Just like every other sphere, the crypto world also have some terminologies and acronyms related to it. This guide provides the meaning and history of six (6) crypto acronyms commonly used in the cryptocurrency space.
1. HODL
This term is used when short-term volatility is high and the prices of the cryptocurrency keep fluctuating. When the price of a certain digital currency falls, it is advised to keep “holding onto it for dear life” instead of frantically selling it at a loss.
2. FOMO
FOMO in the context of Crypto is short for “Fear Of Missing Out”. FOMO is the feeling of anxiety or the idea that other people are sharing a positive or unique experience. It is used to trigger new traders to place huge investments to avoid missing out on high returns.
This is the type of emotional response that enables people to make impulsive decisions to buy tokens when they are at their highest. It is advised to not react to FOMO and wait it out till the market settles.
3. DYOR
DYOR stands for Do Your Own Research and is a common phrase used by cryptocurrency enthusiasts. However, the acronym is not a piece of advice exclusive to the cryptocurrency ecosystem. It is commonly used throughout the internet due to how fast and easily misinformation can spread.
4. BTFD
This trading strategy focuses on benefiting from the potential price increase after a recent dip in the crypto market. Crypto enthusiasts wait till a currency goes down to buy it, and as soon as they see an increase in value, they sell it at a profit.
5. LAMBO
Short for Lamborghini, this term symbolizes the culture of getting rich super fast. This status symbol represents the life of luxury that can be achieved by crypto holders. Back in 2013, a story went viral of a user who bought a brand new Lamborghini using Bitcoin, and soon, thousands were inspired to do the same.
6. FUD
This is a strategy used by crypto fanatics to spread misinformation and doubt regarding a trade deal or a competitor’s forecast price. This is the strategy that is commonly used to drive down the prices of any digital currency. What people tend to underestimate is the power of FUD. It has the potential of causing economic depressions and bursting bubbles within the market.
Conclusively the acronyms discussed in this article are summarized below
