Whether it’s bitcoin.com, cointelegraph.com or decentralize.africa, reading crypto related content on any platform might be a little confusing for those who are only just entering the crypto space.
Understanding some terms used in the crypto space, makes the importance of cryptocurrencies and the philosophy of decentralized banking, easier to understand.
Be your own bank
Financial freedom is one advantage that cannot be over emphasized in the crypto space. The term: be your own bank, stems from this.
Cryptocurrencies give users total control over their financials. All that is needed is an internet connection and an crypto wallet. No bank, no intermediaries. You keep and transfer your cryptocurrencies however you like.
In his manifesto, Satoshi Nakamoto, the creator of Bitcoin, said it will make financial transactions cheap, fast and secure without giving away too much information. Once you purchase a cryptocurrency such as bitcoin on a platform like Luno, Binance or Yellow Card, you keep it in your online wallet. For more security, some transfer to a hardware wallet.
There’s no charge for safety, no need for personal details. Users are in total control of their assets.
DYOR stands for Do Your Own Research. It’s not a term used exclusively in the crypto space, but it is very common among crypto traders and enthusiasts. In an age where anyone can easily share information on interwebs, it’s essential to make sure all information is valid. Stumbling on wrong information and following up with it could lead to loss of lives and property.
Crypto scams are unending, a lot of investors have been victims to fake ICO projects. One could say DYOR sprung out of the need to remind investors that they are responsible for their investments.
The term is also often used as a disclaimer when crypto enthusiasts or media platforms share their opinions.
This is more of a slang than a term. It simply means holding on to a digital asset like bitcoin, rather than selling it. It is also said that the term stemmed from a social media post made during a drunk rant by GameKyuubi, a failed crypto trader who decided he was going to start holding his coins rather than selling them. His social media post, riddled with several typos, was either owed to his anger or semi drunk state. Severally misspelling the word Holding as Hodling it wasn’t long before his error was turned into memes and became popular.
HODL is now an approach to investing that shuns exploiting highs and lows in market prices and just HODLING onto coins for a long period of time, not worrying about volatility.
FUD and FOMO
FUD ( fear, uncertainty, doubt) and FOMO (fear of missing out) are what Hodlers try to avoid. FOMO can lead to buying high while FUD can lead to selling low. So hodling saves you a ton of anxiety.
Whales are people who own an incredible of cryptocurrencies. What these whales choose to do with their coins could very much affect the price of cryptocurrencies. The whale is the biggest animal in the ocean, so the metaphor is very apt with the ocean being the crypto market. These whales aren’t in all cases individuals, they are most times institutions with bitcoin investment funds.
Pump and Dump
From time to time there’s always a new coin on the crypto streets. It gains so much popularity and fans, this leads to a spike in its price but tragically followed by a monumental crash. It’s best to DYOR before investing in any new coin.
Someone who spreads FUD’s is known as a FUDster.