Five Cryptocurrency Slang Terms and What They Mean

The crypto market has been on a roller-coaster ride of highs and lows in recent weeks— With many cryptos crashing from the market strain. Now everyone from Warren Buffett to athletes and celebrities is weighing in on the future of cryptocurrencies.

 As cryptocurrency has come into the mainstream and grown in popularity, jargon once used by only a select few people has become part of the common lexicon.

 Cryptocurrency enthusiasts on Twitter use phrases such as, “Do not listen to FUD (fear, uncertainty, and doubt), just HODL your bitcoins and head for the moon.”

So what do they mean?

1)Bagholder

The term bagholder describes an unfortunate soul who bought into a cryptocurrency at its peak, only to watch it plummet in value.

The person buys into an investment too late, says Saddington. Once the price drops and the person wants to sell, they are stuck with a cryptocurrency they can not offload at a price they want.

2)FUD

FUD is a commonly used acronym in the crypto world that stands for “fear, uncertainty, and doubt”. It is a mindset that can be applied to any asset or market and has a pessimistic nature.

 FUDsters—those who spread fear, uncertainty, and doubt to manipulate the cryptocurrency market—are like pollinating bees, except instead of adding value to the ecosystem, they infect it with negativity. FUDsters, are an unfortunate but necessary part of the cryptocurrency market. 

3)Sats

Sats is a short form for Satoshis and are named after Satoshi Nakamoto, the pseudonym of the creator of bitcoin. Satoshis refer to the smallest fraction of a bitcoin that can be transacted: 0.00000001 of a bitcoin. Instead of looking at bitcoin in terms of dollars, “real traders look at satoshis,” says Saddington.

4)HODL

 The first known use of the term “HODL” occurred in a bitcoin forum in late 2013. One user misspelled the word “hold” as “hodl,” and other forum users interpreted his error as a clever new acronym: “hold on for dear life.” Now, it has become a meme: When bitcoin’s price is moving up or down sharply, bitcoin buyers may say, “HODL!”

Crypto maximalists view HODL as more than a strategy for reducing fear. 

5) Whale

 Whales are whales, of course—enormous aquatic mammals. But it turns out that there is also a different kind of whale: the people who hold large reserves of crypto. For example, Satoshi Nakamoto who is suspected to have more than 1 million bitcoin

6)Pump and dump 

 A pump-and-dump scam takes place when a group of traders decides to give misleading information on the crypto market to raise the prices. The traders dum stocks when the price has been fully inflated. Pump and dump scams are a form of fraud and lead to a lot of suffering. Cryptocurrency chatrooms are rife with fake schemes orchestrated through apps like Slack or Telegram, according to Business Insider. An investigation into “pump and dump” schemes found the practice to be an “open secret among many cryptocurrency traders.”

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