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Slang Terms for Cryptocurrencies Everyone Should Know
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Slang Terms for Cryptocurrencies Everyone Should Know

Towards AI Team
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May 20, 2022
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Last Updated on May 24, 2022 by Editorial Team

Author(s): Gaurav Sharma

Originally published on Towards AI the World’s Leading AI and Technology News and Media Company. If you are building an AI-related product or service, we invite you to consider becoming an AI sponsor. At Towards AI, we help scale AI and technology startups. Let us help you unleash your technology to the masses.

A cryptocurrency is a digital currency that may be traded without the involvement of a government or bank. On the other hand, cryptocurrencies are generated using cryptographic processes that allow users to purchase, sell, and exchange them safely.

The cryptocurrency business is rapidly expanding, and with it comes new jargon. Here are some phrases and terminology to be aware of.

1 HODL

The name “HODL” was invented (pun intended) on an early Bitcoin forum when someone misread the word “HOLD.” The phrase was adopted and used instead of the correctly written word for humorous effect.

Some individuals mistook it for an abbreviation meaning “hang on for dear life,” which fits with the notion of maintaining a trade position.

2 Dump and Pump (AKA Rug Pull)

When a group of investors holds a large portion of a coin’s available supply at a low price, this is known as a pump and dump. They promote hype based on false information for the most part, which increases demand in the market and drives the price up (pump).

After new investors have inflated the initial capital, they sell all their assets for a quick profit. This selloff frequently drives the price to an irreversible low since they possess a significant share of the supply (dump).

3. Bag Holders

A bag holder is essentially described as an investor that retains a stake in a currency that is losing value. These investors were either oblivious of their position’s decline in value or were bent on waiting for a better opportunity to sell. They become bag holders because they are the final holders of a failed investment.

This is common in the faulty pump and dump scenarios I mentioned above. On the other hand, these bag holders may be made in several conditions and for any market.

4 Mooning

The phrase “mooning” is used in the cryptocurrency world to describe a coin’s price rise or significant gain. As a type of slogan or hype-inducing phrase, people have started saying things like “we’re heading to the moon” or “get on this moon rocket.”

It’s unimportant but humorous since “mooning” may also refer to someone openly revealing their naked ass.

5 FUD

The abbreviation FUD stands for “fear, uncertainty, and doubt.” People who propagate rumors regarding a coin’s future are called “fudders” and spread fud. Unwarranted fud should be avoided since it may trigger massive selloffs and significantly reduce a coin’s value.

6 Hands of Diamonds

The expression “diamond hands” refers to investors unfazed by price swings or other warning indicators that their investment is in jeopardy. Even if a position loses value, some traders will hold to the finish. They are convinced that their investment will always recover, and they want to have significant returns.

This is one of the most common ways investors lose large sums of money. However, there are times when holding on to a losing investment might be a wise move.

This is something I experienced. I decided to sell a losing investment at a considerable loss. That identical stock is worth 8 times what I sold it for a year later; I would have earned a considerable profit if I had diamond hands!

7 Paper Hands

An investor with paper hands (also known as weak hands) sells their stock at the first hint of difficulty. They will not hesitate to sell and exit due to a negative news release, a price fall, or a gut sense.

In many circumstances, a trader with paper hands has such a low-risk tolerance in the market that they will lose out on significant profit by selling before the price rises.

Keep in mind that having paper hands isn’t always a terrible thing. Some traders genuinely believe that “green hands are paper hands.” Allow no one to persuade you to hold an investment longer than you are comfortable with since the stock market is turbulent and unpredictable.

8 Satoshi (SAT)

The smallest specified unit of Bitcoin cryptocurrency is the Satoshi. One Satoshi equals 0.00000001 Bitcoin or one hundred millionth of a Bitcoin.

Satoshi Nakamoto, the founder of Bitcoin, is the name of the phrase. In 2008, he released the Bitcoin white paper and created the initial reference system for today’s most costly and well-known cryptocurrency.

Conclusion

I hope these definitions may assist some of you in better understanding some of the current slang phrases and jargon.

Many of these terminologies are also applicable to other markets. However, they are commonly used in the cryptocurrency industry.

Slang Terms for Cryptocurrencies Everyone Should Know was originally published in Towards AI on Medium, where people are continuing the conversation by highlighting and responding to this story.

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