Hodling in 2025: The most widely used Bitcoin strategy, explained

Crypto Insight

a day ago

Hodling crypto means holding onto cryptocurrency long-term instead of selling, regardless of market volatility.
In 2013, a late-night forum post on Bitcointalk was titled 'I AM HODLING.'
The user, clearly frustrated with market swings and maybe a few drinks in, meant to say 'holding.'
Nevertheless, the typo stuck. In the years that followed, 'HODL' went from meme to mindset.
In a space that thrives on hype cycles, FOMO trades and 100x gambles, hodling offered a radically simple idea: Buy Bitcoin and don't touch it. No day trading. No panic selling. Just conviction.
Now, in 2025, the world looks very different, but hodling is still here. It's the strategy behind many of Bitcoin's biggest success stories, especially as more long-term investors step into the market.
Central banks are still fighting inflation, institutions are stacking sats, and Bitcoin has matured into a macro asset. In that kind of environment, sitting tight has paid off.
So, what is hodling in crypto today? It's a long-term Bitcoin strategy that's still relevant, still working and arguably more validated than ever.
Did you know? The original 'HODL' post was written in response to a 39% Bitcoin price crash in one day (Dec. 18, 2013). The user, GameKyuubi, admitted he was drinking whiskey and 'bad at trading' but decided to hold anyway. That raw honesty helped the post go viral. Ideas behind hodling Bitcoin in 2025
Hodling can be thought about as a psychological defense mechanism against one of the most volatile markets in history.
At the core of this mindset is loss aversion, a well-documented principle in behavioral finance.
According to research by Nobel laureate Daniel Kahneman, people feel the pain of losses about twice as strongly as the pleasure of equivalent gains.
In crypto, where 20% daily swings aren't unusual, this emotional bias can drive irrational decisions: panic selling at the bottom or FOMO buying near the top.
Hodlers reject that impulse. They subscribe to what the crypto community calls 'diamond hands,' a commitment to long-term conviction, even when the market turns red. It's not about timing tops and bottoms; it's about not flinching when others do.
This mentality aligns closely with how Bitcoin is increasingly positioned in 2025: as a store of value. Fidelity, BlackRock and other major institutions now describe Bitcoin alongside gold in asset allocation reports.
According to CoinShares, over 70% of Bitcoin's circulating supply hasn't moved in more than a year — the highest level ever recorded. That's intentional holding by long-term investors, including exchange-traded funds (ETFs), pension funds and sovereign wealth vehicles.
n short, hodling is stoicism meets finance.
Did you know? In 2025, over 94% of Bitcoin's total supply has already been mined. That leaves less than 1.05 million BTC left to be created — ever — with a kind of mathematical completion expected by the year 2140. 2025 market context: Should you hodl Bitcoin?
If you've been holding Bitcoin over the past few years, you've lived through a lot: the fallout from FTX, a brutal bear market, global inflation spikes and nonstop regulation talk. And yet, here you are in 2025, and Bitcoin's still standing — stronger, arguably, than ever.
Back in 2020, Bitcoin was trading under $10,000. Fast forward to May 2025, and it has reached new heights, hitting an all-time high of nearly $112,000.
Institutional interest has played a significant role in this growth. BlackRock's iShares Bitcoin Trust (IBIT) has seen impressive inflows, with nearly $7 billion added in 2025 alone, marking a 16-day streak of positive inflows. Fidelity and ARK Invest have also contributed to this trend, with their respective ETFs attracting substantial investments. Collectively, US spot Bitcoin ETFs have amassed over $94.17 billion in assets under management.
As of May 27, 2025, Bitcoin is firmly in a bull market and continues to climb.
Of course, it's not going to be smooth sailing ahead. Regulation is heating up. While Bitcoin has mostly dodged the worst of it, the broader crypto crackdown means it's never totally out of the firing line. Some countries are already talking about capital controls on crypto to manage outflows, especially during times of currency stress.
Then there's the rise of central bank digital currencies (CBDCs) rolling out everywhere from the EU to Asia. They're marketed as 'safe digital money,' and while they're not competing with Bitcoin directly, they're shaping the way governments think about monetary control onchain. With tokenized US Treasurys now offering yields above 5% onchain, the landscape for digital value is expanding; Bitcoin is no longer the only game in town.
Energy is also back in the conversation. Environmental, social and governance (ESG) pressure isn't going away, even though over half of Bitcoin mining is now powered by renewables, according to the Bitcoin Mining Council. Still, political narratives don't always care about data.
So… is it still worth hodling?
Plenty of people think so. The stock-to-flow model, though not perfect, still puts long-term price targets in the six-figure range. ARK Invest has modeled a potential Bitcoin price of over $1 million by 2030 in its bull case, while Fidelity has projected strong long-term growth based on network adoption.
Hodling in 2025 doesn't mean burying your seed phrase in the backyard and praying for the best. Today, there's an entire stack of tools built specifically for long-term holders. Cold vs. hot: How hodlers store their Bitcoin
At the most basic level, hodlers still choose between hot wallets (connected to the internet) and cold wallets (offline storage).
Cold wallets — like Ledger, Trezor, or air-gapped devices like the Ellipal Titan — remain the go-to for serious long-term storage. They're harder to hack, easier to control and ideal for people who don't plan to touch their coins for years.
For those who prefer accessibility, hot wallets like Sparrow, BlueWallet or even browser-based wallets on Nostr clients have improved dramatically in security.
Many now integrate with multisig setups or tap into decentralized identity systems for recovery, making them more user-friendly than they were just a few years ago. Institutional-grade custody and yield options
More hands-off hodlers — especially high-net-worth individuals and institutions — are turning to qualified custodians.
Platforms like Fidelity Digital Assets, Coinbase Custody and BitGo offer secure vaulting solutions with compliance baked in. These services often come with additional perks, like portfolio insurance, automated rebalancing or integration with trust and estate planning.
But it's not just about storage anymore. In 2025, a growing number of hodlers are putting their BTC to work: Lido, best known for Ether staking, has expanded into Bitcoin staking derivatives, letting users earn yield on wrapped BTC positions without losing custody.
Platforms like Liquid and Babylon are experimenting with Bitcoin-native staking models, allowing BTC to secure sidechains or earn validator-like rewards without being rehypothecated.
Tokenized T-bill vaults and BTC-backed stablecoins now allow users to generate yield while maintaining Bitcoin exposure. (Think of it as DeFi's version of a long-term savings account.) Automation tools
Hodling today can also be automated. Services like Swan Bitcoin and River Financial let users set up recurring buys — essentially automated dollar-cost averaging — and auto-withdraw to cold storage. Meanwhile, platforms like Casa and Unchained Capital offer multisig setups with built-in inheritance planning and emergency recovery workflows.
There are also tools like Zaprite or Timechain Calendar that help hodlers track portfolio growth without connecting directly to wallets, an ideal option for those who want visibility without exposure.
Source: https://cointelegraph.com/explained/hodling-in-2025-the-most-widely-used-bitcoin-strategy-explained