Cryptocurrency Terms You Should Not Miss! (Part 1)



Oct 17, 20222 min read

Cryptocurrency Terms You Should Not Miss! (Part 1)

If you’ve ever jumped into questions like “What is BUIDL?” or are perplexed by acronyms like BTD or IYKYK  — you’re not alone. Explore them with us now!

1. Apeing

Apeing is when a cryptocurrency trader buys a token immediately after the token project launch without completing full research, mainly because they are afraid of missing out on possible returns if they wait to conduct due diligence.

2. Bagholder

When someone clings on to their possessions despite a steady decline in their worth, such an individual is said to be a bagholder. In the typical case, they may continue to keep their position even when an asset's value virtually zeroes out in the hopes that its price would ultimately increase (or simply out of fear of losing).

3. Bitcoin Maximalist

Bitcoin Maximalists think that Bitcoin is the only cryptocurrency with real value and the only digital asset that is worthwhile promoting.

4. BTD

‘Buy the dip' (BTD) means taking advantage of the opportunity to lock in more cryptocurrency at a lower price. The theory is that the price will ultimately recover and, more than likely, rise in value.

5. Cryptojacking

It is a sort of cybercrime in which a hacker uses an unknowing victim's processing resources to surreptitiously mine bitcoin on the hacker's behalf. Cryptojacking, also known as 'malicious cryptomining' became a prevalent issue during the 2017 crypto bubble when the prices of Bitcoin and other cryptocurrencies surged.

6. Diamond Hands vs. Paper Hands/Weak hands8

Traders' risk tolerance is described by the words ‘diamond hands’ and ‘paper hands’.

Regardless of market conditions, a trader with diamond hands will stick it out to the very end. Diamond-handed traders hold onto their tokens until they have, in their opinion, attained their maximum potential before caving and selling them.

A trader with paper hands or weak hands, however, will cut their losses at the first hint of problems and sell their position (or panic sell). Traders with paper hands often have low risk tolerances for high-volatility tokens and exit their positions early in order to prevent losses.

7. Whale

A whale refers to a person or entity owning large amounts of a certain cryptocurrency. While there is no official threshold to be considered a whale, the number of coins or tokens held needs to be significant enough to have an impact on market prices should holders buy or sell. Essentially, they have enough funds to manipulate the market.

Find out more about IYKYK, FOMO, FUD in the next part of this article. Stay tuned!