What it means to HODL

What it means to HODL
What it means to HODL

If you’re familiar with crypto, you’ve probably heard the term “HODL.”
“HODL” is a crypto term that translates to “Hold on for dear life” and means not selling when the markets go down, or become volatile.
Originally a typo for “hold” on Reddit, the big idea is that holding bitcoin through rough times pays off in the long run.
And historically, that has been the case.
It is no secret that bitcoin and the rest of the crypto market has been volatile. The price of bitcoin has made all-time highs during past bull markets before retracting around -80% in each bear cycle.
Consider a real-life example: Say an investor decided to buy a full bitcoin at the top of the 2017 bull market. They would have paid about $20,000.
In 2020, that investment dropped to around $3,000. Wild.
By the peak of the 2021 bull market, though, their investment would have grown to over $69,000.
Yes, Bitcoin swings more widely than stocks and other assets. It’s hard to say where it will be tomorrow. But the big picture trendline has generally been upward.
If you believe this trend will continue, then HODLing may be the best strategy for you.