Cryptocurrency world is not much old and till now only a handful of people have entered in this field. Most of the people who have jumped on this bandwagon are internet savvy guys or online money making hunters.
As soon as, I started working on coinscage.com I got to know that there is a huge scope of making money by trading cryptocurrencies.
I signed up with Poloniex, joined a few Telegram & Reddit channels. I started throwing my questions on the group and in return I used to hear terms which were like an alien to me.
People generally used a term – “HODL“. On the first hand, I thought that its a typo error but soon I realized that most people are using the same word.
Hence, I decided to google the word “HODL” and to my surprise, I got to know the real meaning of it. Apart from it, I learned about many other terms used amongst cryptocurrency traders.
And If you are new to the crypto world, I’m sure that you would be confused with such terminologies too.
So, Today I will through some light over some frequently used cryptocurrency terminologies.
What is HODL?
First of all, If you are thinking that “HODL” is a typo error of “HOLD” then you are right and wrong at the same time but there is a story for it.
Relax, I will make it easy for you!
As stated in the post, the guy was drunk and wanted to tell the community that he is holding the BTC despite serious price fall.
Though it was a typo error, other forum members started using the word “HODL” instead of HOLD. This word is now used when people believe the coin price would rise in the near future and they are not selling it as of now.
However, there is an abbreviation for it:
Apart from HODL, there are many other terms often used in cryptocurrency trading ecosystem. So, Here is a quick glossary that every new trader should know about.
Frequently used Terms for Cryptocurrency Traders:
Altcoin stands for alternate coin other than Bitcoin. Any cryptocurrency other than bitcoin is considered as an alternate cryptocurrency.
Some examples of altcoin are Ethereum, Ripple, Litecoin etc.
Fear Of Missing Out. When the price of a coin is rising and you feel that the price is gonna rise more, so you buy high.
This is a very common issue with newbies and most of the people end up losing money by taking a decision at the wrong time.
So, If you are new to crypto trading never ever rush to buying any currency as it might take months to recover your moeny.
All time high. It means the price of a coin has broken all its past records and has achieved the highest price to date. From this point, the price may either increase or decrease depending upon the market sentiments.
So here is a recent example, when Bitcoin hit $11500 and it was the highest price ever recorded.
Fear Uncertainty & Doubt. This is a situation when the rumor or an unconfirmed news is spread about a particular cryptocurrency which impacts the coin price.
Because of a fud the price of the particular crypto may decrease or increase for some time, which leaves a few in profit while others in the loss.
Upward price movement. When the price of a certain coin increases instantly, it is referred as pumped.
The mix of PUMP and FOMO mostly leads to the loss for beginners.
Selling off a huge amount of a cryptocurrency at a lower price which leads to sharp decline in the coin price.
7. To The MOON
The continuous upward movement of a crypto price which generally means “The price of this coin will reach to the moon one day”.
Bearish the Negative price movement of a particular cryptocurrency and Bear is referred to a trader who is willing to make a profit from that fall.
Bullish is referred to a Positive price movement of a particular cryptocurrency and Bull is often someone who buys crypto in expectation of making the profit when the price rises.
Whale is referred to a trade with fat accounts. They are often the one who can make or break the market by huge buying or huge selling of a particular cryptocurrency.
For example. A coin is sitting at $1, now a whale comes and slowly buys a million dollar worth coins. This leads to FOMO and other traders buy at the high price. Soon, the whale starts selling the coin thus making a huge profit and letting other traders in the loss.
A trader who buys and hold coins in large quantity hoping to make good profits in the future either he makes a good profit or ends up loosing.
Do Your Own Research. Whenever an experienced trader gives a tip or information about a particular crypto, they conclude it by saying DYOR. Thus, If the person faces a loss, the trader is not to be blamed for it.
This is referred to a trader who has lost everything in the price downfall. REKT is a misspelling for “Wrecked“. This is a common to those who do not undergo reserch before putting up their money in the market.
A coin with no potential value or use is referred as SHITCOIN.
Initially, people used to call Bitcoin Cash a Shitcoin but it ended up being very valuable.
Choyna is a slang referring to China. Since Crypto market is high dominated by China in terms of mining and trading activities, people from other parts of the world make fun of China in this way.
So, these were some of the most popular and frequently used terms which a cryptocurrency trader should know about. Moreover, These are more of a meme and generally used with humor.
This is it on my side! Now it’s your turn to comment below and share any terms or jargons related to cryptocurrencies.
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