- A 2022 survey found that 63% of crypto investors use slang terms, up from 53% in 2021.
- Some slang terms, including HODL and FOMO, have gained popularity and are now used by people outside the crypto industry.
Just as there is business slang, there is crypto lingo. Anyone with the necessary knowledge can access the Cryptoverse. There is a variety of crypto slang in the sector, and knowing about it can be beneficial because it can rapidly explain the many phrases used in the field. So, this article will teach you the most essential crypto slang phrases. Continue reading to become a true cryptocurrency nerd!
10 Cryptocurrency Slang Terms You Should Know Before Investing
You’ve probably encountered various crypto slang if you’ve spent enough time on crypto Twitter, Reddit, Discord, or any other social media platform. Some are straightforward to comprehend, while others leave you perplexed. Let’s go through several crypto phrases that you might encounter occasionally.
- Airdrop
Airdrop is a means of releasing cryptocurrency to many users at once. New projects may airdrop and give away their tokens to promote exposure and interest.
Some may need you to fulfill particular duties, such as discussing the project on social media, before sending the token to your cryptocurrency wallet.
- HODL
Hold On for Dear Life. This phrase was coined in a 2013 Bitcoin forum post after someone typed “hold” instead of “hold on.” The misspelling became popular. The term “hodl” is now used to describe the practice of holding onto your cryptocurrency investments for a long time.
- FOMO and FUD
FOMO stands for “Fear Of Missing Out,” and FUD stands for “Fear, Uncertainty, and Doubt.” These terms describe emotional behaviors in the crypto market. FOMO occurs when investors rush to buy a cryptocurrency due to the fear of missing out on potential gains, often leading to impulsive decisions.
On the other hand, FUD refers to spreading negative information or rumors to create doubt and uncertainty in the market, causing panic selling.
- GM
The abbreviation GM stands for “Good morning.” This welcome encourages positivity and fosters an online community. Twitter users in the cryptosphere frequently begin their day with a GM tweet, and followers often respond with a GM tweet.
- Diamond Hands
Diamond hands are a concept used to characterize a trader’s risk tolerance. It is a trading attitude that is regularly observed among long-term market participants.
Regardless of market conditions, a trader with diamond hands will persevere until the end. The term can also refer to a high-risk tolerance. The ideal trader with diamond hands will sell their tokens once they have attained their full potential in the trader’s sight.
- Bagholder
A “bagholder” holds a cryptocurrency that has significantly lost its value. They often stick with their assets, hoping for a future price recovery, but their investment has gone awry.
- Pump and Dump
“Pump and Dump” refers to a scheme where individuals artificially inflate the price of a cryptocurrency (pump) through false or misleading information to attract buyers. Once the price rises, the schemers sell their holdings (dump) at a profit, leaving unsuspecting investors with losses when the price crashes.
Conclusion
Cryptocurrency slang may appear perplexing initially, but it’s much like slang in any other business, except more fabulous. So, the next time you’re in a crypto-related conversation, utilize this article as a reminder and refresher on crypto jargon 101.
