When discussing crypto lending, you will likely hear the term ‘HODL’ used as a way of setting up how beneficial crypto loans are. Oftentimes, crypto enthusiasts are encouraged to HODL their assets. In other words, keep them safe inside a wallet until their selected currency’s price appreciates. However, this raises the question of how to get your digital currency to grow.


This is where crypto lending comes into play. It will enable savers to acquire interest on their Bitcoin trove. It also allows borrowers to unlock their digital assets’ value by utilizing it as collateral for a loan.


That is all well and good, but what does HODL mean? For that matter, why is it spelt the way that it is?


What does this term mean?


‘HODL’ is interesting in that it is a typo and not a typo at the same time. If a writer were to say “HODL your assets,” right off the bat those who are uninformed would assume that the writer made a typo. The truth of the matter is there was no misspelling on the writer’s part, but the person responsible for coining the term actually did misspell what they were trying to say. Moreover, the coinage of this popular term in the crypto space happened unintentionally.


HODL comes from the incorrect spelling of the word “hold.” It is indicative of buy-and-hold strategies in the context of Bitcoin and other cryptocurrencies. This term originated back in 2013 and derived from the bitcointalk forum. A user by the name of GameKyuubi wrote a post entitled “I AM HODLING.” The post itself is largely incoherent and it’s obvious that the user who wrote it was drunk. It was mostly a self-deprecating rant about how the user was making bad trading decisions.


WHY AM I HOLDING? I’LL TELL YOU WHY. It’s because I’m a bad trader and I KNOW I’M A BAD TRADER. Yeah you good traders can spot the highs and the lows pit pat piffy wing wong wang just like that and make a million bucks sure no problem bro.”


As a strategy


Not too long after appearing in the forum, HODL became a byword for a specific approach to crypto investments. One that essentially shuns trading that hinges on short-term price movements. This tactic reflects GameKyuubi’s rationale, which is that novice traders are prone to fumbling their attempts to time the market. As a result, they either lose money or bring in less than they normally would by holding onto their coin.


HODLers don’t typically need to worry about volatility and predictions. All they do is HODL, which allows them to offset two notable detrimental tendencies. One is FOMO (Fear of Missing Out) and the other is FUD (Fear, Uncertainty, and Doubt). The former often leads to buying high and the latter can result in selling low, hence its alternative name of ‘SODLing’.