Bitcoin had gone in and out of the news in the previous years but has recently gained the limelight again. The reason for this was its meteoric crash in stock prices earlier this year in the months of April and May and its subsequent monumental rise in just a matter of days. The mercurial nature of crypto stock prices is nothing new but this volatility was unprecedented even for bitcoin prices. The crypto analysts mentioned that the reason bitcoin had a sell-off in the summer of 2021 was because of the operational changes the cryptocurrency underwent. But the analysts were affirmative that the market would enter a bullish state in no time because the previous trends predicted so.
Furthermore, the dearth of bitcoins in circulation, as per the mandates of the bitcoin protocol was bound to increase the stock prices. Bitcoin now proudly helms as one of the most profitable investments to be made in stock this year, as the crypto forecast mentions the stock prices to reach a whopping $100,000 by the end of this year. However, it might help to get accustomed to the crypto slang used by the experts. So here is a compilation of the most used bitcoin lingo, in order to keep the crypto enthusiasts right on track
Diamond Hands:
It could roughly be translated as a plea to hold onto investments even when they see the stock prices crashing because there is bound to be a retrieval. This is precisely what happened with Bitcoin prices earlier this year. Diamond hands are used by traders in the Twitter and Reddit community frequently and are signified with a diamond emoji followed by the emoji of a hand. This means that the present situation is a bubble and there will be a bullish redemption in terms of market prices.
FOMO:
Fear of missing out is now not just a lingo that millennials use; it is also used by traders as a cryptocurrency lingo used in the crypto landscape. The reasons seem justifiable because the investors and traders belong to a market space where everything is volatile and nothing has a fixed fundamental valuation. Traders sometimes fret buy bitcoins in the midst of operations because they are fomo-ing over what they could potentially lose.
FUD:
FUD is the abbreviation of Fear, Uncertainty, and Doubt. Normally FUD is used amply in the contexts of financial investments. The term has however adopted a newer connotation in cryptocurrency lingo. Crypto investors see FUD as the spread of misguided information among people in order to create an atmosphere of anxiety and uncertainty. Traders look down upon people who create FUD while cynics consider it as a way of putting aside anything that has a negative air.
Whale:
A whale, which is considered the largest animal of the ocean, has assumed a similar connotation in the crypto market. Traders call someone who owns a huge amount of bitcoins a whale, because any buying or selling actions they perform, creates ripples across the crypto sea, if not create huge waves. This means that if a whale suddenly decided to sell a lot of its stock, it could potentially cause stock prices to fall in the market. Also, because bitcoin sales aren’t exactly anonymous, the whales of the sea can easily be found, who owns a huge amount of bitcoins.
Sats:
Sats means the smallest possible fraction of a bitcoin that can be used in a transaction. The value is normally 0.00000001 parts of the bitcoin value. Sats is the abbreviated form of ‘satoshis’ which has been derived from Satoshi Nakamoto. While crypto newbies may talk of bitcoin value in US dollars. Real and experienced crypto enthusiasts consider using the crypto lingo of ‘sats’ as a way of proving their expertise in the field.
HODL:
This bitcoin lingo is one of the most popular ones. The inception story for this lingo is also interesting. Someone happened to mistakenly tweet ‘hold’ as ‘hodl’ in the frenzy of a bitcoin transaction. It precisely means that one should hold on to their stock amidst crashing prices and trust their instincts. However, crypto users took it to be an acronym for “Hold on for Dear Life” and it became a thing ever since. The lingo is basically a plea for traders to hold onto their bitcoins and not sell them in a rush when the prices show a dipping trend. After Trump’s accidental typo tweet of ‘covfefe’, this is probably the second most hilarious incident of a typo becoming popular so as to gain independent connotations.
Pump And Dump:
According to a survey carried out by Business Insider, the ‘pump and dump’ strategy seems like a little bit of an open secret between crypto traders. Basically, the strategy entails the group buying a lot of shares of a particular stock in order to spike its prices and later sell them all off together so that there is an immediate fall in the market. The pump and dump strategies need detailed discussions and analysts have found out that the schemes are orchestrated over telegram chat rooms and third-party apps like Slack. Traders try and warn investors against pump and dumpers because they can regulate the market prices within the blink of an eye.
Mooning:
This is one of the more casual terms which has assumed a newer context in bitcoin lingo.
If the stock price of bitcoins is surging, it is considered to be mooning. People boast of their surging stock investments by saying that their stock is mooning, which precisely means it is touching the moon. Gronager, the analyst for a crypto firm said that the bitcoin prices are to even exceed the moon by the end of this year, which means that even mooning would be a term inappropriate to measure the surge in bitcoin prices.
Conclusion:
While there are a host of other bitcoin lingos out there in circulation, these more or less cover the basics. If any crypto noob is looking to navigate the crypto landscape without looking bewildered by the lingo being uses, these few terms shall cover-up for saving him/her the initial embarrassment of not knowing anything. For newbie crypto enthusiasts looking to invest in Bitcoin, now would be the ideal time to do so. Hence now is the time to brush up on the bitcoin lingo and come across as a pro.
