If you have just entered the world of cryptocurrencies and find yourself overwhelmed when you come across the many different jargons used by crypto traders and enthusiasts, do not fret as we have prepared a list of commonly used cryptocurrency acronyms for your easy reference. For crypto beginners, it is good to get to know these phrases as they help an investor HODL without feeling FOMO during a market plummet (you will know these acronyms as you finish reading this article). Some of the most common ones include:
- Bear Market
A bear market in cryptocurrency is a prolonged period of price drop of the cryptocurrencies. It differs from a bear market in a stock market where a drop of 20% or more is judged to be the start of a bear market, as cryptocurrencies are much more volatile than traditional asset classes. However, while dealing with a bear market may be frustrating and stressful, it may represent a good buying opportunity.
- Bull Market
A bull market in cryptocurrency is a sustained period of upwards price movement of the cryptocurrencies. This strong market uptrend typically occurs when investors are confident about the future performance of an asset or the larger market as a whole.
- DYOR
‘Do Your Own Research’ is the term that we should first know before we enter the cryptocurrency market. It is important to conduct your own research and analysis before deciding to make an investment in cryptocurrencies.
- FOMO
The worry of being left out in the crypto world, ‘Fear Of Missing Out.’ This worry can lead to emotional trading where there is an urgent need to buy a certain cryptocurrency when they think the price is about to rise or is already rising. However, making rash decisions when investing could lead to a loss in your investment capital if the market moves against you.
- FUD
FUD stands for ‘Fear, Uncertainty, and Doubt. This shows a negative feeling that is raised in the market that spreads the feeling of worry and anxiety among crypto investors which could cause a price drop of a certain coin or even the entire crypto space. ‘Fudders’ are the group of people who spread FUD, disinformation strategies or propaganda that is meant to confuse investors or lead them to prematurely exit the market.
- HODL
This means an act of patience by holding a cryptocurrency and not resorting to selling it even when there is a bear market occurring for cryptocurrencies. This jargon comes in place due to a misspelling typo by a Twitter user who made a typo in the world held on his tweet, making the word HODL panic. Some interpret the acronym as it fits well for: “hold on for dear life,” the idea of holding one’s position rather than selling off cryptocurrency in panic.
- Pump and Dump
This refers to a tactic used by big investors (whales) to get money from ordinary or ‘small’ investors by encouraging them to buy a specific coin so that the whales can manipulate its price movement. Recommendations (pump) are given to cause an upwards movement of the price of the token, allowing these whales to sell their holdings at a higher price (dump). The whales ‘pump’ by creating demand in the market by holding a substantial amount of a coin. After the initial investments have been pumped, the whales sell their holdings, making massive profits and, leaving the price of the coin to drop significantly once they have exited the market.
- Rekt
This is a common crypto slang, short for ‘wrecked’ which describes a trader that has lost a substantial amount of money, especially after a significant downwards price movement. When you lose a lot of money, you got rekt.
- To the Moon / Moon
The phrase became popular after the 2017 peak reached by Bitcoin, which means the price of a cryptocurrency has reached the peak and is rising off the charts to a huge increase, or in other words, there is over a 100 per cent increase within a short period.
- WAGMI
We’re All Going to Make It. This has been a rallying call by the crypto community to build confidence and encourage everyone to not lose hope given that this space is still in its very early stages.
- Whales
People that hold many coins of a cryptocurrency. There’s no ‘official number’ for one to be ‘eligible’ to be called a whale, but when it comes to Bitcoin, 1,000 coins is the commonly used figure. A whale can cause a significant impact on the market prices by selling or buying in large amounts. Any movement by whales can potentially control or impact the price of the crypto market.
- Shill
This term defines a person purposely promoting a specific token, usually having invested a substantial amount of money into the cryptocurrency, even when there is a downwards price movement during the period.
- KYC & AML
Know Your Customer & Anti-Money Laundering. KYC is the obligation financial institutions have to verify customer identities and confirm they follow the AML laws. Read here to know more.
These are just a few examples of the many jargon words and slang terms used in the world of cryptocurrency and blockchain technology. As with acronyms, new terms are constantly being coined, so it’s important to stay up-to-date with the latest developments in the field.