When I first jumped into the crypto space, not only was I trying to get my head around blockchain tech and a new financial operating system. But also a boat load of acronyms that would appear on Reddit threads, Twitter and countless blog posts that would leave me confused.
So, to pay it forward and make it simpler for the next generation of cryptonites, I’ve put together a little list to demystify all those acronyms.
#1: Hodl aka hold on for dear life ???
One of the most common acronyms in the crypto world all started from a mis-spelling by a drunken crypto fan back in old 2013.
The word HOLD is commonly used in the finance world to signal an intent of holding an asset for the long term regardless of the short term market movements. Of course. The crypto world needed to provide it’s on spin on this and our drunken compatriot provided this back in 2014.
So, when you see the word HODL, this just means to stay firm, hold onto your investment and focus on the long term.
#2: DYOR aka do your own research ??
Not much to say on this one, it’s pretty straight forward.
Always make sure to DYOR, in other words, do your own research on everything.
#3: Diamond hands ????
Basically this refers to someone or has nerves of steel and doesn't crack under the pressure of extreme volatility by selling their investments.
The use of diamond is in reference to the strength of this material. I mean, have you ever tried to break a diamond?
#4: Paper hands ????
On the flip side to the above, paper hands refers to those whose nerves do crack under the pressure of the volatile market and sell.
Again, paper is used as a material here as it’s easy to rip-up, referencing the ease someone caves.
#5: Bull market ??
This refers to when things are going well in the world.
The economy is strong, which means the market is healthy and stocks are generally rising high.
#6: Bear market ??
The enemy to the bull is the bear.
This is when things aren't looking so good. In this scenario, our economy is most likely suffering which means there is blood in the markets aka declines in stock and asset value everywhere.
#7: Pump and dump ????
Basically this refers to an asset being artificially hyped and inflated by a person (yes I’m looking at you Elon) or a certain group of people who already own said asset.
The goal here is to increase the price as much as possible and then they bring a dump in by selling those assets when they reach a profitable level from them, hence crashing that asset to its original value or even lower.
This sucks and can happen too often in the crypto world so be wary of these.
#8: To the moon ????
A reference to a potential explosive increase in value of an asset e.g. Bitcoin is going to the moon.
#9: Bagholders ??
This refers to someone who stays at the part too long even though it’s long over. These are people who continue to hold an asset long after it’s crashed down, thinking that it will rise again.
Usually these people have participated in the dump end of a pump and dump wave.
#10: Whales ??
No, not those majestic sea creatures.
This term refers to those who own a large portion of an asset. Usually, these are the super wealthy and large institutional investors. When they sell, it’s easy for the market price to drop as they hold a substantial portion of it and it would take a lot of people to purchase what they do sell off.
#11: FUD (Fear, uncertainty and doubt) ????
A common tactic used by marketers, sales people and news corporations the world over.
Basically a form of propaganda used to get your attention and influence your decision making.
And there you have it
These are just some of the most common terms you’ll hear in the crypto and general investing space. I hope these are helpful and, please do leave you additions below.
