HODL On Tight: Five of the Cryptocurrency Terms to Master
The first time I started trading cryptocurrencies, I found traders had a language all their own.
But if you want to make real money in the crypto-sphere, it’s a good idea to know some of the keywords quickly making the rounds.
For example, what’s HODL?
In Plain English, it’s really “hold.” Some have suggested it means "Hold On For Dear Life".
The term HODL was allegedly created by a drunk, semi-coherent “GameKyuubi” on a Bitcoin Talk Forum. At exactly 10:03 a.m. on December 18, 2013, he wrote, “I AM HODLING.”
After, he went on a drunken rant about how poor his trading skills were, vowing to never sell his Bitcoin from that point on. His exact words:
"I type d that tyitle twice because I knew it was wrong the first time. Still wrong. w/e," he wrote in reference to the now-famous misspelling of "holding." "WHY AM I HOLDING? I'LL TELL YOU WHY," he continued. "It's because I'm a bad trader and I KNOW I'M A BAD TRADER. Yeah you good traders can spot the highs and the lows pit pat piffy wing wong wang just like that and make a millino bucks sure no problem bro."
If he stayed true to his word to HOLD Bitcoin, he did quite well since 2013.
So, the next time someone tells you to buy and HODL, it simply means to buy and hold.
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FOMO—Fear of Missing Out
It simply refers to the fear of missing out on a potentially profitable opportunity.
No one wants to be left behind, in short.
Fear of missing out will make investments attractive, says billionaire Michael Novogratz. Meaningful institutional investors’ money will make its way to cryptocurrencies by 2019. We could even see a return of the same “FOMO,” or “fear of missing out,” that pervaded as bitcoin neared $20,000 last year, he told CNBC.
This is a term borrowed from gambling. It means a trader with a fat account, usually one who is bullish on the price of any specific cryptocurrency. The Bitcoin whales have the potential to swing the cryptocurrency market. These investors are usually blamed for dumping on the market if there is any substantial drop in the price of the Bitcoin.
They’re also called “Whales” because like the whales, these people are also the biggest creatures in the cryptocurrency ocean. And like the whales they can also overpower smallholders due to their sheer size. Satoshi Nakamoto, the founder of Bitcoin can be considered a whale for example because he holds nearly one million Bitcoin.
FUD – Fear, Uncertainty and Doubt
The market is made up of human beings. Specifically, humans are unique in all aspects; psychologically, intellectually and more. Each of us has a certain level of psychological abilities and therefore reacts differently to different situations. As a result, one market participant might react to the FUD in a different manner compared to another. For example, we can say that Warren Buffett spread FUD by saying that “Bitcoin is rat poison squared.”
REKT, or Wrecked
This simply refers to a trader who has been destroyed by the market.
These are just a few of the hot terms floating around the cryptocurrency space. We’ll bring you more once we can decipher them.
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