by Jake Wengroff
A new market usually means a new lingo, and cryptocurrency is certainly an example of that. Words, acronyms, memes and other language to describe the world of crypto have sprung up, and for newbies, it can be confusing and at worst intimidating to make sense of it all.
We here at TransitNet have come up with the top 10 crypto slang terms, along with their definitions (Don’t see a term listed here? Let us know!).
FOMO stands for “fear of missing out.” Not limited to the world of crypto, FOMO applies to all aspects of life, including job hunting and even dating. When used in investing, especially with crypto, FOMO is a psychological state of vulnerability in which an investor might feel panic or envy for not holding an active position in a promising asset — especially when there’s evidence that others are profiting.
HODL stands for “hold on for dear life.” Some people think that it’s simply a misspelling of “hold” but alas, it is indeed an acronym.
According to online banking firm SoFi, the term originated on a Bitcoin forum during a period of market turbulence in late 2013, in which an investor criticized others’ inability to trade highs and lows, and instead grouped them in a category of investors that should simply buy and hold crypto. Since then, HODL has exploded in popularity and is widely exclaimed during price rallies in which investors will instruct other investors to “HODL!” — despite price volatility.
FUD stands for “fear, uncertainty and doubt.” FUD relies on emotion, not reason, to make a sale — or prevent one. FUD is a psychological method of inspiring negative sentiment about a particular asset to prevent further buying or to spur massive selling or short-selling.
The objective is to suppress an asset’s price so the FUDer or group of FUDers (they often work as a team) can purchase that asset at a significantly lower price. Of course, the FUDers can then turn around, drive the price up, and sell in order to make a profit.
According to CSO, FUD was originally coined in the 1970s in reference to IBM’s marketing technique of spreading scary rumors about a competitor’s new product in order to dissuade customers from taking a “risk” by buying it.
Rekt, an intentional misspelling of “wrecked,” is a slang term used in crypto to describe an investor’s portfolio or an investment that’s losing substantial value.
5. Sats and Stacking Sats
Satoshi, commonly abbreviated as “sats,” are the smallest unit of Bitcoin — 0.00000001 BTC, to be precise.
Named after the alleged creator of Bitcoin, Satoshi Nakamoto, one satoshi is equivalent to 100 millionth of a Bitcoin. Because Bitcoin is easily divisible and constantly transacted in fractional amounts, being able to denominate arbitrary fractions of a Bitcoin is essential. This is especially important, since the Bitcoin price has risen dramatically and in order to welcome new investors to the market, the ability to offer tiny fractions of Bitcoin is essential.
“Stacking sats” refers to an investing strategy in which an investor accumulates satoshis, fractions of a Bitcoin, to increase a Bitcoin position.
A whale is a large mammal, so applied to crypto, it makes sense that a whale is an entity (individual, group or company) that holds a massive position in a specific cryptocurrency. When whales make a large purchase or sale, markets can move accordingly. This is similar to institutional trading in the traditional securities markets.
“Flippening” refers to the hypothetical — and some say inevitable — moment in which the value of Ethereum overtakes the value of Bitcoin, according to SoFi.
8. No Coiner
A “no-coiner” is someone who does not hold any crypto assets. A no-coiner is typically a crypto pessimist who believes that Bitcoin and other digital currencies are fraught with risk and volatility.
“Cryptosis” is the opposite of being a no-coiner: This is when an investor is so evangelistic about crypto that they won’t shut up about it. Those afflicted read, blog, chat, discuss and otherwise share information about crypto all day, nonstop.
BTD stands for “buy the dip” and is a classic investing strategy in which an investor enters a long position during a brief decrease in an asset’s price. It is more commonly used in bull markets to support the bullish sentiment and rising prices but also used in crypto bear markets to buy at good historical value for a longer-term investment horizon.
A related term, BTFD, short for “buy the [expletive] dip” is an exuberant exclamation of BTD, typically used during manic bullish rallies.
Keep Learning Crypto Slang While Your Assets Are Protected
With so much information available about crypto buying and selling — along with volatility, confusion, and FUD — investors need to know that wherever their crypto lands, it is secure.
While the blockchain cannot be hacked, the applications built upon them can be vulnerable to misuse. Investors, especially those who are new to crypto, need peace of mind that their assets will not be lost in the event of a breach.
TransitNet is developing a solution that the market needs: a third-party title registry that serves as proof of ownership of crypto assets. It’s the industry’s first, and it will add a layer of protection for investors regardless of how they are investing their crypto.
Join the forefront of the new crypto infrastructure with TransitNet.
Jake Wengroff writes about technology and financial services. A former technology reporter for CBS Radio, he covers such topics as security, mobility, e-commerce and the Internet of Things.
CNN Business – A beginner’s guide to crypto lingo
CSO Online – The FUD Factor
Coin Market Cap – Satoshi (SATS)