What does HODL mean in stocks? Investment acronym explained

Bruno Cooke April 14, 2021
What does HODL mean in stocks?

What does HODL mean in stocks, trading and cryptocurrency conversations? Along with FUD, it comes up when people talk about bitcoin, litecoin, dogecoin and ether. We look into the meaning of HODL.

What does HODL mean in stocks?

When discussing stocks and investments, HODL is an acronym standing for “Hold On for Dear Life”. It refers to an approach some investors advocate when dealing with cryptocurrencies.

For some, HODL is simply a misspelling of “hold”. However, it still refers to the same thing – a buy-and-hold strategy when investing in cryptocurrencies.

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The term first arose in 2013 in a post on bitcointalk, a bitcoin forum, titled “I AM HODLING”.

Elsewhere, Benzinga writer Ryan McNamara translates HODL as: “Don’t sell your cryptocurrency!”

What is HODLing, and why do people HODL?

Because of severe fluctuations in cryptocurrencies such as bitcoin, dogecoin and ether, less seasoned investors may feel the urge to “jump ship”, or sell their coins in a panic when when their value suddenly drops.

This is why more confident investors and traders advocate HODLing. 

By holding onto coins, or “weathering the storm”, as they rise and fall in value, investors bank on rises in the long term.

Largely, so far, such investments have proved fruitful. Bitcoin recently climbed to a record high of $63,000 per coin. 

Meanwhile, a run of recent celebrity endorsements have boosted dogecoin’s value significantly in the last day alone.

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High angle view of a young woman checking the stock market on smartphone, having breakfast at coffee shop. Business on the go concept.

HODL on Twitter

The Twitter community has taken the acronym HODL, and run with it. 

Several users have demonstrated the extent of their commitment to HODLing by including it in their name and/or Twitter handle.

Why encourage others to HODL?

Investors in bitcoin (and other cryptocurrencies, but especially bitcoin, because of its limited supply of 21 million) benefit when the credibility of the currency increases – among both existing investors and potential new ones.

If a cryptocurrency suddenly goes down in value and people don’t HODL, its value will drop further.

That will cause investors’ cryptocurrency portfolios to drop, potentially by a lot. So it is only natural that crypto investors would be very vocal about their commitment to HODLing as an investment practice.

What about FUD?

In stocks, FUD is an acronym, meaning “Fear, Uncertainty and Doubt” – according to Coin Market Cap.

It is a strategy used by those who seek to discredit cryptocurrencies, who try to influence public perception of cryptocurrencies by spreading negatives stories about them.

As cryptocurrencies depend so much on public credibility for their value, FUD is a bugbear for those encouraging others to HODL.

PLEASE NOTE: Our publications do not offer investment advice and nothing in them should be construed as investment advice. … The information contained in our publications is not, and should not be read as, an offer or recommendation to buy or sell or a solicitation of an offer or recommendation to buy or sell any securities.

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Bruno is a novelist, amateur screenwriter and journalist with interests in digital media, storytelling, film and politics. He’s lived in France, China, Sri Lanka and the Philippines, but returned to the UK for a degree (and because of the pandemic) in 2020. His articles have appeared in Groundviews, Forge Press and The Friday Poem, and most are readable on Medium or onurbicycle.com.