New Delhi: Cryptocurrency Ecosystem has gained an enormous amount of popularity among every kind of investor and it is now have become important to keep up with regular updates and news related to it.
Cryptocurrency has its root on the internet and there are many slangs, jargon, and inside jokes that run in a crypto community. These Crypto communities based on Reddit, discord, and telegram have eventually given birth to terms like HODL, mooning, pump, and dump which may confuse many neophytes.
So if you’re a newbie to this crypto world, don’t worry we got you covered. Here is the list of basic crypto terms that you need to know.
HODL
Started as a typo for ‘Hold’, HODL became a term related to an investment strategy. HODL refers to a strategy of holding a cryptocurrency and not selling it after a minor or major crash.
Many interpret the acronym as ‘hold on for dear life’ which means to keep holding a coin or token rather than selling it off in a panic.
FUD
FUD is an acronym that stands for Fear, Uncertainty, and Doubt. It is used to indicate traders that some people are spreading negativity and false information about a virtual coin to drop its value. Negative news and false information lead to a panic kind of situation and a major sell-off in the market.
Pump and Dump
‘Pump and dump’ is a strategy used by big holders and market manipulators to make money from small and innocent investors. It is done by hyping up the traders to invest more in a specific token by manipulation.
In a Pump strategy, a group or community that holds a good percentage of a virtual coin circulates false statements or news to create a demand in the market to shoot the price up.
After watching the impact of news on a coin’s price, the investors sell off their holding to book profits. This makes the coin’s price decrease in a short span of time which creates a panic kind of situation for smallholders.
To the Moon/Mooning
This term is used when a cryptocurrency hits its All-Time High price and is still rising off the charts. One can use ‘Mooning’ when a coin crosses over a 100% increase in value in a short time.
Whale
A whale is an entity that owns or holds a large amount of a specific cryptocurrency. However, there is no “official’ set of a number over which one can be hailed as a whale. For instance, anyone who holds at least 1000 Bitcoins can be termed a whale.
A whale can be also defined as a person who has enough amount of coins that can leave a big impact on the market price, either by selling or buying it in a large amount.
Shilling
Shilling is a very commonly used term in and outside the crypto community which means hyping or promoting any coin by implicit advertising strategies. In this strategy, some credible personalities will spread a buzz about a token by personally endorsing it in the public forums.
SATS
‘Sats’ is named after Satoshi Nakamoto, a pseudonymous person or persons who developed Bitcoin. Sats is the smallest fraction of Bitcoin that can be sent. 1 Sat = 0.00000001 of a Bitcoin and 1 Bitcoin is equivalent to 100,000,000 satoshis.
Paper hands
Paper hands is a term used to describe an investor who has a low-risk tolerance and will exit a trade at the first sign of trouble.
Bagholders
Bagholders is an adjective used to describe someone who continues to hold large amounts of a specific coin irrespective of its performance. Bagholders are the kind of investors who believes that someday the value of their coins will rise.
OCD (Obsessive Crypto Disorder)
OCD investor is a term that defines investors who are very obsessed with the coins they are holding, They try to absorb every bit of information about cryptocurrency they own.
