6 terms every crypto trader should know

Within the cryptocurrency ecosystem there are many terms that may be unfamiliar to newcomers. Some have already been adopted from the jargon of the stock market world and there are others that have emerged from the world of crypto investors themselves. So today we are going to break down six terms that every cryptocurrency trader should know.

Fear, Uncertainty, and Doubt (FUD)

The word FUD refers to the action of discrediting a specific company or project by spreading false information. The objective of this type of actions is to instill fear in users by publishing information that is not true or that is only intended to damage the reputation of its target. Within the cryptocurrency ecosystem we are exposed to FUD almost daily, as thousands of detractors of the cryptocurrency ecosystem have emerged over the years, whether for personal gain or simply for baseless talk.

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Peter Schiff, one of the great detractors of Bitcoin. Source: Twitter.

HODL

The term HODL first appeared in a famous post from the BitcoinTalk forum in 2013. The term comes from a misspelling in the title: "I AM HODLING." This word refers to the action of buying and holding tokens without selling them no matter what. It is one of the best-known words within the cryptocurrency ecosystem, given that many maximalists have bought cryptocurrencies for many years and, despite having reached figures such as $69.000 in Bitcoin, they have never sold their tokens since they believe in the value. that cryptocurrencies have.

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The famous Bitcoin Talk post where the word “HODL” was born. Source: BitcoinTalk.

Safua

This term arose from the hand of a well-known YouTuber in the cryptocurrency ecosystem called Bizonacci who created a meme of CZ, the CEO of Binance. This meme included the CEO of Binance with the phrase "Funds are SAFU", referring to the fact that user funds were safe. This arose when Binance decided to perform maintenance on its platform without prior notice, which caused the community of Binance users to become agitated when they saw that they could not perform actions with their accounts.

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Tweet where the word SAFU came from. Source: Twitter.

All-Time High (ATH)

This is one of the easiest terms to define. The All-Time High of an asset is the historical maximum that an asset has managed to reach. That refers to the highest ever traded price of an asset. For example, Ethereum's previous ATH during the 2021 bullrun stood at $4.891 reached on November 16, 2021. When an asset approaches its ATH, different situations can occur.

  • The first is that those who bought during the achievement of the previous ATH sell above the limit price, which could cause resistance to form that is difficult to penetrate.
  • The second is that, after reaching the highs, the asset sees an increase in trading volume, which in turn can lead to the discovery of new prices. Of course, not all assets are capable of reaching these figures again during their history.
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Previous ATH ($1.420) and current ATH ($4.868) of Ethereum on Bitstamp. Source: Tradingview.

Do Your Own Research (DYOR)

This term comes from fundamental analysis. It means that before making any type of investment we must carry out prior research without depending on the opinion of third parties. This in turn will allow us to develop our asset analysis skills, something necessary to not depend on other people to make our investments. For example, we can follow an internet guru who recommends us and bases a purchase on a token and we blindly trust him, but we do not know if that person has cross interests, given that he could be promoting a scam.

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Different premises to take into account when investigating a project. Source: Twitter.

Anti Money Laundering (AML)

The word AML (Anti Money Laundering) refers to anti-money laundering procedures. It refers to a series of regulations, laws and procedures that aim to prevent illegally obtained money from being “laundered” as legitimate income. AML procedures make it much more difficult for criminals to cleanly “launder” your money by hiding or disguising it from legitimate sources.

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Example of a money laundering scheme. Source: Precisely.


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