Fear, uncertainty, doubt: The FUD reality of crypto users The Economic Times

‘Pump and dump’ is a strategy used by big holders and market manipulators to make money from small and innocent investors. It is done by hyping up the traders to invest more in a specific token by manipulation. It is used to indicate traders that some people are spreading negativity and false information about a virtual coin to drop its value. Negative news and false information lead to a panic kind of situation and a major sell-off in the market.

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People and governments take time to embrace new and innovative technologies. With that in mind, the laws around cryptocurrency vary from country to country and are quite grey, to be honest. In some places, they are legal to trade, in a couple of others, they are legal but have banking bans and in a few others, they are legal to use but are illegal as a payment tool. The crypto based on Kanye West, which we mentioned in the start of the video, is called Coinye. Crypto enthusiasts and F1 fans alike are in for a good laugh, as Max and Checo tried their hands at guessing the meaning of acronyms such as ATH (all-time high) and FUD . The portion mentioned above demonstrates some famous cryptocurrency slang and terms.

It is a misspelt version of the word “HOLD,” which was first used on a bitcoin forum. In terms of Bitcoin, anyone with over 1,000 BTC is considered a Bitcoin whale. These investors have the power to manipulate the crypto market with their transactions.

Like any other form of investment, it comes with its own share of terms that investors must understand

To put this into context, only 12 countries in the world have a GDP that is more than 1.5 tn dollars as per the World Bank data. Since anyone can create crypto, there https://1investing.in/ are bizarrely named cryptocurrencies in circulation. There is also Dogecoin, after the famous meme dog where Elon Mush has invested on behalf of his child X Æ A-XII.

It means that investors are waiting for the bulls to overtake the bears and send crypto prices shooting for the moon once again. For someone who is new to crypto, understanding podcasts, forum discussion boards and explainer articles can be a bit challenging. There are so many crypto terms floating around, and they can all seem like alien concepts to the unacquainted. Fortunately, most of these terms have simple explanations, and with the proper guidance, you can sail through this sea of crypto jargon with complete ease. Keeping this in mind, we have listed and explained five common slang terms doing the rounds in the cryptosphere these days. Experts advise to watch out for unwarranted fud, as this can cause selloffs and decrease a coin’s value, affecting the investors.

A bagholder is an investor who holds a particular coin even when its value is dropping. Imagine that you bought a coin hoping that the price will go up 10 Things You Should Never Say to Employees but instead it starts dropping so low that the coin becomes worthless. Let’s say you made an inadequate analysis of the coin or market while investing.

Interesting Facts About Cryptocurrencies

The impact of FUDs is insignificant in front of cryptocurrency whales as these people can decline the market value of coins without influencing anyone. Whales are usually people or organizations with a significant number of particular cryptocurrencies. On the other hand, tokens are a type of cryptocurrency that live on other blockchains or para-chains of the blockchain project. Tokens are tradable assets of projects that enhance the functionality of an underlying blockchain. Cryptocurrencies were created to shift the power to the people by making things decentralized. A decentralized finance coin or exchange means that the ability to do something is not concentrated among a few people.

“Fear, uncertainty and doubt,” shortened to “FUD,” isn’t a term exclusive to the bitcoin community. Off-chain transactions refer to the transactions that take place off a blockchain network. These transactions can be registered on the corresponding blockchains later. An abbreviation used for ‘Decentralised Exchanges’, which is also considered less susceptible to hacking, allows a crypto holder to sell or purchases their assets without a centralized intermediatory.

Bagholder is a term used to describe an investor that holds on to their crypto assets despite a continuous decrease in their value. They are extreme diamond hands that suffer when the price of a coin crashes to zero, and they are left “holding the bag”. Their only hope is that somehow the price of the cryptocurrency will make a comeback, and they will recover some of their losses, but this rarely happens. All those who chose to hold onto their TerraUSD would be examples of bagholders. Even months after the crash, TerraUSD is still worth next to nothing. May also be defined as a person that has enough coins or tokens to cause a significant impact on the market prices, either by buying or selling large amounts.

• Experts see the trend of people using multiple exchanges picking up as people experiment with new exchanges.
• Blockchains are the basic underlying structures behind every cryptocurrency.
• Without wasting any time, let’s dive into the top 10 fascinating facts about the new hyped cryptocurrencies of the world.
• A representation of the virtual cryptocurrency Bitcoin is seen in this picture illustration taken June 14, 2021.
• It is the time taken to initiate a transaction till it is completed on the network.

You might have noticed millennials using terms like Pump and dump, cryptocurrency whale, HODL and many more. Unfortunately, even after investing a lot of money in the marketplace, people are unfamiliar with slang and terms. Check how any government can ban bitcoin to know more about cryptocurrency trading.

After watching the impact of news on a coin’s price, the investors sell off their holding to book profits. This makes the coin’s price decrease in a short span of time which creates a panic kind of situation for smallholders. In a Pump strategy, a group or community that holds a good percentage of a virtual coin circulates false statements or news to create a demand in the market to shoot the price up.

Cryptocurrency terms everyone should know!

You need to have immense discipline to stay invested even though you can exit your position and book easy profits in the process. However, it is also one of the most effective crypto investment strategies and has produced many crypto millionaires. The young, tech-savvy individuals who populate this space have coined terms to describe the different investment strategies, crypto projects and even the various kinds of investors.

This refers to a strategy used by market manipulators – the goal is to get people to invest in a coin by hyping it up, and then manipulating the currency once it has enough investors. Short for Fear, Uncertainty, and Doubt, FUD is a term used to indicate that people are spreading false information about a coin to decrease its value. The people who spread such information are known as FUDDERS and their goal is to get people to sell their coins quickly so that the value of the currency drops. Blockchains have a distinct feature that the blocks cannot be altered once they become a part of the blockchain. This makes blockchain technology the best choice for storing critical things that should never be changed.

Without wasting any time, let’s dive into the top 10 fascinating facts about the new hyped cryptocurrencies of the world. Save taxes with ClearTax by investing in tax saving mutual funds online. Our experts suggest the best funds and you can get high returns by investing directly or through SIP. Typically, such investors cannot tolerate market volatility and sell coins at the first sign of trouble.

Volatile market

It refers to a hypothetical situation wherein the market cap of Ethereum overtakes that of Bitcoin. In the process, ETH will replace BTC as the largest cryptocurrency by market capitalisation. The market capitalisation of a cryptocurrency is the circulating supply multiplied by the current market price of the cryptocurrency in concern. Novice investors or even veterans might find it difficult to understand the meaning of these slangs, so we decided to compile a list of popular slangs used in the cryptocurrency world to help those who may be unaware. Small crypto investors say top exchanges facing problems on high transaction days is becoming a recurring problem. While Bitcoin is a very popular one, did you know there are other cryptocurrencies named after the famous internet dog and Kanye West?

HODL is not a word and refers to hoarding these digital assets despite a market crash. As per reports, a cryptocurrency enthusiast misspelt the word holds on his Twitter handle during the market crash. So HODL is the term cryptocurrency enthusiasts use to prohibit the situation of panic sell in the marketplace. What started out as a typo for ‘Hold’ is now a legit term used to describe an investment strategy. It means that you are holding onto a currency even after the value decreases, in the hopes that it will shoot up again.

A HODLer will watch his coins’ value double in a week or drop 30 percent in a month, yet he will never even think about selling. These investors are in it for the long run and are unphased by market conditions. Despite sounding deceptively simple, HODLing is a challenging investment strategy.

This means that a currency has hit its peak value and is going off the charts. It can be used when a currency crosses over a 100% increase in value in a short time. Tokens don’t have their own blockchain to live, and hence they reside on the blockchain like ERC20, Binance Smart Chain, and many others. Worry no more, here is your quick primer intro to these slangs, after which you will not feel left out from those exclusive crypto communities.

These individuals are the opposite of weak hands as they remain invested through thick and thin. This is a good strategy if your investments are backed by solid research and have some use cases that will help their value bounce back after a bear run. An initial coin offering is the cryptocurrency industry’s equivalent to an initial public offering . A company looking to raise money to create a new coin, app, or service launches an ICO as a way to raise funds. Inventiva cover entrepreneurship articles & stories and interviews of entrepreneurs, ceo, cxo, top management, reviews of products and services & tech, ai, ml, vr, analytics news. We also carry some very important aspects of internal & external trade, international affairs which directly or indirectly affects the global as well as Indian economy.

It has many other benefits, and it powers almost 90% of all cryptocurrencies that you’ve heard till now. Looking to dive into the immersive cryptocurrency market, start your journey by first knowing these crypto terms. When crypto stumbles, loyal investors tend to urge each other to ‘Hodl’ and not sell their tokens, with the belief that the price will rise. A nocoiner is a person without bitcoin — an outsider that scoffs at cryptocurrency and all those who relish in it.

Below listed a compilation of some popular cryptocurrency slang currently being used to an exceeding extent. The post became a meme, as bitcoin fans retroactively made it so HODL stands for hold on for dear life. The term is used to discourage selling when bitcoin prices fall, and to ride it out until they return to growth.. It’s viewed as a faux pas in the cryptocurrency community to sell instead of holding on for dear life. It is the process of selling crypto coins or tokens to raise funds for blockchain projects.