When you first enter the world of cryptocurrencies, you’ll come across a series of terms and expressions that may seem confusing at first. To help you navigate this new world, we’ve put together a guide with some of the most common and important expressions:

FOMO (Fear of Missing Out)

FOMO stands for “fear of missing out” and refers to the anxiety investors feel when they believe they are missing out on a profitable opportunity. In the crypto world, FOMO can lead people to invest impulsively, often at bullish times, for fear of missing out on potential gains.

Bearish

The term “bearish” is used to describe a downward trend in the market. A bear market is characterized by declining prices and an overall pessimistic sentiment among investors. When someone says they are “bearish” on a cryptocurrency, it means they expect its value to decline.

Bullish

The opposite of “bearish,” the term “bullish” refers to an upward trend in the market. A bull market is marked by rising prices and optimism among investors. When someone is “bullish” about a cryptocurrency, they believe that its value will increase.

HODL

Originally a typo of the word “hold,” HODL has become an acronym for “Hold On for Dear Life.” It’s an investment strategy that involves holding onto your cryptocurrencies for long periods of time, regardless of short-term market fluctuations.

ATH (All-Time High)

ATH stands for "all-time high" and represents the highest price ever reached by a cryptocurrency in its history. For example, $BTC now.

DeFi (Decentralized Finance)

DeFi refers to financial applications built on blockchain networks, aiming to create an open and intermediary-free financial system.

Altcoin

A term used to describe any cryptocurrency other than Bitcoin. It is a combination of the words "alternative" and "coin".

Whale

In the crypto context, a "whale" is an investor who owns a large amount of a given cryptocurrency, capable of influencing market prices with their transactions.

Dip

Refers to a temporary drop in the price of a cryptocurrency. Many investors view dips as buying opportunities.

Understanding these terms is essential to navigating the world of cryptocurrencies with more confidence. Always remember to do your own research (DYOR) before making any investment decisions.