The "Hold" strategy (or HODL) in trading, especially in the context of cryptocurrencies, means holding assets for the long term, despite market fluctuations. Investors using this strategy do not attempt to predict short-term price movements but instead believe in the long-term growth of the asset.
The essence of the strategy:
The essence of "Hold" lies in buying an asset and holding it for a long time, often for several years or even decades.
Difference from trading:
Unlike traders who actively buy and sell assets to profit from short-term fluctuations, "holders" ignore these fluctuations and focus on the long-term perspective.
Origin of the term:
The term "HODL" originated from a typo in the word "hold" in a post on the Bitcointalk forum in 2013. The post started with the words "I AM HODLING," and this term has become a symbol of long-term holding.
Reasons for use:
The "Hold" strategy is often applied in cryptocurrencies, as many believe that the long-term growth of digital assets is inevitable, despite market volatility.
Ultimately, the "hold" strategy in trading represents a passive approach to investing.$ETH