14 essential terms to understand cryptocurrencies
The cryptocurrencies are not at their best. Relatively. If you compare their values with those of December, they have lost a lot. But if we compare them with those of a year ago, the most powerful are still worth seven times more than at that time.
If you want to enter the world of cryptocurrency there are only two tips that will always work: do not invest more than you are willing to lose and know the world.
To know the world of crypto you have to understand its slang. In TreceBits we tell you what the terms that are going to appear the most appear to be diving in the world of the financial blockchain.
-Exchange: Those web pages that allow the sale of cryptocurrencies. There are many, and not all offer the same catalog or have the same commissions. It is important to choose well, since the commissions in purchase and sale will be reflected in the profits or losses. In addition, the offer of cryptocurrencies is important, since some with good health are only offered on certain pages.
-ATH: All Time High. This term refers to the highest value in the history of a cryptocurrency. Many people warn against buying at ATH thinking that it will continue to rise indefinitely.
-HODL: Intentionally badly written form of hold. It means to maintain. In crypts there are two fundamental strategies, which are to play short or long term. In this second mode, keeping unsold despite the losses is one of the keys, so many people do hodl although the currency is sinking, waiting for recovery. Those who spend with the hodl become bagholders.
-Bagholder: When you keep a coin a long time, expecting a spectacular price increase that does not arrive. In the end, the coin loses all value and the person is carrying useless bags.
-FUD: Fear, Uncertainty and Doubt, or what is the same, fear, insecurity and doubt. This term applies to those (FUDers) that spread negative rumors about a currency, intentionally or not, which will ultimately affect its price.
-FOMO: Fear Of Missing Out or fear of being left behind. This term refers to those who get into the world of crypts because, in the face of the profits they perceive in their environment, they fear falling behind and not making profits.
-MOON: To go to the Moon. When a coin begins an exaggerated price rise. The dream of every hodler.
-Altcoin: Bitcoin is the most famous and most valuable cryptocurrency, but it is not the only one. All those that are not Bitcoin are called generically with this term.
-ICO: Initial Coin Offering. It's like when a company goes public, only in this case, it is a company that starts with its own altcoin to finance itself. Many have proven to be frauds, so be careful when talking optimistically about the ICO of a company.
-Pump: When the price of a coin rises.
-Dump: When the price of a currency goes down.
-Bears: Bears. Those who have a pessimistic projection about the future of the crypts.
-Bulls: Bulls The opposite of bears. Those who believe that cryptocurrencies will advance with the strength and speed of a bull.
-Whales: Whales. The big fish of the market that possess huge amounts of cryptocurrency.