Common Cryptocurrency Jargons to Remember
One of the explanations people give as to why the crypto world is so perplexing is that it has its own jargon. Much like many industries today, the younger generation, social networking sites, and retail stock owners are the major drivers of the crypto industry.
We can't refute that some insider slang and jargon is used in crypto transactions, equities, trading, and other cryptocurrency areas. You might see cryptocurrency supporters on social media say something like, "Don't listen to FUD, simply HODL your bitcoin and head to the moon."
Newbie (and sometimes even experienced crypto investors) may be confused by such statements. You may have to visit a dependable trading platform like Bitcoin Up to not only start your crypto trading, but also try to understand many of the crypto jargon used.
To help you understand such crypto terms and jargon, we’ve listed a glossary of the most common crypto terminology used when investing and trading:
1. Diamond Hands
If a securities or cryptocurrency trader has "diamond hands," they will keep their digital currencies or tokens even if the price falls.
When you say you own "diamond hands," it suggests you will keep an investment regardless of whatever happens. You do not trade or sell it despite extreme volatility, deficits, or returns.
If prices drop, somebody with diamond hands does not fret, but he or she also does not get ravenous when prices go up. The individual is doing this for the long term.
Elon Musk posted "Tesla has" and emojis for palms and a diamond after Bitcoin fell from above $45 500 per coin to around $40 000. This remark was linked to Tesla's "Master of Coin."
2. Paper Hands
Paper hands are the exact opposite of diamond hands. It is similar to cards, where others may "fold" or leave the game if they think they will lose. Someone with paper hands may still exchange cryptocurrency too soon, resulting in wasted earnings.
Traders with "paper hands" opine on the ultimate success of their shares, and as a result, they keep holding them even though their price falls below the original purchase cost.
3. WHALE
A whale is anyone who has a large number of coins. According to Investopedia, the list of top 20 holders of the first cryptocurrency, which is Bitcoin, possess over 80% of bitcoin.
If big organizations plan to sell tokens, it can have a greater impact on prices than the specific behavior of most individuals.
4. To the Moon
The comparison of the phrase "to the moon" originates from the 1969 moon mission astronauts. Even now, it remains a controversial business with huge risks for success.
The cryptocurrency that flies "to the moon" means that the cost will skyrocket, resulting in unfathomable profits for investors.
5. Pump & Dump
Pump and dump occurs when traders attempt to unduly boost the price of cryptocurrency only to liquidate when it reaches its peak level.
In other words, it compromises results in financial stocks that are easier to manipulate, and traders have begun to do the same in the crypto realm.
6. Purchase the Dip
When acquiring cryptocurrency, the value is supposed to grow but immediately lowers in value.
7. HODL
A HODL is someone who does not plan to trade their underlying digital tokens or assets. The phrase comes from a Bitcoin forum in 2013 when someone misspelt the word "hold" and stated, "I am Hodling."
HODL has since become a catchphrase of Bitcoin enthusiasts throughout market journeys, meant to reassure worried market participants that they should keep riding out any provided decline because of what they perceive to be Bitcoin's long-term benefits.
8. When Lambo
A Lambo is an abbreviated form for Lamborghini, an extravagant automobile that many users connect to when they are thrilled about making money with cryptocurrency.
As a result, it keeps coming up when investors inquire when cryptocurrency is highly profitable enough for them to invest in their desired automobile.
9. Mooning
When mooning occurs in the crypto realm, it indicates that the price of a coin has increased. Experts feel it has reached its pinnacle.
Those that keep may lose money if they choose to sell hereafter. On a positive note, individuals who accept a high price may be able to land a Lambo on the moon.
10. Bangholders
Bangholders are regarded as unlucky since they plan to trade at a greater price, but the cryptocurrency market has changed too quickly.
As a result, the investors are stuck with a currency they do not want at a rate they cannot sell it.
11. Sats
Satoshi Nakamoto's first name inspired the word "sats," which is shorthand for "satoshis." This feature represents the lowest proportion of bitcoin that may be transmitted, which is 0.00000001.
As a result, genuine traders look at statistics rather than the monetary worth of a cryptocurrency.
12. FUD
FUD is an acronym that stands for fear, uncertainty, and doubt.
Notwithstanding the FUD of individuals outside the crypto realm, crypto enthusiasts have often urged to HODL their currencies.
Whether you are excited to invest or determined to begin your crypto trading adventure, it is critical that you become acquainted with the varied lingo used in the crypto industry.
Understanding these crypto terms can help to make more successful deals. After all, how can you prepare for your next step if you don't even understand the basics?
