Crypto slang & terminology found in the cryptocurrency world! Here are common crypto terms defined like HODL, moon, FOMO, FUD, & more.
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Satoshi Nakamoto: some people believe Satoshi Nakamoto is Bitcoin’s actual inventor, while others believe it's a pseudonym. It's definitely the name most heard of when it comes to the question of who invented BTC. Because of this a lot of people refer to bitcoin as Satoshis, or a shorter version is “sats,” as in: this coin costs 25 Sats. Where should you store your Satoshis and other coins? Well one place you could use is cold storage. Cold storage means storing access to your coins on an offline device; thus keeping them off of exchanges. If an exchange gets hacked, you’ll have nothing to worry about because your coins are not stored there. Instead, you had them printed on a piece of paper stashed safely somewhere like a secure vault. Printing your private keys on a piece of paper is called a paper wallet. Paper wallets are a more old fashioned way of storing access to your coins. They’re a form of cold storage in which public and private keys are shown on a piece of paper. Another form of cold storage is a hardware wallet. The most commonly used hardware wallet is the Ledger Nano S. These tangible devices are so popular nowadays that it sometimes takes months to get your order in the mail. Sounds like a smart tool to have? That's because IT IS. Everyone who’s serious about crypto should be using one form of cold storage or another...except for those who are actively trading. You may hear active day & swing traders talking about their short position. Also known as “shorting,” taking a short position is when you sell off a coin because you believe the price will drop, oftentimes with the intent of buying back in later at a lower price. If Bitcoin is at $10,000 for example & you expect the price to drop, taking a short position would entail selling it off now for $10,000 then buying it back at a cheaper price; say $5,000. Doing so let’s you either use your $10,000 to buy two Bitcoin at $5,000 each, or buy just one Bitcoin at $5,000 and pocketing the other $5,000. The opposite of shorting is taking a long position. Also known as “longing,” taking a long position is when you buy a coin with the assumption that its value will go up over time, and you’re willing to hold on until it reaches a price point where you can sell for a nice profit. FUD: FUD stands for fear, uncertainty and doubt. It’s a disinformation strategy not only used in crypto but in sales, marketing, public relations, talk radio, politics, and even religious organizations & propaganda. When succesful, FUD almost always leads to a lot of people selling; mostly by people with weak hands. Weak hands is what you call people who can't or don't want to be patient, selling off their coins at a loss and/or when the market is down. The opposite of FUD is FOMO. FOMO stands for fear of missing out. Advice that a lot of people will give you is "Sell high, buy low". Simple and logical advice. When a coin increases a lot in value over a short period of time, people start feeling the fear of missing out; especially when a coin spikes without an underlying reason or development. FOMO moments generally tend to be a good time to sell. This is because market demand for a coin is higher than the supply. Or in simpler terms, there are more people looking to buy in hopes of the coin gaining even more momentum than there are people willing to sell. This effect puts an upward pressure on the coin’s price. Keep in mind though that FOMO doesn't always have the same outcome. Some coins continue to pump, while others drop like a rock, sometimes because the spike was caused by a pump and dump. A pump and dump is basically when 1 person or a group of people try to induce FOMO. A large trader or group of traders buy huge volumes, causing a sudden price rise and causing uninformed investors (suffering from fomo) to jump on board, driving the price up even further, before the people who started the pump all of a sudden sell everything off (the dump), thus leaving those who tried to board the ship on a sinking boat. A pump and dump is easiest to pull of with a coin that has a small market cap. Short for “market capitalization,” market cap is used to illustrate a coin’s dominance in the entire cryptocurrency market. Naturally the price of a coin with a small market cap is easier (and cheaper) to manipulate than that of a coin with a large market cap (such as Bitcoin or Ethereum). Market cap is calculated by taking the coin’s current price & multiplying it by the entire coin’s total supply. If you see a spike then make sure you do your own research, and if it's a small coin and you can't find a reason as to why it's pumping, then it's probably best to stay away because you don't want to become food for whales. Whales are people who hold a large amount of a certain coin, often worth a lot of money in terms of U.S. dollars. Pump & dumps are often initiated by a whale or a group of whales. They tend to be able to move the market, whether it’s via a pump-and-dump or a regular buy or sell off, simply because of how much money they move at once. In the case of a pump and dump, there are a lot of victims who bought in high and are now unable to sell unless they’re willing to do so at a loss). These people are referred to as bagholders. A bagholder is essentially an unfortunate soul who, at the end of the day (be it through a pump & dump or just bad timing) is stuck “holding a bag” of certain coin; meaning they bought with the intention of selling at a higher price, but the market just moved too fast. That person is ultimately left with "a coin they don't want at a price they can't sell it at.” Nobody wants to ever sell a coin at a loss of course...at least not ideally. Everybody wants to sell at an all time high. Abbreviated by ATH, the only reason you wouldn’t sell off during an all time high is if you think the coin will go up even further, despite having already reached an all time high. An ATH is often the result of a coin mooning. “When Moon?” has become an all-too-familiar question, in Telegram groups especially. When someone asks that question, they’re basically asking when a coin is going to blow up and spike in price. You won’t benefit from a coin mooning and reaching an ATH if you didn’t HODL. The term HODL originated in a December 2013 post on a Bitcoin online forum by an apparently inebriated user who posted with a typo in the subject line, saying "I AM HODLING” and it all took off from there. It is arguably THE most popular crypto-related slang term today. Those who are HODLing strong might be suffering from OCD, or “obsessive cryptocurrency disorder.” That’s what those who can’t stop monitoring the value of their coins are called. And if they aren’t monitoring their coins, then they’re probably shilling them to their friends or on Reddit or in Telegram groups. Shilling means convincing as many people as you can that a particular coin is going to do well. But you don’t have to shill already-established coins. You can also shill projects that are still in their ICO stage. ICO stand for “initial coin offering.” The term ICO is the crypto version of the corporate abbreviation IPO, or “initial public offering,” which is what more traditional companies participate in when they first intend to sell off shares to the public. Once the ICO ends and the tokens are distributed to the public, then the public will start referring to that coin as an altcoin. An altcoin is every cryptocurrency that is not Bitcoin. Bitcoin is not referred to as an altcoin, as it’s the “original” coin. When bitcoin and/or altcoins are going down hard in price, then some people get excited and tell you to BTFD, or “buy the fucking dip!” Some traders who keep a part of their portfolio in Tether or USD will actually get excited when the market takes a nosedive because it gives them a chance to BTFD. Whether it’s Bitcoin or Altcoins going down, these are the smart traders who’ll be buying the blood. Another thing Bitcoin and altcoins have in common is the occasional fork. Without getting into too much detail, a fork is essentially a divergence in a cryptocurrency’ blockchain.The people who really play an important part in whether or not a fork is going to be successful are the miners. Miners use special software to solve complex mathematical problems and are issued a certain number of Bitcoins or Satoshis in exchange. This provides a smarter way to issue the currency and also creates an incentive for more people to both mine & support the coin’s network.
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