10 Crypto Slang Terms Every Beginner Should Know About

Crypto slang terms refer to the language used to describe digital assets and blockchain technology. Over the years, the cryptocurrency space has acquired a wide range of unique slang terms, which can leave beginners confused. Some popular slang terms include HODL, FOMO, FUD, and more.

Understanding these concepts can be overwhelming for beginners without a proper understanding of the cryptocurrency market. Therefore, by breaking down these complex terms into simple explanations, you can build a solid foundation in cryptocurrency knowledge.  

Let’s explore some crypto slang terms that every beginner should know about to navigate the crypto market confidently.

What are Crypto Slang Terms?

The crypto community uses slang terms to describe emotions, situations, and market behaviors. First appearing around 2013, these slang terms are widely used in the cryptocurrency space. One of the earliest examples is “HODL,” which came from a misspelling of the word “hold” in a Bitcoin forum post and became widely associated with long-term investors.

Over time, several slang terms have emerged in the market, including FOMO, FUD, DYOR, and more. These slang terms play an essential role in shaping crypto communication and culture. Traders can use them to connect, express optimism or caution, and share ideas quickly.

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The following are some of the popular crypto slang terms that can help beginners understand the cryptocurrency market and confidently begin their journey.

1. HODL

“HODL” or “Hold On For Dear Life” is a crypto slang term that surfaced around 2013 during a bearish period for Bitcoin (BTC). A user named GameKyuubi misspelled “holding” as “HODLing,” letting everyone know to hold on to their BTC when the market goes down. It expresses the intention of not selling a digital currency under any circumstances, regardless of how bad the volatility gets.

Over time, “HODL” or “HODLing” has become widely associated with investors (long-term) who believe in holding a digital asset for an extended period.

2. FOMO

“FOMO” or “Fear Of Missing Out” is a well-known psychological concept in the cryptocurrency industry that describes investors’ worries about missing out on profits from rising prices. It is significant as many coins base their market strategy on buyers’ anticipation of rising prices. As a result, FOMO can significantly affect the price of a digital currency, which can contribute to market volatility.

For instance, when the value of a digital currency increases, investors might rush to buy in, further increasing the price. However, this can be risky because the price might be artificially inflated and due for a correction. Once the digital asset goes through the correction phase, its price can decline, thus resulting in losses.

Recognizing FOMO helps beginners avoid emotional and costly trading mistakes.

3. FUD

“FUD” stands for “Fear, Uncertainty, and Doubt.” It is a term that refers to a strategy of spreading doubt and false information about a digital asset to drive its price down. The aim is to make investors worried or unsure about the growth potential of the asset.

Competitors or individuals can spread such false information about a cryptocurrency to make consumers doubt it. FUD creates panic among investors, leading them to sell their holdings and driving down the value of a digital asset. However, experienced traders learn to identify FUD and separate it from legitimate criticism. Therefore, as a beginner, cross-reference the information and consider the source before deciding.  

4. REKT

“REKT” is one of the crypto slang terms used in the cryptocurrency community that refers to someone who has suffered a significant loss due to a wrong investment or trade. REKT is slang for “Wrecked,” which means severe damage. For instance, if a trader invested heavily in a digital currency that suddenly crashed, they might say the trader got “REKT,” losing a substantial portion of their investment.

Beginners can learn from the mistakes of other investors and exercise caution in their own trading strategies.

5. DYOR

“DYOR” stands for “Do Your Own Research” in the cryptocurrency market. It refers to comprehensively analyzing the market before taking anyone else’s financial advice to invest. It is a golden rule to do it yourself, meaning traders should do research, study, and make their own choices based on their learning.

As cryptocurrencies are volatile digital assets, the lack of understanding of investment strategies and market developments can harm beginners. DYOR encourages investors to avoid hype or suggestions from others and thoroughly research and understand a digital asset before investing. Beginners can do fundamental analysis to evaluate the real value of a project, analyzing factors like team, technology, and adoption. On the other hand, technical analysis, which involves studying price charts and using indicators, can help beginners predict future price movements.

Important Reads: Best Indicators for Crypto Trading Every Beginner Should Know

6.      Pump and Dump

A “pump and dump” is a crypto market manipulation tactic where the value of a digital currency is artificially inflated to attract investors. Once buyers invest, the orchestrators begin selling the token, which causes the price to fall. It involves four phases: pre-launch, launch, pump, and dump.

Fraudsters create hype around a relatively worthless token in the pre-launch phase using tactics such as pre-sales. In the launch phase, they promote the coin to attract potential investors. The pump phase sees the price of the asset skyrocketing as more participants engage. Finally, in the dump phase, fraudsters start selling their holdings to make a profit, causing the token’s supply to exceed its demand, thereby taking down the price.

Beginners need to watch out for some red flags to spot pump-and-dump schemes. These include limited information about the token, a sudden rise in its price without an apparent reason, and an increase in its trading volume.

7. Whale

A whale is slang in the cryptocurrency industry for individuals or entities that hold a massive amount of a specific cryptocurrency. Whales have the power to influence the market, considering the size of their holdings.

When a whale purchases an asset, it can send the price of the asset soaring. Conversely, a large sell order from a whale can cause the price of the asset to drop significantly. For this reason, other traders continuously monitor the wallets of known whales to anticipate market movements.

8. Diamond and Paper Hands

Diamond and paper hands are popular crypto slang terms that are related to investors. HODLers, who hold cryptocurrencies for a long time, are said to have diamond hands. It means that they are not prepared to sell their assets anytime soon.

Conversely, paper hands are associated with short-term investors who seek quick profit opportunities. These investors are believed to sell their holdings when the price fluctuates quickly.

9. To the Moon

“To the Moon” is a popular phrase used to express a strong optimism that a digital asset’s price will increase significantly. The crypto community uses the term during periods of market hype, when the value of a coin rises sharply. For instance, if the price of Bitcoin rises sharply in a short period, traders might say “BTC is going to the moon.”

Beginners can help themselves stay informed about market trends and sentiments to understand this term. Cryptocurrency traders often use it to describe bullish market sentiments.

10. Bull and Bear

A “bull market” is when the price of digital assets is going up or projected to do so. It means investors are optimistic about the growth of the crypto market and think the prices will increase. It offers a good investment opportunity, and if the market remains positive, it indicates an upward trend. Additionally, a “bull trap” is a fake sign of a market uptrend. Although prices go up for a short time, they eventually drop sharply.

When the prices of digital assets are projected to move downward, investors say “the market is bearish.” It refers to long periods of price drops, which could last for years or even months. Additionally, a “bearish trap” falsely suggests that a price decline is imminent, leading traders to lose money on their short-term contracts. However, the price will go up again after some time.

Important Reads: What is Bearish and Bullish in Crypto Trading?

Final Thoughts

The cryptocurrency market is constantly evolving, and staying informed is crucial for navigating its complexities. By learning crypto slang terms, such as FOMO, WHALE, and FUD, beginners can gain insight into the market’s psychology and its culture. The key is to stay curious, excited, keep learning, and always remember the most essential slang of all: DYOR.

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