Just like every sub-culture, cryptocurrency and Bitcoin have their own lingo, their own slang- their own code within a code, if you will. Today we’re going to equip you with the most common phrases and acronyms that will make your journey into Bitcoin that much easier and more enjoyable.
FOMO – The Fear of Missing Out
The fear of missing out is something that drives many crypto traders into buying coins at all time highs, instead of waiting for pullbacks and dips in price to enter a position into a certain coin. This usually results in people “holding bags” which means you’re holding a position now at a loss from when you bought.
I know it’s easy to see a coin making 60% gains in one day and think that if you don’t buy some now, you will have missed the boat. But chances are, there will be a price retraction in the days and weeks to follow, so the smart thing to do would be to add the coin to your radar and then decide in a week or 2 if the price is right to buy.
HODL – Hold On for Dear Life
Most traders know what it means to hold. But to hold on to dear life is something else. This means that as a crypto currency investor, you are adopting the concept of holding through good times- and bad. It is the “HODL” mentality that will help you survive those crypto market moments when everything in your coin portfolio takes a 40% dive. Because this is when the newbies sell out of panic, then a few months later, the market is at a new high and the people who held on and hung tough will enjoy the gains, while those who walked away did so at a monetary loss.
Remember: you don’t lose unless you sell. This is why you only invest that which you’re willing to lose in the first place.
FUD – Fear, Uncertainty, and Doubt
In the course of your crypto currency investing journey, you’re going to be hit with a barrage of news. Much of this news will be bad. It will be broadcasted by ignorant “journalists” in the mainstream media who not only hate Bitcoin, but seek at some level to destroy it and make it appear not to be a viable investment. The thing is, they’ve been doing this for many years, and it has not stopped Bitcoin one iota.
Additionally, even China’s government making Bitcoin illegal has not killed the price. In late summer of 2017 China announced it would be outlawing Bitcoin, which led to a 30% drop in Bitcoin’s price, which it more than made up for when it skyrocketed another 500% in November/December of 2017.
So remember, even temporary bad press and negative news stories which result in fear, uncertainty and doubt may only lead to a short-term drop in price, which if you are in the HODL gang, that just means a buying opportunity!
You will hear many people exclaiming “…to the Moon!!!”. This is because people are hoping the price of the crypto coin they’re most heavily invested in does indeed shoot up to the moon.
People often take the moonshot concept and use the word “moon” as a verb. You will hear people saying “Tron will moon in 2018” or “Cardano is mooning right now”. This just means a massive uptick in price.
These are the cheerleaders and resident shill-men (or women) of any certain coin. These types will get on YouTube and try to convince you to buy their favorite coin, cloud mining contract, or even in the case of recently shuttered BitConnect- ponzi scheme.
Beware of crypto fanboys. They do not have your best interests at heart. Also, as a crypto investor, you must learn to take a detached view of every investment you make. Some investments in crypto currency coins are better than others, but you’re never married to any one coin.
Here are some sites that I use to buy and sell crypto currencies which I highly recommend:
Sign up to the Binance exchange here and start buying/selling Bitcoin and other hot crypto currencies.