What do you mean by the term HoDL in FOREX?
It is the term that is the spelling error of the word hold that usually refers to buy and holding strategies in the context of FOREX currencies. The term HoDL originated in the year 2013 from a post that was made in a bitcoin forum. It was a mere typo that led to the term hodl.
5 different ways to HoDL FOREX:
Hybrid approach to a digital wallet security
A hybrid approach is a mixed approach to store your FOREX. You should store most of your currencies in the offline wallet and keep a few in the online wallet. The physical wallet should be kept safe and the private and public keys should be separated. Both need to be secured with the help of extremely strong and complex passwords.
Work with the FOREX wallet of high reputation
It is always recommended to go through the reputation of the platform you are actually wanting to use. They should provide you with the best security policies and should have SSL/TLS encryption. You should use complex passwords that cannot be easily hacked. Exchanges, brokerages as well as mobile apps used for the purpose of transaction and storage and holding should be from a reputed platform.
Always use the wallets that are not hosted by providers
Definitely skip using the wallets that are hosted by some random providers because the providers are usually getting access to store your private keys and you are prone to losing everything. But it has become the most common way of holding the FOREX as it is hassle-free and requires the least effort. Instead, it is commendable to use hardware wallets that are USB-based and encrypt and store your very private key. Decrypting such keys is mostly physically handled and thus is safe.
Choose between hot and cold wallets
Be careful while you choose between a hot and cold wallet. Cold wallets are completely offline and have a requirement of either having a private address written down on a piece of paper that is only accessible to the owner or purchase a physical device that stores the FOREX funds securely. Cole wallets are having their drawbacks for the traders who are active.
On the other hand, hot wallets are online wallets generally opted by retail investors and have easy access. Online funds are always subjected to risk and so they need to be taken care of most.
Be aware about the wallet transactions
Be very careful about the ways the wallet is being used for the purpose of the transaction and be very sure about the systems and the networks. There should be no compromise with your safety because holding the coins is an extremely private affair and needs total security. You are also not supposed to share your private key with anyone at any point in time.
FOREX means encrypted secure transactions of economic currencies with particular valuations. Buying and holding the position people buy, is actually termed as Hodling. Hodl is now termed as Hold on for Dear Life. Hodling is a very strategic way to increase the worth of FOREX. So, utilize the strategic way and make more money with lots of profit. All the best!