The first time I started trading cryptocurrencies, I found traders had a language all their own. However, if you want to make real money in the crypto-sphere, it’s a good idea to familiarize yourself with the keywords making the rounds.
Here follows an explanation of some of these keywords.
The first of these keywords is HODL.
The term HODL was allegedly created by a drunk, semi-coherent “GameKyuubi” on a Bitcoin Talk Forum. At exactly 10:03 a.m. on December 18, 2013, he wrote, “I AM HODLING.”
After, he went on a drunken rant about how poor his trading skills were, vowing to never sell his Bitcoin from that point on. His exact words:
“I type d that tyitle twice because I knew it was wrong the first time. Still wrong. w/e,” he wrote in reference to the now-famous misspelling of “holding.” “WHY AM I HOLDING? I’LL TELL YOU WHY,” he continued. “It’s because I’m a bad trader and I KNOW I’M A BAD TRADER. Yeah you good traders can spot the highs and the lows pit pat piffy wing wong wang just like that and make a millino bucks sure no problem bro.”
It simply refers to the fear of missing out on a potentially profitable opportunity. No one wants to be left behind. Fear of missing out will make investments attractive, says billionaire Michael Novogratz.
FUD is a good partner to follow FOMO, since it also refers to a judgement-clouding, emotional state. The term stands for “fear, uncertainty, and doubt”. Therefore, FUD often emerges when reading news stories about how crypto is a “bubble,” “scam,” or “only speculation.”
The market is made up of human beings. Specifically, humans are unique in all aspects; psychologically, intellectually and more. Each of us has a certain level of psychological abilities and therefore reacts differently to different situations. As a result, one market participant might react to the FUD in a different manner compared to another. For example, we can say that Warren Buffett spread FUD by saying that “Bitcoin is rat poison squared.”
A whale is simply a person who owns a large amount of a cryptocurrency. Many of the whales’ identities are actually public knowledge. However, some people fear whales. The idea is that if a whale sells a massive amount of a coin, its value will suddenly drop as it floods the market. However, research shows that whales tend to HODL for the long haul, and may actually provide a little stability.
5. Pump and dump
Unfortunately, pump and dump schemes do happen. In this scenario, a company will market a new asset to try and attract interest and speculative value. Then they’ll sell it all and disappear once the value drops.
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