Crypto Jargon Explained: HODL, FOMO, FUD & More for Beginners | by Verron L | The Capital | Mar, 2025

1. HODL (Hold On for Dear Life)

A popular term in crypto circles, HODL means holding onto your assets long-term instead of panic selling when prices drop.

• Best for: Long-term investors who believe in crypto’s future.
• Risk: Some coins never recover, so always DYOR (Do Your Own Research) before committing to a long-term hold.

2. FOMO (Fear of Missing Out)

FOMO happens when you see Bitcoin or an altcoin surging in price and feel pressured to buy immediately — often at the peak.

• Best approach: Stick to a strategy, and don’t buy based on emotions.
• Risk: Buying at market highs often leads to losses when prices correct.

3. FUD (Fear, Uncertainty, and Doubt)

FUD refers to negative news or rumors that create panic in the market. Sometimes it’s legitimate (like regulatory concerns), but often it’s market manipulation.

• Best approach: Verify sources before reacting.
• Risk: Selling out of fear can result in unnecessary losses.

4. DYOR (Do Your Own Research)

A golden rule in crypto — never invest based on hype alone. DYOR means checking a project’s whitepaper, team, and real-world use cases before investing.

• Best approach: Look at fundamentals, not just price movements.
• Risk: Blindly following influencers can lead to bad investment decisions.

5. Whale

A whale is a big investor holding large amounts of crypto. Their trades can cause price swings, making the market volatile.

• Best approach: Watch whale activity to anticipate market movements.
• Risk: Sudden buy/sell actions by whales can lead to price manipulation.

6. Pump and Dump

A scheme where a crypto’s price is artificially inflated (pumped) and then sold off (dumped), often leaving retail investors with losses.

• Best approach: Avoid coins that spike suddenly with no fundamental reason.
• Risk: Getting caught in a pump-and-dump can wipe out your investment.

7. Bag Holder

Someone who continues holding a worthless or devalued coin long after a pump-and-dump.

• Best approach: Set exit strategies instead of blindly HODLing bad investments.

8. ATH (All-Time High) & ATL (All-Time Low)

• ATH: The highest price a cryptocurrency has ever reached.
• ATL: The lowest price ever recorded.
• Best approach: Don’t buy at ATH unless there’s strong growth potential.

9. Gas Fees

Transaction fees paid to process transactions on Ethereum and other blockchains. Fees fluctuate based on network congestion.

• Best approach: Check gas fees before transacting, or use alternative networks with lower fees.
• Risk: High fees can make small transactions impractical.

10. Liquidity

How easily an asset can be bought or sold without major price impact.

• Best approach: Trade assets with high liquidity to avoid slippage.

11. Market Cap (Market Capitalization)

The total value of a cryptocurrency, calculated as price × circulating supply.

• Best approach: Market cap gives a better picture of a coin’s stability than price alone.

12. Stablecoin

A cryptocurrency pegged to a stable asset like the US dollar (e.g., USDT, USDC).

• Best approach: Use stablecoins for safe holdings during market volatility.

13. Smart Contract

Self-executing contracts that automate transactions on a blockchain. Ethereum was the first major network to introduce this.

• Best approach: Smart contracts power DeFi applications and eliminate middlemen.

14. Node

A computer that validates transactions on a blockchain network.

• Best approach: More nodes = a more secure and decentralized blockchain.

15. Consensus Mechanism

The process a blockchain uses to validate transactions, like Proof of Work (PoW) or Proof of Stake (PoS).

• Best approach: Understand how different blockchains secure transactions before investing.

16. Rekt

A slang term for losing a large portion of your investment.

• Best approach: Avoid risky trades without a stop-loss strategy.

17. Slippage

The difference between the expected and actual price of a trade due to market volatility.

• Best approach: Use limit orders instead of market orders to minimize slippage.

18. DeFi (Decentralized Finance)

A blockchain-based financial system that eliminates banks and intermediaries, allowing users to borrow, lend, and trade assets without a central authority.

• Best approach: Use DeFi protocols with strong security measures and audited smart contracts.
• Risk: Many DeFi projects are experimental and prone to hacking.

19. Tokenomics

The study of a cryptocurrency’s supply, distribution, and economic model, which helps investors evaluate its long-term potential.

• Best approach: Check total supply, inflation rate, and token utility before investing.

20. 51% Attack

A scenario where a single entity gains control of more than 50% of a blockchain’s network, allowing them to manipulate transactions and double-spend coins.

• Best approach: Invest in blockchains with strong security and decentralization to reduce this risk.