There are a lot of people who turn up confused reading all the jargon that cryptocurrency markets and ecospheres come saturated with. It can be very discouraging to beginners as well as people who’re only looking to know more about the subject without actually buying a coin or two themselves.
So we decided to compile the full forms and meanings of the most common complex terms used on a typical crypto forum. We’ve explained the more complicated ones in more detail, to make things easier still. Check it out.
|ATH||All Time High|
|Bearish||Expecting currency prices to fall|
|Bullish||Expecting currency prices to rise|
|Cold Storage||Storing your cryptocurrency on paper record or on hardware|
|Fiat||Fiat Currency is another name for paper currency issued and maintained by governments|
|FUD||Fear, Uncertainty and Doubt. Often used to describe and explain changes in price, usually since it drives people to pump currency.|
|FOMO||Fear On Missing Out. Something that makes people buy coins on an upward trajectory.|
|FORK||A Blockchain dividing into two chains or more.|
|HODL||No, NOT Hold Of for Dear Life. Believed to have originated from a misspelling of the word Hold. Here’s the post from 2013 that started it all.|
|ICO||Initial Coin Offering. How many coins a company offers for the first time in the market and how much it goes for. This goes on to influence how much the lay population trusts the coin based on its paperwork and team, and sets the course for what kind on trajectory it follows.|
|Mooning||Price shooting as high as the moon.|
|ROI||Return on Investment. How much you profited compared to the money you spent on making the investment in the first place.|
|Whale||People who have enough cryptocurrency to change the price by putting the cash in the market or taking coins out by purchasing them, stabilising or shaking up prices.|
Common Verbs used in the Crypto Community
Solving the next block of the blockchain using your computer. This generates data that forms the coin. You are rewarded with a small fraction of bitcoin for your effort and as compensation for your electricity and other costs. Till trading took off, people considered mining the best way to get bitcoin and other cryptocurrency.
Spreading Fear, Uncertainty and Doubt. It’s a common resort of people who want to sell their coins at a better rate. FUDing can be carried out by a company coming out with their new ICO or by someone who has purchased a coin that they want to profit more than it is currently. Which is why all news in the crypto world is recommended to be taken with a pinch of salt.
3. Pumping and Dumping
A coin gets publicity and makes a good impression in the community which causes it to be purchased like hot cakes. The price goes up. Then there isn’t a lot to back it up, following which the coin is discarded quickly and at poor prices. Such a coin is known to have been pumped and dumped.
Making absurd claims about a coin to advertise it on a forum. It’s surprisingly common, it turns out. A person who does shilling is called a shill.
5. Margin Trading
Something people say they do when in reality they’re too scared to even try. Jokes apart, Margin Trading is when you put your existing coins as a sort of guarantee when you want to buy a coin without adequate funds for it. It’s like trading on a loan, which is why it is only ever to be done by a proper expert. It’s the same as margin trading in the share market; in fact, that’s where the term defines from.
There’s a lot of complexity in the crypto market. The jargon can be sorted easily. The rest comes with trial and error, and of course, practice reading and being devoted to understanding the market. Is there another term you think we should cover? Let us know in the comments.