Venturing into any new world often requires getting familiar with a new set of terms and phrases. The crypto industry is no different, and in this piece, we’re going to introduce you to the terms and phrases you’re likely to come across, the need-to-knows, and everything else in between. Let’s uncover what hodl means along with several other crypto acronyms you’re going to meet along the way.
What Does Hodl Mean, And Where Did It Come From?
No that’s not a typo, it’s meant to read like that. The term refers to “holding” a cryptocurrency for a long period of time and not be tempted to sell despite the market’s turns. Traders who sell under pressure are often referred to as “weak hands” while the true hodlers among us are “strong hands”.
So where did the phrase come from? It originated in 2013 when a seemingly intoxicated trader was venting his frustrations on a BitcoinTalk forum, expressing why he was an avid hodler. As things tend to do in the crypto industry, it caught on like wildfire and has been adopted by the industry since then.
Crypto insiders have since labelled the acronym to stand for Hold On For Dear Life, however, this was a later development.
Useful Crypto Acronyms You Need To Know
Alongside hodl there are several other terms and phrases you’re likely to come across. Below we share the top ones to help guide you through the crypto world with more ease and confidence.
Stands for: All-Time High. This refers to the highest price that a cryptocurrency has ever been traded at. For instance, at the time of writing, Bitcoin’s ATH is $64,863.10 reached on 14 April 2021. Additionally, ATL stands for all-time low, referring to the lowest a cryptocurrency has ever traded at.
A Bitcoin maximalist refers to a die-hard Bitcoin fan who sees no other future but Bitcoin for the crypto industry. They tend to be vocal about their beliefs and believe that Bitcoin will be the only cryptocurrency to enter mainstream adoption. While currently way ahead of any other altcoin, the future remains to be seen.
Stands for: Fear Of Missing Out. This term is used to describe traders making rash decisions based on the fear of missing gains. It more often than not refers to traders buying (as opposed to selling) cryptocurrencies during a rally, chasing gains and not wanting to miss out on any action.
Stands for: Fear, Uncertainty and Doubt. This is used to describe any ill-advised information published in the media or speculative rumours, basically any intentional spread of misinformation. This is often done to manipulate traders - both into buying or selling - to the individuals’ own benefit. Stick to reputable sources when staying informed.
Stands for: decentralized applications. Dapps refer to any apps built using blockchain technology, but not necessarily involving the actual building of a blockchain. Many platforms have been launched that provide the necessary tools to build dapps and smart contracts for developers, namely Ethereum, Solana, and Cardano.
Stands for: decentralized finance. The DeFi industry has taken the world by storm and in just three years has built up a market cap of over $100 billion. Much like cryptocurrencies were invented to bypass the middleman, DeFi has the same core function but includes traditional financial services like savings, insurance, loans, etc. While still in its infancy, the industry has displayed incredible growth and widespread crypto adoption.
Stands for: do your own research. A very important acronym for any newbie or experienced trader in the crypto space - always do your own research and don’t solely rely on anything that the media or any influencers publish (remember FUD?). Stick to interpreting your own charts and doing your own research over what anyone might be telling you on Twitter.
Also sometimes written as “halvening”. While not an acronym, halving is a phrase you’re going to come across a lot (particularly every four years). Halving is when the mining algorithm changes and miners are rewarded half of what they previously earned. This is written into the cryptocurrency’s code and triggers at a certain time, for example, Bitcoin’s halving kicks in at every 210,000th block (roughly every 4 years). Historically, halvings tend to trigger bull runs.
Stands for: wrecked. Initially a gaming phrase, rekt refers to making severe financial losses on a trade. Whether a long term or short term trade, poor judgement or unfortunate circumstances can lead to this crypto term, and rekt is not something you want to be.
On a more positive note, this crypto term you need to know refers to a trader with large amounts of one particular coin. Their holdings are so large that when they make trades (usually big ones) they tend to influence the market. Typically, when referring to Bitcoin whales, these traders have over 1,000 BTC. The term often comes alongside suspicions of market manipulation, as they have the power to alter prices due to the large volumes that they hold.
Now that you’re familiar with what hodl means and the other mentioned terms, you’re likely to see them pop up more often. Used commonly throughout all avenues of the industry, you’ll be well on your way to speaking the lingo soon. To stay in touch with other crypto 101 content and be sure to keep your eye on our Oobit blog, packed with insightful and informative content.