Cryptocurrency terminology, abbreviations and acronyms can be very confusing to newcomers in the Bitcoin and Cryptocurrency world.
Once you get involved in Bitcoin and Cryptocurrency, you will undoubtedly hear some strange Cryptocurrency terminology, new words, abbreviations and acronyms. I will outline below a few of the terms that traders and crypto enthusiasts regularly use, so you can follow along to their mysterious conversations, and just maybe pick up a few sneaky tips on when to buy or sell!
Understanding Cryptocurrency terminology may just give you the leg up you need to make some profits in this digital gold rush!
Altcoin – Any other Cryptocurrency than Bitcoin, such as Ethereum, Ripple, LiteCoin, etc.
ATH – All Time High – The term ATH is used when a cryptocurrency rises to the highest value it has ever been. You should NEVER buy on an all time high. Crypto moves up and down in waves, wait for a pull back, and then look at entering a trade.
Bear/Bearish – A Bear is an investor that wants the price to fall. Bearish relates to expectations that a Cryptocurrencies value will fall or is falling.
Bull/Bullish – A Bull is an investor that wants the price to rise. Bullish relates to expectations that a Cryptocurrencies value will rise or is rising.
Exchange – A website where you can purchase or sell Bitcoin and other Cryptocurrencies
Fiat – Currency that has been issued by a government. Such as AUD, USD, EUR, etc.
FOMO – Fear Of Missing Out – This is a term especially associated with newcomers to the world of crypto. FOMO happens when people see the tail end of a trend and can’t help jumping onboard so they don’t miss out on ‘huge gains’. More often than not though, the trend will be at its peak when the FOMO sets in and these new investors will end up losing out.
FUD – Fear, Uncertainty, Doubt – The media is the main advocate of spreading FUD. As cryptocurrency (Blockchain) is a relatively new technology, there are lots of people who will benefit from its adoption into daily life. There are also some incredibly rich and influential people who will lose out if blockchain technology and total decentralisation actually happens. FUD is the intentional spread of negative news by someone that desires a decreasing price.
HODL – This term became widely accepted as a derivative of the word “Hold”, when someone on a Cryptocurrency forum misspelled ‘Hold”. A Hodler is someone who holds an amount of Cryptocurrency for a longer period, hoping that the price will increase over time. Hodling a cryptocurrency is a very sound tactic for increasing ROI over time.
ICO – Initial Coin Offering – A crowd-funding event created to generate a capital for a new blockchain project. Participants receive a portion of coins or tokens for their investment. Be very wary when contemplating participation in an ICO, as many are schemes to gain investors money with no intention of completion of the project.
Moon/Mooning – When a Cryptocurrencies value increases dramatically.
ROI – Return On Investment – The percentage of how much an initial investment has grown. A 100% ROI means an investor has doubled their money.
TA – Technical Analysis – Analysing the market trends to determine which way the market will move. Some believe that TA in Cryptocurrency has little value, while others base their entire trading strategies from TA. You should review multiple sources (TA, media, FUD, etc) before making any investments or trades.
Whales – A person who owns a significant amount of Bitcoin or other Cryptocurrencies. They generally have so much to play with that their buying/selling can affect the market.