The Fabulous Story of HODL


In the financial world, when markets are very volatile, traders are often advised not to panic and keep their positions. On the stock market, this is called holding.

In the crypto universe, however, things are slightly different: the term hoDLing prevails.



GameKyuubi, anger and whiskey

The origins of this permutation date back to December 2013, when a trader nicknamed GameKyuubi wrote a post in a specialized Bitcoin forum:

I AM HODLING  I type d that tyitle twice because I knew it was wrong the first time. Still wrong 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… (read more).

In this post, GameKyuubi defines himself as a bad trader: he systematically buys when the cryptos’ value is at its highest, and resells when it is at its lowest.


He says that weak people sell their crypto coins when times are tough. He argues that “day traders can only take your money if you sell”.


Instead of losing money by trying to day trade or even learn how to do it, our friend GameKyuubi decides to surf the wave by holding his positions.


Anyway, at the end of his post, he makes it clear that he has just emptied a good bottle of whisky and that he’s drunk.


The title, supposed to be “I AM HOLDING”, becomes “I AM HODLING”.


Of course, GameKyuubi’s post became a reference and the new term was adopted by the whole crypto community.



So… To hodl or NOT to hodl?

As mentioned above, traders are often advised not to panic and keep their cryptocurrencies even if the drop is significant: whatever the type of investment you make, it is always important to avoid impulsive decisions.


The Bitcoin has suffered a total of 5 crashes so far and those who held their positions during the first 4 crashes have been winners in the long run.


Apart from the HODL anecdote, some interesting lessons can be drawn from this story:

  1. First of all, if GameKyuubi has successfully implemented these principles and held his positions, he must now be very happy.

  2. The story points out, once again, that people who have a longer time horizon than day trading are often winners.


Indeed, by not being influenced on a daily basis by the “noise” of the markets, you can project yourself in the longer term and approach the fluctuations of your investments more serenely.


Is less work and less stress for a positive return the secret of the stock market and crypto coins?


HODLLLL!

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