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What Is HODL? Crypto’s Most Common Phrases

Author: Coinpedia

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Crypto Journalist and Editor of guest articles in CoinPedia. I am also handling Outreach & Partnerships Manager. Contact me: [email protected]

    While all of this crypto activity is incredibly exciting for novice traders, there is an inherent sense among newbies that while we get the overall concept of crypto, we also have no understanding what is going on.

    For beginners who just want to make a little money, opening Twitter and being bombarded with lingo ranging from “bear market” to “HODL” might be quite bewildering.

    It is critical to learn these terminologies when you are trading crypto, or going through various bitcoin gambling sites for purposes of wagering.

    However, it is critical to comprehend some of these terms. So, what exactly does HODL stand for? Is it better to buy the dip or not? Is a blockchain something I should be interested in? For novices, here is a collection of the most regularly used crypto-related words.

    Bull market 

    Simply put, a bull market indicates that market analysts feel the market is performing well and is on an upward trajectory. Prices are either rising or are likely to rise soon. 

    Bear market

    A bear market is the polar opposite of a bull market, in which prices are falling or are expected to fall.

    HODL

    There will come a time when you must choose between selling your crypto before losing any remaining profit and HODLing. Hold On for Dear Life, or HODL, is an acronym for strapping oneself to the crypto rocket and crossing your fingers that it takes you to the moon on a one-way journey.

    Similarly, to “hold” your cryptocurrency means to leave it alone and not trade it.

    Buy the dip

    Buying crypto after it has declined or sank to a lower value is known as “buying the dip.” The concept is that if you buy cryptocurrency when it is at a low price, you will be able to profit if it rises in value.

    FOMO (Fear of missing out) 

    This is a word that you might use in your everyday life. If someone expresses FOMO with relation to crypto, they’re probably feeling compelled to do what everyone else is doing: buying a cryptocurrency when they believe its price is set to rise!

    Shill

    Someone who is endorsing something for personal gain.

    Although the term “shill” did not originate in the cryptosphere, it gained popularity for a variety of reasons. Who would shill, you may wonder? Someone who has invested in a coin that isn’t doing well and is expecting that other people will purchase it and drive up the price. It’s all for the sake of personal wealth.

    FUD

    Fear, uncertainty, and doubt.

    The feelings of the crypto community swing like a yo-yo from time to time, causing prices to climb or fall. FUD is a psychological technique used in cryptocurrencies to promote uncertainty and fear, causing a coin’s price to plummet.

    Who is it beneficial to? Obviously, those who propagate FUD!

    Pump and dump

    Pump and dumpers are people that say things like, ‘Hey, let’s all purchase this currency together,’ which means buy the coin, generate market demand, and the coin will rise in value.  The coin is then “dumped” and sold by everyone.

    These frauds are usually conducted using apps like Slack or Telegram, and warns chatroom users to be wary of such gimmicks. According to a Business Insider study into “pump and dump” operations, the technique is “an open secret among many bitcoin traders.”

    Market cap

    The total value of all coins generated determines a cryptocurrency’s market cap. It’s derived by dividing the total number of coins in circulation by the current market price per coin.

    As a result, a coin’s market cap can vary dramatically as the figure changes every time fresh blocks are mined. With a market capitalization of over £500 billion, Bitcoin is now the most valuable cryptocurrency.

    Rekt

    You can argue a cryptocurrency investor got rekt, which is derived from the term “wrecked,” when they made a terrible deal, such as selling their bitcoin immediately before the price skyrockets upwards.

    Bagholders

    In the stock market, it refers to an investor who holds on to their shares in a firm for much too long and then loses a significant amount of money as the company’s value plummets. It effectively implies the same thing in cryptocurrency: if you acquire a number of altcoins and wait too long to sell them, their value might plummet, leaving you holding the bag.

    DYOR

    “Do your own research” (DYOR) is a popular piece of advice: If you’re instructed to DYOR, it suggests you should think for yourself and draw your own conclusions rather than relying on the wisdom — or lack thereof — of the crowd. You could be rekt if you don’t DYOR.

    Whale

    A cryptocurrency investor that owns 5% or more of any cryptocurrency coin, or the big players in the crypto space.

    In the case of Bitcoin, for example, a whale is someone who owns as much as $8 billion in the currency (assuming the total value of all Bitcoins in the world is 160.4 billion USD). 

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    Coinpedia

    Crypto Journalist and Editor of guest articles in CoinPedia. I am also handling Outreach & Partnerships Manager. Contact me: [email protected]

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