If you’ve spent more than five minutes in the crypto space, you’ve probably seen the term “HODL” thrown around like confetti at a Bitcoin conference. What started as a drunken typo in a 2013 Bitcoin forum has evolved into a legitimate investment philosophy that’s helped create more crypto millionaires than almost any other strategy.
But is HODLing always the right move? When should you stay committed, and when should you take profits? Let’s break down the strategy that’s both mocked and revered in equal measure.
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What Is the HODL Strategy (Really)?
At its core, HODLing means buying cryptocurrency and holding it for an extended period—regardless of price fluctuations, market sentiment, or external noise.
True HODLing involves:
- Conviction in the long-term value of your chosen crypto assets
- Emotional discipline during both bull and bear markets
- A time horizon measured in years, not months
- Understanding the fundamental drivers of your investments
What HODLing is NOT:
- Blindly holding failing projects
- Refusing to ever take profits
- Ignoring major shifts in a project’s fundamentals
- An excuse to avoid doing proper research
Why HODLing Still Works in 2025
1. Crypto Markets Still Move in Cycles
Bitcoin has once again demonstrated the power of patient investing. After a brutal 2022-2023 downturn, the market rebounded strongly in 2024 and early 2025, with Bitcoin hitting new highs above $100,000. Ethereum and select altcoins have followed suit.
This mirrors previous cycles:
- 2014-2015 bear market led to the 2017 bull run
- 2018-2019 winter preceded the 2021 rally
- 2022 crash paved the way for the 2024-2025 recovery
Those who held through these downturns—and added to their positions—have consistently outperformed.
2. Timing the Market Remains Nearly Impossible
Trying to buy the bottom and sell the top sounds good in theory, but few can actually pull it off. Even professionals struggle. Missing just a handful of the best days can significantly reduce overall returns.
HODLing eliminates the stress and pitfalls of trying to time entries and exits, while ensuring you participate in the biggest moves.
3. Tax Efficiency and Simplicity
In many countries, long-term HODLing provides better tax treatment than short-term trading. Avoiding frequent trades also reduces complexity when filing taxes. With growing regulatory clarity in 2025, it’s more important than ever to minimize unnecessary taxable events.
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When HODLing Makes the Most Sense
For Bitcoin and Ethereum
With BlackRock’s Bitcoin ETF seeing record inflows and Ethereum powering most real-world asset tokenization protocols, these remain cornerstone assets. Their network effects, developer ecosystems, and institutional adoption continue to deepen.
During Bear Markets
Bear markets are where HODLers earn their stripes. In 2022, many investors fled, but those who held (or added) were rewarded in the recent recovery.
For Projects With Strong Fundamentals
In 2025, smart HODLers are focused on:
- Real-world asset protocols (e.g., Ondo, Centrifuge)
- AI-integrated blockchain projects (e.g., Bittensor, Render)
- Long-standing infrastructure tokens with real adoption
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When to Consider Selling
Even die-hard HODLers need a sell strategy.
1. Your Investment Thesis Changes
If a project loses its competitive edge or the founding team departs without a roadmap, it may be time to exit.
2. You Need Liquidity for Life Goals
Crypto gains are meant to serve real-life needs. Selling to fund a home, education, or family emergency is completely valid.
3. Your Allocation Gets Out of Balance
If a crypto position balloons to more than 25% of your total net worth, trimming can help reduce risk.
4. Market Euphoria Reaches Extreme Levels
Sell signals might include:
- Viral meme coins overtaking solid projects
- Speculators flooding the market with no understanding of fundamentals
- Absurd price predictions gaining mainstream acceptance
Consider gradually taking profits as part of a de-risking plan.
The HODL Mindset in 2025
The “Dead Man’s Portfolio”
The best-performing accounts still belong to those who forget to log in. Avoid micromanaging. Think in decades.
Education Builds Conviction
In 2025, informed HODLers follow:
- On-chain metrics (e.g., user growth, development activity)
- Project roadmap delivery
- Competitive landscape
Separate Emotion From Action
Feeling anxious is normal. Acting on that anxiety is optional. Review your original investment thesis before reacting.
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HODLing, But Smarter
Secure Storage
Use:
- Hardware wallets
- Multi-sig for large holdings
- Proper inheritance planning
Passive Yield (With Caution)
Staking ETH or participating in real-yield DeFi protocols can boost your HODL stack. But always vet risks thoroughly.
Quarterly Check-ins
Rather than daily price checks, review:
- Project milestones
- Risk exposure
- Security setup
Complementary Strategies
HODL + DCA
Use dollar-cost averaging to gradually accumulate core holdings and reduce timing risk.
Core-Satellite Approach
Hold 70-80% in long-term conviction assets, and 20-30% in smaller, more speculative opportunities.
Final Thoughts: HODL With Purpose
HODLing remains one of the most effective and simple crypto strategies in 2025. But it’s not blind faith. The modern HODL approach is informed, secure, and occasionally opportunistic.
Hold assets you understand. Review your thesis. Don’t let short-term noise shake your long-term vision.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always do your own research and consider your personal circumstances before investing in cryptocurrency.
Explore more:
- Crypto Risk Management: Protecting Your Digital Assets (2025 Update)
- Dollar-Cost Averaging in Crypto: The Ultimate Beginner Strategy (2025 Update)
- Crypto Investment Strategies: A Complete Guide for 2025
- How to Store Cryptocurrency Safely: A Complete Guide for Beginners
- The Ultimate Guide to Cryptocurrency Wallets: Everything You Need to Know
- What is a Crypto Seed Phrase and How to Protect It
- Bitcoin Explained: A Beginner’s Guide to the World of BTC
- Exploring the World of Proof-of-Stake Cryptocurrencies
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