Wednesday, December 2, 2020

Popular Crypto Language you Need to Understand

Popular Crypto Language you Need to Understand

There are several reasons why you should be familiar with some of the most popular crypto language. 2020 has been a very unprecedented year in the crypto world. A lot of people started crypto trading in the mid periods of lockdown. This meant that there were a lot of new comers in the crypto trading world.

As a newcomer, you will no doubt feel lost when you hear certain terms flying around. Even more especially when you have no idea what it means.

The best-known and largest cryptocurrency Bitcoin, gained more than 130% in pandemic-ravaged 2020. In November alone, it surpassed four separate $1,000-point barriers within a four-day span, going from $15,000 to $18,000.

All these are part of the reasons why you should understand some popular crypto language.

Crypto Language and their Meaning

FOMO

You would often hear the crypto language FOMO. It simply means the fear of missing out. This crypto language is a powerful force in all markets.  However, it is especially potent in a field where there’s no such thing as fundamental value. Crypto fans often cite FOMO as one of the reasons investors might buy cryptocurrencies when they’re in the midst of a rally.

FUD

Another crypto language is FUD which means fear, uncertainty and doubt. It is a term that was adopted by the crypto community to denounce what supporters see as the intentional spread of misinformation. Skeptics see it used as a way to brush off anything negative.

Related: Akoin Cryptocurrency Starts Trading on Bittrex Global

Halving

Halving which is sometimes referred to as halvening is another crypto language you should get familiar with. It means a planned reduction in rewards miners. Halvings happen once every four years or so. More precisely, every 210,000 blocks of transactions. As the name suggests, each one cuts the amount of Bitcoin miners receive per block reward in half. The practice serves to maintain scarcity. This year, Bitcoin’s halving was followed by a steady rise in its price over the subsequent weeks.

Hodl

“Hold” is a crypto language as misspelled by a frenzied Bitcoin trader on an online forum in 2013. It’s become the mantra of cryptocurrency believers during market routs, meant to reassure nervous traders that they should ride out any given slump because of what they see is Bitcoin’s long-run advantages. Anyone willing to stomach the volatility is thought to be hodling.

Other Crypto terms to know

Weak hands

This crypto language is used to describe cryptocurrency newbies. Especially those who, instead of hodling, nervously panic sell their coins. This could be in response to market jitters or negative headlines that wouldn’t faze experienced traders. Some weak hands bail out of Bitcoin in favor of so-called alt coins, cryptocurrencies other than Bitcoin.

Whale

In a wide range of markets, whales are investors whose holdings are so large that their every trade makes waves. It’s a crypto language that comes with a suspicion of market manipulation. Some estimates show just a handful control a large percentage of the market, so they have the power to move prices.

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