HODLing

Hodling (pronounced hodd-ling or hold-ing)

The continuing to hold one’s position in a market regardless of movements in that market.  Rationale is that value of that which one is holding will again rise again and selling will result only in actual or nominal (opportunity cost) losses.

2013: Word created on 18 December 2013 when a contributor to a Bitcoin forum, bitcointalk.org, apparently after enjoying most of a bottle of whisky (or whiskey, the sources differing), misspelled hold, a transposition probably not uncommon after too much drink given where the “o” and “l” keys sit on the qwerty keyboard.  Meme-makers soon decided hodl a backronym for hold on for dear life, a sentiment probably familiar to many who once held Bear Stearns or Lehman Brothers paper.  Most frequently used related form is hoddle and use appears restricted to the cryptocurrency community; preferred spelling is HODler.  Which of the pronunciations hodd-ling or hold-ing will emerge as a standard is unclear, as is whether hodl will even survive as a word.

Dictionaries cite dozens of definitions for hold so hodl is potentially a handy addition to English because its meaning is so specific, either in the context of cryptocurrencies or markets generally.  Whether use moves beyond its niche or even survives won’t for some time be clear.  The markets have managed with hold for some centuries and it may be that the trade in cryptocurrencies, however it evolves, may find hold adequate.  HODler manifestos have been published:

Rule 1: A True HODLer Does Not Sell Their Coin

HODler The first and most important rule of the HODLer Manifesto is to never sell your coin. A HODLer may spend their coin (see rule 5), but a HODLer does not sell. Only the weak sell, and they soon regret doing so.

Rule 2: A True HODLer Buys the Dip

If the fiat price of their coin drops, a HODLer will buy more, provided they have the means to do so. Under no circumstances would a HODLer panic sell because they see the price going down. The only case where a HODLer is not regularly buying the dips is when all their fiat is already invested.

Rule 3: A True HODLer Remains Steadfast In Spite of FUD

Whether there’s news that China is banning your coin again, or your favourite exchanged got hacked, you as a HODLer will continue to HODL. A HODLer stays the course regardless of who is sowing seeds of fear, uncertainty, and doubt (FUD). Disregard the news. Remember that the naysayers are usually those who have a lot to lose from your coin’s success, or those who resent HODLers for going to the moon.

Rule 4: A True HODLer Keeps Their Coins Off Exchanges and Online Wallets

Wallet No exchange or online wallet is immune from rogue employees, security mistakes, or simple negligence. A HODLer will keep their coins secure by using a paper or hardware wallet, instead of relying on any third parties for custody or safe keeping. A HODLer always controls their own private keys.

Rule 5: A True HODLer Buys Goods and Services With Their Coin

Should you decide to spend your coins, find vendors who accept your coins directly rather than selling or using fiat-based bridges (such as prepaid Visa cards). By spending your coins, you fuel the ecosystem of fellow HODLers. Do not become a spendthrift either, or you will soon find yourself without coin.

Rule 6: A True HODLer Spreads the Good Word

Sharing is Caring Do tell your friends and family about the goodness of your coin, but do not be pushy, or pressure others into buying your coin. They may not share the same values as you. Try to educate them without being patronizing, and stick to the facts rather than appealing to emotions (like FOMO). Refer them to good resources, and let them make up their own mind.

Rule 7: A True HODLer Does Not Get FOMO When Another Coin Rises

When you see other coins quickly rising in market cap rankings, you will not be distracted. They too will fall back from whence they came. Resist the temptation to dump your coin and pump another. This is usually a futile exercise, and is a quick way to make a big fortune into a small fortune. If you do, in spite of better sense, decide to purchase a new coin, weight your holdings by market cap to manage your risk.

Rule 8: A True HODLer Will Run Their Own Full Node

To ensure their coin remains healthy, and to participate in consensus, a HODLer runs their own full node if possible. There is truth in numbers, and a HODLer will always remain true to their coin. By participating in consensus a HODLer is in complete control of their own destiny, free from tyranny, censorship, and oppression.

It bounces round a bit: The trendline for HODLers.  Bitcoin against US$: Q4 2010-Q1 2022.

HODLers beware: The SEC (Securities & Exchange Commission) is watching you.