Now that you’ve read our Blockchain Terms, read our useful Trading Terms to give you some insight into the everyday conversation terms used in Crypto articles, news and forums.
Investors who buy and hold coins hoping to make profits in the future. They have possibly fallen for a pump & dump trap or bought into a coin at a high price and then are left to hold the coin as its price drops. They are holding the coins because they might not have another choice, if they sell they lose quite a lot, in other words they are left “holding the bag”.
Buy The Dip
Sometimes also known as Buy The F*%$ing Dip means to buy a coin when it’s lost quite a bit of its value because from now on the only way is up. This is one basics of crypto (or any) trading!
A buy wall occurs when the number of buy orders for a certain coin is greater than the amount of sell orders. See how to use buy and sell walls when trading.
Selling off a coin. Dumps normally happens when there is negative news or Whales playing leading to a Bear Market and everyone sells off (dumps) their coins.
Fear Of Missing Out. When the coin price is increasing fast and you want a piece of the action. You frantically buy into a coin to avoid missing out. This usually happens during a pump and you end up buying at ATH.
Fiat currency. Legal currencies such as US Dollar (USD), Great Britain Pound (GBP), EURO, Chinese Yuan Renminbi (CNY) and so on. Usually used to buy coins or swap your coins for such a currency. Also coins are linked to a Fiat currency to determine the coin’s monetary value.
Fear Uncertainty & Doubt. Fake or bad news that’s spread about a coin to cause others to doubt their investments and sell, or prevent from buying into a coin. Tactics used by anonymous groups or individuals to make a quick buck by panicking the market.
Purposeful misspelling of Hold, or maybe even “Hold On for Dear Life” (HODL) when things are really bad. This is the practice of holding on to a long term investment without giving in to the urge to sell when prices are going down fast. This is normally a rallying cry of investors who bought at really low prices or at ATH, encouraging others not to sell so their own investment doesn’t get worse.
Pump & Dump
A tactic where groups buy into a coin cheap and spread hype causing unsuspecting investors to buy in. More investors get FOMO and buy the coin causing prices to go up, and the more investors get FOMO. This starts a a vicious positive feedback loop causing the price to “pump” up. Then the groups “dump” their coins when the price is high causing a crash, leaving the unsuspecting investors left with over priced coins. There investors then either sell their coins at a loss or keep their coins for long term and are known as “bag holders”.
Individual or group who hold a very large number of coins. They can influence the price of a coins by buying/selling in large numbers causing panic selling or bullish buying. These Whales usually manipulate the market through their “pump and dump” tactics. No one likes Whales, they play their games causing small investors to lose their money.