A cryptocurrency specialist has Crypto Expert unveiled the meanings behind the jargon used by TikTok influencers discussing digital currencies, aiming to assist beginners in navigating the complex world of crypto investments. Recent data highlights that millions of investors rely on TikTok for updates and tips on cryptocurrencies, yet many may find the technical language off-putting.
Bitcoin remains the most popular cryptocurrency on the platform, with videos tagged #bitcoin amassing over two billion views. As the allure of cryptocurrencies grows, new investors increasingly turn to TikTok for guidance on which coins to buy or sell. However, the esoteric terminology used by seasoned investors can make entry into this sphere daunting.
An expert from cryptocurrency tax software firm CoinLedger has identified key phrases commonly used by TikTok crypto influencers. This expert has compiled a straightforward guide to demystify the complex terminology for novice investors.
Cryptocurrency: A digital currency that utilises cryptography for security and operates on a blockchain network.
Blockchain: A decentralised, distributed ledger recording cryptocurrency transactions across a network of computers.
eWallet: A virtual, secure vault where investors store their cryptocurrencies.
Private Key: A code known only to the investor, allowing access to their eWallet.
Exchange: A platform where investors can buy, sell, and trade cryptocurrencies.
Altcoin: Any cryptocurrency that isn’t Bitcoin, including memecoins.
Memecoin: A cryptocurrency that gains popularity through social media and online forums.
ICO (Initial Coin Offering): A fundraising method where new cryptocurrencies sell their tokens to investors before officially launching.
Token: A unit of value issued by a project during an ICO, representing ownership or access rights within the project’s ecosystem.
FOMO: Fear of Missing Out – the anxiety that one is missing a profitable investment opportunity, leading to impulsive decisions.
HODL: An investor’s decision to keep their cryptocurrencies instead of selling, regardless of market fluctuations.
FUD: The deliberate spread of negative information Crypto Expert or rumours to create fear and uncertainty in the market.
Bull Run: A period when many cryptocurrencies see an increase in value across the market.
Bear Market: The opposite of a bull run, where many cryptocurrencies experience a decrease in value.
Whale: An individual who holds a large amount of one cryptocurrency and has the potential to influence the market with their trades.
DYOR (Do Your Own Research): Encouragement for individuals to conduct their own research into a cryptocurrency before making investment decisions.
An expert from CoinLedger commented, “2024 could be an exciting year for cryptocurrency investors, with rumours of a Bitcoin halving event happening within the next 12 months. If the halving occurs, many believe it could trigger a bull run, causing the value of cryptocurrencies to soar. However, some may miss out on this opportunity if they don’t understand the jargon.”
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The expert continued, While TikTok can be a useful platform to learn the basics of cryptocurrencies, it’s crucial to conduct further research before making any financial investments. Some TikTok influencers might recommend certain cryptocurrencies because they’ve been paid to do so, leading to potential scams.
They added, “When investing in any cryptocurrency, it’s essential to spend only what you can afford to lose. Cryptocurrencies can be volatile; while there are many success stories, there is also a significant risk of loss. Understanding common terms makes it easier to assess the situation and make informed decisions, rather than simply following influencer advice.”