Crypto Slang For Beginners
Cryptocurrency is all the rage, and a new vernacular has emerged with all the attention it’s getting. “Just ‘HODL’ your bitcoin for the long run. “ “What a classic case of ‘pump and dump?’ Dogecoin is mooning, etc.”
Read on to find out some crypto slangs everyone should know:
● HODL: The phrase ‘HODL’ refers to the practice of retaining a cryptocurrency long after its value has plummeted. The goal is to keep the position rather than selling bitcoin in a panic if volatility rises since some individuals understand the abbreviation as “hold on for dear life.” After a user on a Bitcoin chat site in 2013 made a typo in the word hold, writing the word HODL in panic, the jargon became part of the crypto investor lexicon.
● Mooning/To the Moon: This term denotes that a cryptocurrency’s price has hit its pinnacle and is rapidly increasing. Similarly, a currency can be described as mooning when it has risen by more than 100% in a short period. After 2017 high, when Bitcoin gained popularity and reached a value of $20,000, the phrase became widespread. The term was initially used to allude to Bitcoin’s ability to gain value. Still, it is now used to apply to any cryptocurrency with the ability to increase in value.
● Whales: A whale is someone who has enough money or tokens to have a significant impact on market pricing, either by buying or selling huge quantities. ‘Whales’ place large buy orders on the market at higher prices, causing the coin’s price to rise. Whales’ actions can attract attention and affect the crypto market’s price.
● Pump & Dump: Pump and dump is a strategy that significant investors employ to defraud unsuspecting investors by urging them to acquire a particular cryptocurrency and then manipulate it.
When a group of investors, such as whales, hold a significant portion of a coin’s available supply at a low price, this is known as a pump. They facilitate hype, primarily based on false information, which increases demand in the market and drives the price up, a process known as pumping. After the initial deposits have been made, these investors sell all their shares, resulting in enormous profits but a sharp decline in the coin’s valuation.
● FUD: Fear, Uncertainty, and Doubt (FUD) is a ruse to propagate doubt, fear, and uncertainty about a crypto coin’s future in the minds of crypto investors, perhaps causing the price of that coin or the entire cryptocurrency ecosystem to plummet. People who cause this fear are called Fudders!
● Sats: Sats refers to “Satoshis,” a term derived from Satoshi Nakamoto’s first name, a pseudonymous person or persons who invented Bitcoin. The tiniest fraction of a Bitcoin that may be sent is 0.00000001, referred to as Satoshis. One Bitcoin is worth 100,000,000 satoshis.
● Bagholders: A ‘bagholder’ is someone who keeps huge sums of a coin in their possession regardless of performance. The value of the crypto coin is irrelevant. These investors are either oblivious of their trade’s decline or waiting for a better opportunity to sell. When an investor refuses to sell, they are called Bagholders.
● Shilling: Shilling is a term used to describe the process of promoting a cryptocurrency through implicit promotion. Shilling tries to generate interest in a currency by personally endorsing it in public forums under the guise of unpaid marketing. At the same time, the shill (person who performs shilling) is being compensated for their services.
● Rekt: Rekt, a deliberate misspelling of “wrecked,” is a crypto slang term for an investor’s portfolio or investment being soundly defeated. It’s trending on social media to warn about overleveraged holdings being liquidated, resulting in significant financial losses.
● Cryptosis: When someone is bitten by the crypto bug and can’t stop talking about it, they are known as “cryptosis.” All day, nonstop, the afflicted reads, writes, lectures, and otherwise consumes knowledge about cryptography, just like us!
(written Catherine S Thomas)