Cryptocurrency Terms Encyclopedia: The meanings of HODL, FOMO, and ATH explained for newbies.

Stepping into the cryptocurrency market feels like being surrounded by a foreign language. Unique terms like "HODL" and "FOMO" are thrown around, leaving newbies scratching their heads. But don't worry! Today, I will decode the language of this strange world, sharing some of the confusion I've personally experienced.

HODL - Hold on without selling!

"HODL" is a term that originated from a typo of "Hold." In 2013, a user on a Bitcoin forum posted while intoxicated saying "I am HODLING," which sparked its usage. It is now used to mean "Hold On for Dear Life."

When I experienced my first major crash, I panicked and tried to sell. But my veteran trader friend shouted, "HODL!" In the end, thanks to following that advice and holding on, I was able to benefit from the subsequent price recovery. It's a phrase that represents a steel-like mentality that remains unshaken no matter how turbulent the market gets.

FOMO - Fear of Missing Out

"FOMO" stands for "Fear Of Missing Out." It refers to the psychological state where one loses their composure due to anxiety, thinking, "What if I miss this opportunity?" when the price of a coin is rapidly rising, leading to buying at a high price.

"I heard that coin tripled in value in a week..." Everyone has probably experienced the sensation of blood draining from their face upon hearing such a story. However, the timing when you are compelled by FOMO to make a purchase is often when the price has already peaked. I am also one of those who have fallen into this trap multiple times.

ATH (All Time High) - Highest Price Ever

"ATH" stands for "All Time High." It refers to the highest price that a cryptocurrency has ever recorded.

"The news that 'Bitcoin has recorded a new ATH!' serves as a signal of the market's enthusiasm. However, from my experience, there is always a correction right after an ATH update. It's exciting to witness the moment when new history is made, but it's also important to remain calm."

Whale - Large Investors Who Shake the Market

A "whale" refers to a large investor who holds a significant amount of cryptocurrency. Their every move can have enough influence to shake the entire market.

One night, when the altcoin I held suddenly dropped by 40%, I later learned that "whales had sold off in large quantities." As small fish, we are often manipulated by the movements of such whales. There are quite a few investors who use tools to track whale movements to read the market.

Finally

The world of cryptocurrency has its own culture and language. You may feel confused at first, but by understanding these terms, you will be able to participate in conversations as a member of the community.

To make a profit from cryptocurrency investments, understanding technical analysis and market trends is important, but I believe that learning this unique "language" is equally crucial. I myself have had many painful experiences before I understood this language.

Why not remember the words introduced today and try using them in your trades starting tomorrow? But don't forget that no matter how volatile the market gets, sometimes HODLing might be the best strategy.