When approaching the cryptocurrencies communities for the first time, it is common to get lost amongst weird terms and incomprehensible acronyms. In this article, the CedarFX team collected the 10 most popular terms that any trader should know.
If navigating your social media, you see a user with a profile picture showing flares on his eyes, you found a cryptocurrencies investor. The LaserEye meme represents a commitment in the cryptocurrency community to edit their profile picture showing 2 laser eyes until Bitcoin reaches $100k. However, the LaserEye meme evolved and now represents an endorsement to cryptocurrencies. Since then, many celebrities and politicians updated their profile picture to signal their support toward the cryptocurrency industry.
The cryptocurrency market is renowned for its volatility. In fact, cryptocurrency might regularly go up and down by 10/20/30% within a day, inducing panic amongst beginner traders. Hodl here refers to the act of holding on to your assets even if the market tries to shake you out.
A no-coiner is someone who dismisses or ignores cryptocurrencies and their merits, while talking about other assets. If you like investing in multiple types of assets, CedarFX lists over 190+ different type of instruments.
HFSP stands for “Have Fun Staying Poor ” and is a meme born through online conversations going on between crypto-holders and nocoiners. As cryptocurrencies holders have strong convictions about the future of cryptocurrencies and the devaluation of other assets, online conversations often end up with “HFSP.”
DeFi stands for Decentralized Finance. It refers to the number of applications built on blockchain technologies that allow users to use their assets for a variety of financial service once exclusive to banks and financial institutions. The most common activities are lending, borrowing, and farming.
NFTs stand for Non-Fungible Token. These are digital assets built on blockchains that provide proof of ownership for the related digital artefact. NFTs are finding applications in many industries particularly art, fashion, and gaming. NFTs are also considered one of the main elements for the upcoming Metaverse.
DYOR stands for Do Your Own Research. It means that cryptocurrencies investors should investigate and research a project before investing their money in a specific coin.
ATH is the acronym for All Time High and refers to a new price-record set by a cryptocurrency. At the time of writing, Bitcoin ATH is $68,789.63 and Ethereum ATH is $4,859.50.
A trader who is holding a large stake of a cryptocurrency is holding a bag. Traders often accumulate and hold their favourite coin, ending up with a significant percentage of their portfolio invested in a specific coin.
FOMO stands for Fear-Of-Missing-Out and refers to the situation where traders rush to buy a coin as they feel they are missing a big opportunity. However, like most trades that are the result of panic, these end up being a terrible choice afterward. Never let emotion drive decisions.
Now that you know the main terms and acronyms of the crypto space, you can join the cryptocurrencies revolution by opening an account on CedarFX and trading the most promising projects with leverage and 0% commission.
CedarFX is an award-winning ECN Broker that lists 190+ assets including cryptocurrencies, indices, forex and more. CedarFX stands out for its 0% commission feature on all trades and a powerful leverage of up to 1:500. Open an account today.