HODL = Hold On for Dear Life. See how patient investors are rewarded over time.
This tool is essential for comparing trades across different assets, fee structures, or holding periods. The annualised return figure puts short and long-duration trades on the same scale for fair comparison.
Many traders ignore tax liability when calculating net profit. Depending on jurisdiction and holding period, capital gains tax can reduce the realised profit by 10–37%. Include an estimated tax rate in the calculation to see your true net return.
An investor compares a 6-month crypto return of 45% against the annual return on a stock portfolio of 22%. Using the annualised CAGR mode reveals the crypto position generated approximately 105% annualised — context that makes the comparison meaningful.
HODL originated from a misspelling of 'hold' — now means holding crypto long-term through volatility.