A Beginner’s Guide to Crypto Lingo
Ever been confused by the ever-changing language used by those who trade or invest in stocks and cryptocurrencies? Me too! So I’ve compiled a list of some of the most common terms you’ll see being used.
Address: The location to which a cryptocurrency is sent. It is on the block chain network, and can be linked to directly with a QR code. Also referred to as Addy.
Altcoin: Basically, any coin other than Bitcoin.
Bagholder: Someone who missed the opportunity to sell before a price decline, and is left holding coins with a lessened value.
Blockchain: A system in which any cryptocurrency transactions are recorded, and which is maintained across several computers in a peer-to-peer network.
Blocks: These are the components that make up a blockchain, and are made up of groups of transactions that have their own timestamps.
Decentralization: Converting control of a system from a single, centralized location to many dispersed equal locations that can all contribute to managing the system.
DEFI: This term is a shortened version of decentralized finance, which is an open financial system that connects user directly, without the need for a third party.
Diamond Hands: An individual who holds their coins and sees large gains thanks to an increase in the value of the coins. Selling at the peak of the market and taking profits also counts.
An Exchange: A platform where users can buy, sell, and trade cryptocurrencies. Popular exchanges include Binance, BlockFi, Gemini, and Coinbase, among others.
Fiat Currency: A currency issued by a government, such as the US dollar.
Flippening: The idea of an event in the future where Ethereum overtakes Bitcoin in terms of market capitalization. This has never happened before, but some speculate it could happen in the future.
Gas: The fee necessary to either complete a transaction or execute a smart contract on the Ethereum Blockchain.
Hodl: A typo for ‘hold’ that has since come to mean hold on for dear life. To hodl is to amass cryptocurrencies and is often used as a rallying cry to encourage others not to sell. Also commonly referred to as ‘hodling.’
Mining: The process of adding transactions to blocks and securing the blockchain, which is done by specialized hardware. The computer that successfully completes those equations first receives the reward.
Paper Hands: An individual who becomes fearful of a downturn in the market and sells his or her positions, often resulting in a loss of funds.
To the moon!: The rapid increase in value of a cryptocurrency.
Smart Contract: A digital, programmable contract that is executed on a specific blockchain, such as Ethereum.
Stablecoin: A cryptocurrency that attaches its value to a commodity, such as gold, or a fiat currency, such as the US dollar, in an attempt to mitigate the volatility of the crypto market.
Wallet: The computer interface or physical device that stores the keys used to access or transfer crypto currencies.
Whale: An individual who holds a large amount of a cryptocurrency. Their activities, though not their identities, can be monitored on the blockchain.
Acronyms:
ATH: All Time High
The highest price a specific coin has ever achieved.
BTD: Buy The Dip
The act of buying a coin when the price drops in hope of future increases in price, and therefore profit.
DYOR: Do Your Own Research
Don’t just listen to random people on the Internet, and take the time to thoroughly research something before coming to a conclusion and taking action.
FOMO: Fear Of Missing Out
The fear of missing out on potential profit, which can lead an individual to make a snap decision that may turn out badly.
FUD: Fear Uncertainty Doubt
The act of spreading negative, false or misleading information about a cryptocurrency or the market in general.
ICO: Initial Coin Offering
Similar to an IPO, or initial public offering of a stock, an ICO is the issuance of a startup’s coins, which helps the startup raise money for their operations.
Whew! That was a lot of lingo! If you were able to hang in there and make it this far, then good job! And I hope you were able to learn something new from this list of crypto currency terms.
Now you can talk like a crypto investor, or at the very least have a better understanding of the crypto community.
