We can all agree that digital or cryptocurrencies have become great investment deals and options, especially since Bitcoin skyrocketed and reached its peak.
Therefore, you should know that numerous celebrities, athletes, and investors are taking advantage of them. Due to their popularity, people coined multiple terms that became an essential aspect of dialogue.
You can find a wide array of people talking about HODL or FUD, which is mostlyuse. However, as a beginner investor, you should understand crypto-slang to ensure the best course of action.
We decided to present you with the most common and popular cryptocurrency terms you should remember.
Let us start from the beginning.
The Most Popular Cryptocurrency Terms
- HODL – During the beginnings of digital money forums such as Bitcoin, numerous users, and people spelled the word “hold” improperly, which led to its popularity. As time went by, they created an acronym such as “hold on for dear life.” Remember that it has become a general term for holding the number of digital currencies during volatile times.
- FUD – In the world of investing, a term bubble is a prominent option that presents doubt, uncertainty, and fear of some choice. Therefore, a FUD is a synonym of a bubble, which means that people are selling out to protect their investments due to a highly volatile market.
- Sates – People investing in cryptocurrencies probably know about Satoshi Nakamoto, an imaginary person who created the first Bitcoin. Therefore, Satoshi’s or sets is a term derived from this name, and it means a minor fraction you can send. As a result, you do not have to think about a dollar value of a particular currency, which means you will send setsthat will help you ensure the best course of action.
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- Whale –When you own a significant amount of digital currency, you are a whale. Of course, a bitcoin should be anonymous, but you can find whales, which are people that own large numbers of bitcoins or other currencies available on the market. Keep in mind that most whales own at least hundreds of thousands ofbitcoins, for instance. As a result, if a whale starts to sell, it means that the value of a particular cryptocurrency will fall due to significant supply.
- Pump and Dump –The main idea of this term is buying a digital currency to create a demand, which will increase its value as a result. Then, everyone decides to sell or dump the number they own, which allows them to create a significant profit. People are making these schemes through different apps, including Telegram or Slack, which you should be aware of. At the same time, this practice is an open secret among traders, which is an important consideration to remember.
- Bag holders–When it comes to bag holders, you should know that it will have several Bitcoins, for instance, but a pump and dump will affect the overall amount. Since the market will move fast during pump and dump processes, a bag holder will have plenty of coins they cannot sell for the desired price they invested beforehand.
- Mooning – When a particular coin is mooning, it means you can expect a value spike in a timely manner. You will find numerous people from social media channels that will advise you to invest coin with an idea to get profits due to a significant spike. Small bumps in prices can mean that a value will spike the same way Bitcoin did in the past.Still, you should be aware of potential issues and avoid investing too much before comprehensive research. That way, you will prevent potential downfalls that may affect your investment.
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As you can see from everything mentioned above, starting with investing requires significant knowledge of situations and terms.
That is why you should think about each step along the way before making up your mind and deciding to invest.
That way, you can prevent potential downfalls that may affect your current situation, which is a crucial aspect in cryptocurrency.