What does HODL mean? Everything you need to know about HOLD

HODL means any investor who buys and stores electronic assets in the hope that this asset will grow and generate profits in the future. This is a long-term investment strategy based on a positive view of the growth potential of any cryptocurrency.

If you also want to learn more about the meaning of HODL in the cryptocurrency market, please follow the following content from AZcoin!

What does HODL mean?

HODL is a term used in the cryptocurrency market. The original name is HOLD, meaning holding cryptocurrency. Accordingly, this term accidentally came from a post on the Bitcointalk forum in 2013 by an account named GameKyuubi and gradually became popular in the community.

So HODL or HOLD are words used to describe an investment strategy in which investors will focus on buying and storing any asset. This can be considered a long-term investment strategy based on a positive view of the growth potential of cryptocurrencies.

Besides HODL, we also have TRADE, another investment strategy often talked about, which we will talk about later in the content.

Does HODL have any advantages or disadvantages?

Of course, because it is an investment strategy, HODL also has advantages and disadvantages that you need to consider when you want to implement it.

Besides, if you have time, we suggest you check out other interesting content like What is the Bitcoin Hashrate, Pi Network, What is Ponzi scheme,…

Advantages

• Easy to get started, and does not require too much knowledge, experience, and skills to implement.
• If you are lucky enough to choose the right project, it can bring huge profit potential.
• Can earn additional passive income from staking or farming from held coins.
• It is the safest, least risky investment direction, and very suitable for those who are inexperienced.

Disadvantages

• Easily influenced by psychology, and afraid of missing out on other coins, it is easy to mistakenly buy coins with little development value.
• Frequent price fluctuations can easily affect psychology when holding coins.
• If you unfortunately choose to invest in a dead project, you can lose everything.
• Lack of liquidity if investing in projects with little potential and few people making transactions.

How is Hold Coin different from Trade Coin?

From the beginning, we mentioned TRADE as an investment strategy that goes hand in hand with HODL and is used in combination by many experienced investors. However, they have many specific differences, such as:

Comparison factor	HODL	TRADE
Investment time	Long-term can last from several months to several years	Short-term, lasting only a few minutes to a few weeks
Risk level	Good profitability with relatively low risk	The risk level is very high for each transaction
Requires knowledge	No in-depth knowledge of the cryptocurrency market is required	Requires a large amount of knowledge and risk management ability to implement
Main investment object	Are new investors, less experienced or people who have faith in the development potential of any cryptocurrency	Experienced investors are equipped with enough knowledge and can monitor the market daily

What does it take to become a HOLDER?

To become a HOLDER in the cryptocurrency market you need to have all the following factors:

• Truly believe in the development potential of blockchain technology as well as the project you are investing in.
• Patience and steadfastness in the face of big or small changes in the cryptocurrency market are still under development.
• Possessing a certain amount of idle money, within the amount you can accept losing, and want to earn passive income from it.

Also, if you need more information about cryptocurrency and want to try investing, check out the best crypto exchange site here.

Other questions about HODL

Here are quick answers to some common questions from new investors about the HODL strategy that you can check out.

When to HODL

The best time to hold coins, recommended by many experts, is when the market enters a downtrend period.

However, when investing, to get the best results, you should divide the amount and time of investment into each amount.

How to choose coins for HODL?

If you are a new investor and do not have much experience, we encourage you to focus on investing in highly safe projects.

Some typical, especially famous, and highly secure projects that we can recommend to you are Bitcoin, Ethereum,…

How should HODL be allocated?

This is the advice of experienced investors. Avoid putting all your eggs in one basket. Accordingly, you need to divide:

• 80% is for highly secure coins.
• 20% is for potential coins that can develop in the future.

Conclusion

Here is all the information we can share with you about the meaning of HODL. Hope you will find it useful. If you have any other questions, don’t hesitate to contact AZcoin.