The crypto world continues to evolve, and Bitcoin is no exception. Bitcoin price today often experiences unstable fluctuations. Currently, the price is stable at US$90,000 after a sharp correction to US$87,000. However, as a beginner investor looking to dive into the crypto world, understanding terms like friction, correction, and volatility is a must, isn’t it? This is to avoid simply following the trend (FOMO) and to understand the market context. This article will provide a complete explanation of the above terms to avoid any further mistakes. Read until the end!
Before discussing Bitcoin further, INDODAX Vice President Antony Kusuma reminded that even though the crypto industry is maturing and gaining support from various major institutions, investors must remain vigilant.
Crypto investors still need to be careful, avoid FOMO, and use long-term investment strategies and disciplined risk management
This warning isn’t just empty words, as many investors’ mistakes lead to losses due to a lack of understanding of basic terminology. Here’s an explanation of important terms in the crypto world that beginner investors should know.
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Must-Know Terms for Beginner Investors
1. Cryptocurrency
Cryptocurrency is a blockchain-based digital asset that is secure, transparent, and without intermediaries. One of the largest and most growing groups currently is Bitcoin compared to other crypto assets. Although it offers efficiency and low transaction costs, crypto has high volatility, so investors must understand the risks before starting.
2. FOMO (Fear of Missing Out)
People often talk about FOMO, but what exactly is FOMO? It’s the fear of missing out when prices rise. Many people experience FOMO when Bitcoin or altcoins experience a major rally. Beginner investors should avoid FOMO because it often leads to impulsive decisions and long-term losses.
3. BUIDL (Build)
Buidl or build means focusing on building, not just speculating. This term is typically used by communities that believe in the development ecosystem. This principle is relevant amidst high volatility, encouraging investors to look at fundamentals, not just hype.
4. Moon (To the Moon)
This term is often used to describe the hope that prices will rise significantly. It’s typically used by communities optimistic about a particular project. This term often appears amidst community euphoria still evaluate the fundamentals before believing the hype.
5. Bullish
This term is highly favored by investors because it describes conditions when the market is dominated by rising prices. When this term is used, investors are becoming optimistic and transaction volume is increasing. However, it’s important to remember that “Bullish” doesn’t guarantee continued price increases, but analysis is still necessary.
6. Bearish
While the term “bullish” is highly favored by investors, “bearish” is the opposite of “bullish,” meaning a downward price trend. Market sentiment is pessimistic and risk appetite decreases. Bearish phases often provide opportunities for long-term investors to accumulate assets.
7. Pullback
This term refers to a small decline (5–10%) after a sharp rise. It’s generally short-term and part of an uptrend. Many traders take advantage of pullbacks to buy dips in a measured manner.
8. Correction
This term is somewhat restrictive for investors because it indicates a deeper decline (approximately 10%) after a long rally in Bitcoin, indicating the market is rebalancing its price. However, corrections are a healthy part of market structure not a sign of a bad asset.
Also read: Bitcoin Prices May Head Lower, According to Legendary Trader Peter Brandt – Price in UK
Depreciation & Crash
This term is highly undesirable for investors because it indicates a long-term decline that takes years to recover. A very sharp decline (more than 20%) in a short period of time. Crashes cause concern, but often represent great opportunities for experienced investors. Therefore, novice investors should be very cautious about depressions and crashes if they want to start investing in the crypto market.
Understanding the language and terminology of the crypto world is not just a theoretical foundation, but a tool for surviving in a highly volatile market. Antony Kusuma’s message is clear: don’t FOMO. Mastery of knowledge, disciplined strategy, and awareness of risk are the keys to long-term survival. You already know the terms, right? Don’t make a mistake again!
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