Crypto expert explains the terminology used by investors on TikTok, to help beginners

• A cryptocurrency expert reveals the meaning behind the lingo used by TikTok influencers who discuss currencies on the app 
• Data has revealed that millions of investors use TikTok for updates on cryptocurrencies and inside tips – but may be put off by jargon 
• Bitcoin is still the most popular cryptocurrency on TikTok, data shows, with over 2 billion views under videos tagged #bitcoin 

As the popularity of cryptocurrency increases, many new investors use TikTok as a guide on what coin to invest in, and which cryptocurrencies to sell.  

However, entering the world of cryptocurrency can be challenging due to investors’ use of complex terminology.  

An expert from cryptocurrency tax software Coinledger has identified the key phrases TikTok crypto influencers use, to put together a simple guide to help inexperienced investors understand the complex terminology. 

• Cryptocurrency: This is a digital currency that uses cryptography for security and operates on a network called a blockchain. 
• Blockchain: A decentralized and distributed ledger that records cryptocurrency transactions across a network of computers.  
• eWallet: This is a virtual, secure vault where investors’ cryptocurrencies are stored. 
• Private Key: A code known only to the investor, allowing them to access their eWallet.  
• Exchange: A platform where investors can buy, sell, and trade cryptocurrencies. 
• Altcoin: Any cryptocurrency that isn’t bitcoin – this includes memecoins. 
• Memecoin: A coin that gains its 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. It can represent ownership or access rights within that project’s ecosystem. 
• FOMO: Fear of missing out – worrying that you are missing out a profitable coin can lead to impulsive decisions. 
• HODL: When an investor decides to keep their cryptocurrencies instead of selling them regardless of market fluctuations.  
• FUD:  This is when someone deliberately spreads negative information or rumours to create fear and uncertainty in the market.  
• Bull Run:  This is a period when, across the market, many cryptocurrencies will see an increase in value. 
• Bear Market: The opposite of a bull run when many cryptocurrencies will see a decrease in value. 
• Whale: An individual who holds a large amount of one cryptocurrency with the potential to influence the market with their trades.  
• DYOR (Do Your Own Research): This is the encouragement for someone to do their own research into a cryptocurrency before making any investment decisions.  

An expert from CoinLedger says: “2024 could be an exciting year for cryptocurrency investors, with rumors of the Bitcoin halving happening sometime in the next 12 months. If the halving happens, many believe that this will spark a bull run, causing the stock value of cryptocurrencies to soar. However, some may miss out on this opportunity if they don’t understand the jargon. 

“While TikTok can be helpful to learn the basics of cryptocurrencies, it is important to do more research before making any financial investments. Some TikTok influencers may advise their followers to invest in a particular crypto because they have been paid to do so, like previous scams.   

“When investing in any crypto, spending only what you can afford to lose is crucial. Cryptocurrencies can be volatile, and while it may seem like there are many winners, there is also a risk of loss. Being clued-up on what common terms mean makes it easier to assess a situation and make your own decision, rather than simply doing what influencers say.”    

Credit researcher, CoinLedge at https://coinledger.io