HODL or FOMO? Here are some crypto lingo every trader should know

The Cryptocurrency trading space is one of the most volatile spaces ever. Hence, it does not come as a surprise that crypto traders use various crypto terminologies. These acronyms refer to specific concepts in crypto trading, investment management, or finance generally.

It is quite possible that some of these terms may cause some form of confusion, especially for new cryptocurrency traders. Here are some of the most frequently used terminologies every crypto trader should know:


FOMO (Fear of Missing Out)

This is one of the cryptocurrency investment terminologies that is known as the action of panic-buying crypto assets due to the fear of missing out. some traders acquire crypto assets in panic when they think they might miss out on a profitable trade. FOMO decisions are purely based on emotions. Veterans in crypto trading may use the same term to refer to those new to trading and who buy assets due to the hype around crypto in general.


HODL refers to the trading strategy of buying and holding in the cryptocurrency market. Those who stick to HODL will acquire cryptocurrency assets and hold onto them even during serious price drops. They then look for extended profit by converting the assets into long-term investments. This is one of the cryptocurrency terminologies that traders should know when they are trading crypto.


ROI (Return on Investment)

This is probably the common term in finance and investment. It is known as Return on Investment; it is not exactly only exclusive to cryptocurrency alone. Traders use the ROI calculation to understand the performance of their investments in any market. ROI indicates how much your investment has grown or depreciated over time. There are easy ways to make money with cryptocurrency through ROI.

DYOR (Do Your Own Research)

Do Your Own Research is a self-explanatory term used in the crypto trading environment, it basically asks traders to do their research before making market decisions. It means a trader should not rely on ready-made advice in buying crypto assets. DYOR is also related to other ideas like Fundamental analysis and the formation of a strategy


KYC (Know Your Customer)

This is a set of guidelines that help organizations understand a customer’s identity. KYC is concerned with cryptocurrency exchanges and trading platforms in the crypto trading context, they are major services that are used to verify a customer’s identity and credibility before allowing them to trade.

DD (Due Diligence)

Due Diligence deals with the investigation and care that a rational person or a business is expected to take before coming to an agreement with another party. DD can help traders and investors to stay confident about the decision they make. It also gives you a deeper understanding of the organization behind the asset you intend to invest in.


Here’s how to buy Bitcoin — and not get scammed

Crypto 101: Beginners guide to digital currencies


Bitmama Team

Apr 30, 2021

3 mins read

Join Newsletter

Sign up to our newsletter today to be on top of every development in the cryptoverse.

right arrow

Share Article

bitmama social

Copy Link

  • Company
  • About
  • Career
  • Privacy Policy
  • Terms of Service

Did you know you can do more with crypto while on the go?

Get Bitmama mobile app and find out


Fastest, Easiest and Cheapest way to buy cryptocurrencies.

Bitmama Google Play Store
Bitmama App Store
Bitmama facebook handle
Bitmama instagram handle
Bitmama twitter handle
Bitmama linkedin handle

Bitmama offers its products and services in partnership with licensed transmitters in their respective jurisdictions.

All trademarks and brand names belong to their respective owners. Use of these trademarks and brand names do not represent endorsement by or association with Bitmama.

IMPORTANT INFORMATION ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT: To help the government fight the funding of terrorism and money laundering activities, federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an Account. What this means for you: When you open an Account, we will ask for your name, address, date of birth, and other information that will allow us to identify you. We may also ask to see a copy of your driver’s license and/or International Passport.