Top Cryptocurrency Acronyms & Bitcoin Definitions You Need To Study
Cryptocurrency is an environment that is always growing and shifting according to the demands of the market. As this system becomes more complex, as does the jargon used in conversation. Acronyms play a big part in cryptocurrency dialogue, sometimes without the knowledge of what they refer to. This means that it can be hard to follow the information being shared around without being lost in all the lingo.
Top Cryptocurrency Acronyms & Bitcoin Definitions
So here are ten of the most popular cryptocurrency acronyms that people should know about.
OTC means Over the Counter and refers to a type of trading that does not occur on an exchange service. When something is said to be OTC, it means that buyers and sellers agree upon an exchange rate with the help of a third-party escrow, and do business with each other directly. OTC trading usually happens among teams, and with private investors. This is done so that the large volumes do not disrupt the market, especially in the case of low-cap altcoins.
A graphics processing unit is a part of a computer that is responsible for the creation of images, and is used in PC gaming. GPUs also play a role in the mining of cryptocurrencies that use proof-of-work algorithms. As a result of this, there has been some tension recently between miners and PC gamers, as the demand for GPUs has led to a shortage of GPUs available and the rapidly increases costs for available hardware.
ATH means all time high, and is the maximum price that a coin has reached. ATH can be expressed in terms of either USD or Bitcoin. One of the best feelings for investors is if their coins reach an ATH, skyrocketing profits. Also, seeing a coin drop from an ATH is a natural but deadly feeling
DEXES means decentralized exchange, and are sometimes considered to be the future of cryptocurrency trading. This is because centralized exchanges have failed its users in the past due to hackers and poor support, as well as high fees. To combat these problems, the crypto community has turned to decentralized exchanges. When trading on a DEX, buyers and sellers maintain ownership of their funds and then the DEX serves as an intermediary between trades.
FUD is Fear, uncertainty and doubt. This refers to the act of malicious or ignorant people to say things to drive the price down. Sometimes FUD occurs by the mainstream media through simple understandings, while others are an intentional act pump-n-dump the market for low-cap shill coins.
Fear of missing out is the opposite of FUD; instead of spreading news to crash a coin, FOMO is used to make its price shoot upwards. FOMO can take the form of hype that’s either natural or orchestrated: things like news stories and sharp price movements can all be attributed to FOMO, as well as panic buying and panic selling.
ICO means Initial Coin Offering, and is perhaps the most mainstream acronym used by media in the sphere of cryptocurrency. An ICO is similar to a crowdfunding approach for decentralized applications and new cryptocurrency standards. ICOs are important for companies that launch them, as the success of their ICO often reflects the future of the company’s financial performance.
There was once a time when ICOs were met with the utmost skepticism, but that perception is slowly starting to change. Most ICOs are legitimate, just like the use of most cryptocurrencies is legitimate that overshadows their criminal element.
BTFD means buy the f***ing dip. As the words describe, this involves simply buying a coin that has experienced a correction in its value. Another word to describe a price dip or correct is oversold, which can be attributed to FUD expressed by a large influencer. But sometimes dips are a natural part of the market, and people who BTFD can find them at a loss over the short-term, leading the next wave of buyers to BTFD at the first sign of trouble.
Do your own research is DYOR, and is possibly the most practical piece of advice ever given across investment markets. DYOR suggests people to use their heads and think about investment decisions for themselves instead of relying on advice from a third-party. Doing your own research also helps to combat the emotionalism of FOMO and FUD. The common theme among traders is that they all take the time to DYOR.
HODL is not actually an acronym, but is one of the most popular phrases used by cryptocurrency investors. HODL has its origins from a Bitcointalk forum post from December 2013, just as the Bitcoin price was crashing. Since that post, HODL became a joke amongst the community, and its wide spread use has not ceased since its introduction.
HODL means hold on for dear life, which is a reference to not selling one’s coins when things go bad. Instead of selling coins off in a panic, people should hold on to their investments and sell when the price soars higher.