Basic Trading Terms That Every Trader Should Know (Part-2)

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2 years ago

In the previous article of this series we've seen few basic but important crypto trading terms like Fear Of Missing Out (FOMO), Return On Investment (ROI), All Time High/Low (ATH/ATL) and some others, if you haven't read Part-1 then refer following link :

Basic Trading Terms (Part-1)

So guys in this article we'll take look at few other important terms used in financial world.

Let's dive in...!!

1) Fear, Uncertainty and Doubt (FUD)

FUD is not actually a trading term but it's used in reference to financial markets. FUD is a strategy that aims to discredit a particular company or financial trading asset by spreading misleading about it. Due to this misleading information other traders fear about that particular asset which leads to price drop of stock and people who spread fake news gets profit in price decline.

FUD is very common in Cryptocurrency space. In many cases investors or traders enter into trade with short position and then spread false news which is harmful for that coin, which leads to price drop and that traders get massive profits, same can be done with positive but fake news. Most of the time these type of news turned to be false news. So it is important for individual traders like us to listen to both arguments and trust on trusted data.

2) HODL

I think most of you know what HODL means, it's not an English word, actually it was originated from a misspelled heading of an BitcoinTalk forum post, " I am HOLDING" now that mistake become so famous that people are referring it as an official word in crypto space.

HODLing works similar to buy and hold strategy in traditional stock trading. People buy some assets, crypto in our case and hold it for long time hoping the value of that coin increase over the time.

3) BUIDL

BUIDL is derivative term for HODL, it describes participants of cryptocurrency industry who continue to build their portfolio regardless harsh bear market, these are the true believers of the cryptocurriencies and they work for increasing crypto adoption.

4) SAFU

Similar to the cryptocurrency Dodge Coin which was originated from a meme, this term is also originated from Meme uploaded on YouTube by Bizonacci. The meme incorporated Binance's CEO Changpeng Zhao (CZ), saying "funds are safe" during unscheduled platform maintenance.

The video went so viral, in response to that Binance announced " Secure Asset Fund for Users (SAFU)" , it is an emergency insurance fund that is funded by 10% of trading fees. These funds are stored in cold wallets. If you're active on crypto forums like BitcoinTalk or in subreddit discussion then you often hear the phrase "funds are SAFU".

5) Do Your Own Research (DYOR)

When it comes to financial markets, DYOR is related to Fundamental Analysis. In order to become a successful trader you have to make your own research and come up with your unique trading strategy. As we've seen above in case of FUD, people spread false information (even popular traders/personalities) which might bring hinge losses for you. So before taking any decisions you should definitely make good research using trustworthy data. You often hear the phrase "Don't trust, verify", take it seriously before making any trade.

Checkout Part-1 of this article


Previous Articles

1) Fake Crypto Exchange : Be aware

2) What Is Decentralised Marketplace ? (Explained)

3) Story Of BCHN : The Saviour For BCH (?)


Hey friends, this is it from my side hope you find this article helpful. If you're interested and want to get notified for my future articles related to crypto, blockchain technologies and projects subscribe me @Ashma

Want to have good chat about things ? Let's get in touch on twitter : https://twitter.com/ashma1818?s=09

Thanks for your time and appreciation...!!

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Avatar for Ashma
Written by
2 years ago

Comments

Am glad I drop by your blo today and was able to learn new word even though I have been seeing it but didn't know what it actually means, but thank God I get to know from your post today that FUD means force information 🀭

Thank you so very much this this wonderful information passed out here today. I look forward to learning more from your lecture

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2 years ago

πŸ˜…πŸ˜… if you you have difficulties in understanding then I think I've to improve my writings πŸ˜…

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2 years ago

Not at all, I never meant it that way,I actually understood your point and am glad I came across your blog🀭

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2 years ago

Hahaha, I was just kidding πŸ€ͺ but still try to keep things easy

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2 years ago

I actually felt bad thinking you misunderstood me🀦

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2 years ago

Ohh, that's why i included 4 smilies

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2 years ago

It's okay,I think we are good to go now 🀭

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2 years ago

Yup πŸ‘

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2 years ago

FOMO is another good one that should be on this list I think! I like the article. Good job!

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2 years ago

Yup completely agree with you @Yann.Poire but FOMO is already discussed in Part-1 of this series. You can checkout, link is included at the starting of this article

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2 years ago

Oh sorry my bad. Didn't realized it was part 2. I will go read part one right away. :)

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2 years ago

πŸ‘

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2 years ago

Wow this article is very informative

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2 years ago

πŸ™

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2 years ago

ok dear thanks for information

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2 years ago

You're welcome @devjaini

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2 years ago

most wellcome

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2 years ago

That explains where SAFU come from. But I think FUD is a trading term. DYOR's a really more of a general term, I've seen it outside trading markets, but this is great. Will there be a third post?

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2 years ago

Yup, I think I've covered almost everything in basics terminology. Now I am thinking about to start a series of Fundamental Analysis. It'll be a next step, from basics to a bit moderate. Sounds interesting ? @RowanSkie do u have some other ideas?

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2 years ago

It sounds interesting. I'll be waiting for it. I really don't have any other ideas yet, unless you want to explain in full detail how exchanges work (I'm joking)

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2 years ago

DEX or Centralised exchanges ? I can write on it. I developed one DEX for my personal project πŸ˜…

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2 years ago

Maybe a bit of both, so others can catch on and know where these terms are actually used.

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2 years ago

Yes definitely. I'll write n explain basics about it

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2 years ago