"Holding" in the context of trading, especially in cryptocurrency, refers to the strategy of retaining assets such as cryptocurrencies for a long time despite market fluctuations. It is similar to the traditional investment strategy "hold", but the term "hodl" is often used in the crypto community and may mean "Hold On for Dear Life".
The essence of the strategy:
The investor buys an asset and holds it for a long period (years, decades), believing in its long-term growth despite short-term price fluctuations.
Why "hodl"?
The term "hodl" originated from a typo in the word "hold" on the Bitcointalk forum in 2013, but it became popular in the crypto community as a symbol of faith in the potential of cryptocurrencies.
The difference from trading:
While traders actively trade by buying and selling assets hoping for quick profits, hodlers ignore short-term fluctuations and focus on long-term growth.
Why choose "hodl"?
Some believe that long-term holding of cryptocurrencies can yield greater profits than day trading, especially if the asset is truly promising.
Ultimately, "hold trading" (or "hodl") is a long-term investment strategy in cryptocurrencies, where assets are held in hopes of significant growth in the future.