Crypto is creating its own culture with its own slang. The word “hodl” is one of the most important terms you need to know. If you want to sound like a crypto pro, you’ve got to know how to talk the talk. Right before our eyes, cryptocurrency is becoming a world all its own. Crypto is giving rise to an entirely new industry and, in turn, a slew of new business and investment opportunities. Keep reading to learn more about the slang you should know.
Hodl: The Backstory
The backstory for the word hodl is actually rather amusing. In December 2013, a bitcoin trader by the name of GameKyuubi posted a bit of a rant in an online bitcoin forum. The title of his post was “I AM HODLING.”
In his post, he acknowledged the misspelling. But he let it stand because, as he explained in the post, he was angry, fired up, and from the sounds of things, quite possibly drunk.
All this aside, his post explained that he was tenaciously holding his bitcoin despite the falling prices. In one of the funniest and most interesting parts of his post, GameKyuubi wrote: “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.”
The crypto community pretty quickly latched onto this post. In particular, people were attracted to the word hodl. There are at least a few reasons this term became so popular.
For starters, it’s funny. But beyond that, many also saw it as somehow capturing the feeling of watching the value of your crypto plummet but continuing to hold no matter what.
More specifically, hodl seemed to speak to the sense of not really knowing what’s going on, of being slightly confused, but still very passionate.
Since crypto is still so new, there are no long-time, seasoned traders. Everyone in the crypto game is more or less a rookie.
As such, the ups and downs of the market can often trigger complex reactions from traders. Those reactions run the gamut from fear, nervousness, excitement, confusion, and in this case, a stubborn dedication to hold on tight.
For one reason or another, hodl seemed to embody all of that in a single, misspelled word.
Hodl Meaning in Crypto Community
Since that fateful post in 2013, hodl has entered the crypto lexicon. In fact, Quartz said that the term is a must-know for anyone who wants to be “taken seriously as a bitcoin trader.”
It’s not just about knowing a weird anecdote from the archives of crypto history. Hodl actually has taken on a very specific meaning within the crypto community.
To put it simply, hodl means you’re holding your crypto rather than selling it because you’re confident you will eventually cash in big when the value of your currency skyrockets.
Furthermore, when you hodl you’re not just passively sitting on your crypto, dispassionately waiting for prices to rise.
Instead, when you hodl, you are persistent about holding your currency. It means you’re clinging to your currency in the face of massive and sudden price drops. Ultimately, the term means that you’re going to weather the storm and that you’re determined to reap the benefits whenever it finally settles.
Are you a Devoted Hodler?
With all this said, the word denotes both a concrete action and a more general attitude. But really, at the heart of the hodling, is an almost faith-like belief that crypto will succeed on the marketplace.
When you’re a hodler, you’re not just somebody hopping on the newest fad. You’re committed to crypto. A hodler has gone all in and they’re proud of that fact.
If you’re a devoted hodler, you’re willing to ride out the ups and the downs of being an early player in the crypto game. No matter what happens, you’re confident that your holdings will eventually pay off big time.
Whether or not you’re on board with hodling itself, you should still know how to use the term appropriately. It has certainly become a key part of the jargon surrounding the crypto universe. If you want to come off as a trader who knows what you’re doing, it’s crucial to be fluent in the lexicon of this young, up and coming industry.