Crypto Slangs to Know Before You Buy Bitcoin
Before venturing into any industry, it is very important to conduct proper research which also includes understanding the basic terminologies. Knowing the slang words used in a niche should be the first step for any newbie looking to delve into that niche. The crypto industry is not an exception, as it definitely has lots of slang words.
Therefore, before you buy bitcoin in Nigeria or any other cryptocurrency, it is important to look at these jargons. It is quite rare to read anything about cryptocurrency without coming across different slang. Getting familiar with these terms might require constant usage. As you dive deeper into the world of crypto, you will definitely get to understand most of them. To feed your curiosity about the numerous slangs in the crypto space, here are a few terms explained quite simply.
When you hear altcoin, you might think it is a coin on its own. However, if you check for its price or market capitalization, you’ll find that there’s no coin like that. However, Altcoin is simply a short form of “Alternative Coins”. It refers to any digital currency that is not bitcoin. It is not a crypto asset but a word for all the cryptocurrencies that were introduced after BTC. Ethereum(ETH), Litecoin(LTC), Chainlink(LINK), and every other cryptocurrency you know that is not BTC is an Altcoin.
FOMO is an abbreviation for “Fear of Missing Out”. The full meaning says everything you need to know about the slang. In a broad sense, FOMO is a kind of feeling that something good is about to pass you by. The feeling of anxiety that you are probably missing out on an event, opportunity, trend, or decisions that could be of great value and importance. The person experiencing FOMO is basically having the notion that some people are taking advantage of an event/trend that he/she is not. In crypto, FOMO means the feeling of not taking advantage of a price trend.
This feeling comes in when the price of an asset is increasing and you are looking to join the positive trend (buying the asset) in order not to miss out on the trend. You can also experience FOMO when an asset is experiencing a price fall. At this point, you are looking to sell your asset before the price goes further down. However, in both instances, the price of the assets can go in the opposite direction after you’ve made your decision. So imagine you buy bitcoin because the price is increasing and then after the purchase, the price starts to dip. You were basically affected by FOMO.
FUD means the “fear of uncertainty and doubt” spread by the media to affect the market. It is a term used when an individual is trying to create a panic state in the market. This is done by releasing unreliable information that gives a sentiment about an asset. FUD can actually cause the price of an asset to dip, not due to charts or analysis but due to the release of information that has no reliable backing. FUD will however make a trader either panic buy or sell an asset.
HODL is just a misspelled word of HOLD that was interpreted by the crypto community to mean “Hold on for Dear Life”. It simply means holding/keeping an asset instead of selling the asset. It is basically a strategy that involves holding your asset on a long-term basis even with a price dip. When there is a dip in the price of an asset, HODLers instead of selling the coins will continue to hold it. If you want to HODL bitcoin or any other asset, you have to buy BTC or the altcoin during the dip and hold with the hope that the price rises in the future.
HODL sounds like an easy strategy that requires two steps, buying and holding. However, to be a successful HODLer, you have to be patient, as the strategy could take months or even years before it works out. Because of the time it takes, holders are very prone to be affected by FOMO and FUD. These two can make you sell at low prices, ultimately making less profit than initially intended.
Bagholder is a crypto term for someone that has a worthless asset. When the price of a crypto asset is gradually declining, most investors tend to sell their assets to reduce their loss. However, some investors still choose to hold the coin with the hope that the coin will eventually rise. The coin, however, continues to dip to a point where the value of the coin is incredibly low. An investor with this kind of asset is called a “Bagholder”. They hold the coin until it becomes worthless.
A Whale is someone or an organization that holds a large amount of a particular crypto. With the number of assets they hold, they have some amount of power to control the market. They can carry out large trades that can have an impact on the market. So basically a bitcoin whale is an individual that holds a huge amount of bitcoin. If a bitcoin whale decides to purchase BTC or sell, it’s going to affect the bitcoin market price of BTC.
Bullish simply means “rising or increase”. A bullish trend is used to describe a situation when an asset is experiencing a price increase. It is an upward movement in the price of an asset. When an asset is going through a trend, traders look to buy the asset in order to take advantage of the bullish trend. When you buy bitcoin or any other altcoin because it is going through a bullish trend, such a trader is called a BULL.
A bearish trend is the opposite of a bullish trend. It is used to describe a situation when an asset is witnessing a price decline. It is used to describe the downward movement in the price of the cryptocurrency. Traders that look to benefit from a bearish market are called BEARs.
Learn about 100 more crypto slang words to improve your interaction in crypto blogs, chats, and meetings.