Another application of HODL is in the realm of securing Non-Fungible Tokens (NFTs). Holders of HODL tokens might gain access to exclusive NFT drops or be able to use their tokens to purchase NFTs. This integration with the NFT market adds a layer of utility to the HODL tokens, making them more than just a speculative asset. This website is using a security service to protect itself from online attacks. There are several actions that could trigger this block including submitting a certain word or phrase, a SQL command or malformed data.
Holding blindly or sticking with poor-quality assets can hurt more than help. And if you’re a HODLer, capital gains aren’t the only way you can make money on cryptocurrency. You can also participate in staking rewards with many cryptos, allowing you to generate income while you continue to hold the digital asset and potentially ride it to new heights. Working with the best crypto exchanges or apps can help you earn the most income from your crypto positions.
other crypto slang terms to know
Although there is no guarantee of price appreciation, cryptocurrency investors adamantly believe that holding a coin long enough will eventually lead to positive returns. In past, this has been particularly true for Bitcoin and Ethereum investments. This strategy relies on the theory that, although there may be short-term volatility in the market, stocks will provide a good return over the long term. However, as with crypto investments, it’s recommended to have a diversified portfolio and make well-informed decisions based on research or financial advice. For those who invest in cryptocurrency, HODL has become a banner proclaiming their long-term allegiance to digital currency. These terms stand in contrast to “paper hands,” those who are willing to sell when volatility ratchets higher.
- The tax amount is converted into BNB tokens, and a percentage of the gains are redistributed to users from the collective liquidity pool.
- Much like the term itself, HODL encourages users to hold onto their tokens for rewards in the Binance coin (BNB) that are distributed every three days.
- Some enthusiasts have even accepted HODL as an acronym, meaning to “hold on for dear life.” The term is also related to “diamond hands,” which means that you have an unbreakable grip on the crypto you own.
- NGMI is often used to describe poor investment choices or strategies likely to fail, particularly those that don’t withstand the volatile nature of the crypto markets.
At the same time, Bitcoiners use HODL as a form of encouragement during crypto winters, literally reminding each other to HODL onto their bags. During these years the segmented cyberpunk and cryptographic movements evolved into the Crypto community. Nowadays, the Crypto community has a prophet – Satoshi Nakamoto – symbols and slang – a specific language generated by crypto supporters. The price surged from $15 in January of said year to over $1,100 at the beginning of December, which delivered a return of 7,230%. With a high-volatility nature, the price fell from $716 by 39% to $438 in mid-December. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services.
“Diamond Hands” vs “Paper Hands” Terminology
If the platform fails to gain traction or the utility is not in demand, the token’s value can plummet. Worse, some projects are outright scams, known as «rug pulls», where developers hype a token, attract investor funds, and then disappear with the money, leaving holders with worthless assets. The post wasn’t polished, and the word “holding” was misspelled as “hodling.” But that accidental typo struck a nerve with the community.
Tips for Becoming a Successful HODLer
In reality, you’re better off selling some cryptos before they burn too much of your money. The term ‘HODL’ was born from a post titled ‘I AM HODLING’ by a member named GameKyuubi on the famous Bitcoin forum Bitcointalk in December 2013. The author admitted to being a ‘bad trader’ and decided to hold onto his Bitcoin investment regardless of the bear market, thus becoming one of the earliest Bitcoin investors to promote this strategy.
Useful Tools
Therefore, many investors view any time as a good time to https://stablecapitalmax.net/ as long as it aligns with their personal investment strategies and risk tolerance. On Dec. 18, 2013, Bitcointalk user GameKyuubi uttered the phrase “I AM HODLING” as part of a rant against the difficulty and even futility of trading cryptocurrency. Digital currency is notoriously volatile, and those who try to time the price swings may find themselves buying high and selling low — gradually or quickly eating away at their capital. HODL is a term derived from a misspelling of «hold» in the context of buying and holding Bitcoin and other cryptocurrencies.