HODL, Rekt, FUD: The Digital Assets Terms and Slang You Need to Know
Key terms to know so you’re in the know when it comes to digital assets.
Digital assets have been in existence for a long time and are now being traded like regular currencies in some parts of the world. However, many people are still not fully aware of digital assets and how they work. And a big part of this learning curve involves getting to grips with all the industry terms, abbreviations, slang, and jargon!
If you want to begin investing in digital assets, then it’s important to start by going through a list of glossary terms so that you are fully aware of what you are taking on.
Here’s our pick of the top ten industry terms to know.
Hold on to Dear Life: HODL is a very commonly used term that’s pretty easy to understand.
If you’re a member of any forum that revolves around digital assets then you might have heard this term. It simply refers to ‘holding’ your assets when things start to worsen.
It simply means to not sell because things will get better. Some experts and investors believe that fluctuations are normal and digital assets always go to new highs after a low. They believe it makes better financial sense to hold than to sell at a loss.
Despite what it looks like, rekt is not an acronym.
There are different explanations for this term but let us set it clear — it comes from the word ‘wrecked’ from the gaming world.
It’s used to explain your losses or to tell someone you’ve suffered losses due to changes in prices.
So, when someone next loses a large amount of their investment, they may well tell you they’ve been rekt!
Short for Fear, Uncertainty, and Doubt. FUD refers to a situation where the market is full of fear and uncertainty. Those who trade digital assets must know this can be a regular situation because the markets can be very hard to predict.
Any large movement in either direction can put people in a state of doubt and make them take action out of fear. You can thank FUD for these actions, and they can often end up causing huge losses.
There’s a lot in common between FUD and FOMO, which means Fear of Missing Out. FUD occurs when the market is falling and FOMO occurs when the market is increasing.
FOMO refers to a situation where the prices are increasing, which makes you take quick action out of fear of losing out on a good opportunity. The problem, however, is that the market never moves in one direction and it might retract after a huge pump.
5. Pump and Dump
Pump and dumps happen when an asset attracts a lot of buyers, pushing its price to the roof. Once the price hits a high, investors begin to sell or dump the asset, which causes the price to go lower, often going lower than the initial point.
This situation can be difficult because those who do not sell at the right point may suffer heavy losses.
The price of an asset is said to be mooning or going to the moon when it skyrockets. This can be due to any reason including two enterprises entering a collaboration, government support, or changes to national regulations.
7. Bag Holder
A bag holder is an investor or person who holds a position in a digital asset that loses value until it reaches the bottom (i.e. they’re left holding the bag)!
Cryptosis is a desire to know everything about digital assets. Someone with cryptosis spends a huge chunk of their waking time reading articles about digital assets, watching videos, seeing what others have to say, drawing and comparing charts, and — inevitably — attempting to predicting the future!
A large number of people who invest in digital assets have cryptosis. Fortunately, the condition isn’t life-threatening and it may even benefit your investing and trading skills to read up on the wider industry.
9. Cold Storage
Digital assets are typically stored online. However, thanks to technology, it is now possible to store them in hardware and paper wallets as well. These are known as cold storage options.
A hardware wallet is a special device that works when linked to a secondary device like a computer — for example a Ledger Nano or a Trezor. On the other hand, a paper wallet is when you write your public and private keys down on a piece of paper and keep it somewhere safe. Paper wallets were popular in the early years of digital assets, but today hardware wallets are much more common.
Every digital asset has a whitepaper. This is a written document that contains information about a digital asset including its usage, features, background, vision, tokenomics, and fees. They’re usually issued by the developer team to educate people about their offering including how to use it and what benefits it offers before the token goes live. Whitepapers are also used to market an asset and attract investors before launch.
It is important to know these terms before you buy, sell, or transfer digital assets. Join Baanx App to buy, sell and transfer digital assets. The platform is registered, safe and secure, and reliable. Plus, the fees are highly competitive. Sign up today and start trading digital assets!