Michaël van de Poppe - 23 March 2022
Stay away from FOMO, don’t be a FUDster and maybe be a HODLer
Did you read that title twice or perhaps look up all those words? Well technically, they are acronyms and highly used in the crypto world.
Welcome to cryptocurrency lingo, where the terminology and acronyms are very peculiar. Peculiar in comparison with the normal average words we all know and use.
Rather than taking too much of your time looking up those words, we are here to help. So let’s get straight to the definitions of FOMO, FUD or HODL.
What is FOMO shortened for? Fear Of Missing Out. When a lot of crypto traders start out, they stumble upon the fear of missing out. You would be surprised that even some of the more experienced still struggle with it.
So what can you possibly fear that you are missing out on? The simple definition is that you as a trader or investor are scared to miss out on the price increase of certain coins or a new trending came that everyone is talking about.
Since crypto is volatile many traders see the prices of coins going up and believe that they will miss the opportunity to be a part of the rise. In the end, some traders end up selling their current coins which are at lower prices in order to buy the ones that are rising out of fear of missing any kind of profit.
If you keep up to date with acronyms FUD is also used outside the crypto world. If not, let’s explain what it is. It is short for Fear, uncertainty and doubt. A person who stirs things up by placing fear and doubt in others would be referred to as a FUDster.
We all know that the crypto market is volatile. Part of human nature is entering panic mode when there is uncertainty. When that happens a lot of doubt is created.
FUD can be spread by anyone for many reasons. Whether it is the rivalry of a company or even analysts to cause a stir and weaken the market
In 2013, someone in the crypto world had a drunken rant and misspelled “hold”. What was once a misspelling of “hold” has now turned into a strategy called HODL. This strategy is called “buy and hold”. Another acronym that HODL stands for is ‘hold on for dear life.’
HODL has been used to define those who are beginners in crypto trading who are too scared to lose their coins so they hold on to it.
HODLers completely disregard the market’s ups and downs and also avoid FOMO and FUD. They also are firm believers that one-day cryptocurrency will be the economy’s future.
While the terms we just covered are just the tip of the iceberg, there are far more to go through. We can say that there is an actual dictionary dedicated to them.
For now FOMO, FUD and HODL are the ones that you must be aware of and understand. They will definitely pop up in conversations as well.