Mining glossary
HODL in cryptocurrency - what is it?

HODL is a specific digital coin strategy in which tokens and coins are purchased for long-term storage rather than active trading. Moreover, the strategy is maintained despite the ups and downs in prices, which are constantly observed due to the high volatility of such assets. The end result of HODL should bring enormous profits to the crypto owner in the long term.


If we focus on the essence of the strategy, then it would be logical for it to be designated as a hold, that is, to hold, to hold. However, the method is called HODL. The probable reason for this is one fact that happened in 2013 after a serious collapse of Bitcoin. One of the owners of VTS on the forum created a topic called I am holding. There was probably a spelling mistake. However, in this version, the strategy went viral and is used to this day. At that moment, the user claimed that he refused to drain his bitcoins and was holding on despite all the changes in the market. Then its decoding was transformed into Hold On for Dear Life, that is, to hold on with all your might.

Advantages of the HODL strategy

Like any other method of working with cryptocurrencies, this one has its pros and cons. The advantages include the following:

  • minimum time spent on making a profit in the long term since you just need to make a purchase and put the money in storage;
  • no nerves are wasted as a result of market correlation;
  • there is no need to study different trading strategies since trading is not carried out;
  • there are no associated commission costs because transactions with digital coins are not carried out.

Additionally, it can be noted that cryptocurrency owners who adhere to the HODL strategy periodically receive additional bonuses as a result of hard forks.

The main disadvantage of this technique is that the owner of digital coins needs to monitor the market continuously. Therefore, any changes are not analyzed, including those that could lead to a complete asset loss. Plus, there are always risks that the asset will depreciate or simply go out of use.