#BITCOIN TO THE MOON! Learn Crypto Lingo and Feel Like a Crypto Pro
Alot of our users of the Coinseed app are completely new to crypto. We’ve created a guide to get you up to speed and talking like a pro in no time.
If you are new to crypto, then don’t even bother rushing to crypto forums for info. You will be confronted with all kinds of lingo that will leave you confused. I remember the first time I checked a bitcoin live forum, and people were writing were things like, “The whales are coming in” and “it’s time to HODL.” I was left wondering “what the heck is this?” How are whales related to cryptocurrencies? And why are so many people misspelling the word HOLD. I remember correcting someone for writing HODL and everyone started laughing, and writing that a Newbie had entered the group. Luckily for you, you don’t have to learn these terms the hard way. We have compiled for you a list of the most popular crypto lingo in the crypto world.
This stands for Initial Coin Offering. Coinseed is currently raising money through an ICO. An ICO is the process of raising money for an idea through cryptocurrencies. ICOs have become quite popular in the recent past, but many of them have failed. That’s because like all other ideas, not all of them are meant to succeed. Some of them are never going to fly, and are just out to take investors’ money.
In the crypto space, whales are extremely wealthy individuals who have massive crypto holdings. These are people who have the capacity to move the market. Next time you see the market rising and you hear things like “the whales are coming in”, don’t start looking for oceans, just buy with them. If you can buy or sell with the whales, you are guaranteed to make a shed load of money in the crypto market.
This is another common phrase you will find in crypto space. It simply refers to a coin whose prospects for growth are near zero. Before you invest in any crypto, make sure that you do some due diligence to understand its fundamental value. Remember there are over a thousand cryptos in the market right now, and a good chunk of them of are scams.
This stands for fear, uncertainty and doubt. This is probably the one term you must have heard more than any other in January. FUDs come in all forms, and can be quite confusing if your investment is not anchored on solid fundamental analysis. To best understand FUD, I will take you back to January. That’s when bitcoin dropped from over $18,000 to lows of $5000. In that period there were all kinds of news ranging from China banning cryptos to Japan instituting crippling regulations. Of course, most of these were not true. They were just meant to confuse inexperienced traders and create space for the whales. That’s how money moves in financial markets, you better get used to it.
This is an acronym for Fear of Missing Out. It usually happens when a coin is on the move, and there is news insinuating that it will continue moving up. If you don’t want to lose money in this market, avoid buying into FOMO. It never ends well. You can ask the people who bought into the Ripple (XRP) FOMO at $3, believing that it would rise to $6 and above. Today, it’s trading at less than a dollar.
If you visit Reddit or any other crypto forum, you will always find things like, “The market is shaking off the weak hands. Weak hands simply mean people who sell at the slightest sign of a market drop. Next time you enter the market, don’t fall in the weak hands category. Just remember that the market always rebounds.
I don’t know, but someone calling you a bag holder would be very close to calling you stupid. Why is that? Well, in crypto lingo, a bag holder is someone who holds a worthless coin in the hope that it will rise in value. Before you laugh at a bag holder, remember it is very easy to be one, especially after 2017 when crypto prices were moving up by 100s of percentages on a daily basis. It’s only natural to hold on to a coin hoping that the same will replicate, never mind that you might be holding a shit coin.
Pump and dump
This is another one that you will come across way too often. It’s usually a scenario where whales push up the price of a coin in order to attract gullible investors then sell it off. If you are not careful, especially when trading altcoins, you might be a victim of many pump-and–dump schemes. They can make you feel stupid and hate the crypto market.
You have probably come across this term, especially with regards to Bitcoin. So what does it mean? A fork simply means a change in direction of a cryptocurrency. It usually leads to the creation of a new coin. For instance, Bitcoin (BCH) was created after a fork on bitcoin (BTC). It’s a complicated process, but you will learn as you go along. Crypto is all about continuous learning.
Next time you hear of the term cold storage, don’t start thinking of coolers, and stuff like that. It simply means the ability to be in total control over your private keys, in a crypto wallet that is hard to hack. So does this mean that there are hot wallets? The answer is Yes. There are hot wallets! When you store coins in a hot wallet, usually in exchanges, you don’t have control over your private keys. If the exchange gets hacked, you can kiss your coins goodbye. Unless the exchange is benovelent enough to refund you.
This is a term that refers to someone who is new to cryptocurrencies. As a newb, you are vulnerable to all kinds of things in this market. From shit coins, FUDs to pump and dump schemes, Newbies get hurt the most. Sad.
To the Moon
You might have seen “to the moon”, in many crypto forums. Well, it has nothing to do with rockets and what not. It simply means a crypto that is about to rise in value by a significant margin.
We hope this lingo is instrumental in taking your crypto game to the next level. And may the FUD be with you!