Personal finances can be confusing and investing in stocks can be intimidating for the uninitiated. Trying to understand buy points, average dollar costs, cut and grip patterns of stock prices, and other elements of stock marketing investing – not to mention the various clues that reveal trends in the stock market. market – often requires a lot of study or expert advice.
And then, investing in cryptocurrency bursts onto the scene with language of its own, largely driven by retail equity investors, millennials, and social media. Some of the jargon also applies to stocks, as it was borrowed from memes stock investors and was cordially traded on the Reddit / WallStreetBets sub-thread during the GameStop stock market frenzy.
Here’s your guide to crypto lingo, so whether you choose to invest or not, you know what Elon Musk means when he throws his fist to the sky on “Saturday Night Live” and says, “To the moon! “
Diamond needles – When a crypto or stock investor has “diamond hands”, it means that he will keep his coins or stocks even if the value goes down. On March 19, as Bitcoin fell from over $ 45,500 per coin to under $ 40,000, Tesla TechnoKing Elon Musk tweeted “Tesla a” with emoji for “diamond” and “hands.” He attributed the statement to Tesla’s “Master of Coin”.
Paper hands – On the other hand, someone with paper hands can sell stocks or coins too early, thus losing unrealized profits. The analogy comes from poker, where someone can “fold” or quit the game if they think they are not going to win.
HODL – Pronounced Ha-dill (rhymes with pattern), HODL means someone who has no intention of selling their crypto or stock. The term originated in a Bitcoin forum in 2013 when someone misspelled the word “hold”, stating “I AM HODLING”. The word also applies to memes stocks.
Whale – A whale describes someone who owns a large percentage of a specific crypto. Investopedia writes that the top 20% of bitcoin holders own more than 80% of bitcoins. When these companies choose to sell coins, it can affect the market more than the single stocks of most investors. Surprisingly, Tesla is on the verge of being considered a whale, and the electric vehicle maker doesn’t even own the most shares of a state-owned company, according to Fortune. It seems only Musk’s tweets are shifting the crypto value.
To the moon – It is difficult to trace the origins of the expression “to the moon”, but the meaning is self-explanatory. Just like the landing of astronauts on the moon in 1969 (and even today …) was a questionable proposition with high stakes for success, a stock or crypto that goes “to the moon” simply means that its price will rise to make untold profits for investors.
When Lambo – Similar to “To the Moon”, Lambo (short for luxury car Lambhorghini) appears when investors ask when a cryptocurrency will be highly profitable for investors, allowing them to cash it in for the car of their dreams.
Moon – When a stock or crypto is declared “mooning”, experts believe it has reached its peak. Sure, those who HODL could get caught losing money if they decide to sell in the future, but those who sell at the highest level could “land a Lambo on the moon.”
Bag holder – If crypto or a meme stock goes in the opposite direction, however, anyone who remains in possession after the point of sale is considered a “bag holder,” likely to lose money if they sell their own. active.
Pump and empty – Pump and Dump refers to investors who attempt to illegally increase the value of a stock or crypto only to sell when it peaks. Previously relegated to small-cap, easy-to-manipulate stocks, investors have also started to do so with crypto.
Buy the dip – When a stock that is expected to rise in price suddenly drops, some investors advise people to “buy down”. Wednesday’s crypto crash led to a flurry of “buy the down” memes.
The musk effect – This newly coined phrase describes the billionaire Elon Musk’s ability to shake the market with just one tweet, as it did on Wednesday, hinting that Tesla would not sell its stake in Bitcoin, which helped the cryptocurrency regain some earlier losses.
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This article originally appeared on GOBankingRates.com: Cryptocurrency Jargon: A Guide for the Crypto-Curious