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    10 Cryptocurrency slangs that all investors must know

    10 Cryptocurrency slangs that all investors must know

    10 Cryptocurrency slangs that all investors must know
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    By CNBCTV18.com  IST (Updated)

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    The world of crypto is like an advanced science project – it's full of alien terms and a horde of people who have no idea what they mean. However, knowing what these terms mean is also essential. Here are the top 10 cryptocurrency slangs making the rounds these days.

    The world of crypto is like an advanced science project – it's full of alien terms and a horde of people who have no idea what they mean. Therefore, if you draw a blank at statements like 'HODL through a period of FUD', then fear not, as you are definitely not alone in your bewilderment.
    However, knowing what these terms mean is also essential. It will ensure you can make better sense of what you read or hear about the crypto industry. So, tag along as we quickly run through (and explain) the top 10 cryptocurrency slangs making the rounds these days.
    1. FOMO
    FOMO, or Fear Of Missing Out, is one that you’ve probably heard of, especially if you’re a millennial. In the crypto context, FOMO occurs when an investor is unable to buy cryptocurrency at lower rates or is unable to sell at lucrative rates. It stems from the inability to have a strong position in the market that is benefitting others.
    2. HODL
    HODL became a popular slang in the crypto universe after a user erroneously tweeted that he was “HODLing” his Bitcoins through a price correction in 2013, which most crypto enthusiasts misinterpreted for – “Holding On For Dear Life.” Since then, HODL has always been used to refer to situations in which investors hold their cryptocurrency through market turmoil.
    3. FUD
    FUD stands for Fear, Uncertainty, and Doubt and is a commonly used slang in the crypto community. FUD is used to convey an intentional spread of negativity about a certain cryptocurrency to trigger bulk-selling or halt further buying. A FUD usually leads to a consolidation of the cryptocurrency at a lower price, causing a loss to “HODLers” in that period.
    4. Whale
    Crypto whales are individuals or entities that hold a massive amount of any particular cryptocurrency, which is enough to influence market prices. In the case of Bitcoin, 1000 BTC is the commonly used threshold to identify a whale. Whales are notorious for transacting in volumes so large that the prices either rise or fall sharply, thus also resulting in market manipulation.
    5. Pump and Dump
    This is a commonly used strategy in equity trading as well as crypto trading. When a wealthy investor buys a significant amount of cryptocurrency, the price of the same skyrockets and allows the investor to exit the deal at a higher price. This high volume of selling then causes the prices to crash, thus disrupting the entire market. Investors who fail to identify ‘pump and dump’ strategies often suffer as the prices nosedive before they decide to sell their assets.
    6. Mooning
    This slang is used when the price of any cryptocurrency has peaked or is thought to be peaking. Another usage for the slang is when the cryptocurrency gains 100 percent in a very short period. The slang became popular when Bitcoin prices rode the charts in 2017 to touch $20K, but it is now used for all cryptocurrencies.
    7. Shill
    “Shilling” of crypto involves the manipulation of its price through illegitimate advertising such that its price rises through the roof. Investors can easily spot shilling as the advertiser is usually a person with no crypto background whatsoever, and (s)he suddenly begins to promote a specific cryptocurrency. Shilling may also be done through fake websites and social media accounts.
    8. Sats
    “Sats” refer to the smallest unit of Bitcoin – a Satoshi. One Sat, or Satoshi, is equal to 0.00000001 BTC and is named after Bitcoin’s aliased creator Satoshi Nakamoto. Crypto enthusiasts who wish to make their Bitcoin position stronger also refer to their Satoshi accumulation strategy as “Stacking of Sats.” Since 1 BTC is very expensive, most people trade in fractional volumes or Sats.
    9. Bag holder
    A “bag holder” is somebody who buys crypto at an inflated price and continues to hold on to it despite its weak performance on the charts. These are usually long-term investors or investors who are unaware of the performance deficit and wait until they can sell at a better price. Since they are often the last holders of a failing cryptocurrency, they have been christened as “bag holders.”
    10. Cryptosis / OCD
    When an investor obsesses over crypto price movements so much that (s)he does it all the time, it is referred to as Obsessive Cryptocurrency Disorder (OCD). Such a person also wishes to absorb all the information the market has for him to make informed investment decisions.
    When looking for information online, novice investors or even seasoned veterans in the crypto markets may find it hard to understand the content without knowing these urban slangs.
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