7 crypto acronyms you need to know
If you’re fairly new to cryptocurrency and find yourself coming across difficult jargon on platforms where crypto traders interact, no need to get overwhelmed by the influx of abbreviations and terminologies. We have prepared a complete list of commonly used cryptocurrency acronyms to keep you up to date with what’s happening in the crypto world.
As opposed to traditional financial instruments such as stocks and bonds, trading in cryptocurrency has become widely popular among the younger, digitally savvy population. You can find numerous forums and online platforms dedicated specifically for people to share information and trading strategies.
Along with the influx of information and knowledge, you are bound to come across various acronyms and phrases that may not make sense at first. With the help of this article, you can easily learn the terminologies and the rules of trading with cryptocurrency.
FOMO (Fear of Missing Out)
In the context of cryptocurrency, FOMO is used to trigger new traders to place huge investments to avoid missing out on high returns. This is the type of emotional response that enables people to make impulsive decisions to buy tokens when they are at their highest. It is advised to not react to FOMO and wait it out till the market settles.
Originally the misspelling of “HOLD,” it has now converted to “Hold On for Dear Life.” This term is used when short-term volatility is high and the prices of the cryptocurrency keep fluctuating. When the price of a certain digital currency falls, it is advised to keep “holding onto it for dear life” instead of frantically selling it at a loss.
FUD (Fear, Uncertainty, Doubt)
This is a strategy used by crypto fanatics to spread misinformation and doubt regarding a trade deal or a competitor’s forecast price. This is the strategy that is commonly used to drive down the prices of any digital currency. What people tend to underestimate is the power of FUD. It has the potential of causing economic depressions and bursting bubbles within the market.
DYOR (Do Your Own Research)
Exactly how it sounds. Before getting influenced by what the internet is doing and reacting to, it’s important to DYOR before making any calls. There are numerous resources and websites available online that can help you stay informed and make calculated decisions regarding your investment.
BTFD (Buy The F-ing Dip)
This trading strategy focuses on benefiting from the potential price increase after a recent dip in the crypto market. Crypto enthusiasts wait till a currency goes down to buy it, and as soon as they see an increase in value, they sell it at a profit.
A figure of speech used to describe those individuals that own a significant amount of cryptocurrency and deliberately sell their holdings to bring the prices down. By doing this, they sell their cryptocurrency at the market rate and buy it again when it’s cheaper. It is not the most ethical way of trading, but this manipulative strategy only works for those individuals whose holdings are so significant and large, every trade they make results in massive spillovers.
Short for Lamborghini, this term symbolizes the culture of getting rich super fast. This status symbol represents the life of luxury that can be achieved by crypto holders. Back in 2013, a story went viral of a user who bought a brand new Lamborghini using Bitcoin, and soon, thousands were inspired to do the same.
During a time of information overload and hyper-connectivity, these simple rules and strategies can help overcome biases and allows you to evaluate your options logically and soundly. These acronyms are easy to understand and there is not much that can go wrong with misinterpretation. If you need more information about cryptocurrency and terms that are related to it, check out the E-Yuan Official Website Website app.
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