Crypto slang explained in simple terms
Cryptocurrency is a rapidly evolving industry, and just like any other field, it has its own set of jargon and terminology. Understanding these terms is crucial if you want to be part of the conversation.
In this article, we'll explore some of the most common cryptocurrency terms like “hodl,” “FOMO”, and “DYOR” and what they mean.
HODL: This is a term that originated from a typo in a forum post back in 2013. The author meant to type "hold" but instead typed "HODL." The term has since become a meme in the cryptocurrency community and refers to holding onto your investments, even when the market is volatile.
FOMO: FOMO stands for "fear of missing out." It's the feeling you get when you see a coin or token skyrocketing in value, and you fear that you're missing out on a great investment opportunity.
Whale: A whale is a term used to describe a large investor who holds a significant amount of a particular cryptocurrency. These individuals can have a big impact on the market because of their large investments.
Altcoin: An altcoin is any cryptocurrency that isn't Bitcoin. There are thousands of altcoins available, each with its own unique features and capabilities.
Mining: Mining is the process of validating transactions and adding them to the blockchain. Miners are rewarded with new coins for their efforts, making it a profitable endeavour for those with the right equipment.
Blockchain: The blockchain is a decentralized ledger that records all transactions on the network. It's secure and transparent, making it a popular choice for many cryptocurrencies.
Airdrop: An airdrop is a marketing strategy used by some cryptocurrencies. They give away free coins or tokens to generate buzz and attract new users to their platform.
Decentralized: A decentralized system is one that operates without a central authority. Cryptocurrencies are decentralized, meaning that they are not controlled by any government or corporation.
WAGMI/GMI: The "We Are Going To Make It" acronym is frequently used by cryptocurrency investors who are confident that positive developments will benefit the entire cryptocurrency. Usually, this happens when markets are experiencing a slump and investors are attempting to remain optimistic. It can also occur when different crypto communities begin debating whose coin is superior. The WAGMI acronym is frequently used by community members who feel that encryption in general will eventually triumph. GMI is basically an abbreviated version meaning "Gonna Make It". It is virtually synonymous with WAGMI.
NGMI: "NGMI" stands for "Not Going to Make It". This abbreviation is used by bearish investors on a specific currency or project. If you're looking into altcoins and encounter this term a lot, it might be worth conducting some additional study before investing.
SZN: "SZN" is an abbreviation for "Season". There are two main seasons in the crypto world: bull and bear. A bull market is one in which prices are generally rising, whereas a bear market is one in which prices are generally decreasing. The total price movement can be used to determine the present state of the cryptocurrency market. A bull market exists when prices are generally rising, whereas a bear market exists when prices are generally decreasing. Cryptocurrencies frequently fluctuate between Bitcoin and altcoin seasons. For example, if the market is bearish, you might argue that "it's not Bitcoin SZN right now". However, if cryptocurrencies are rising, you may remark, "that is altcoin SZN."
DAO: "DAO" stands for "decentralized autonomous organization," which is what it means. A DAO is an organization that is run by code instead of by people. A DAO tries to be decentralized and self-governing, which means that it doesn't need a central authority to run it. The DAO stack is one of the most well-known DAOs. It is a set of protocols that developers can use to make and run decentralized applications.
ATH: "ATH" stands for “All-Time High” or "highest ever." This term is used to talk about the highest price that a certain cryptocurrency has ever reached. For example, if Bitcoin's price goes up to $69,000, a new all-time high, you might say, "Bitcoin just hit an ATH."
HODL: "HODL" is a term for holding on to a cryptocurrency even if the market is going down. The term came from a Bitcoin forum post from 2013 where the word "hold" was spelt wrong. Since then, the term has become popular and is often used to say, "Don't sell your coins, even if the market is going down."
Bag: A "bag" is a term for a large amount of a certain type of cryptocurrency that someone owns. For example, if you have 1,000 Bitcoin, you might say that you have a "bag" of Bitcoin. It's a way of saying that you have a position or investment in a certain coin.
Bag holder: Someone who owns a lot of a cryptocurrency that isn't doing well is called a "bag holder." For example, if you own 1,000 Bitcoin and the price of Bitcoin drops, you will be a bag holder. It's usually done by buying cryptocurrency when the price is high and waiting for it to go down. Being a bag holder can be the worst way to feel.
Way up there: People say that the price of a certain cryptocurrency is going "to the moon" when it goes up. For example, you might say, "it's going to the moon", if the price of Bitcoin starts to rise quickly. This phrase is often used to mean that the price will keep going up. It can also be used to show how excited someone is about the price of a certain coin in the future.
Rekt: "Rekt" is a word that people use when they lose a lot of money. For example, you might say that you got "rekt" if you put $10,000 into a cryptocurrency and it crashes. This term is often used in a funny way to talk about how unpredictable the market can be. If new investors are not careful, they could get "Rekt." When scam coins cause a lot of buzz, investors can also get "rekt."
Rug Pull: A "rug pull" is when the team behind a cryptocurrency project gives up on it and sells all of its coins, which causes the price to drop. It's also one of the most common ways that people try to steal your crypto. People often use this term to warn others not to put money into a certain project. Before investing in any project, you should do your own research (DYOR), because there is always a chance of a rug pull.
Pump and Dump: The price of a cryptocurrency goes up when a group of people buy it and then sell it at a higher price. This is called a "pump and dump." Often, they'll hire famous people to help drive up the price (shill), which makes people buy at all-time highs. Pump-and-dump schemes can be avoided by doing your own research and not investing in projects you don't understand.
ICO: Initial coin offering is what "ICO" stands for. An ICO is a way for a new cryptocurrency project to raise money by selling coins to investors in exchange for money. ICOs are often used to raise money for new projects, and they have become very popular in the cryptocurrency space. But ICOs have also been linked to scams, so investors need to be careful when putting money into them.
DeFi: DeFi is an abbreviation for "decentralized finance." DeFi is a type of financial system that works on the Ethereum blockchain. It has protocols and platforms that let people borrow, lend, and trade cryptocurrencies in a way that is not controlled by a central authority. Most of the well-known DeFi apps are on the Ethereum blockchain, but Polkadot and Cardano, which are competing blockchains, are also starting to build their own DeFi ecosystems. In the past few years, DeFi has become very popular because it lets people use financial services without a bank or other centralized institution.
CeFi: "Centralised finance" is what "CeFi" is short for. CeFi is the traditional way that money is handled in the world today. It is made up of banks, investment firms, cryptocurrency exchanges, and other centralized financial institutions.
dApps: "Decentralized applications" is what "dApps" is short for. A decentralized network like a blockchain is an example of a type of application called a "dApp." Many people think of dApps in terms of cryptocurrencies because many of them run on blockchain platforms like Ethereum. But decentralized networks like IPFS can also be used to build dApps.
BTFD: "Buy the f*cking dip" is what "BTFD" stands for. When the price of a certain cryptocurrency goes down, and you think it's a good time to buy, this is what you call it. People often use this term to say that they think the price will go up in the future. As the market is very volatile, it's important to remember that you should only invest what you can afford to lose.
Maximalists (maxis): People who are very optimistic about a certain cryptocurrency are called "maximalists." People usually call them "maxis" for short. Maximalists often have a lot of faith in the future of their favourite cryptocurrency and think that it will become the most important coin in its field. They think that every other coin will go away except for the one they chose.
DEX: The word "DEX" stands for "decentralized exchange." A DEX is a type of cryptocurrency exchange that lets people trade cryptocurrencies in a way that is not controlled by a central authority. DEXs are often built on blockchain platforms like Ethereum and let users trade right from their wallets. People often think that this type of exchange is safer than centralized exchanges because there is no single point of control. But DEXs are risky because there is no one person in charge. Since no one is in charge of it, you can't get your crypto back if something happens to them or if you make a simple mistake with it.
CEX: "Centralized exchange" is shortened to "CEX." A centralized cryptocurrency exchange is called a CEX. This means that a single group, like a company or the government, is in charge of it. People often think that centralized exchanges are less safe than decentralized exchanges because they only have one place where something could go wrong. People also often say that they are hard to understand and have high fees. Even so, CEXs can be regulated (and usually are to some degree), and they must keep their users safe and help them get back lost crypto. Centralized exchanges include Crypto.com, Binance, and KuCoin, which are all places where you can buy and sell crypto.
FUD: Fear, uncertainty, and doubt are what "FUD" stands for. FUD is a term for when bad news or negative feelings about a certain cryptocurrency cause its price to drop. People who want to manipulate the market often spread FUD, so it's important to be careful if you want to buy or sell a coin.
FOMO: "Fear of missing out" is what "FOMO" stands for. FOMO is a term for the anxious feeling you get when you think you might be missing out on something. FOMO is often used in the context of investing because it can make people act quickly and invest in something without doing enough research. Before buying a coin, it's important to know what you're getting and not buy out of fear of missing out (FOMO).
Airdrop: In the cryptocurrency world, when a project gives its community free tokens or coins, this is called a "airdrop." Airdrops are often used as a way to get people excited about a project and build a community around it. You can also use them to give tokens to people who want to use a certain decentralized application.
Address (Wallet Address): A crypto wallet's "address" is a string of alphanumeric and numeric characters. To send and receive cryptocurrency, you need a wallet address. They are usually made by a wallet provider, and you can think of them as email addresses. It's important to remember that you should never give anyone your private key, because that would let them get to your money. It is safe to share public keys.
Cold Wallet: A type of cryptocurrency wallet called a "cold wallet" is not connected to the internet. People often think that cold wallets are safer than hot wallets because they are less likely to be hacked. They can be kept on offline computers, USB drives, or paper wallets.
Hot Wallet: A cryptocurrency wallet that is connected to the internet is called a "hot wallet." People often think that hot wallets are less safe than cold wallets because they are easier to hack and phish. They can be kept on online wallets or exchanges.
Node: A computer that is connected to the blockchain and checks transactions is called a "node." Most nodes are run by volunteers, and they can be found all over the globe. They help make sure the network is safe and runs well.
Double Spend: When someone tries to spend the same cryptocurrency coin twice, this is called "double spend." This can happen if someone has two wallets and tries to send the same coin to both of them at the same time. People often think of double spending as a bad thing because it can cause the value of money to go up. When thinking about investing in a coin, it's important to be aware of double-spending.
MultiSig: The word "multisignature" is shortened to "MultiSig." MultiSig is a type of wallet that needs more than one signature to approve a transaction. This means that more than one person would have to agree to a transaction for it to go through. People usually think that multisig wallets are safer than single-sig wallets because they need more than one person to agree to a transaction.
Fork: When a blockchain splits in two, this is called a "fork." This can happen for a number of different reasons, but it usually happens when the community can't agree on an update or change. There are both hard and soft forks. When the new blockchain is not compatible with the old blockchain, this is called a "hard fork." If the new blockchain is compatible with the old blockchain, this is called a "soft fork." Forks are important to know about if you want to invest in a certain coin because they could change the value of your investment.
Gas: The fee that is paid to process a transaction on the blockchain is called "gas." Gas is usually thought of as a good thing because it helps keep the network safe and running well. If you want to invest in Ethereum, you should know about gas fees because they can change how much money you make from a transaction.
POW: "Proof of Work" is what "POW" stands for. The Bitcoin blockchain uses POW, which is a type of algorithm, to confirm transactions. To add new blocks to the chain, miners who use POW algorithms have to solve hard math problems. People tend to like POW algorithms because they help keep the network safe and running well. But they can also be seen as bad because they use up a lot of energy. If you want to invest in Bitcoin, you should know about POW because it could change the value of your investment.
POS: "Proof of Stake" is short for "POS." POS is a type of algorithm that is used to check transactions on the blockchain. To add a new block to the chain, users with POS algorithms have to risk their coins. Most people like POS algorithms because they help keep the network safe and running well. They can also be seen as bad, however, because they can cause the value of money to go up. When thinking about investing, it's important to know about POS because it could affect the value of your investment.
Wrapped Bitcoin: When someone takes their Bitcoin and "wraps" it in Ethereum, this is called "wrapped Bitcoin." This can be done for many different reasons, but it's usually done to get the most out of both networks. Wrapping your Bitcoin can be seen as a good thing because it lets you use both networks' benefits. But it can also be seen as bad because it can cause the value of money to go up. Wrapped Bitcoin is something you should know about if you want to invest in Bitcoin or Ethereum because it could change the value of your investment.
Halving: When the block reward for miners is cut in half, this is called "halving." The price of Bitcoin can change a lot when this happens every four years. Most people think that halvings are good because they help keep the network safe and running well. But they can also be seen as bad because they can cause the value of money to go up. If you want to invest in Bitcoin, you should know about halvings because they could change the value of your investment.
NFT: The acronym "NFT" stands for "Non-Fungible Token." NFTs are a type of digital asset that is kept on the blockchain. NFTs are unique, which means they can't be swapped out for another asset or replaced. NFTs have been getting more and more popular lately, in part because of the CryptoKitties game, which is based on Ethereum. People can buy, sell, and breed digital cats in CryptoKitties. NFTs store these digital cats on the Ethereum blockchain. NFTs can be used to represent all kinds of digital assets, from art and music to in-game items and virtual real estate.
Oracle: In cryptocurrency, an oracle is a person or group that verifies the transactions in a blockchain network. It is like a notary public in the old way of doing business. An oracle has to agree that a transaction is valid for it to be valid. An oracle could be a single person or a group of people. In some situations, an Oracle may be a piece of software that is made to check the validity of transactions. Oracles are usually used in decentralized networks where transactions don't have to be checked by a central authority. Chainlink is one of the most well-known Oracles in the cryptocurrency world. Chainlink is a decentralized Oracle network that gives smart contracts on Ethereum data and information. Oracles are an important part of the ecosystem of cryptocurrencies because they help make sure that transactions are valid. Without them, there would be no way to tell if a transaction is valid or not. Oracles are also important because they can give smart contracts data and other information. This information and data can be used to start events or carry out transactions. For example, an Oracle can send data to a smart contract that is used to make a payment.
Stablecoin: Stablecoins are a type of cryptocurrency that are made to keep prices from going up and down too much. Most of the time, stablecoins are backed by things like fiat currency, gold, or silver. Tether is the most popular stablecoin (USDT). Tether is a stablecoin that is backed by the dollar and is meant to be used as a digital dollar. By market capitalization, Tether is the most valuable stable coin, and it is also one of the most popular cryptocurrencies. Paxos Standard (PAX) and USDC are two other popular stablecoins.
Web 3.0: "Web three-dot-zero" (or "web three-dot-oh") is a term for the next generation of the internet. Decentralized technologies like blockchain and distributed ledger technology are being used to build Web 3. The goal of Web 3 is to make the internet more open, safe, and easy to use. Companies and projects like Ethereum, IPFS, and ENS are working on Web 3.0. The launch of Web 3.0 is still in its early stages. But the technologies that are being built on the web three-zero are already having a big effect on the world.
Yield Farming: The process of earning interest in cryptocurrency is called "yield farming." Most of the time, yield farmers lend their cryptocurrency to projects or protocols and get interest payments in return.
Liquid staking: A novel process of staking crypto where the protocol or company users take through issues ‘replacement’ tokens in a 1-to-1 ration to the staked assets. These replacement tokens are called ‘liquid staking tokens’ and they can be used in other DeFi protocols, pools and DEXs.
Conclusion
Every industry, community, and technology needs its own lingo. And because crypto is all of these things, it has its own language that keeps growing. Let our guide to cryptocurrency terms, acronyms and definitions be your ticket into the world of crypto, from Reddit memes to smart crypto investments.
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