The most famous terms and abbreviations most used in the cryptocurrency market
If you are new to cryptocurrency, you will hear many trading terms that may seem unfamiliar at first glance, such as:
FOMO, ROI, ATH, HODL…
what do you mean?
In the following, we will deal with it in some detail.
1. Fear, Uncertainty and Suspicion (FUD):
Although not a commercial term, it is often used in the context of financial markets.
“FUD” is a strategy that aims to discredit a specific company, product or project by spreading false information about it.
The goal is to instill fear and gain an advantage in some way.
This could be a competitive or tactical advantage, or take advantage of a drop in stock price or digital currency induced by potentially harmful news.
“FUD” is very popular in the cryptocurrency space.
In many “FUD” cases, the information turns out to be false or misleading.
And in some cases, the information turns out to be correct.
It's a good idea to try to consider all aspects of the arguments presented and look for logical evidence before panicking and selling for a loss.
2. Fear of missing out and missing an opportunity (FOMO):
FOMO is the feeling investors feel when they flock to buy a cryptocurrency for fear of losing a profit opportunity from it.
FOMO sentiments lead many people and make them rush to buy the digital currency without good research and positioning, and the FOMO sentiment causes the price of the digital currency to rise rapidly and is usually unsustainable.
3. Holding the digital currency for a longer period of time (HODL):
HODL is a term that is derived from a deliberately misspelled "Hold".
Hoddle means keeping the digital currency and not selling it.
The term “HODL” originally appeared in a now popular post on the “BitcoinTalk” forum in 2013.
This term was misspelled in a post titled: “I AM HODLING”.
“HODLing” refers to holding investments despite lower prices.
It is also commonly used in the context of “HODLers” investors who are admittedly not good at short-term trading.
The term can also be used for investors who are highly convinced of a particular currency and intend to hold their investment for a longer period of time.
4. Continue building the project regardless of price fluctuations “BUIDL”:
“BUIDL” is a term that is derived from “HODL”.
The term usually describes those involved in the cryptocurrency industry who continue to build regardless of price fluctuations.
The main idea is that true believers in the cryptocurrency industry continue to build the ecosystem regardless of bear markets.
In this sense, BUIDLers really care about what blockchain and cryptocurrencies have to offer to the world, and they are actively working towards this goal.
BUIDL is a mindset that aims to explain how cryptocurrencies are not just about speculation, but about bringing this technology to the public.
5. Cryptocurrency Fund in SAFU:
The term “SAFU” was first coined as a joke and “meme” by the owner of the YouTube channel “Bizonacci”.
And it means that the digital currencies in the trading platform are safe, as CZ CEO of Binance reiterates it frequently, saying that “funds are in a safe position” during the unscheduled maintenance of the platform.
Binance has created the Safe User Asset Fund “SAFU”, which is an emergency insurance fund that is funded by 10% of trading fees.
This money is stored in a separate cold wallet.
The idea is that SAFU may cover the loss of user funds in extreme cases, providing an additional protection cover for Binance users.
This is why you may often hear the phrase “money safe” “SAFU”.
6. Return on investment (ROI):
Return on investment (ROI) is a way to measure investment performance.
ROI measures the return on investment relative to the original cost.
It is also a convenient way to compare the performance of different investments.
As for how to calculate the return on investment, they are as follows:
The present value of the investment subtracts the original cost of the investment and then divides this number by the original cost.
ROI = Present Value - Original Cost / Original Cost
Let's say you bought Bitcoin at $ 10,000.
The current market price of Bitcoin is now $ 50,000.
ROI = 50,000-10000 / 10,000
ROI = 4
This means that the investment is 400% more than the original investment.
It's also worth considering the fees (or interest rate) you'll have to pay to get a more accurate number.
7. All-time Highest (ATH):
The highest level ever is the highest rate recorded for the digital currency.
For example, Bitcoin ATH during the 2017 bull market was $ 19,798.86 on Binance.
This means that this was the highest price Bitcoin was traded at in Binance in 2017.
8. All-time Lowest Level (ATL):
Unlike ATH, the lowest rate ever (ATL), is the lowest price a digital currency has ever reached.
For example, the lowest ever price for BNB was $ 0.5.
A break of an all-time low of a currency can have an effect similar to that of a breakout of an all-time high, but in the opposite direction.
These were the most prominent terms used in the crypto market