What is the HODL token and how it works?
Before you buy/sell HODL tokens you need to first know what this cryptocurrency is all about. Since the token is just a few months old, many of you don’t have a clear idea about it. In this section, we will discuss important details that you should know.
HODL is a DeFi token based on the Binance Smart Chain. Just so you know the name “HODL” comes from an early Bitcoin forum post. While explaining the benefits of buying cryptocurrency, the blogger misspelled “hold” as “hodl.” Since then, the term HODL has become a popular term among crypto investors.
The HODL token is categorised under liquidity generation and yield farming token. For those unversed, yield farming is described as earning extra cryptocurrency through interest. This is done through HODL token taxing those who sell their tokens.
This token is also a liquidity generation token. That’s because a portion of investors’ tokens are sent to the PancakeSwap liquidity pool after they make a sale.
Terms like yield farming and liquidity generation may lure cryptocurrency investors to buy into HODL. The platform incentivizes investors to hold their tokens. The longer they hold their tokens, the more rewards they receive.
When an investor sells their HODL tokens, they are taxed a portion of their holdings. While 4% of this tax is transferred to PancakeSwap liquidity pool, another 4% is redistributed to token holders in Binance Coin. The remaining 2% is redistributed to HODL token holders as rewards.
Through SafeMoon’s tokenomics, you cannot only earn SafeMoon tokens but also HODL and BNB tokens. The fact that BNB is less volatile, most investors would want to be paid in BNB instead of HODL tokens.
HODL Token Details
As you already know HODL is a community-driven DeFi token on the Binance Smart Chain. The best thing about this token is that the more HODL tokens you hold in your wallet, the more rewards will come your way. Likewise, you will also acquire rewards in BNB.
The total supply of HODL tokens is 1 quadrillion. The massive supply of this token is quite standard for community-driven projects. Just so you know 66.4% were reserved for the launch event and presale whereas 23.6% were immediately burned, with 5% for the marketing and team and 5% reserved for airdrops.
HODL has certain features that make it a unique project. In total, 8% of every transaction is redistributed and taxed. 4% are returned to token holders in the form of BNB coins. To be more precise, every investor receives an amount of BNB proportional to his ratio of HODL tokens in the pool.
HODL gets a buy-back function triggered by each successful sell transaction. However, it does not specify what exactly they mean by eligibility here.
As we speak, the value of HODL is USD 4.01e-8 with a 24-hour exchanging volume of USD 1,185,793. HODL is down 5.51% in the last 24 hours. The current CoinMarketCap positioning is #2707.
How to buy a HODL coin?
HODL is available for trading on PancakeSwap. To buy HODL coins you need to follow the given steps.
Open an account
The first thing you need to do is look for an exchange that works with PancakeSwap. You need to purchase BNB as it is used by PancakeSwap as its money pair. This is why you need BNB to buy HODL coins.
Choose a platform that is compatible with PancakeSwap and offers BNB tokens. Once you find such an exchange, create your account.
Once you create your account and get done with the verification process, you can purchase BNB.
Download a digital wallet
The next step is to download a reliable digital wallet. This is because you need to send your assets to a digital wallet that is compatible with PancakeSwap. The good thing is you can find quite a few of them out there.
Once you get your wallet ready, you can send your BNB tokens to your BNB digital currency address.
Make your purchase
The best thing about PancakeSwap is that it has an easy setup. Now visit the PancakeSwap website and you will be asked to link your wallet.
Once that is done you can look for the HODL token and purchase it in exchange for the BNB tokens.
Before the exchange happens, you are required to support the exchange through your crypto wallet. Once you make the purchase, your HODL tokens will show up in your wallet in just a few minutes.