryptocurrency, simply HODLing crypto may or may not be the ideal strategy for each individual, and its important to note that this article describing HODLing should be viewed as an educational piece of work describing a term rather than financial advice. As always, thanks for reading!
References
https://www.marketwatch.com/investing/cryptocurrency/btcusd
https://www.cnbc.com/2021/12/04/cryptocurrencies-bitcoin-and-ether-prices-drop-sharply.html
https://bitcointalk.org/index.php?topic=375643.0
