Cryptocurrencies are the latest buzz. With cryptocurrency getting traction from investors across the globe, new slang keeps coming every day. To understand the market better, you should keep yourself updated with all the latest slang of cryptocurrencies.
You might have noticed millennials using terms like Pump and dump, cryptocurrency whale, HODL and many more. Unfortunately, even after investing a lot of money in the marketplace, people are unfamiliar with slang and terms. Check how any government can ban bitcoin to know more about cryptocurrency trading. Below listed a compilation of some popular cryptocurrency slang currently being used to an exceeding extent.
HODL is not a word and refers to hoarding these digital assets despite a market crash. As per reports, a cryptocurrency enthusiast misspelt the word holds on his Twitter handle during the market crash. But some defined HODL as for hold on for dear life. So HODL is the term cryptocurrency enthusiasts use to prohibit the situation of panic sell in the marketplace.
FUD stands for fear of uncertainty and doubt. The terms mainly target the panic seller who slumps the market value of a particular token after any mishap in the market. FUD terms are also used for the people who encourage uncertainty amongst people. FUDS can easily manipulate the market value of a particular token. If these funds create doubt regarding a particular coin amongst the investors, it will panic sell. Cryptocurrency bugs and experts always recommend that holders beware of FUDs.
Whales are the most robust and most vulnerable entity in the cryptocurrency marketplace. Whales can easily manipulate the cryptocurrencies value. The impact of FUDs is insignificant in front of cryptocurrency whales as these people can decline the market value of coins without influencing anyone. Whales are usually people or organizations with a significant number of particular cryptocurrencies.
For example, bitcoin whales are Satoshi Nakamoto, Tim Draper, and others. Whales are one of the primary reasons why the cryptocurrency market experienced intense price fluctuations. Like a whale’s, any move in the marketplace can disturb the dynamics of a cryptocurrency. As a result, developers introduced the concept of burn tokens.
The burning of tokens sends a considerable amount of cryptocurrencies in circulation to an inefficient wallet. In short, whales exerts a tremendous impact on the market value. If a whale even sells off half of its holding, the market value of that cryptocurrency will crash within a few minutes. The majority of cryptocurrency whales are anonymous and have not revealed their identity. Even if a whale does not sell off its token for years, it will decrease the market value of that particular cryptocurrency as it will lower the liquidity.
Paper hands are the term that targets novices who sells off their cryptocurrency holding at the very foremost instance of risk. Paper hands are also very vulnerable to the market as they decrease the market value. Volatility is one significant reason why paper hands get out of this community quickly.
Some popular terms
The above discussed are some popular slangs of the cryptocurrency marketplace; let’s discuss the famous terms you might not know.
Halving is a decisive event that tends to bump the market value of bitcoin every four years. Halving refers to an even having functionality to decline bitcoin mining reward. In a nutshell, after almost four years, halving occurs and cuts the mining reward in half. Since bitcoin halving is making BTC scarcer, it increases the demand for bitcoin. As per reports, every halving has significantly impacted bitcoin’s price.
There are two umbrella terms for online and offline cryptocurrency wallets: hot and cold storage. Hot storage is popular amongst retail investors as it is straightforward to use, and you have to pay zero charges to buy a hot wallet. On the other hand, cold storage wallets are not very convenient to use as a hot wallet. Regular traders use both cold storage and hot storage wallets, keeping some cryptocurrencies in both wallets. In addition, hot wallets come up with internet support, whereas cold storage wallets lack one.