Overwhelmed by Cryptocurrency Acronyms? Find Out What They Mean
WadzPay makes blockchain payments simple, so you will not have to familiarise yourself with complicated terms or acronyms from the world of ‘cryptocurrency trading’. However, for those curious, we’ve prepared a fun reference guide.
Entering the world of cryptocurrency trading can be daunting, as there are several things you need to possess, such as a strong mentality and both technical and fundamental analysis ability. However, ‘crypto’ has developed its own set of acronyms, and a language, starting from its days as a niche digital asset.
A lot of these terms came from online communities and influencers, and someone who is new in crypto may feel overwhelmed with the buzzwords that he/she us not familiar with.
But don’t worry, we’ve compiled the most-used crypto acronyms that you’ve been wanting to understand…
Probably the most popular word in the crypto market, which means holding onto your digital assets instead of selling them, even when the market goes down.
Back in 2013, the early days of crypto, there was an apparently intoxicated person posted on a Bitcoin forum “I AM HODLING”. HODL then became a famous word in crypto, and people even made it to mean “Hold on for Dear Life”. The theory is that it makes more sense to HODL onto digital assets for a long period of time, as traders predict that the assets will continue to go up in value.
Fear of Missing Out (FOMO) is an acronym that is often used in wider society, too. FOMO is the state when traders may feel they are missing out on spectacular profits which other traders may be enjoying. Sometimes when a token is experiencing immense gains (e.g. 100%), traders may start ‘FOMOing’ which may keep increasing the price. But the acronym FOMO is usually written as cautionary advice: ‘Don’t FOMO’, so people don’t give in to the wild price swings that can translate into a loss as well.
Fear, Uncertainty, and Doubt (FUD) is a propaganda tactic to spread unsubstantiated rumours, with the intent of triggering traders to sell a particular token immediately. It is common sense that some may wish to spread FUD, in order to lower the price of a particular token and buy into it at a cheaper rate.
A newbie in the crypto world often asks some questions about a particular token in a forum, and people usually answer by saying the word, “DYOR”. It means “Do Your Own Research”, because everyone is responsible for their own money after all! Thus, we are alone to decide what tokens to invest in, or whether to keep HODLing or selling it. It is important to be skeptical and not believe everything posted online.
Any seasoned trader will tell you, despite how difficult it may be, that FOMO is not a healthy mindset to adopt, and that it is best practice to stick to what the trading analysis, careful research and charts are telling you. You could get REKT if you don’t!
It is a slang of ‘wrecked’ which was first used by gamers, and now adopted by crypto traders. REKT can be described as a financial loss as the result of making the wrong moves in the market. For instance, a trader could say their position is ‘rekt’, if the price of the token (that they own) crashes.
After knowing these top 5 acronyms in the crypto world, it’s safe to say that FOMO is not a healthy mindset for trading and always DYOR. Else, you can be the victim of FUD and become REKT. Just HODL your favourite tokens until you’ve bagged cool profits!
This article is not trading advise and is for educational purposes only.