The term HODL in the cryptocurrency world refers to buy and hold. This term came into use after a cryptocurrency investor misspelled the term hold for hodl in a discussion forum. Since then, it became popular as hodling instead of holding.
There are both advantages and disadvantages using this type of strategy. The advantages are as follows. The investors who invested their money in bitcoin during 2014 before the big bullish phase, could have profited 17 times their initial investment size. They chose dollar cost averaging to invest their money and wanted to relax.
However, there are disadvantages to this type of investment strategy. Strategies do sometimes fail and not necessarily indicative of past results. Losses are inevitable in trading and there is no point chasing the losers. It is better to cut short the losers and focus on winning trades.
According to experts in the investment business, lump sum investing is considered a better way to invest compared to dollar cost averaging. Those who were holding their investment in the crypto world had to hold even after a significant crash in the bitcoin market. This destroys the peace of mind and wipes out nearly most of the account. Hence it is better to follow money management and allocate some portion of your capital to risk.