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HODL bot

HODL bot

Build your portfolio over time. Smooth your acquisition price and avoid investing at the wrong time with Gainium's HODL bots

Why Gainium's HODL bots?

Our HODL bots follow an effective strategy to help you lower the risk of volatility. They help you invest a fixed amount of money over a period of time, regardless of whether the market is up or down. This strategy can reduce the risk that comes with investing in one lump sum.

Lower risk of volatility

Long-term periodic buys lead to lower acquisition cost and less volatility in your portfolio.

Convenient and easy to set up

You only need to choose the purchase amount and frequency. Set and forget!

Backtest and Paper Trade

Test your HODL bots with zero risk thanks to our cutting-edge backtester and paper trading tools.


The term "HODL" originated from a misspelling of the word "hold" in a Bitcoin forum post back in 2013, which has since become a popular term within the cryptocurrency community. "HODL" is the acronym for "Hold On for Dear Life." It has become synonymous with the strategy of holding onto cryptocurrencies for the long term, regardless of short-term price fluctuations or market volatility.

The concept behind HODL's meaning is that rather than engaging in active trading or trying to time the market, investors believe in the long-term gains and potential of cryptocurrencies and choose to hold onto their assets, often with the expectation of future price appreciation. The term embodies the idea of maintaining a solid conviction in the value of cryptocurrencies and resisting the urge to sell during periods of market turbulence. Long-term HODLers are also known for having "diamond hands", meaning they never sell their beloved digital assets.

A hodl bot is a DCA bot that invests a specified amount of money in cryptocurrencies regularly. It will carry on purchasing the coin until the bot is stopped.

It is a long-term investment strategy, so you should select a cryptocurrency that you anticipate will increase in value over time (usually months or years).

A HODL bot is a DCA bot that will invest a set amount of money in cryptocurrencies at specific intervals. So, regardless of the price, the coins will build on your balance because the bot will buy simultaneously every day/week/month. This will smooth out and lower the average price.

For example, you might want to invest $100 monthly in Bitcoin because you believe in its future prospects. You might tell the HODL bot to buy $100 of Bitcoin every 30 days or set it to buy it more often, splitting your investing strategy over several days within a month.

It is straightforward to set it up in Gainium. Once you are on this page, you must select "Time-based" in the "Deal start condition" section of the form.

It really depends on personal preferences. Here are some factors to consider:

Investment Horizon: HODLing is typically associated with a long-term investment strategy. It involves holding onto assets for an extended period, often with the belief in their long-term value appreciation. Conversely, trading involves buying and selling assets more frequently to take advantage of short-term price movements.

Time Commitment: HODLing is less emotionally demanding and it requires less active involvement in monitoring the market. It can be more suitable for traders who don't have the time or interest and feel the stress of actively trading and prefer a more hands-off approach. Trading, on the other hand, can be time-consuming and requires monitoring the market, analyzing charts, and executing trades in a timely manner.

Risk Tolerance: HODLing generally carries less risk compared to active trading. It allows crypto investors to ride out market volatility and potential short-term price fluctuations. By taking a long-term perspective, HODLers aim to benefit from the overall growth of the market. Trading, on the other hand, involves higher levels of risk as you attempt to profit from short-term price movements.

Market Knowledge and Skills: Trading typically requires a deeper understanding of technical analysis, market indicators, and trading strategies. HODLing, while still requiring some understanding of the market, may be more accessible to new investors.

During uncertainty within the crypto market, the buy and hold strategy should be considered. Holding bitcoin and other cryptocurrencies isn’t yet fully proven in cryptocurrency markets, but historically has been used by investors looking to get into a bear market. It aims at preventing the effects of the recession on the economy and avoiding losses.

Having money requires long periods of waiting, so investing is usually the most appropriate for investors that do not require money for long duration. HODLING is not a good way to make quick cash. Many new traders are starting with the dollar cost-average strategy.

Even if Hodling is one of the safest investment strategies yes, you can still lose money when HODLing. Here are some factors to consider:

Market Volatility: Crypto markets are notoriously volatile, meaning that prices can fluctuate significantly in relatively short periods. If you HODL a cryptocurrency during a market downturn or a bear market, the value of your hodl token may decrease. It's important to be prepared for potential price declines and consider the long-term approach when HODLing.

Asset Selection: Not all cryptocurrencies have the same growth potential or long-term viability. If you HODL a cryptocurrency that doesn't perform well over time or faces challenges such as regulatory issues or technological setbacks, you may experience losses. Conduct thorough research and due diligence on the cryptocurrencies you choose to HODL to assess their potential for growth and stability.

Opportunity Cost: HODLing means holding onto your investments without actively trading or seeking other investment opportunities. If there are alternative investments or trading strategies that could have yielded higher returns during the same period, you may miss out on potential short term trades profits by solely HODLing.

External Factors: Cryptocurrency markets can be influenced by various external factors such as regulatory changes, market sentiment, macroeconomic conditions, and technological advancements. Unforeseen events or developments can impact the value of cryptocurrencies.

The biggest drawback of HODL is how much time it takes to achieve the desired results. In addition, holding strategies make the investors miss the opportunity with short term trades to profit by quick-changing price fluctuations in cryptocurrency markets.

Determining the best cryptocurrencies for HODLing is subjective, depends on various factors and requires conducting your own research. Below are some guidelines to help you select good hodl tokens.

Market Capitalization and Liquidity: Cryptocurrencies with larger market capitalization and higher liquidity tend to have more stability and a higher likelihood of long-term viability. Bitcoin (BTC) and Ethereum (ETH) are examples of cryptocurrencies with significant market capitalization and liquidity. There are plenty of successful bitcoin investors that simply hold.

Adoption and Use Cases: Look for othe cryptocurrencies that have real-world adoption and use cases. Cryptocurrencies with strong blockchain technology, utility, partnerships, and active communities may have better long-term prospects. Examples include Ethereum with its smart contract functionality, Chainlink (LINK) for decentralized Oracle solutions, and Cardano (ADA) with its focus on smart contracts and scalability.

Technology and Development: Assess the technology and development behind a cryptocurrency. Consider factors such as scalability, security, speed, and the potential for future upgrades and improvements. Projects that demonstrate continuous development and innovation may have better long-term potential.

Crypto Community and Ecosystem: Consider the strength of the community and ecosystem surrounding a cryptocurrency. A vibrant and engaged crypto community can contribute to the growth and adoption of a cryptocurrency. Look for active developer communities, and supportive crypto enthusiasts communities that for example have an online forum, and a healthy ecosystem of projects and applications built on the platform.

You should consider stopping your HODL bot and decide to simply hold or sell your crypto in the following situations:

  1. When you have achieved your investment goals or desired profits.
  2. If there are significant negative changes in the market or your chosen cryptocurrencies.
  3. When the performance of your holdings consistently underperforms.
  4. When you want to rebalance your portfolio or make changes to your cryptocurrency holdings.
  5. If you need immediate access to your crypto investments funds or experience changes in your financial situation.

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Gainium is a publisher of financial information, not an investment adviser. We do not provide personalized or individualized investment advice. Cryptocurrencies are volatile investments and carry significant risk including the risk of permanent and total loss. Past performance is not indicative of future results. Figures and charts are correct at the time of writing or as otherwise specified. Live-tested strategies are not recommendations. Consult your financial adviser before making financial decisions.