By Sara Busquets (translated by Roberto Pérez)
Investing.com - Cryptocurrencies have become the topic of the moment. Bitcoin touched an all-time high above $48,000 yesterday for the second time this week and is still trading bullish at this time on Friday. The 'Reddit effect', Elon Musk's tweets, or the support of large companies, such as BNY Mellon US Large Cap Core Equity ETF (NYSE:BKLC) or Mastercard Inc (NYSE:MA), have served to shake the powerful digital cocktail shaker, making the investment world pay attention again to this digital asset, taking note of its movements and taking a crash course to understand the jargon that is handled in this market, both in Spanish and English, which is why we are already a globalized world.
Yesterday we worked in the newsroom to understand Musk's latest tweet on the subject, with the aim of reporting on his latest comments, which we have already seen have a major impact on the crypto universe:
Concepts such as 'hodler', which the Tesla Inc (NASDAQ:TSLA)CEO used, are becoming popular among digital currencies' investor communities, something that has also been favoured by social networks or the arrival of increasingly younger stakeholders. Words are shrinking to get into a tweet or to streamline conversations in these fast-moving times. So, for all those who want to be part of this universe and understand what is "cooking" in it, a little help from Investing.com to make it easy for them to understand this new vocabulary:
Whales
In traditional markets, it is easy to use bears and bulls depending on the type of investors we want to refer to (bearish and bullish). In the cryptocurrency market, however, we do not talk about those animals, but about whales, a term used to refer to those crypto investors with a great capacity to move large sums of money.
According to Cryptotrend "among the most famous known whales, we have Pantera Capital, Coin Capital Partners, Falcon Global Capital, among others. However, it is important to note that not always their identity is known."
Dolphins
The bitcoin dolphins are the investors that move more than 500 Bitcoin, but they are not as common as whales. The latter handle more amounts of money, but it is the dolphins who manipulate the market more assiduously.
HODL
Peter Saddington, an entrepreneur in the crypto world and head of The Bitcoin Pub community, explains that when the Bitcoin fever began, someone posted a message with the word "hold" spelled incorrectly, which led many to interpret it as an acronym for "hold on for dear life". Thus, far from being corrected, it has emerged as a term used in memes and communities to describe long-term investors in the currency.
FUD
Another term you may see written in networks or forums is FUD, an acronym for "fear, uncertainty, and doubt". Thus, it can be used to encourage investing in crypto even if the timing is not the most appropriate because of those three concepts.
Sats
Satoshi Nakamoto was the head (person or group) who created the Bitcoin protocol and its reference software. Many have borrowed the abbreviation of his name to link it to the smallest fraction of a Bitcoin that can be sent. "Instead of using the dollar reference, real traders measure their holdings in sats or satoshis," Saddington adds.
Mooning
An English term used in conjunction with cryptocurrencies to indicate that a price is skyrocketing. We must be careful with it, and with the messages we see on platforms of dubious reliability, especially in a sector like this, which is characterized by very volatile movements both up and down. Let us not forget that in these messages may be implicit the desire to inflate the price for their own benefit.
Pump and dump
Somewhat in line with the previous term, we have the "pump and dump" scheme. This is a term that can be used in forums when you want to get everyone to agree to artificially boost a currency, creating demand in the market and making its value rise. The asset goes up and so everyone sells at a higher price. The buyer loses out, as that same price can take a few seconds to go down.
This is a stock market scam that mainly targets securities of very little value, as they are easier to manipulate and you do not need many new buyers to achieve your goal. Beware, it can lead to a heavy fine.
Bag holder
This is a person who has invested in an asset and holds it until its value falls below 0. If you insist on maintaining this position despite falls and want to wait until it is worthless, then you would be a 'bagholder'.