What does this meme stand for? Where did it come from? In the event that you search for the term on Google, you would come across many people claiming to be the innovator of the meme!
What does it really mean? Where did it originate from?
What is HODL?
In actuality, hodl means “Hold On for Dear Life”. It’s not a wrong spelling or an autocorrect for the word “HOLD”.
It is one of the fundamental slang terms used in crypto culture, and it’s described as a stance, “to hold on to cryptocurrency investment and not to give in even with diving costs.
Why is hold spelled hodl?
In the first bitcoin forums, one member sent a message that spelled “hold” wrong, and fellow members took it as an acronym “hold on for dear life,” Saddington, a prominent bitcoin investor explains.
Today, it’s turned into a meme of sorts, in the situations when the prices are extremely unstable, crypto buyers say keep calm and hodl on!
What does investing in cryptocurrency mean?
In order to provide an accurate answer to this question, you should ask yourself what your motive is when you made up your mind to invest in cryptocurrency.
Do you want to buy this cryptocurrency hoping that the value will appreciate? Would you like to put your resources into crypto-related organizations? Do you want to day trade with Bitcoins or Ethereum?
All these questions need to be answered before diving into the pool of cryptocurrencies.
Owing to cryptocurrency being a developing market and as well as the changes it brings to the monetary system, the market is as yet unstable, so the value of a coin has the tendency to rise and fall rapidly, depicting it a more risky investment without carrying out proper research to know when to sell and hodl, however, the utility of the coins can make them usable for investments as well as payments which were one of the primary intentions behind cryptocurrencies.
The instability is diminishing over time and this ought to ideally bring about lower volatility level in the value.
Cryptocurrency market dilution
This doesn’t apply to Bitcoin, Peercoin, Ether or Litecoin which all had a distinctive purpose when they were developing.
Many new cryptocurrencies are being released every day, with some having their source from Bitcoin.
Owing to a large number of cryptocurrencies with no practical utility taking over the market, elective cryptocurrencies may find it difficult to stamp their authority on an already diluted market.
Buying and hodling
The most widely recognized form of “investing” with regard to all cryptocurrencies is buying the crypto hoping it would appreciate in value (otherwise referred to as hodling).
If so then you have to decide whether this is the right time to buy. This brings about a question which is; do you think the value will continue to appreciate?
Try not to take anyone’s advice about what is going to happen to your money, get your work done, find out about the crypto of your choice and reach a conclusion.
This is just for a start and your opinion may differ, so don’t take this as an investment advice also.
A few tips for buying and hodling cryptocurrencies:
- Do not invest more than you’re willing to lose – This is an extremely risky investment and you should always remember that.
- Once you bought your crypto try to move it immediately into your very own wallet and never abandon it at the exchange. It’s highly recommended to make use of a hardware wallet to store the crypto. In the event that a hardware wallet is not affordable, use a paper wallet.
- Ensure to buy your crypto from exchanges with proven reputations.
- Buy cryptocurrencies via Dollar cost averaging: This implies you don’t buy the majority or all of your cryptocurrencies in just one trade, however rather buy a fixed amount monthly, weekly, or even daily throughout the entire year.
Cryptocurrency trading isn’t the same as buying and holding.
When you are trading cryptocurrency it implies that you’re currently trying to purchase a cryptocurrency of your choice at a low value then sell it back at a higher value within a short period of time.
However, mastering this act effectively involves knowledge and practice.
This is where you should be cautious as the trading market is filled with big players who are simply waiting for novices to come in and squander their money by trading capriciously.
How can HODL help cryptocurrency investment in 2018?
Buy and Hold as explained above is an investment methodology where an investor buys and hold a commodity for a long time, hoping that the value keeps rising.
This depends on the idea that over the long haul, at one point cryptocurrency market gives a decent return rate even with a level of instability associated with the world of cryptocurrency.
This is a typical practice for bonds, stocks, and certain items, and demands that the investor is equipped with a sturdy holding power.
Best cryptocurrency investment Strategies for 2018?
What is the best way to profit from cryptocurrency Investment in 2018?
The main key when it comes to profiting from cryptocurrencies is to get more acquainted with ourselves.
Over the years of buying and selling and now hodling, profiting and losing money, passing up a great opportunity for circumstances that cost more than anything else combined basically has made many investors to realize that the best plan for them is something simple and safe, although this is all from some investors’ perspective and does not necessarily mean it will work for everyone.
The advantages of this “meme”
The main reason to opt for this strategy in cryptocurrency investment is the fact that it works. Take Apple stock for instance.
If you bought 100 shares of Apple’s stock at the closing price of $17.7 per share in January 2008 and held it until July 2016, the value would’ve appreciated up to $95.37 per share.
That is an astounding profit of 442.20% in just eight years. That implies your underlying investment of just $1,770 in January 2008 would have reached $9,597 basically by buying and hodling Apple.
So is the case with cryptocurrency when applying the hodling strategy.
Another benefit of this method is that it is easy. All you need to do is buy your desired crypto and hold it. It is as passive as any aloof investment can get.
After buying it, you essentially carry on with your life and wait for the price of your crypto to grow.
At this point, you can most likely observe that the role of the ‘’hodl meme’’ in the world of cryptocurrency cannot be underestimated.
It’s obviously not just a matter of should you buy a certain crypto but likewise a matter of how much to invest.
However, like stated in the beginning, educate yourself to some extent before diving into the pool of cryptocurrency.
Find out about the cryptocurrency, what influences it, what are its benefits and drawbacks, and so on.