What Is HODL?

HODL is a play on the word "hold." HODL in the crypto world refers to the strategy of holding crypto assets for a fairly long period of time without selling them, regardless of price fluctuations that may occur. HODLers believe that the value of these crypto assets will increase in the future, and they are willing to hold their assets without taking short-term profits.

The main advantage of the HODL strategy is the potential for large returns if the price of the crypto asset rises significantly in the future. In addition, by not trading frequently, HODL holders avoid transaction costs that can arise from repeated trading activities.

However, keep in mind that HODL also has risks, because the price of crypto assets can drop drastically and impact the value of the portfolio. The decision to HODL should be based on careful analysis and understanding of the crypto market as well as personal risk tolerance.

Read More Vocabulary