Crypto Vocabulary for Beginners

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A misspelling word of “hold” which means “keep”. A Hodler is a cryptocurrency trader who buys a coin and does not see himself selling in the near future.

  • FOMO

Abbreviation for “fear of missing out”. The feeling a trader feels when a tall green candlestick appears on the chart and he does not own that coin. FOMO has a big influence in crypto as trading is an emotionally driven decision making.

  • FUD

Abbreviation for “fear, uncertainty, and doubt”. Usually, crypto opponents make statements against crypto which influences price drop.

Example: Warren Buffet spread FUD by saying Bitcoin is a rat poison.

  • Pump and Dump.

Up and then down. The usual cycle in crypto when the price spikes is followed with a nearly similar fall for example, at the time of writing this post there is more than 70% drop in the Bitcoin price compared to December 17 the ATH. Also, most of the other coins show a drop of 90 %. So this can be considered a pump and dump.

  • Altcoin

Abbreviation for “Alternate coin”. Everything except Bitcoin is called and Altcoin. Evry coin is indexed after Bitcoins, so if Bitcoin goes up all the coins go up, if Bitcoin goes down, all the coins go down.

  • Circulating Supply.

The amount of coins that are in circulation. If we multiply Circulating Supply with price, we get the market cap for that specific coin.

The overall value of a specific coin which is obtained by multiplying price with circulating supply. Market cap index a way to rank coins and to check their ranking progress or fall against other coins.

  • Shill

After buying a specific coin, showing enthusiasm and encouraging others to buy that coin for the purpose of personal gain.

  • Bag Holder

A  trader who bought at a high price and was not able to sell the coin  for a reasonable price, then the coin devaluated at hight scale leaving him with worthless coins

  • ATH

Abbreviation for “All-Time High”.  It means the highest historical price for a coin.

  • Whale

A big crypto owner of coins. Whales usually are the market moves up or down and there is a theory that says, many whales coordinate together to manipulate the price.

  • Long

It is a position that a trader makes when he buys expecting the value will rise.

  • Short

It is a position that a trader makes when he sells expecting the value will fall.

  • Limit Order

This is an automated order offered from exchange platforms.  You can place an order to be executed in the future if the target price is hit.

  • BUY | SELL Wall

A wall is when big orders are placed on a specific price level. This is often is whales attempt to manipulate price inflicting hope or fear, then when the market is near hitting the wall the wall disappears.

  • DDOS

Abbreviation for “Distributed Denial of Service”.

When a DDOS attach hit an exchange, traders have difficulty or are not able at all to execute their order. This can bring a lot of damage to traders.

  • ICO

Abbreviation for “Initial Coin Offering”, which is a king of crowdfunding way in the coin industry.

Read more at 7bitcoins.com: https://7bitcoins.com/crypto-vocabulary-for-beginners/

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