The crypto world is full of catchy phrases and strange terminologies. This can make things a little difficult for crypto newbies as this unique lingo is used quite extensively in podcasts, educational videos and forum discussions.
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Moreover, there are unique terms for almost everything in the cryptoverse.
The young, tech-savvy individuals who populate this space have coined terms to describe the different investment strategies, crypto projects and even the various kinds of investors. Tag along as we quickly run through some of the terms used to describe crypto investors and what they mean.
This one is pretty straightforward. It's a term that is used to describe someone who does not invest in crypto or is pessimistic about digital assets. They usually believe that cryptocurrencies have no use cases and therefore have no holdings, no crypto tokens, and no coins. Hence the term 'no-coiner'.
Weak hands is a term used to describe someone who sells their crypto holdings at the first sign of a market correction. These investors are either not entirely convinced with their strategies or are easily spooked by negative news or price action of an asset. More often than not, weak hands are the ones that trigger a sell-off and cause prices to nosedive.
Diamond hands is a slang term for investors who refrain from selling their crypto holdings despite downturns or losses. These individuals are the opposite of weak hands as they remain invested through thick and thin. This is a good strategy if your investments are backed by solid research and have some use cases that will help their value bounce back after a bear run.
However, it's not always helpful to have diamond hands, especially in the case of a dead-end cryptocurrency that's on a downward spiral and has no hope of regaining its valuation.
Bagholder is a term used to describe an investor that holds on to their crypto assets despite a continuous decrease in their value. They are extreme diamond hands that suffer when the price of a coin crashes to zero, and they are left "holding the bag". Their only hope is that somehow the price of the cryptocurrency will make a comeback, and they will recover some of their losses, but this rarely happens. All those who chose to hold onto their TerraUSD (UST) would be examples of bagholders. Even months after the crash, TerraUSD (now TerraClassicUSD or USTC) is still worth next to nothing.
A HODLer will watch his coins' value double in a week or drop 30 percent in a month, yet he will never even think about selling. These investors are in it for the long run and are unphased by market conditions. Despite sounding deceptively simple, HODLing is a challenging investment strategy. You need to have immense discipline to stay invested even though you can exit your position and book easy profits in the process. However, it is also one of the most effective crypto investment strategies and has produced many crypto millionaires.
Whale is a term that is used to describe large investors. In terms of Bitcoin, anyone with over 1,000 BTC is considered a Bitcoin whale. These investors have the power to manipulate the crypto market with their transactions. If they sell a large enough chunk of their holdings, they can cause the price of a cryptocurrency to dip considerably. Conversely, if they start buying large amounts of a particular crypto, they can also cause a minor price rally. There are plenty of other fishy classifications too. For instance, a shrimp is an investor who holds less than 1 BTC, a crab holds 1 to 10 BTC, an octopus holds 10 to 50 BTC, etc.
The Bitcoin maximalist
For Bitcoin maximalists, there is no better cryptocurrency than Bitcoin. Even while the cryptoverse is full of technological advancements and innovations, they will consider Bitcoin's secure, sound concept to be the most important. These investors were inspired by the brilliance of the blockchain and Satoshi's invention. They were lured in by the technology and ended up staying for the revolution.
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