Cryptocurrency- Primary Terms you should aware of

Cryptocurrency has fully conceptualized in the finance sector and will be mainstream in the economy soon. There are still people left out and confused about the jargons related to cryptocurrency and have no idea about the working of these digital tokens. Here are some of the terms which you should know before using cryptocurrencies.

1.     HODL

HODL was formerly originated from a forum post where the user misspelled ‘HOLD’ as ‘HODL’ in one of his post. Since then the term has gone viral, which is popularly abbreviated for ‘Hold On For Dear Life’. It attributed to the sentiment among the crypto-geeks to be fearless because of the volatility and hold on to their coins.

2.     Altcoins

Coins other than Bitcoins are referred to as Altcoins. Altcoins are the subdivided version of the cryptocurrency with less potential value or use. These coins are typically promoted or referred to by people who are holding them. 

3.     FUD

It stands for ‘Fear, Uncertainty, and Doubts’. FUD is a disinformation strategy to spread negativity and propaganda used by someone who wants to create a ruckus among the crypto holders. They usually pass on the false message concerning the price drop of certain coins.

4.     Pump and Dump

People frenzy about bitcoin had gained a lot of attention, many investors showed interest which leads to the fast price increase. They later pile up the coins and diminish the supply, this ends up the course followed by the huge crash. Traders buying coins in high volume are the one who pumps, they may wish to sell out the coins. Whereas, the dumpsters are the one who purchases these coins and sell at higher price.

5.     Bullish and Bearish

Bullish: Estimation of the coins to get high. For instance, optimistic analysts are predicting the price of Bitcoin to raise about $300,000-$400,000

Bearish: Estimation of the coins to get low. Other altcoins are generally bearish as people do not see value in them or see a lesser value. 

6.     Bagholder

Altcoin holders even after facing a crash may refer to as bagholder, seeing the value of the coins sinking and having no scope in the future to get a rise. The term is also referred to the traders who purchased coins at a high value but ending up by selling at a wrong time (when the coin is worthless).

7.     Shilling/Pumping

The act of endorsing coins in public, these are the traders who purchased coins at the rate of ‘pennies’ which is also termed as shilling the coin, anticipating the public’s interest to increase so that the price can take a surge or pump up in the future.