Yes! As soon as you join the crypto party, you’ll find yourself bombarded with acronyms and jargon you can hardly understand. Quite often on “Crypto Twitter” or Subreddits, we see common acronyms like WAGMI, HODL, DYOR and all. Of course, if you are OG, you’d be pretty used to these phrases, but many times, newbies in the crypto space will wonder all these are about.
If you are green and unfamiliar with these terms, worry not - this article will highlight all common acronyms present in day-to-day crypto conversations
It was originally a typo of “HOLD,” but it has since been changed to “Hold On for Dear Life.” This word is used when short-term volatility is significant, and crypto asset values continue to fluctuate.
For example, when the price of a certain digital currency declines, it is encouraged to continue “hanging onto it for dear life” rather than quickly selling it at a loss.
WAGMI stands for ‘We are all gonna make it.’ The crypto community widely uses the acronym to build confidence and encourage the community not to lose hope.
For example, when the proposed bill on "Cryptocurrency and Regulation of Official Digital Currency Bill" was in the works in 2021, there was a lot of uncertainty among the stakeholders and independent investors. But WAGMI was to reassure fans of the crypto community.
This phrase, short for Lamborghini, represents the culture of getting rich quickly. Similarly, this status symbol reflects the life of luxury that crypto holders may acquire.
In 2013, a story went viral about a user who used Bitcoin to buy a brand-new Lamborghini, and hundreds were motivated to do the same.
FOMO, which means Fear Of Missing Out, is used in the context of cryptocurrencies to motivate new traders to make large bets to avoid missing out on significant profits. Unfortunately, this emotional response allows people to make rash judgments to acquire tokens while their emotions are at their peak. Therefore, it is best not to respond to FOMO and wait for the market to calm.
This means Fear, Uncertainty, and Doubt. Crypto enthusiasts utilize this method to spread disinformation and skepticism about a trade transaction or a competitor’s anticipated pricing. This is a systematic approach to driving down the price of any digital currency. Unfortunately, people tend to underestimate the potency of disinformation. It can cause economic depression and market bubbles to explode.
DYOR is short for “Do Your Own Research.” That’s exactly how it sounds. Before being swayed by what the internet is doing and reacting to, it is critical to DYOR before making any decisions. Several online services and websites may assist you in staying informed and making sound investing decisions.
ELI5 is an abbreviation for “explain to me like I’m five,” a term commonly heard on numerous internet forums, notably in the crypto community. The statement is frequently used in talks regarding difficult vocabulary and concepts.
Because the crypto ecosystem is always growing and incorporating new technology, numerous misconceptions or concepts may be difficult to grasp without the proper context. The word ELI5 slows down the dialogue and clarifies project specifics in a digestible manner.
Beyond these five, several other crypto acronyms exist, such as JOMO, ATL, ATH, DEFI, etc., which are all commonly used in crypto conversations. If you ever feel lost, find yourself with our updated A to Z cryptocurrency glossary.