Crypto Memology With Chatex: How to Sound Like a True Bitcoin Expert
As you may have noticed, cryptocurrency traders and investors have long been using a certain slang. These are meme phrases that help them describe certain trends or processes in the crypto industry. For example, do you know why the long-term storage of crypto assets is called to “HODL” but not to “HOLD”? And why are some traders called bulls, bears, or whales? Buckle up, now I’ll tell you everything.
“HODL” is the industry’s most “memest” mistake
The word “HODL” really comes from the English “hold”. Such a mistake was made by a user with the nickname GameKyuubi on the 2013 Bitcointalk forum. Other users liked it so much that all long-term investors began to use the word immediately.
As of today, “hodl” can be used with a pinch of mild irony when talking about the crypto to buy off while its price drops. The word is also part of the “Buy and Hodl” investment strategy. This is the way of investing that implies the long-term storage of crypto assets despite all the turmoils occurred in the market. A person, who pursues such a strategy, is a “hodler”.
Bull, bear, and whales. Who is who?
All investors are usually divided into the following 3 groups. These are:
1. Bears. These are traders speculate for the fall, bold pessimists. The market situation defined by caution and pessimism during which traders are much more likely to sell than buy is called the “bear market”. Bears expect only to gain lower highs and lower lows.
A textbook example of bearish behaviour — Bitcoin‘s downturn at the beginning of 2018.
2. Bulls. These are bears’ opponents. They buy and store crypto assets expecting that their prices will only rocket in the future. Roughly speaking, the bears are pessimists, and the bulls are optimists. But no one forbids you to be the both! You can call yourself a bear, for example, in the Ethereum market, but at the same time make big bets on the growth of Bitcoin or one of its forks and, accordingly, be a Bitcoin bull.
3. Whales. The term is used to describe individuals or entities holding large amounts of cryptocurrencies. Their portfolios are maximally diversified. These are the players who move around the cryptocurrency space causing waves at every turn like the real whales. Interestingly, many whales are anonymous traders, institutional investors, or even hedge funds!
To the Moon. What on Earth is that?
This phrase is an exclamation used when cryptocurrency prices are rising off the charts. You may ask an expert, no matter if it is a grammatically-incorrect question: “When moon?”, and he’ll understand what you are interested in to hear.
So a short course on crypto memes has been passed. Stay tuned for more news and stories. With love, Chatex!