Bitcoin Investors Should Know These Ten Market Definitions
It’s easy to invest in Bitcoin, but there is a lot of jargon that new investors need to understand. These are the most important terms that you should know:
An intentional misspelling of “hold,” slang for keeping your Bitcoin investment during a market downturn instead of selling it for cash.
Short for “fear, uncertainty, and doubt,” a reference to negative news coverage that is meant to discredit Bitcoin or another cryptocurrency.
When a cryptocurrency holder or development team generates hype around a cryptocurrency in order to sell it at a higher-than-usual price.
Hopes of skyrocketing Bitcoin prices, often phrased as “to the moon” or “when moon?”
Wealthy Bitcoin investors. Though there is no definite limit, companies and investors with more than 1000 BTC (~$8 million) are often considered “whales.”
Short for “all-time high,” the point at which a cryptocurrency reached its highest price. Bitcoin was at an all-time high in December 2017, when one Bitcoin was worth $20,000.
7. Bull/bear markets
Market trends. In a bull market, Bitcoin’s price rises, and in a bear market, its price falls. These terms may describe current markets or predicted trends.
Traditional currencies, such as the U.S. dollar or the Euro, which are backed by the word of a government or bank.
9. Market Cap
The market value of a cryptocurrency’s entire coin supply. Bitcoin’s market cap is $163 billion as of April 2020.
Short for “return on investment,” the amount of value that your Bitcoin purchase has gained or lost, as a percentage. For example, if you bought $100 worth of Bitcoin, and that Bitcoin is eventually worth $110, your ROI would be 10%.
These terms may appear on social media, news sites, or even the crypto exchanges that you buy Bitcoin from―so it pays to know what each term means.
Disclaimer: information contained herein is provided without considering your personal circumstances, therefore should not be construed as financial advice, investment recommendation or an offer of, or solicitation for, any transactions in cryptocurrencies.