On a morning of December the 18th, 2013, a user of the famous bitcointalk forum named GameKyuubi wrote a post with the title
I AM HODLING, an obvious mispelling of HOLDING.
In this post, the author goes on ranting about how bad of a trader he is:
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 and that he would rather hold on to his bag of bitcoins.
What it really means
After this original publication on the bitcointalk forum, the term HODLER gained popularity in the bitcoin community as a definition of a person holding on to their bitcoins and basically never selling them.
It can be used to express the buy and hold investing strategy. Indeed, you are a bitcoin believer but do not have the experience of trading in financial markets, then the best thing you can do is to simply buy bitcoins and sell as rarely as possible, possibly never. HODLing strong and firm is also a way not to get distracted by the short term volatility of the bitcoin market and it helps you to fight the temptation to sell your bitcoin in such events.
When Bitcoin does become a mainstream commodity like precious metals - and we are witnessing more and more signs of this reality happening - then each bitcoin will naturally increase in value as 21 million bitcoins will only ever be in circulation. We recently published an interesting article about the scarcity property of bitcoin: What is Stock-To-Flow.
Due to its humoristic origin, the concept of HODLing became a meme on the wider internet and regularly used on social media like Twitter by prominent people such as the tech guru Tyler Winklevoss for example.
The CEO of Tesla, Elon Musk, published the following tweet
HODL the rainforests!!, further extending its meaning outside of the bitcoin and cryptocurrencies world.
The concept of HODLing started as an internet meme but is in reality a valid investment strategy.
If you want to understand the true meaning of HODLing, please consult the HODLer manifesto. It defines the 8 rules to follow to be a true HODLer, the first one being:
A True HODLer Does Not Sell Their Coin.
HODLing with DePhi Bank
At DePhi Bank we are true HODLers and like you we believe that it is the winning strategy. The value of bitcoin and other cryptocurrencies will appreciate and investing in it with DePhi Bank will protect you from the potential financial crisis and inflation periods to come.
Every time you fund your DePhi Bank account with euros or dollars, we turn it into a long term HODLing product.