What does hodl mean in crypto

Please enable Cookies and reload the page. What does hodl mean crypto Stacking Sats: “Sats” comes from the term “satoshis,” derived from Satoshi Nakamoto, bitcoin’s illusive creator(s). “Sats” refers to the smallest fraction of a bitcoin that can be sent when an onchain transaction is made, which is approximately equal to 0.00000001 of a bitcoin. “Stacking sats” is a term commonly used to describe the act of regularly accumulating bitcoin—particularly in smaller increments—by buying, earning, or mining.

While it’s possible to buy bitcoin on an exchange and just leave it there, you don’t really own bitcoin. You own a bitcoin IOU. There’s no way to verify that the exchange is actually hodling the bitcoin for you. It’s possible that they operate in a fractional reserve system, or that they are reinvesting your funds to generate yield. You just don’t know. As a first step to hodling, buying bitcoin on an exchange and leaving it there while you learn the basics of self custody is fine, but you should really set a goal of getting a hardware wallet set up and withdrawing your bitcoin from your exchange. What is bitcoin hodl waves? Although cryptocurrency has been around for over a decade, it is still misunderstood by many. The entire crypto ecosystem is complex, new and rapidly evolving. It is made even more complex because of the unusual terminology used in crypto circles. 

See Also: From BTD to FUD to WAGMI: Understanding Crypto Acronyms The Story of “HODL” The HODL method has been a winning strategy for blue-chip cryptocurrencies like Bitcoin and Ethereum thus far. However, adopting this strategy for other altcoins remains a risky endeavor. Many altcoins do not have sufficient historical data to calculate average yearly returns to gauge future performance and long-term value. Furthermore, numerous altcoins experience drastic price declines and even cease to exist despite solid convictions about their future potential. This was evidenced by the demise of Terra Luna. 

You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities. Learn more: HODL helps connect people in the Web3 ecosystem and encourages the crypto community to focus on the positive aspects of blockchain technology. The HODL memes bring levity to stressful situations, and the phrase inspires fellow investors to stay strong when markets decline. All in all, the shared struggles and triumphs of HODLing create a sense of camaraderie among crypto traders.