Abstract
In its brief history, cryptocurrency has significantly impacted the financial industry. It is an intriguing new technology. The first cryptocurrency, Bitcoin, was introduced in 2009. Like any new technology, cryptocurrencies have given rise to a slew of new terms and expressions with nuanced or cunning connotations that may not be obvious to the average person. Learning these complex expressions and acronyms may enable a crypto novice to purchase the dip and HODL through a wave of FUD. Keep reading to know more about what these terms mean.
| Table Of Content 1.Introduction 2.What are crypto slangs? 3.What are some popular crypto slangs everyone should know? 4.Final takeaway |
Introduction
Since reaching a high of over $19,000 last year, bitcoin’s price has dropped to below $6,000 per coin in recent weeks. Everyone has expressed an opinion on the future of cryptocurrencies, from Warren Buffett to athletes and celebrities.
Due to the focus, vocabulary previously only used in early bitcoin chat rooms and on Reddit threads for inside jokes has now entered mainstream conversation.
What Are Crypto Slangs?
A group of the terminology used in the crypto ecosystem that isn’t usually based on formal language is known as cryptocurrency slang. Before entering the crypto world, there are several concepts to understand, such as HODL, FOMO, and FUD.
There seems to be cryptocurrency everywhere you turn. If you’ve read up on crypto, you’ve run into strange terminology throughout the entire crypto industry.
Whether you’re an experienced investor or brand-new to the great world of crypto, you should be well-versed in its various idioms and crypto slang.
What Are Some Popular Crypto Slangs Everyone Should Know?
1. HODL
Hold on for dear life is referred to as HODL. The popular cryptocurrency joke “HODL” is a typo of the word “hold,” which some people have mistakenly understood the hodl meaning as “hold on for dear life.”
The phrase first appeared on a Bitcoin forum in late 2013 during a moment of market turmoil when an uneasy investor complained about how investors are better off buying and holding cryptocurrency in their wallets rather than trading highs and lows.
Since then, the term “HODL” has gained enormous currency and is frequently used during price surges, during which investors may advise other investors to “HODL” despite extreme price volatility.
2. FUD
“Fear, uncertainty, and doubt” is referred to as FUD. FUD, as it’s known in the crypto community, is a psychological technique for evoking unfavourable attitudes toward a specific asset to discourage further purchases or even to spur selling or short-selling.
The goal is to drive down the value of an asset so that the FUDer can either accumulate at a lower price or cause financial harm to others who may be holding the token for a potentially rival crypto project.
Fear, uncertainty, and doubt can be propagated in several ways, such as by highlighting weak fundamentals, dubious project management, negative or stagnant price movement, unclear roadmaps, a lack of acceptance, low network utilisation, and the incapacity to conduct business in some nations.
3. Sats
The smallest unit of Bitcoin is referred to as a “satoshi,” or more precisely, 0.00000001 BTC. One satoshi is equal to 100 millionth of a Bitcoin, and it is named after the developer Satoshi Nakamoto, who is credited with creating the digital currency. Satoshi Nakamoto may be a collection of people using a pseudonym.
Being able to denominate arbitrary fractions of a Bitcoin is crucial because it is simple to divide and frequently traded in fractional amounts. This is crucial, especially since the price of Bitcoin has skyrocketed over the past ten years, making it prohibitively expensive for new investors to purchase a whole Bitcoin.
The phrase “stacking sats,” which is related, describes an investment method in which a trader builds up satoshis, or fractions of a bitcoin, to raise a holding in bitcoins.
4. Whale
A whale in the world of cryptocurrencies is an organisation that holds a sizable holding in a certain cryptocurrency. A Bitcoin whale, for instance, might be a business that holds 50,000 bitcoins and can influence the market with a single trade.
5. Pump and Dump
The term “pump and dump” doesn’t just refer to cryptocurrencies; it also occurs in the stock market. In regulated securities, it is forbidden and is regarded as market manipulation. A pump-and-dump situation essentially occurs when investors hype or inflate the price of an item, like a cryptocurrency, and then quickly sell their holdings before the price drops again. They inflate it and then dump it just as it is about to fall.
6. Bagholder
You never want to be seen carrying the bag, but in the crypto world, that’s exactly what a “bagholder” is. A bagholder is a person who entered a stake at a premium price and then watched the value of their holdings decline.
7. FOMO
“Fear of missing out” (FOMO) is an acronym. FOMO occurs in all facets of life. In this situation, it’s a frequent psychological state for investors where they experience a mix of panic and envy for not having an active position in a strong market move that others are profiting from.
This generally occurs in the cryptocurrency market after a dramatic bullish breakout, when concerned investors debate whether to enter an already expensive market in the hopes of staying with the advance for the duration.
The term “FOMO” can be used to describe any financial market, but it is particularly prevalent in the cryptocurrency markets, which are dominated by novice retail investors attempting to manage extremely erratic price action to create a well-balanced crypto portfolio.
Final Takeaway
Many investors are still learning about cryptocurrency, but it is already transforming how people view and use money. Because it is both a freestanding network and what some people refer to as a store of value, cryptocurrencies and traditional finance share some similarities. A new generation of specialised vocabulary has emerged as a result of these crossovers, opening up possibilities for technological integrations and widespread acceptance. Before investing in this exciting new asset class, it can be beneficial to become familiar with these specific terms and expressions.
