Much of the discussion about cryptocurrencies happens in online spaces, such as cryptocurrency forums, Reddit threads or Slack groups. Often, such discussions use a great number of acronyms or specific terms, which may be confusing to new cryptocurrency users. This page will introduce a few of those terms and explain their meaning.
HODL is an acronym for “Hold On for Dear Life”, but it is also a deliberate misspelling of “HOLD”, which is the stock market term for holding on to a particular stock, neither selling it nor buying more. A cryptocurrency trader who buys a coin and does not intend to trade it in the foreseeable future is thus called the “hodler” of a coin.
A whale is a person who owns so much of a particular cryptocurrency that he can shift the market price when he decides to sell.
ATH stands for “All Time High”; it is a way to denote the highest historical price of a specific coin. For investors, it is important to have an idea of the ATH in order to estimate how well a coin is doing at any given time.
This word can have a positive and negative connotation. In the positive sense, a bag holder may have bought a lot of a particular cryptocurrency and is now HODL, in hopes of making a profit. In the negative sense, though, this term usually means someone who bought at or near ATH but didn’t sell in time, and who is now stuck with a lot of worthless coins.
FUD stands for “Fear, Uncertainty and Doubt”, and it is usually used as a part of the phrase “spreading FUD”. Spreading FUD might be done on purpose by particular investors in order to crash the price of particular coins they wish to invest in; in this way, they will be able to buy a large amount of coins cheaply, while they can rest assured the price of the coin is not in any real danger and will eventually stabilize again.
Often pronounced and sometimes spelled as “newbie”, this word simply means a new trader.
Bullish or bearish markets
Bullish or bearish are ways to describe different mindsets of investors, as well as different crypto market situations. A market is bullish when its trend is generally upwards; its assets, such as cryptocurrencies, are rising in value. Bullish investors, therefore, are planning to hold their assets for a long time, in hopes of them rising in value.
A bearish market is the opposite; the trend is downwards and its assets are losing value, which means many investors are losing confidence in the coin in question. Bearish investors, then, are those who can see this happening and who try to profit from the situation, for example by buying up coin at a low price in hopes of selling it later at a profit.
This term was borrowed from gamer slang and is derived from the verb “wrecked”; it is used when someone or something is completely ruined or destroyed.
When the price of a particular cryptocurrency rises extremely high extremely quickly, it is said to be going “to the moon”, i. e. sky-high.
FOMO literally means “Fear Of Missing Out”. It can be used more widely, but in terms of cryptocurrencies, it is connected to the much-hyped nature of many such currencies, as well as the rapid rise and fall of many coins. When a particular coin is on the rise, for example, many users may, out of FOMO, spend large sums of money to invest in it. When predicting the future development of particular coin prices, therefore, FOMO can skew the results and must be taken into account.
Pump & Dump
A cryptocurrency money-making mechanism which is often used by groups of investors; during the “pump” phase, all group members buy a particular cryptocurrency, which thus experiences increased demand, which makes the prices rise. During the “dump”-phase, then, all members sell their cryptocurrency again, which means they benefit from the high prices they helped create.