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The Power of HODL

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The first time you see “HODL” when someone is discussing cryptocurrencies, the word causes you to stop reading. You think: “Is it a misspelling?” Well, yes it is – at least it was mistyped originally. Now, rather amusingly, HODL has spawned a life of its own. It has evolved to represent a long-term trading strategy and philosophy for crypto investors.

With the launch of our latest campaign – HODL, featuring Kristian Nairn – we thought it would be a good idea to explain in detail what this unusual slang term really means. Better yet, here is Kristian with the explanation:

History of HODL

HODL has become an acronym (or even backronym) for “hold on for dear life”, meaning that even when investors are in the deep red with their cryptos, they should not buckle under pressure and sell, driven by the belief that they will, ultimately, reap great rewards, once mass adoption has been achieved.

The origin of HODL can be traced back to December 18, 2013, and a legendary, whiskey-fuelled rant on Bitcoin Forum by someone calling themselves GameKyuubi.

To provide context, just before the series of poorly written posts were typed – or mistyped – the price of bitcoin had fallen almost 40 percent, from $716 to $438 in 24 hours, according to CoinDesk. The pullback was likely to have been triggered by reports of a crackdown on the original crypto in China. GameKyuubi made clear his or her intentions.

“I AM HODLING,” GameKyuubi wrote, before going on to explain a fair amount of whiskey had been consumed and the reason for “HODLING”. Almost immediately, the funny series of Bitcoin Forum posts were transformed into internet memes, with references to fighting films 300 and Braveheart being especially popular.

More than a Meme: HODL as a  Strategy

The memes helped lift HODL from a mistyped “hold” to a widely adopted slang term and trading strategy used in the cryptocurrency community. Quartz heralded it as one of the most important terms in crypto culture in 2017, describing it as a determination to “stay invested in bitcoin and not to capitulate in the face of plunging prices”.

Famous Examples Where HODL Should have been Adopted

There is certainly great potential for HODLing as an investment strategy, and not buckling under pressure, as history shows us – and not just in the cryptocurrency world. One of the most notorious examples of failing to “HODL” happened in the mid-1970’s when Ronald Wayne, Apple’s third co-founder – alongside Steve Jobs and Steve Wozniak – sold his 10 percent stake in the then-start-up back to the other two co-founders for $800.

In August 2018, Apple achieved the historic milestone of reaching a market capitalisation of $1 trillion. Had Wayne adopted a HODL mentality, his Apple stake would be worth around $100 billion today.

Similarly, when another tech giant, e-commerce titan, Amazon first floated, it was worth $18. It dropped to just $1.5, leading many early investors to sell their assets. Now, however, a single stock is worth around $1,700. There are numerous other instances of where a HODL philosophy would have proved the right course of action (or inaction) in other investment spheres – including real estate and especially in cryptos.

HODLing Cryptocurrency Positions

Of course, it is impossible to predict the future, but Jay Smith, one of leading global social trading and investing platform eToro’s most recognisable traders, believes staying strong will reap the biggest rewards. Full-time trader Smith – a.k.a.jaynemesis on eToro– describes his trading style as “fundamentals, future and HODLing”.

Of the potential of cryptos, he continues: “I’ve always been a fan of automation, futurology and transhumanism. On top of that, I am interested in politics, ideology and economics. Cryptocurrencies are a melting pot for all of these things, experimenting with new economic models, governance models, moral and ideological models and offer massive advantages over the systems they aim to replace.”

Smith adds: “I firmly believe that cryptos will change the world, replacing stock markets, most currencies and powering everything from machine-to-machine payments and the Internet of Things through to streaming media, prediction markets, governance systems, voting systems, even potentially the internet. That being said, there is a long way to go, we are in the very early stages for most of these areas.”

About eToro

eToro is a regulated multi-asset investment platform that has been offering investors access to cryptoassets since 2014. The platform now offers 12 cryptoassets (Bitcoin, Ethereum, Bitcoin Cash, XRP, Litecoin, Ethereum Classic, Dash, Stellar, NEO, EOS, Cardano and IOTA) as well as crypto/crypto pairs and crypto/fiat pairs. eToro acts as a bridge between the old world of investing and the new, helping investors navigate and benefit from the transition of assets to the blockchain. eToro is the only place where investors can hold traditional assets such as stocks or commodities alongside ‘new’ assets such as bitcoin.

Start HODLing

 

Original Article – eToro blog

eToro is a multi-asset platform which offers both investing in stocks and cryptocurrencies, as well as trading CFD assets.

Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65% of retail investor accounts lose money when trading CFDs with this provider.You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Cryptocurrencies can fluctuate widely in price and are, therefore, not appropriate for all investors. Trading cryptocurrencies are not supervised by any EU regulatory framework.

Past performance is not an indication of future results. HODL is not investment advice. Your capital is at risk.

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eToroX launches gold and silver stablecoins

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– Broadens range of assets available on their secure, regulated exchange –

eToroX, the blockchain division of global investment company eToro, has today announced the addition of two commodity-stablecoins – eToro Gold (GOLDX) and eToro Silver (SLVX), two further fiat-stablecoins – eToro Ruble (RUBX) and eToro Yuan (CNYX) – plus 15 fiat pairs to its crypto exchange.

Commenting on the news, Yoni Assia, Co-founder and CEO of eToro, said: The blockchain brings transparency and a new paradigm for asset ownership. We believe this is the future of finance and we’ll see the greatest transfer of wealth ever onto the blockchain.

“One of the key obstacles that cryptoassets need to overcome for mainstream adoption is price stability. Stablecoins largely eliminate this hurdle, creating a more user-friendly way to interact with the blockchain. By adding eToro Gold and eToro Silver and expanding our fiat-stablecoin range to 10, we are demonstrating the vast potential offered by tokenized assets.”

The new instruments added to the eToroX exchange are:

  • 2 commodity-stablecoins: eToro Gold (GOLDX) and eToro Silver (SLVX)
  • 2 new fiat-stablecoins: eToro Ruble (RUBX) and eToro Yuan (CNYX)
  • 17 fiat pairs: USDEX-EURX, USDEX-GBPX, USDEX-JPYX, USDEX-CHFX, USDEX-AUDX, USDEX-NZDX, USDEX-CADX, USDEX-RUBX, USDEX-CNYX, EURX-GBPX, EURX-JPYX, EUR-CHF, EURX-AUDX, EURX-NZDX, EURX-CADX, GOLDX-USDEX…
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Simplicity, transparency and low risk: Here’s why Popular Investor Enmanuel Bautista chose eToro

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Enmanuel (@big-profits) from the Dominican Republic has been in finance for all of his adult life. After reviewing several online trading platforms, he decided to focus on eToro, because of the platform’s ease of use and transparency. We asked him a few questions about his trading habits and strategies:

66% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

  1. Tell us a little bit about yourself

I am Enmanuel Bautista from the Dominican Republic, owner of a leading online Latin loan company. I dedicate myself to the business of finance (personal loans) and trading. Since I was a child, one of my goals has been to be independent, and eToro has helped me achieve this goal. I have never been an employee and I have been in the financial business since I was 17.

  1. Did you have previous experience with financial investments before joining eToro?

Yes, I used to make investments in local banks and local exchanges. In 2010, I began buying my local currency pairs EUR/DOP and USD/DOP without leverage. After that, in 2012, I tested some online brokers (3 including eToro) with binary options and trading with leverage. Following a large loss with high risk trading…

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Basic Income Earth Network welcomes GoodDollar into community as first blockchain-based project at UBI-Nordic

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GoodDollar reached a key milestone in early April by becoming the first blockchain-based project to present at an international Basic Income Earth Network(BIEN) event. The general reaction at UBI-Nordic 2019, held in Oslo between April 5 and 7 and hosted by BIEN Norway, was encouraging, according to Dr. Sarath Davala, Vice Chairman of BIEN.

“I believe it was the first time anyone from outside our regular basic income community made a presentation about blockchain and universal basic income (UBI),” he said of GoodDollar’s appearance at the three-day summit, a key event in the UBI calendar.

Strong starting point: Dr. Sarath Davala, Vice President of BIEN, said that GoodDollar’s presentation at UBI-Nordic was encouraging

BIEN was established in London in 1986 by Belgian political economist Philippe Van Parijs, and for over three decades its group of progressive-minded academics has promoted the idea of UBI.

That GoodDollar was invited to speak at UBI-Nordic and introduce itself to the basic income community, was a landmark moment for the not-for-profit research hub, which explores how decentralized cryptocurrencies and blockchain technology may enable models based on UBI.

Like most members and affiliate projects within the basic income community, GoodDollar’s driving aim is to reduce wealth inequality – yet using a global-first approach. Dr Davala, the coordinator for India Network for…

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