Cryptocurrency Acronyms: HODL, FOMO, FUD, BTFD and so on
If you listen to many YouTube or Facebook videos on BitCoin, LiteCoin, Ethereum, and the other alt coins, you will have to know these acronyms.
- HODL – Hold On for Dear Life – This is a style of investing where you believe that long term the coin will go up in value, but it could take a while. Crypto’s are known to be quite volatile, so you have to ride it like a roller coaster, accepting the lows with the highs.
- FOMO – Fear of Missing Out – This could apply to people who aren’t in crypto at all, or to people who don’t have a coin, and buy it when it is high, because they fear missing out a “moon shot” or meteoric/exponential rise. This often leads people to buy at the top of a market cycle and potentially lose on their investment.
- FUD – Fear Uncertainty and Doubt- this could include news that makes the cryptos go down in value (such as today, when Warren Buffet said he would never invest in BitCoin or any of other crypto). It can also be used dissuade people from using Bitcoin and instead only use government-authorized money (like dollars), or can be gossip aimed at lowering the value of any coin or companies perceived value.
- BTFD – Buy the Freaking Dip (this is the PG-13 version, substitute the third word as desired). If you are going to invest in any coin or token, instead of buying at an all time high, often the price will retrace and go down a little (thus called “the dip”). You can get more coins and thus make more profit if you buy on the dip before it goes up again.
Just like the stock market has ticker symbols, most coins have a similar abbreviation; but there is no standard governing body that sets the abbreviation. So for example BitCoin is often referenced to as BTC, LiteCoin as LTC, and Ethereum as ETH. In some cases, the names can be confusing, such as Cardano, who’s coin/symbol is ADA (both are named after historical figures).