The expression “hodl”, which is often used in the cryptocurrency market, is used to protect its position. Let’s take a look at where this expression comes from and what exactly it is used for.
The crypto money market, which started its adventure under the leadership of Bitcoin (BTC) years ago and promised many innovations to its users, brought many new expressions with it. The speed of globalization of the world we live in has increased as opportunities such as social media or the internet have rapidly increased and become widespread. This has resulted in expressions such as “hodl” frequently appearing in daily life. So what is this word “hodl” and what factors did it achieve such a widespread use?
You browse your social media networks, you finish one of the accounts you follow and continue to review the other. While paying attention to the interesting posts, you realize that a word catches your eye all the time: “Hodl”. But what is this hodl? Everyone is talking about “hodl” that money, using phrases that include any cryptocurrency. Or, there are many similar discourses created with this word. It has to be admitted that this situation is quite confusing for users who are familiar with the cryptocurrency market for the first time.
Although the word “Hodl” means nothing in our Turkish in everyday usage. It is known as an important term in the fields of finance and cryptocurrency market. This word, which gives the impression of being misspelled at first sight, also has an interesting story.
Hold on Hodl basis
The word hodl actually comes from a misspelling of the English word “hold” which means to hold. Later, the word managed to find a place for itself in the jargon of cryptocurrency users. Nowadays, this word is frequently used by many people in everyday conversations. In fact, this usage rate proves how social platforms can affect human life.
What does hodl mean? What situation is this expression used for?
In the cryptocurrency community, the expression hodl also refers to “not selling impulsively” when the price of a crypto asset drops. As it is known, the cryptocurrency market has a high rate of volatility, in other words, volatility. For example, it is possible to see that any cryptocurrency that is traded at a very high value in the first hours of the day suffers a great loss in price at the end of the same day. This is a fact that cryptocurrency users do not find very strange. A similar situation was mentioned when the word “hold”, meaning to hold, was used incorrectly for the first time. Accordingly, we can say that hodl was used for the first time in this context of volatility.
Hodl’s Place in Finance
The word “hold” is known as a word that has been used in the field of finance for a long time. Financial advisors have been making suggestions to their users for many years, with phrases such as buy or hold. According to this investment method, it is enough to buy a financial value and wait for an indefinite period. As a matter of fact, this method aims to prevent investors from being affected by market movements in short-terms. In other words, by adopting the method of holding your financial asset, you can ignore the small picture in the market and focus on the big picture. That’s what hodling means.
Output of hodl expression
The hodl statement is based on a blog post shared in 2013. It was published on a cryptocurrency forum called Bitcointalk. At that time, it caused quite a stir among crypto users. This blog post was published just after the price of Bitcoin (BTC) dropped drastically as a result of a move by the Chinese government. As a result of some steps taken by the government, the crypto money market, which had not yet reached its current maturity at that time, depreciated significantly, causing a wide-scale panic among users.
Here is a user who is a little more affected by this panic atmosphere that dominates the market at this time. He shared a blog post on the mentioned platform. In the post, a user named GameKyuubi, who stated that he is a bad cryptocurrency processor, complains that he is not able to make a profit, although everyone is successful.
The title of the post went down in history as “I AM HODLING”. The user, who made some statements reflecting the general state of the market in the post, draws attention to the bad luck he has. And he has some kind of reproach. However, the user, who does not lose his faith in the market, points out that he will keep the crypto assets he owns and underlines that all he does is wait. The fact that this entire post contains a typo has managed to include the phrase hodl in the literature of cryptocurrency users from all over the world.
Hodl and Cryptocurrencies
We talked about the high volatility of the crypto money market in the first parts of the article. Users who want to get rid of this volatility by adopting hodl as a method. It aims not to be affected by this situation. As if this high volatility was not enough. There is also the case that large-scale investors, called whales, affect cryptocurrencies with small transaction volumes. It seems possible to stay away from the effects of whales by hodl’ing. Whales, who try to manipulate the market by selling many crypto assets at once, push users to hodl. Because it is thought that eventually that crypto asset will reach its true value.
Continuing its development. And the cryptocurrency market, whose adoption rate is increasing day by day, is pregnant with many innovations. The expression Hodl took its place among the things that this market full of surprises added to us. If the investor of any crypto asset has decided to implement the hodl strategy. It will be least affected by the manipulations and price fluctuations mentioned above. For example, a crypto can lose 20% of its value 2 weeks after we buy it. However, after six months, the same cryptocurrency can also offer a 30% profit rate. Hodl by not getting caught up in the current trend of the market can sometimes be the right method for investors to adopt. Of course, users who will invest in the risk-filled cryptocurrency market should act carefully by doing their research before attempting this job.