Definition ∞ A holding strategy, often termed “HODLing” in cryptocurrency communities, involves acquiring digital assets and retaining them for an extended duration, irrespective of short-term market fluctuations. This approach is predicated on the belief that the asset’s value will appreciate significantly over time. Investors employing this strategy aim to capitalize on long-term growth rather than short-term trading gains. It requires patience and conviction in the asset’s fundamental value.
Context ∞ News frequently references holding strategies when discussing market resilience, investor sentiment, and the long-term outlook for specific cryptocurrencies. On-chain metrics, such as the increasing number of long-term holders, often confirm the prevalence of this strategy among market participants. The effectiveness of a holding strategy is a continuous discussion point, particularly during volatile market conditions. This shapes market stability.