FOMO, REKT, FUD....Oh my! We break down the common terms you've seen or heard from fellow crypto enthusiasts.
If you have read any Tweets from "crypto Twitter" or yours truly, chances are you've come across terms/acronyms/sayings that may have left you perplexed, confused or frustrated as you try to decipher what the meanings are. No worries and get prepared for a crash course in typical crypto lingo.
HODL (pronounced "hoddle") 🔒
When you speak about Cryptocurrency, HODL is one of the most used terms since its inception. It originally came from a drunken typo in the subject line of a 2013 Bitcoin forum post: “I AM HODLING”. (It should have read “holding.”)
HODL simply means to "buy and hold" for the long term, no matter what the market may do. with crypto enthusiasts turning it into an acronym which stands for "Hold On for Dear Life."
FOMO (pronounced "foe-moe") 😱
Emotions. One of my main rules with crypto investing is to leave this at the door and this next term is where some investors make the mistake. FOMO stands for "Fear Of Missing Out". This has often been the cause of emotional investing and bad decision making. A good example of this type of feeling was the Dogecoin ($DOGE) run of April 2021 where we saw the push to $0.73, Elon Musk Saturday Night Live performance in correlation as well as a ton of artists and celebrities "throwing money" into Dogecoin. Tons of people followed suit to do the same, invested because of this "feeling", bought in at a high point and the run didn't last long at all. And the brief run to $0.73 was cut by 50% subsequently after. A simple way to deter this from creeping it's way into your cerebellum, is to develop a crypto strategy and stick to it.
This term describes when a cryptocurrency is trending and has momentum upwards on the trading chart. A common phrase you will hear traders say is “To the MOON!"
REKT (pronounced "wreck-t") 🤔
This typically happens when you "chase green candles" or FOMO (see above)into a project/coin without the proper research or strategy and lose badly. Try to keep these at a minimum.
Research. Research. Research. The previous terms of FOMO & getting REKT can always be avoided (for the most part) by doing this simple step. DYOR stands for "Do Your Own Research" and nowadays with the internet at our finger tips its hardly an excuse to NOT do this before you hit that buy button. YouTube, Discord, Twitter, Telegram, Books, Newsletters are all ways to DYOR into your future crypto investments easily and will ultimately translate into a great investment experience. This research can involve reading past charts, listening to Twitter spaces with crypto developers and even looking into projects roadmaps for future advancements. But don't take my word for it, DYOR!
A whale describes the biggest holder(s) of a specific cryptocurrency, with so much that they could potentially manipulate that cryptos market price with their sell or buying activities. For instance with Bitcoin, a whale is anyone holding at least 1,000 BTC or more such as Tim Draper and the Wrinkle Voss Twins.
DIAMOND HANDS 💎👐🏽
Drawing from the HODL (see above) mentality and philosophy but from a more hardcore and tribal sense, diamond hands describe not selling despite the market's activity and holding the line with the position with that crypto. No matter the volatility. What are somewhat "quick to sell or nervous" traders referred to? You guessed it. PAPER HANDS.
PUMP & DUMP OR RUG PULL 🦑
This refers to when traders (and developers) will artificially moon a crypto's price and immediately cash out before it comes crashing down. This is seen alot with the smaller market cap coins (SQUID GAMES TOKEN anyone?) where a group of traders will work together to drive up the price. As prices rise, the schemers will promote the opportunity on Twitter, Reddit, Discord, Facebook, YouTube comments, and elsewhere, attracting more investors and driving the price up further. When the it hits their target value, the original group will cash out — taking big profits and leaving everyone else “holding the bag” as the token collapses all the way to $0.00. A great way to deter this is to DYOR. 😉
Hotep & Build ✌🏽