Cryptocurrencies Terminologies that Pop Up When you Buy Ripple

Cryptocurrencies Terminologies that Pop Up When you Buy Ripple
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If you have ever wondered about the meaning of trading terms you encounter, you are probably searching for more answers. As the day passes by, you come across many terms and can't seem to wrap your head around them. Here is the right place for you.

Terms like HODL, ROI, or FOMO pops up in many cryptocurrencies platforms or when you want to buy Ripple. However, it is crucial to know the critical terms, and it will help sharpen your understanding of the crypto market in general.

Therefore, some terms you should know before you buy crypto as trader or a person interested in digital investments are below:

Return on Investment (ROI)

ROI is a sensitive term describing the profit percentage investors receive from their money. It describes how well your investment has worked for you. Often, ROI varies with the duration of investment and the sector you are staking. For instance, if the ripple price doubles after buying, your ROI is the current amount minus the initial amount. Hence, the difference divided by the initial amount is your return on investment.

Beyond digital trading, some companies offer a specific ROI percentage, which is often fixed unless there is a drastic change in the economy. In whatever investment you choose, consider if the risk is worth it.

HODL

Hodl is a wrong spelling for hold in cryptocurrency. After you buy Ripple, you can decide to either sell, buy, or keep and watch it grow. When you hodl your coin, the volatility of the market price does not affect it. During rapid increase or decrease in price, hodl coins remain unchanged.

Hodl saves you from losing money during market price declination. However, many people consider such acts as not being a real investor. Investors buy Ripple and take the risk no matter what. Meanwhile, there is a higher probability you get an increase in investment price over the long run, provided you diligently study the market.

On the other hand, hodling may result from a full conviction of the future rise of a currency. Hence, it may be a source of strength to this category of investors. However, they are often referred to as short-term investors. Moreover, BUIDL is a term from HODL. They keep regardless of the market price fluctuation. The builders believe the Crypto market so much and instead invest in a long-term goal.

All-Time High (ATH) and All-Time Low (ATL)

Ripple is one of the top cryptocurrencies, with these two terms mentioned regularly. Investors who buy Ripple trade with another. The highest trade amount for such an asset is known as ATH. ATH value changes rapidly within minutes. For instance, a person who buys Ripples at $2000 may decide to sell at a higher price to buy an equivalent or lesser value. The chain keeps going until it finally reaches its peak. In most cases, it is hardly interrupted until a sharp price decline happens in the market. Hence, it is said to be parabolic.

Now, let's talk about ATL. ATL is the opposite of ATH, which signifies the lowest trade amount of the market asset. ATL also has the same effect as it is with ATH when it reaches its peak. However, the difference is that ATL will cause a continual devaluation of currencies, while ATH increases the value per unit.

FOMO and FUD

FOMO and FUD describe the uncertainty aspect of cryptocurrency. FUD is a shortened form of Fear, Uncertainty, and Doubt, while FOMO is shortened for Fear Of Missing Out. The two situations occur when investors are afraid to miss out on the profit they may have gained from buying a particular coin. With Ripple being at the top of the game, many investors do not want to miss out on the considerable profit margin. Hence, they buy Ripple.

Most times, a bullish market results from the agitating emotions of investors. However, investors, especially new ones, should avoid getting trapped in the game. Instead, they should calculate every move. In the case of FUD, it is slightly different. Sometimes, investors' fear arises from a company trying to destroy the reputation of another. Hence, they instill fear into the heart of cryptocurrency investors. Nevertheless, Ripples remains a favorite of many investors, which is gaining more popularity as well.

Conclusion

Buy Ripple at your discretion, ensuring you are not responding to external or internal force. Other terms you may come across in cryptocurrency include; SAFU, DYOR, and DD. These terms are not as pivotal as those mentioned above, but here is a brief description of them.

  • SAFU meaning Secure Asset Fund for Users, refers to an emergency insurance fund.
  • DYOR, meaning Do Your Own Research, refers to investors not accepting information as they come but rather research well.
  • DD, known as Due Diligence, is similar to DYOR. It involves gathering the appropriate information.



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