HODL

The crypto-vocabulary is rich and contains many unusual words you won’t hear elsewhere. “Hodl” or “hodling” is a widespread term that every crypto investor should know. 

What does HODL mean? 

HODL is a jargon that stands for holding onto a cryptocurrency instead of selling it. At first glance, it might seem like a misspelled expression of the word “Hold”. And that, indeed, seems to be the case. 

In 2013, a crypto enthusiast started a thread called “I am HODLing” instead of “I am HOLDing”. While other acronyms usually don’t stick, this one caught the attention of the crypto community. HODL gained even more popularity when it earned the status of a humorous backronym “Hold On for Dear Life”. 

This example perfectly depicts the humor that tends to find its way into mainstream investment communities.  Currently, “hodling” has become a viable trading strategy since there are usually long-term benefits from not selling a cryptocurrency immediately.

Is HODL still a good strategy in 2025?

Many investors are still holding tight onto their coins in hopes of seeing them increase in value in 2025. More specifically, 11 million Bitcoin did not move from their wallets in 2019, an incredibly large number when considering that only 18 million Bitcoins are currently in circulation.

Of course, one needs to remember that many of those 11 million Bitcoins are simply inaccessible due to being “lost” for a number of different reasons. More specifically, $1 dollar invested in Bitcoin in 2010 is now worth a whopping $90.000 USD.

What Does HODLing Actually Look Like in Practice?

HODLing isn’t just a mindset. It’s a set of decisions that play out over months or years, and the mechanics matter more than most introductions to the term let on.

A HODLer buys Bitcoin and moves it off an exchange into a wallet they control. Leaving it on an exchange means the exchange holds your keys, which creates risk if the platform freezes withdrawals or fails. The FTX collapse in 2022 wiped out billions in customer funds held on exchange. HODLers who had moved their coins to self-custody were unaffected.

The practical starting point is buying your Bitcoin and immediately moving it to a crypto wallet you control. A hardware wallet is the standard choice for long-term holders. You keep the device offline, store the recovery phrase somewhere secure, and only connect it when you want to check or move funds.

From there, HODLing requires almost nothing. You don’t monitor charts. You don’t react to price drops. You ignore headlines. The strategy only demands action at two points: when you buy, and eventually when you sell.

Is HODLing Still a Good Strategy in 2026?

The short answer is yes, but context matters.

Bitcoin went from under $20,000 in early 2023 to over $100,000 in late 2024. Anyone who HODLed through the 2022 bear market, when prices dropped over 70% from the peak, came out well ahead by the end of 2024. The strategy’s core thesis has played out repeatedly across multiple cycles: holders who didn’t panic-sell at the bottom recovered fully and then some.

The data on long-term holding is consistent. Every four-year period in Bitcoin’s history has ended higher than it started. That’s not a guarantee of future performance, but it’s the foundation the HODL strategy is built on.

Where HODLing gets harder is during prolonged downturns. Watching a position fall 50% or more takes real conviction. The people who buy during dips rather than selling into them tend to be the ones who benefit most when prices recover. If you want to understand the mechanics of that approach, the guide on how to buy the dip covers when and how to add to a position during market weakness.

When Does a HODLer Actually Sell?

This question doesn’t get asked enough. HODLing is not “never sell.” It’s “don’t sell out of panic or impatience.”

Most HODLers have a loose exit framework. Some sell a portion when they need the money. Some sell a percentage at price targets they set in advance. Some sell based on market cycle signals. The common thread is that selling is a deliberate decision, not a reaction to a bad week.

When you’re ready to convert holdings to cash, you can sell Bitcoin on Paybis and receive fiat back to your bank account directly. The process is straightforward: you see the full fee breakdown before confirming, and funds arrive via your chosen payment method. Having that process familiar before you need it matters, because the urge to sell often hits at moments of stress when you don’t want to be figuring out a new platform.

For anyone who bought through Paybis originally and wants to add to their position during a dip, you can buy Bitcoin with a bank account via SEPA or ACH at lower processing costs than card payments. For planned, deliberate purchases that are the opposite of panic-driven decisions, bank transfers are the more cost-effective route.

Final thoughts on HODL as an investment strategy

Over the last couple of years, “hodling” has not been very profitable to cryptocurrency investors. While most are still recouping from their losses, those with an unshakeable belief in the potential of crypto seem to be unbothered.

According to them, the most exciting times for Bitcoin and other cryptocurrencies are lying straight ahead, and the best one can do is wait it out with patience and faith.

What do you think? Is Hodl still a viable strategy? Let us know in the comments below.