Terms Every Crypto Trader Should Know
Introduction
If you are new to cryptocurrency, you’ll hear a lot of trading terms that may sound unfamiliar. Terms like FOMO, ROI, ATH, HODL, what do these all mean? Trading and investment have their own language, and it can be daunting to learn all these new terms. However, they can be quite useful if you want to keep up with what’s going on in the crypto market.
In this article, I have compiled some of the most important trading terms you should know if you’re trading cryptocurrency.
1. Fear, Uncertainty, and Doubt (FUD)
In simple terms this is the act of Spreading of fear and misinformation to gain an advantage. FUD is often used in the context of the financial markets. FUD is a strategy that aims to discredit a particular product, or project by spreading misinformation about it. The aim is to instill fear and gain an advantage somehow. This can be a competitive or tactical advantage or profiting off an asset’s price decline caused by the potentially damaging news.
In many cases, the information turns out to be false, or at the very least misleading. In some cases, however, it turns out to be true. It’s always good to try to consider all sides of the argument. It can be helpful to think about what incentives people can have by publicly sharing certain opinions.
2. Fear Of Missing Out (FOMO)
This can be described as the emotion that investors feel when they flock to buy an asset in fear of missing out on the profit opportunity.
It is also important to bear in mind that FOMO by a large number of people can lead to parabolic price movements. Investors “FOMO-ing” from asset to asset in a frenzy can often signal the later stages of a bull market.
3. HODL
HODL is a term that’s derived from a misspelling of “hold.” It’s basically the cryptocurrency equivalent of the buy and hold strategy. It involves holding on to investments despite price drops. It’s also commonly used in the context of investors (“HODLers”) who admittedly aren’t good at short-term trading, but want to get price exposure to cryptocurrency. It may also be used for investors who have high conviction in a particular coin and intend to hold on to their investment for a longer period.
“Buy and hold investors” try to find undervalued assets like $WOO and hold on to them for a long time.
4. BUIDL
BUIDL is a derivative term of HODL. It usually describes participants of the cryptocurrency industry who continue to build regardless of price fluctuations. A typical example are the team at Kronos Research and WOO Network. The main idea is that true believers of the crypto industry keep building the ecosystem regardless of brutal bear markets. In this sense, “BUIDLers” genuinely care about what blockchain and cryptocurrencies can bring to the world, and they are actively working towards this goal.
BUIDL is a mindset that aims to exemplify how cryptocurrencies aren’t just about speculation, but about bringing this technology to the masses. It acts as a reminder to keep our heads down and keep building the infrastructure that may very well serve billions of people in the future. In addition, BUIDLers understand that the teams that keep building with a long-term mindset will likely do well over the long-run.
5.SAFU
In simple terms, this means Funds are safe!
An example of a typical situation where this term can be used is in a case of the announcement of a scheduled/unscheduled platform maintenance on platforms like WOO X or WOOFI. The idea is to assure users that their assets will be safe during the course of the said maintenance, and there is no reason for panic.
6. Return on Investment (ROI)
In simple terms ROI can be said to be how much money you are making (or losing).
ROI is a way to measure an investment’s performance. ROI measures the returns of an investment relative to the original cost. It’s also a convenient way to compare the performance of different investments.
7. All-Time High (ATH)
In simple terms ATH can be defined as The highest price ever recorded by an asset.
8. All-Time-Low (ATL)
The opposite of ATH, the All-Time Low (ATL), is the lowest price of an asset.
For example, the All-Time Low of WOO was $0.022 USDT according to Coingecko.
9. Do Your Own Research (DYOR)
When it comes to the Cryptocurrency market, DYOR is a term closely related to Fundamental Analysis (FA). It means that investors should do their own research into their investments and not rely on others to do it for them. “Don’t trust, verify” is a commonly used phrase in the cryptocurrency markets with similar meaning.
10. Due Diligence (DD)
Due diligence (DD) is somewhat related to DYOR. It refers to the investigation and care that every potential investor is expected to make before investing in any Cryptocurrency. This implies that When investors are scouting for potential investments, they need to do their own due diligence on the project to ensure that they can take into account all risks. Otherwise, they won’t be in control of their investment decisions and may end up making the wrong choices.
11. Anti Money Laundering (AML)
This refers to regulations that prevent criminals from hiding their money.
Criminals will always look for ways to conceal the true source of their funds. AML regulations require institutions such as Centralized exchanges like WOO X to monitor the transactions of their customers and report on suspicious activity. This way, criminals are less likely to get away with laundering illegally obtained funds.
12. Know Your Customer (KYC)
This can simply be described as regulations that make exchanges verify your identity. trading platforms have to comply with national and international guidelines. For example, WOO X have to comply with regulations set by the governments of the countries that they are available in.
KYC) ensures that institutions facilitating the trading of financial instruments verify their customers’ identity. Why is this important? The main reason behind it is to minimize the risk of money laundering.
Closing thoughts
Cryptocurrency trading terms can seem a bit confusing at first. But now that you are aware of a number of them, you can feel more SAFU with all these abbreviations. Make sure to DYOR on FUD, not blindly FOMO into a coin that has reached ATH, and keep HODLing and BUIDLing!
You can do your Crypto trading and hodling on a reliable platform like WOO X that guarantees massive liquidity, and safety of your assets.
Create an account on WOO X by clicking on the link https://referral.woo.org/tfFP .
You can also download the WOO X mobile app from your mobile app store, and sign up using the ref code DTVPDTV8 . also ensure to complete your KYC to have access to all the juicy incentives on offer in the platform.
