May 11, 2022 16:01
Cryptocurrency fans are developing new slang, acronyms, and phrases for their group. If you're interested in investing in crypto or want to learn more about the market, eliminating these language hurdles can be a fantastic starting point. To navigate the cryptoverse, you need the correct navigational tools, and there is no better place to begin than with common crypto slang terms.
In recent weeks, the price of the digital currency bitcoin plummeted to trade below $6,000 per coin in June, down from a high of nearly $19,000 last year. In addition, everyone from Warren Buffett to athletes and celebrities has expressed their opinions on the future of cryptocurrencies. With all of the attention, the lingo that was once only used for inside jokes in early bitcoin chat rooms and Reddit threads has now entered the conversation. You may encounter bitcoin fans on Twitter stating, "Don't listen to FUD. What does that imply?
The collection of expressions used in the Bitcoin ecosystem that are not usually based on official terms is known as cryptocurrency slang. These are the terms you are likely to encounter within the crypto sector.
Airdrop refers to the free distribution of cryptocurrency coins/tokens or NFTs to various wallet addresses. Some NFT initiatives may airdrop complimentary partner NFTs as a reward for the original NFT holders. Additionally, it can be utilized as a marketing tool for NFT/crypto-related projects in order to attract new followers and build interest. For instance, in August 2021, holders of the NFT collection "Bored Ape Yacht Club" were airdropped with a "mutant serum" that allowed them to create a free, freely tradable Mutant Ape in their original form. The current minimum price for one Mutant Ape is 6.3 ETH (as of December 2021).
To "ape" into a coin implies investing without conducting adequate research, and it refers to a sort of sloppy investing that is frequently more of a gamble and can stem from fear of missing out. "Apeing" can also indicate that you observe what appears to be a "bull run" and decide to purchase in to catch part of the movement without conducting a prior study on the current state of a coin - even if you have made prior investments.
Crypto whales are entities that own a huge amount of a specific cryptocurrency's coins.
There is no "formal" minimum amount of Bitcoins required to be termed a whale, but 1,000 coins are the most widely used figure.
A whale may also be defined as an individual who possesses enough coins or tokens to significantly affect market values by buying or selling enormous quantities. Whales place massive buy orders at higher prices on the market, which drives up the price of the coin. Any activity by whales has the ability to get attention and influence the price of the crypto market.
Bagholder refers to a person who continues to hold significant quantities of a particular coin, notwithstanding its performance. For "Bagholders," the price of the cryptocurrency coin is irrelevant. These investors are either oblivious to the decline in value of their trades or are waiting to sell when the price rises. However, they become the final holders of a failing investment and are hence referred to as "Bag holders."
Simply put, a 'Bagholder' is an investor who refuses to sell their coins despite sensing a decline in the market.
BTD is a prevalent word in financial markets that means to initiate a long position during a suspected temporary decline in the price of an asset. It is utilized more frequently in bull markets to encourage a bullish mood and rising prices, but it is also utilized in crypto down markets to purchase at good historical value for a longer investment horizon.
BTFD, which is an abbreviation for "Buy the [Expletive] Dip," is an ecstatic exclamation of BTD that is frequently employed during frantic bullish rallies.
So when the market pulls back, it is sometimes suggested to BTD.
Companies hold competitions for hackers to identify bugs or security flaws as a security test. Frequently, companies give a "bounty" to anyone who successfully discovers flaws. Frequently, Bug Bounties have certain requirements that hackers must complete in order to receive the bounty.
A Buy Wall often refers to a collection of crypto transactions that predominantly indicate purchases at a given price point. Whales are able to influence purchase walls, and not all buy walls indicate a bullish trend in the coin.
It is a non-lethal sickness caused by cryptocurrency mania, and its symptoms include frequent chatting, reading, and listening to information about cryptocurrencies, sometimes accompanied by the purchase of bitcoin and altcoins.
The term diamond hands denote investors who are unfazed by price fluctuations or other warning indications for their investment. Even when a position is losing value, these traders will hold to the bitter end. They have a firm belief that their investment will always recover and are determined to hold on for substantial rewards.
This is, in my opinion, one of the primary ways that investors of all levels lose large sums of money. However, there are situations in which holding on to a failing investment might be a wise choice.
I have personally encountered this before. I decided to sell my failing stock position at a big loss. A year later, the same stock is worth eight times what I sold it for; if I had diamond hands, I would have made a fortune!
Example: The stock has achieved a tenfold profit after a huge rebound! Those diamond hands paid off handsomely!
It refers to a person or group of people who continue to purchase NFTs at the lowest price. In order to urge community members to purchase NFTs at the floor price in order to raise the floor price of the project, "sweep the floor!" is frequently heard in the Discord channels of many NFT-related projects.
FUD is an acronym that stands for "fear, uncertainty, and doubt." As it is widely referred to in the crypto community, FUD is a psychological technique that aims to instill a negative opinion of a certain asset to discourage future buying or even induce selling or short-selling.
The goal is to depress the price of an asset so that the FUDer can acquire it at a reduced price or inflict financial anguish on those holding the token for what may be a competing crypto project.
Fear, uncertainty, and doubt can be propagated in a variety of ways, such as by stating bad fundamentals, questionable project leadership, stagnant or bearish price movement, unclear roadmaps, lack of acceptance, low network usage, and inability to transact in some areas.
Used in a sentence: "He panicked and sold all of his coins because he believed the FUD."
Fudders are bitcoin traders that believe the price of bitcoin will decline. In other words, they will purchase bitcoin, hence decreasing its value.
As a trader, their objective is to make money by selling bitcoin for less than its current price or by trading with more than 10 percent gains in less than 8 hours. Readers may find greedy Fudders frustrating because they drive the price of bitcoin down, but you can't help but appreciate them if they are correct.
In bitcoin, you can both win and lose. In January 2018, bitcoin fell to $18,000, for example. Many bitcoin traders believed the cryptocurrency market was set to plummet and that bitcoin's value would soon fall below $10,000. As bitcoin owners worried, Fudders began purchasing bitcoin at its lowest price of $18,000. Bitcoin climbed from $20,000 to $27,000 in a matter of days.
Gas is the transaction charge that must be paid to the blockchain network for all types of transactions. The transaction fee compensates the "miners" of a blockchain network for the computer power necessary to process and validate transactions. High gas prices are frequent when there is a lot of demand on the network, such as at the beginning of the minting process for a new NFT project. Due to the tremendous demand, Ethereum's gas fees are sometimes absurdly high, and the majority of Crypto/NFT projects are created on the Ethereum network. It is anticipated that Ethereum 2.0, which is scheduled to be released in 2022, will feature significantly fewer gas expenses. Other networks, such as Solana and Avalanche, are quickly gaining popularity as they are significantly quicker and more cost-effective.
Do you believe Bitcoin advocates lack a sense of humor? You'll be proven wrong by HODL. This crypto slang term originated in December 2013 when a member of the Bitcoin forum posted "I am holding" in a message. He genuinely meant that he was "keeping" his crypto coin for the long haul. Bitcoin fans would certainly not overlook this error.
The article quickly became a meme, and bitcoin enthusiasts adopted the phrase as an acronym for "hold on for dear life." It is mostly used in the crypto community to discourage selling when the price of Bitcoin (or any other coin) decreases, and they endure until the asset's value increases again.
KYC, or "know your customer," is a kind of identity verification mandated by regulatory authorities in 2017 for various crypto exchanges.
Rule 17a-3(17) of the Securities and Exchange Commission (SEC) requires broker-dealers (exchanges) to make a good-faith attempt to collect personal information and create a record for each account with each individual customer. KYC assures that customers are suitable for their trades or investments, that they are who they claim to be, and that their transaction histories are recorded for tax purposes. KYC-AML (Anti-Money Laundering) is usually hyphenated since the two guidelines complement one another.
KYC is a long-standing regulatory requirement in traditional finance, but it has been faced with opposition in the crypto space. Some Bitcoin maximalists and crypto fans vehemently reject KYC on the grounds that it undermines the decentralized philosophy of cryptocurrencies.
A trader may initiate a Long position. In other words, they purchase cryptocurrency at a given price and then sell the assets when the price rises.
When a trader receives a cryptocurrency from a broker with the intent of selling it, a short position is formed on the exchange. A trader will only open a short position if they are positive that the coin's price will decline.
A maker, derived from the term "market maker," is an individual who adds liquidity to a market. In contrast, a person is someone who absorbs market liquidity (meaning buys from the market). If you place an order that processes instantly, you are a taker, whereas you are a maker if you place an order that does not process immediately (such as a limit order). Although both manufacturers and takers must pay fees, the fees paid by takers are often higher.
Surely, you've heard this buzzword everywhere in recent years. There are numerous definitions of the Metaverse, and here is mine: Metaverse is a social creation that utilizes Web 3.0, blockchain, and computer interfaces, in which individuals develop traditions, habits, and values that enable them to spend time and interact in the virtual world using their digital identities (avatars). It coexists with the actual universe. Want to find out more? I have produced this Masterverse masterclass on Udemy. And also examine the subsequent stages of the Metaverse.
"Mooning" refers to a coin's price seeing a surge or substantial gain within the crypto community. People have begun using phrases such as "we're heading to the moon" and "climb on this moon rocket" as a sort of slogan or declaration to generate excitement.
The fact that "mooning" in another context refers to someone exposing their privates in public is irrelevant and humorous.
Have you seen the price of Dogecoin this week? It is extremely moonlit!
A Nonfungible Token, or NFT, is a digital asset that conveys ownership of a virtual good, such as a digital work of art or online collectible. (For example, the popular YouTube video "He Bit My Finger" was auctioned as an NFT.) Most cryptocurrencies are "fungible," meaning that there are no substantial differences between coins; Bitcoin holders don't care which precise Bitcoin they're holding, whereas the holder of a Lebron James-themed NFT will not necessarily give the same value to a Kobe Bryant-themed NFT. In 2021, NFTs exploded in popularity, culminating in a $69 billion auction for a digital NFT artwork.
Shilling is the promotion of any crypto coin through covert advertising. Despite getting compensated for his services, Shilling seeks to generate interest in a coin by supporting it in public places under the guise of unpaid marketing.
Typically, a shill (a person who performs shilling) brings attention to the coin, causing its demand to surge and its value to jump.
Paper hands (sometimes referred to as weak hands) refers to an investor who sells a position at the first hint of trouble. They will not hesitate to sell and exit the market, whether prompted by a negative news release, a price fall, or a simple gut feeling.
In many instances, a trader with paper hands has such a low-risk tolerance within a market that they miss out on big profits by selling before a price gain.
Remember that paper hands are not necessarily a negative trait. Some traders truly adhere to the proverb "paper hands are green hands."
The stock market may be extremely volatile and unpredictable, so do not hold people to pressure you to keep an investment longer than you are comfortable with.
John cannot hold a posture for more than a week with his paper hands!
An investor who sells at the first hint of a downhill trend is a panic seller. Watching your bag multiply ten times during an incredible bull run can be both thrilling (and feel like winning the jackpot) and terrifying. It is not rare for holders to sell a big amount of their bag in the midst of a massive upward trend, just to reinvest later due to fear of missing out.
A pump and dump occur when a group of investors holds a significant portion of a coin's supply at a low price. They facilitate excitement based largely on misleading information, generating market demand and driving up the price (pump).
Once new investors have inflated the initial investments, they sell their whole interests for a profit. Due to the fact that they retained a substantial share of the supply, this sale typically drives the price to an irreparable low (dump).
I've witnessed hundreds of instances of this, and the market is flooded with worthless coins whose main aim is to facilitate it. The problem is that perpetual victims are left holding the bag.
This occurrence is also referred to as a "rug pull."
Last week, Andy lost almost $1000 due to his participation in a pump-and-dump scheme.
Cryptocurrency and gaming are intricately intertwined due to the fact that they are both online communities with their own language and social norms. So it should come as no surprise that a significant amount of cryptocurrency jargon is derived from the gaming industry, such as #rekt, the hashtag that indicates when a catastrophic coin collapse wipes out investors. You'll get #rekt if you're left holding the bag for too long.
"Sats" is an abbreviation for "satoshis," a term derived from Satoshi Nakamoto's given name. It refers to the lowest bitcoin fraction that may be transferred, which is 0.00000001 of a bitcoin. Instead of considering the worth of bitcoin in terms of dollars, "professional traders look at sats, or satoshis," according to Saddington.
Example: "How many sats are you buying at this price?
Lambo or Lamborghini is a luxury status symbol, and the question should not be interpreted literally. "When Lambo?" is an abbreviation for "When can we become wealthy from this crypto holding and enjoy a lavish lifestyle?" This question constantly arises anytime a new coin or token enters the market.
YOLO is an acronym for "you only live once," which expresses the notion that one should live in the moment without worrying about the future. It is also the investor attitude of some individuals who are willing to make extremely risky investment decisions without much consideration. If you ask me, having a YOLO investor mindset is not a very sensible choice. Last night, I spent my entire life savings on a single NFT.
Due to Bitcoin's mysterious nature and the enormous number of unfamiliar terms you'll encounter, getting started with it can be intimidating. Before investing in this fascinating new asset class, it can be advantageous to familiarize oneself with cryptocurrency-specific terms and concepts. Knowing the Bitcoin ecosystem's most common jargon will help you to talk with authority.
May 11, 2022 16:37