Crypto, as an upcoming industry, continues to impact the financial sector in its short existence strongly. Like any other new technology, it comes with new terminology and phrases with subtle, clever meanings, perhaps unbeknownst to the average person.
For a beginner, learning such nuanced phrases and acronyms might, in a way, assist you to maybe "buy the dip" and "HODL" through a wave of "FUD." By this article's end, you will understand what these names actually mean.
1. FOMO
FOMO stands for "fear of missing out." FOMO happens across all parts of life. In this context, it is an ordinary investor's psychological state in which an investor feels panic and envy for not having an active position in a powerful market move from which others are benefiting.
"I bought it at an all-time high yesterday, and now it is down 25% today. The FOMO got to me!"
2. HODL
HODL stands for "hold on for dear life." HODL is a popular crypto meme and misspelling of the word "hold" (which some people then misinterpreted as standing for "hold on for dear life").
HODL is mainly exclaimed during price rallies in which investors will instruct other investors to HODL through steep price volatility. Investors get to keep their investments through a drop with the hope of it ultimately rising.
3. FUD
FUD stands for "fear, uncertainty, and doubt." As commonly exclaimed in crypto circles, FUD is a psychological method of inspiring negative sentiment about a particular asset to prevent further buying or even instigating selling or short-selling.
4. Rekt
Rekt, an intentional misspelling of "wrecked," is a slang term used in crypto to describe an investor's portfolio or investment getting defeated. It is used sensationally on social media to alert overleveraged positions being liquidated, causing massive financial losses.
5. Sats
Satoshis, commonly abbreviated as "sats," is the smallest unit of Bitcoin — 0.00000001 BTC, to be precise.
6. Whale
In crypto, a whale is an entity that has a massive position in regard to a specific cryptocurrency.
7. Flippening
"Flippening" refers to the hypothetical — and some say inevitable — the moment in which the value of Ethereum overtakes the value of Bitcoin.
8. BTD/BTFD
BTD stands for "buy the dip" and is a common term in financial markets meaning to enter a long position during a suspected temporary decrease in an asset's price.
BTFD, short for "Buy the [Expletive] Dip," is an exuberant exclamation of BTD, typically used during manic bullish rallies.
9. KYC
KYC, or "know your customer ", is a form of identity verification required by many crypto exchanges since being imposed by regulatory agencies in 2017.
10. Ape
Ape or apeing is when someone buys a token or NFT shortly after it launches without previously conducting proper research.
11. No-Coiner
No-coiner is a derogatory term for someone highly critical of crypto and who believes that cryptocurrencies have little to no value.
Final Thoughts
Crypto is a new space for many investors but is quickly changing how people think about and transact money. Crypto has some similarities to traditional finance as it's both a standalone network and is considered by some as a store of value.
As these crossovers enable opportunities for technical integrations and mainstream adoption, a new wave of specific terminology has sprouted up. Learning these terms and phrases unique to crypto can be helpful before investing in this dynamic new asset class.
Comments