HOFD stands for ‘Hold On For Dear Life’, an idiom in English which means to persevere with all efforts to stay alive, have given up, and there is no other way out than waiting for a miracle or help. So HOFD is an idiom used when someone is already in a pinch, it’s impossible to survive, and only a miracle can save him. The context of using the HOFD idiom in English can basically be used in any context, ranging from people who are lost in the forest and resigned to waiting for their fate, whether they die of hunger or are found by other people in the forest, to conditions where someone is sick and dying waiting to die.
history
In the cryptocurrency business, ‘Hold On For Dear Life’ was first sparked on the Bitcoin Talk forum in 2013 by a forum member with the nickname GameKyuubi. GameKyuubi is in a frustrated state because the price of bitcoin continues to fall, and to lighten the mood he said Hold On For Dear Life, which means that he will continue to hold his bitcoin position no matter what, that is, resign if the bitcoin price continues to fall and just wait for a miracle hoping the bitcoin price will return direction and climb back up. Since then, the HOFD idiom has become popular in the cryptocurrency business.
So in cryptocurrency investing, the HOFD idiom is an expression to explain that a cryptocurrency trader/investor is in critical condition because the price of the coin he is holding continues to fall, and he is determined to keep holding his position until a miracle occurs.
Indeed, in the cryptocurrency business world which is full of uncertainty and high volatility of the cryptocurrency market, of course it is also accompanied by high risk. Only people who are ready to take risks and are able to face the worst can survive. It would not be wrong to say that when we invest in cryptocurrencies, we should probably stick to this HOFD principle. The risk reward is also quite good, because by continuing to hold the position, the position may indeed reverse and we get a big profit. Now just imagine that people who bought Bitcoin in early 2019 at a price of $20000, if they held the HOFD principle, they would be smiling broadly now. But never hold on to the HOFD principle if you are not ready to lose everything.
Even in the forex trading that we do, even if we surf on social media, traders will be no stranger to traders who open positions with full lots, without stop losses, and are ready to risk all their money for big profits. What they do is also in line with the intent of HOFD. Evidence that HOFD can indeed be used in any context.
Actually, the word hold on for dear life is more popular with the abbreviation HODL than with HOFD, well whatever it means, it’s still the same. So HODL is a funny acronym that has the Indonesian meaning of “hold on to an honorable life”, which first appeared in 2013 on a Bitcoin forum by its member GameKyuubi.
At that time GameKyuubi was feeling frustrated due to the deeper decline in the price of BTC, because he panicked and wanted to persuade other buyers to join him not to sell his coins, so he posted the words “I AM HOLDING”. With the hope that the price of BTC doesn’t plunge any further, and the word is so famous that it even makes television news and countless joke-themed memes.
As a result of the post from GameKyuubi, many also withheld their Bitcoins. So in that year the price of BTC rose to its highest price at that time, at a price of around $1,150 per coin.
HODL in trader psychology
In psychology, basically humans have the instinct to feel safe when they are with others. Now, through the “I AM HOLDING” post, many finally followed to keep their coins. As a result, the demand is increasing because there are still holdings and many new buyers are buying them, so prices skyrocketed rapidly until the end of 2013.
HODL in cryptocurrency investment
Indeed, in the world of cryptocurrencies, holding is a very difficult action to do. One of the main causes is that coin price fluctuations are very sharp, they can go up and down significantly. Moreover, recently a lot of new coins have emerged, and there are popular ‘short selling’ such as the term ‘coin micin’.
The word “hold for an honorable life” itself is a word to motivate oneself and others, to hold onto one’s own coin with little speculation. If the price is getting lower or even ‘rugged’ and if the price is getting higher or even ‘to the moon’, at least they are willing to fight and in their opinion it is an honorable act.
Actually the term above is a fairly broad term to be used not only in the realm of cryptocurrencies but can be applied in various ecosystems of a business. If we know the origin of the term, then the expression comes from an American expression, which if simplified the term means survivor or how a person survives in all conditions, whether he is happy or happy. Why a happy state is required to persist because we know that the nature of pleasure itself can make someone who was alert become unwary.
If traced, the term survivor is related to how to survive in a makeshift situation. For example, this is often found in military training where a soldier who is undergoing survivor training is in debt. The soldier was released in the forest with makeshift equipment where the mission was for how the soldier could survive in the forest. Well, the term was then adapted in the broadest realm, including in the realm of business, where it implies that he is doing his best to maintain his business even though it is not in a good condition.
It is the same with the term Hold On For Dear Life or HOFDL in the realm of cryptocurrencies which is related to an individual who firmly holds a crypto asset no matter whether the value of the crypto is in a downturn or is floating negatively based on the individual’s position in the market. . This is based on the movement of cryptocurrencies, which is indeed a very large range of movement, with this many parties believe that even if it drops if you see a large price movement, there is a potential for the asset to move up to its original position or more. HOFDL is seen as a scheme to hold an asset for a long period of time. This term appears in the realm of crypto currency trading when one of the holders of crypto assets has given up and is waiting for the value of the crypto asset to rise again.
