What is HODL?

No, it's not a misspelling and no it's not a codeword for something dirty. It's a principal in cryptocurrency trading that has become a running joke, as well as an important brick in the foundation of day trading digital currency. For me, it's become the string that I've held on to for the last week as the alt coin market decided to take a dive, batting investors around like a catnip filled toy. Something like 70% of my wallet has evaporated, but, I'm HODLing. Why? Because I've done my research, seen the past corrections, and have a bit of faith.

We can thank a whisky drunk Bitcoin trader for this cute little term. A late night post by a forlorn man staring at a monitor years back as the Bitcoin market did something similar. Let me let him explain it, because, hell, he does it a lot better than I do.

I AM HODLING
December 18, 2013, 10:03:03 AM

I type d that tyitle twice because I knew it was wrong the first time. Still wrong. w/e. GF's out at a lesbian bar, BTC crashing 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 millino bucks sure no problem bro. Likewise the weak hands are like OH NO IT'S GOING DOWN I'M GONNA SELL he he he and then they're like OH GOD MY ASSHOLE when the SMART traders who KNOW WHAT THE FUCK THEY'RE DOING buy back in but you know what? I'm not part of that group. When the traders buy back in I'm already part of the market capital so GUESS WHO YOU'RE CHEATING day traders NOT ME~! Those taunt threads saying "OHH YOU SHOULD HAVE SOLD" YEAH NO SHIT. NO SHIT I SHOULD HAVE SOLD. I SHOULD HAVE SOLD MOMENTS BEFORE EVERY SELL AND BOUGHT MOMENTS BEFORE EVERY BUY BUT YOU KNOW WHAT NOT EVERYBODY IS AS COOL AS YOU. You only sell in a bear market if you are a good day trader or an illusioned noob. The people inbetween hold. In a zero-sum game such as this, traders can only take your money if you sell.

so i've had some whiskey
actually on the bottle it's spelled whisky
w/e
sue me
(but only if it's payable in BTC)
So, to make a long story short, it's about holding, even when dives like this last week happen. You never record a loss until you've sold, and sometimes shit like this happens. If you've done your research, followed the trends correctly, and are following a strategy, you'll realize that if you just hold on for dear life, things will probably come out okay.

Remember that 70% loss I mentioned at the beginning? I just check my wallet and I've regained pretty much everything and if I'd had more money to invest during this dip, I would have. It's about buying low and selling high. So many people keep on talking about cryptocurrency being a bubble, and, I do agree in some ways. But, a bubble can pop only once, and if you look at the history of block chain, Bitcoin, alt coins, the whole thing, it's already been a roller coaster ride of up and down. Pay attention to the long term trends of the market, the spread of the technology in general, the reaction by the establishment as their whole damn applecart is tipped over, and you might just see the bigger picture.

Nothing is guaranteed, and you need to do your own research, and take responsibility for your own trading. There will be times you need to HODL (hold on for dear life) and times you need to sell. Knowledge and experience will tell you when to hold, and when to fold.

Safe trading friends!