Cryptocurrency has now become a fast-growing trend, with more people exploring and getting convinced of the idea of a digitized currency that eliminates the need for traditional intermediaries like banks for financial transactions. Anything becoming trending or successful comes with its own stories crafted by new learnings and experiences.
With all the hype and excitement, a jargon “HODL” that was once just used for inside puns in early cryptocurrency forums and chat rooms has now become a part of the dialogue. “Ignore FUD” or “Just HODL your coin and head to the moon.” Such quotes have been all over the crypto-based forums by many.
If you are new to this world of Bitcoin and Cryptocurrencies, you may not know what any of these things mean. To make sense of such crypto-slangs, let’s dig deeper!
The Story Of “HODL” – What does HODL mean?
This term actually surfaced in the late 2013 when a member named Game Kyuubi drunkenly posted a thread “I AM HODLING” to the bitcoin forum. He basically wanted to convey that despite the huge fall that had just occured, he was going to hold his Bitcoin, in the hope of its price rising in the future.
After that incident, this term became popular in the cryptocurrency world. People now usually use this word when they believe that coin will be profitable one day. It became a popular strategy for people to admit who was less confident for day trading, scalping, or swing trading or simply reduce their risks.
Later it was made into an acronym “Hold On for Dear Life”.
Other Popular Cryptocurrency Terms
This also leads to the emergence of a variety of other jargons such as:
FOMO: Fear Of Missing Out, which implicated the fear of missing out from the possibility of higher profit from an investment decision.
ATH: All-Time High, which means that the price of a particular cryptocurrency has secured its peak price breaking all its previous records.
REKT: Misspelling of “Wrecked”, to indicate a person who has been destroyed or crushed with losses from a severe downfall of price.
BAGHODLER: It refers to a person who had been holding a specific cryptocurrency for too long such that he now has to bear its consequences in the form of loss or low-profit.
ALTCOIN: To refer to any cryptocurrency other than Bitcoin.
HODLING Cryptocurrency: Key Takeaways
Cryptocurrencies have proved to be extremely volatile. For instance, Bitcoin boomed by 52,000 per cent from 2011 to 2013, and then the following year, it fell by almost 80 per cent. It was emphasized up to a great extent that people who hodl are those with less risk-taking capacity. In historical times, Hodling has proved to be a long-term winning strategy, as far as security is concerned.
Focusing on the positive, Hodling relieves one from FUD (Fear, Uncertainty & Doubt), which often leads to panic-selling and reduces FOMO, which often influences them to buy high. This could serve to be a great strategy for new investors.
On the contrary, HODLers face a disadvantage by not taking full advantage of the volatility of the cryptocurrencies, which in some cases could make them yield more profits by being more pretentious. Also, by HODLING, the coins are not being used as a means of payment, which could further lead to the development of the coin and cryptocurrency-accepting stores.
Know when to SODL
There have been a lot of efforts already made by many to predict accurate cryptocurrency price movements, but every effort been hampered by striking volatility of the market. Therefore, it becomes hard to take such a decision. All we could do is to keep an open mind and a watchful eye, rather than stubbornly deciding to HODL until a particular price or time is reached.
Never HODL Everything
In such a highly volatile market, it’s not a wise decision to hold all your cryptocurrency. Volatility makes the market unpredictable with sudden spikes and crashes. It is necessary to smartly account for how much to HODL and how much to sell.