Definition ∞ Crypto hoarding refers to the practice of holding onto cryptocurrencies for extended periods, often with the expectation of significant future price increases. Individuals engaged in this behavior typically avoid spending or trading their digital assets. This strategy is also known as “HODLing” within the crypto community. It contrasts with active trading or frequent transaction use.
Context ∞ The discussion around crypto hoarding often considers its impact on market liquidity and price volatility. While some view it as a long-term investment strategy, critics suggest it can limit the utility and circulation of digital currencies. News frequently analyzes patterns of large-scale asset retention by long-term holders, examining its implications for market dynamics and supply-demand balances.