December 18, 2013
This is how Hodl started, in a Bitcointalk forum post, by user GameKyuubi, he said why he was still "hodling" (unsold) in his post, "I AM HODLING", he already knew there was a misspelling, but decided that hodling was the best definition.
Since then, HODL has been used countless times to comment that in a price drop, don't sell, hold Hodl, or that the least risky way to own Bitcoin is with Hodl.
The Origin and Meaning of HODL
HODL is a cryptocurrency slang term that could give the literal meaning to "Hold On for Dear Life," although its origin was simply a spelling mistake.
The community adopted this spelling mistake as an acronym (although in reality it is a backronym) that personifies the philosophy of holding cryptocurrency long-term, regardless of volatility or extreme market drops.
Philosophy: It is the antithesis of active trading. It implies a deep belief in the future value of the asset, ignoring short-term price fluctuations.
HODL and its Link with "Strong Hands"
The concept of HODL is intimately linked to that of "Strong Hands" in financial jargon:
Strong Hands: It refers to the investors or market participants who have the conviction and emotional strength to hold their assets (like Bitcoin) through large price drops. They don't get scared or sell in panic. They are considered the stable base of the market.
Link with HODL: The action of HODL is the practical definition of being a "Strong Hand." An investor who HODLs is someone with Strong Hands.
Contrast with "Weak Hands": These are traders or retail investors who enter and exit the market quickly. They sell as soon as they see a small profit or, more commonly, sell in panic in the face of any major price correction, transferring their assets to the Strong Hands at low prices.
In essence, the HODL culture is the mantra of the Strong Hands to resist volatility and accumulate long-term wealth.
