HODL: What It Means and Why You Should Do It

JumpTask
3 min readJan 19, 2022

While the first enthusiasts got into crypto more than a decade ago now, millions of people are now entering the arena for the first time. It’s hardly surprising: as the global acceptance of crypto grows rapidly, some of them are reaching never-before-seen heights, and the financial advisors who felt skeptical about it before are now agreeing it can be a worthy investment.

Moreover, more and more companies are using blockchain technology and cryptocurrencies to decentralize markets. JumpTask is one of them: by using smart contract templates and JumpToken (JMPT), it’s aiming to revolutionize the gig economy — but not without introducing its users to the crypto world in the process. Now, the first thing a lot of first-time crypto earners have is, should they hold or trade their tokens? Let’s get into this in more detail.

The two strategies — HODLing and trading

A crypto user who has some tokens in their wallet can do one of two things: they can either HODL them for an extended period of time or try to time the market and get into short-term trading.

If you’re unfamiliar with the term HODL, that’s probably because it’s specific to crypto markets. It simply means ‘hold’ — the unique term got stuck when one user misspelled the word on a crypto forum online in 2013. Simply put, HODLing your crypto means storing it for long periods of time without trading them, whatever temporary value swings are happening on the exchanges.

The alternative to HODLing is short-term trading, which relies heavily on timing the market. Traders watch the market, buying when the values are low and selling when they’re high. However, this requires a pretty solid time investment — and you also need to have strong knowledge of the crypto market to be able to make any reliable predictions. Guessing won’t get you far in this game!

Why HODLing is better for JumpToken (JMPT)

According to Bitcoin.org, more than half of all Bitcoin currently in circulation has not been moved in the last year. Of course, some of these might be lost due to forgotten passwords or lost wallets — but the overall tendency is clear: people are tending to HODL cryptocurrencies because they see them as a long-term investment rather than a way to make a quick buck.

HODLing is especially useful for young cryptocurrencies, such as JumpToken (JMPT). Since JumpTask offers a complete business model-driven blockchain product that is trustworthy, reliable, and authoritative, there is virtually no risk of the token becoming irrelevant, so the risks associated with HODLing are minimal. However, price fluctuations can also happen due to the transaction tendencies in the market (buying/selling) — which means the more people are holding onto their tokens, the more stable it is.

Key points before you go

Let’s sum up what we learned in a few concise takeaways:

  • HODL is a strategy of holding onto your crypto for long periods of time. The opposite of it is short-term trading.
  • HODLing is becoming increasingly popular as a long-term investment. It also plays a role in stabilizing the value of a specific currency.
  • Unlike short-term trading, HODLing requires neither serious time investment nor in-depth knowledge of cryptomarkets.

In the next two years, JumpTask is expected to grow its user base to 50 million active users and offer over a dozen microtask types that require little to no skills or experience to complete. JumpToken (or JMPT) is used for all platform-related payments — which means the demand for the token will not stagnate for years to come. Be among the first to join.

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JumpTask

Decentralised marketplace accelerating user growth for #web3 projects 🚀