HODL
A crypto slang term meaning to hold cryptocurrency long-term rather than sell. Originally a typo of 'hold' in a 2013 Bitcoin forum post that became a meme and investment philosophy.
Last updated: January 5, 2025
What is HODL?
HODL is a cryptocurrency slang term meaning to hold your coins instead of selling, regardless of price volatility. It’s often backronymed as “Hold On for Dear Life,” though it actually originated as a typo.
The Origin of HODL
On December 18, 2013, Bitcoin dropped from $716 to $438. A user named GameKyuubi posted on the BitcoinTalk forum:
“I AM HODLING”
“WHY AM I HOLDING? I’LL TELL YOU WHY…”
The typo “HODLING” instead of “HOLDING” resonated with the community and became a legendary meme. The full post admitted he was a bad trader who kept buying high and selling low, so his solution was simple: just hold.
HODL as Investment Philosophy
The Logic Behind HODLing
- Market timing is hard - Few consistently predict tops and bottoms
- Long-term growth - Bitcoin has appreciated over multi-year periods
- Avoid emotional trading - HODL removes decision fatigue
- Tax efficiency - Fewer taxable events
When HODLing Makes Sense
- Strong conviction in long-term value
- Limited trading experience
- Long investment horizon (3+ years)
- Belief in crypto fundamentals
When HODLing Doesn’t Make Sense
- Need the money short-term
- Investment thesis changed
- Better opportunities elsewhere
- Position became too large
HODL Culture
”Diamond Hands”
- HODLers who never sell, even during crashes
- Symbol: 💎🙌
- Extreme conviction
”Paper Hands”
- Opposite of diamond hands
- Sells at first sign of trouble
- Considered weak
”HODL Gang”
- Community of long-term holders
- Support during downturns
- Shared conviction
HODL vs Active Trading
| HODL | Active Trading |
|---|---|
| Low effort | High effort |
| Low fees | Higher fees |
| Tax efficient | More taxable events |
| Misses some gains | Can capture swings |
| Survives crashes | Can avoid some losses |
| Simple strategy | Requires skill |
The Math Behind HODLing
Bitcoin example:
- 2013: $100
- 2017: $20,000 (200x)
- 2020: $10,000 (crash to 50%)
- 2024: $70,000+ (still 700x from 2013)
HODLers from 2013 are still massively profitable despite multiple 50%+ crashes.
HODL Tips
- Only HODL what you understand - Research before holding
- Use cold storage - Secure long-term holdings
- Set and forget - Don’t check prices daily
- Have an exit plan - Know when/why you’d sell
- Don’t HODL everything - Diversify appropriately
Famous HODL Quotes
“When in doubt, zoom out” - Crypto community wisdom
“Have fun staying poor” - Response to non-HODLers
“HODL until your friends ask how to buy” - Bull market indicator
Ready to Start Trading?
Now that you understand hodl, explore the best exchanges to begin your crypto journey.