Holding company and crypto holding: what investors need to know

OnchainDetectiveBing · 2026-01-30T19:18:10+00:00

This essay clarifies the difference between a holding company and HODL. A holding company is a corporation that owns controlling interests in other companies, managing their investments and assets to generate income and strategic control. HODL, on the other hand, is a personal investment strategy where individuals hold onto their cryptocurrency assets for the long term, regardless of market fluctuations, aiming for future gains rather than short-term trading. Understanding this distinction helps investors make informed decisions about corporate structures versus personal investment approaches, especially in the rapidly evolving world of digital currencies.

OnchainDetectiveBing

2026-01-30 19:18:10

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If you are new to cryptocurrencies or finance, two terms might confuse you: holding company and HODLing. They sound similar, but they are completely different things. Let’s clarify the differences.

What is a holding company: corporate structure

A holding company is a legal entity created specifically to own shares and stakes in other companies. Its main task is to control and manage an investment portfolio, coordinate the work of subordinate enterprises, but it does not produce goods or provide services directly. This is a typical corporate structure used in traditional business for centralized management of a group of companies.

HODL in cryptocurrencies: personal investment strategy

Holding (from the English HODL) is something entirely different. It is a strategy of a simple investor who buys crypto assets and holds them for the long term, without selling during short-term price fluctuations. The term originated in the crypto community as a philosophy: “hold and believe” in the long-term potential of assets.

Key differences for investors

The main difference lies in scale and purpose:

Holding company — a corporate entity that manages multiple companies
HODLing — a personal strategy of holding crypto assets

The first operates at the business and control level, the second at the individual investor level. If you hold Bitcoin and wait for its growth, you are HODLing. If you create a company that owns several crypto projects for their management, you are using a holding company structure.

For most XRP holders and other cryptocurrencies, the HODLing strategy is suitable — simple, accessible, and does not require creating complex corporate structures.

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