It’s helpful to familiarize yourself with common crypto slang when it comes to understanding cryptocurrency. Without knowing the terminology and abbreviations, you might miss out on important information in tweets or other forms of communication within the crypto community. We’ll go over some of the most popular acronyms used in cryptocurrencies like FOMO, WAGMI, and DYOR so that you can stay informed and participate in conversations more fully. You don’t need to be afraid to Sign up now if you want to invest in bitcoin.
Popular Crypto Slangs
FUD is an acronym that stands for “fear, uncertainty and doubt” – a psychological tactic used by some to generate negative sentiment around a particular asset in hopes of discouraging further buying or encouraging selling. This can have the effect of suppressing prices so that those spreading FUD may be able to purchase more cheaply or cause financial hardship for holders of tokens about rival crypto projects. Fear, uncertainty, and doubt can be spread in several ways – amongst them are claims of poor fundamentals, uncertain project leadership, bearish price movements, unclear roadmaps, low adoption rates or usage figures on the network, as well as restrictions on trading certain currencies.
The slang term “Rekt,” derived from the misspelling of “wrecked,” has become an Internet phenomenon in crypto circles. It is used to describe when an investor has suffered massive losses from their portfolio or investment is liquidated. Rekt can be found frequently on social media platforms as people warn others about overleveraging their positions.
In the realm of cryptocurrency, a whale refers to an entity that holds a massive amount of coins regarding a particular cryptocurrency. For example, if an organization held 50,000 bitcoins, this would classify them as Bitcoin whales with the potential to sway markets based on one trade alone.
The term “Buy The Dip” (BTD) is widely used in financial markets to describe entering a long position when there’s a suspected momentary dip in an asset’s price. It can be advantageous during bull markets, supporting the bullish sentiment and rising prices; or it may prove beneficial while investing in cryptocurrency amid less ideal market conditions by buying up the historical value that could pay off over time.
Pump and Dump
“Pump and dump” is a scheme seen in both stocks and cryptocurrency, wherein investors artificially inflate the price of an asset and then profit by selling it before its value drops. This is regarded as market manipulation and is illegal with regulated securities. So how does this work? Investors hype up or raise the price of a cryptocurrency, and sell off their shares before the prices fall again, thus “pumping it up” to later “dump it”.
NGMI is an abbreviation for “Not Gonna Make It,” which is used to refer to a choice made that has gone off course. While we all need encouragement during tough situations, sometimes it’s also important to be realistic and honest about decisions that may not yield successful results – this is where the term NGMI comes into play.
A rug-pull, or a “rug” for short, is when the developers of cryptocurrency suddenly disappear and take all investor funds with them. In other words, they pull out the metaphorical rug from beneath investors – who are left holding onto coins that have lost their value completely. Coins that end in such a scenario result in devastating financial loss to those involved.
HODL is a widely-used cryptocurrency slang that stands for “Hold On for Dear Life”, and it involves leaving your cryptocurrencies in your wallet despite any price fluctuations. This strategy has come to be known as HODLing because of the belief that coin values will eventually go up over time.