What is “HODL”? And 10 Other Crypto Slang Terms to Know

This article explains what “HODL” means and 10 other most prominent slang/terms used by cryptocurrency investors.

Sometimes it feels like an entire language is built around cryptocurrency, which is impenetrable for the uninitiated. The community has come up with an impressive number of words to describe all the different nuances behind blockchain technology and the cryptocurrency market, ranging from very technical ones to those that are a little more lighthearted.

You can feel left out if you don’t understand what’s being said or written. In this article, we will make sure that doesn’t happen! We’ve compiled a list of common terms, eg, HODL- including jargon, slang, and abbreviations – frequently used by cryptocurrency traders and investors. 

What is HODL?

HODL is a community slang in the crypto world that means holding a digital asset rather than selling it.

The term HODL began as a typo of the word “hold,” which is part of a buy-and-hold strategy and has been adopted as a backronym where HODL stands for “hold on for dear life.”

HODL refers to a buy-and-hold strategy that investors use to make a profit from cryptocurrencies over time. Rather than selling when the price drops, investors who practice this strategy choose to HODL and wait for their token to appreciate in value. It denotes the action of holding on to your investments even when they plummet in value.

HODL is generally used as an imperative sentence: HODL! However, some use HODL as a verb, eg, I HODL Bitcoin (BTC). In this sense, it simply means that they are holding the asset and not trading it.

Buying and holding cryptocurrency can be tricky because of the extreme volatility of digital currencies. For example, Bitcoin’s price dropped by more than 50 percent in 2018 but increased by over 200 percent in 2019. According to Google Finance, one Bitcoin is now worth more than $ 44,000.

History of HODL

HODL was first used on a Bitcoin forum on December 18th, 2013. The term “HODL” or “hodl” originated in a post made in the Bitcoin Talk forums by GameKyuubi. In his post about him, he stated that he will no longer trade his coins but instead will “HODL,” which he later admitted was an accidental misspelling of “hold.” At the time, Bitcoin prices were declining rapidly due to China’s decision to ban banks from using the digital currency.

Despite its popularity and use within the cryptocurrency community, there has been some debate about what exactly HODL means. Some believe that it refers to the strategy of holding onto coins during market downturns or crashes, while others believe it simply means holding onto your coins for any reason at all. However, both groups agree that HODL is a strategy that attempts to minimize selling during times of market decline.

10 other crypto slang terms you should know

Pump and dump

“Pump and dump” is a scam in which a person or group of people promote an asset to get the price moving higher, usually through false and misleading statements. Once they’ve done that, they sell their stake in the asset at a profit.

The term is often used to describe fraudulent schemes involving cryptos with little liquidity or value. They are usually not traded on major exchanges like Binance and Kraken.

In a pump and dump scheme, crypto promoters will buy up large amounts of essentially worthless crypto, then spread false and/or misleading information about the asset to generate interest. This can be done through spam email campaigns, bogus press releases, or even unsolicited faxes.

As the number of interested buyers grows and demand for the crypto increases, the price rises. Once it’s reached a target level determined by the scammers, they sell their coin at a profit. Investors who were fooled into buying these digital coins based on fabricated information about the asset often see their holdings drop in value as soon as the scammers sell their own crypto – hence the term “dump.”

Flippening

Flippening is a word used to describe the moment when Ethereum overtakes Bitcoin in the market cap rankings.

The term was created by Emin Gün Sirer, a professor of computer science at Cornell University. In an article published on Hacking Distributed, he explains that the name comes from the moment when the flip happens, and Ethereum becomes number one.

Flippening is not just about Ethereum overtaking Bitcoin as the biggest cryptocurrency. It’s also about it becoming the most dominant platform for decentralized apps (dApps).

Bagholder

Bagholder is the term used to describe those left holding coins or tokens that have plunged in value. In essence, they’re stuck with a large loss or a “bag.”

A bagholder is a participant who holds an asset or investment that has lost most of its value, leaving the investor with an investment worth less than the amount invested or nothing at all. A bagholder may also be called a bagman. The term became popular during the dot-com crash of 2000 and 2001.

BTD / BTFD

You probably won’t see this relatively new term in financial textbooks. It stands for “buy the dip” and “buy the f * * k dip.” Basically, it’s like dollar-cost averaging, but with more emphasis on buying during market corrections.

The idea behind BTD / BTFD is that if you’re confident in the long-term viability of particular investments, then you should actually be glad when prices go down. This allows you to “buy low” and increase your future returns.

Of course, there’s a risk that a correction will turn into something worse, such as a bear market or even a full-on recession. But that’s not an argument against BTD / BTFD. Instead, it’s an argument for doing your homework before making any investment!

Whale

Whales in crypto are big-money players. These could be individual investors or large institutions, but either way, the whale can have a huge impact on the market.

The term “whales” is used for those who own a lot of crypto coins and can control the market with their purchases and sales. Whales can push up crypto prices by investing in a coin and increasing its demand. Conversely, they can also dump a certain cryptocurrency to decrease its price and profit from selling it at lower prices after the crash.

Shill 

A common term within the social media circles of crypto enthusiasts is shilling. To shill is to selfishly promote a coin or token because you hold it, not because it has merit. This can be done in many ways. However, it is often used as advertising for the cryptocurrency being promoted.

Shilling is typically conducted by sending out numerous tweets and Facebook posts to convince others to buy the coin or token. It has become a bit of an art form over the years and has even been employed by more traditional companies.

It’s not uncommon for cryptocurrency projects to pay influencers to shill their tokens on social media and even in YouTube videos.

For example, if I were to tweet, “You should all buy Dogecoin! It’s amazing !!! then I would be shilling Dogecoin. If you do decide to buy Dogecoin as a result of my tweet, then I have successfully shilled that coin – and it may not have been in your best interest to listen to me.

Rekt

Rekt is a crypto term derived from “wreck.” This crypto term means to destroy or severely damage. It is typically used when an investor makes a loss on a trade (ie, they lost all or most of their capital).

When used in a sentence, it can be a simple term like “I got rekt” or something more elaborate like “My stop loss got rekt.” As with many other terms used in the online trading community, rekt has become popular like HODL among cryptocurrency traders due to its humorous connotation and widespread usage.

FUD

FUD stands for “fear, uncertainty, and doubt” in the crypto industry. As you may have guessed, it means any kind of negative information about a crypto project.

FUD is often spread by competitors who want to weaken the trust in their rivals’ projects. But it can be spread by anyone with an ulterior motive and no regard for the truth.

It’s not always easy to spot FUD since some unscrupulous people take great pains to make the information they share sound credible on the surface. It can be anything from a seemingly balanced article with a misleading headline and cherry-picked facts to a tweet by a well-known personality or an anonymous troll on a forum somewhere.

The main thing you need to remember when dealing with FUD is that there are two sides to every story, and your best bet is always to go straight to the source. If you see someone sharing half-truths about project XYZ on Twitter, look for official updates from the project itself before you decide whether or not to hit that panic button.

FOMO

FOMO is a common term used in the crypto industry and has become a meme. FOMO is translated as “Fear of Missing Out.” It is often used to describe people who buy a coin after it goes on a ‘bull run’ (an upwards price trend).

This often happens in the crypto industry, with buyers entering the market late when they believe a coin has gone past its peak. This is most common with new investors, who have not learned anything about trading or investing and are looking to make a fast profit / avoid missing out on future profits.

When Lambo / Mooning

“When Lambo” means that many of the people who invested in cryptocurrency are not interested in making a profit – they’re looking to get rich.

Cryptocurrency is a volatile market that has seen huge rises and falls over short periods. Most people who make money from cryptocurrency do so by buying and selling at the right times. However, certain people are looking for quick profits and will buy a coin when it has just started to rise. These people are said to be “waiting for Lambo” because they will buy a Lamborghini with their profits.

The term is used when someone thinks that there is an imminent price rise for a coin – it could be in a few days or months, but it’s usually used when someone believes that the price will rise soon.

A similar concept is “Mooning.” This refers to when the price of a cryptocurrency goes up significantly, ie, goes to the moon!

Conclusion

The cryptocurrency world is certainly a unique one, but make no mistake: it’s one that you don’t want to miss out on. One easy way to avoid confusion in the crypto world is learning the lingo and using it yourself! 

Many of the words in this article will likely be familiar to you already, but they may take on new meanings in the context of cryptocurrency investment. If nothing else, knowing how people talk about cryptocurrency can help you tune into conversations, understand what’s being discussed, and keep track of information that may be relevant to your next investment.

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Redazione Trend-online.com
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