Mar 17, 2022
Crypto Slang You Need to Know Before You Invest
The most popular pieces of crypto lingo explained
If you are brand new to the world of blockchain and cryptocurrency, it’s easy to get overwhelmed with all the terminology. There are so many new slang and acronyms that you need to digest and understand. This article will provide definitions and clarification for those crypto terms that have you scratching your head.
Technical and Slang Terms
ADDRESS
A cryptocurrency address is a set of numbers and letters similar to usernames, email addresses, or bank account numbers for different blockchains or cryptocurrencies. An address is used to represent a destination for transactions on the blockchain, the public ledger that records all transactions in cryptocurrency.
AIRDROP
A cryptocurrency airdrop is when a currency project gives a way tokens to the public for free in order to promote their currency or platform. An airdrop is also used as an effective form of marketing, where people are incentivized with tokens to promote the project on social media platforms and other websites.
ALTCOIN
Altcoins are cryptocurrencies that are not Bitcoin. They are cryptocurrencies that are based on the same blockchain technology as Bitcoin but with different algorithms and/or different goals.
BAGHOLDER
A cryptocurrency bagholder is someone who bought cryptocurrencies but has since lost all their investment due to the rapid decline in the value of the coins on the market.
BEAR
A cryptocurrency bear is a trader who believes that the price of a cryptocurrency will drop. A bear market is characterized by an overall decreasing trend in the market.
BEARWHALE
A cryptocurrency bearwhale is a trader who has a significant amount of cryptocurrency but is pessimistic about the crypto market.
BLOCKS
A cryptocurrency block is a unit of information in the public ledger of a cryptocurrency (blockchain). It is the smallest amount of data that can be processed and confirmed by the network.
BLOCK REWARD
A cryptocurrency block reward is a reward given to the miner of a new cryptocurrency block. It’s usually a fixed amount of coins that are given out to the miner when they successfully mine a new block.
BITCOIN MAXIMALIST
A cryptocurrency bitcoin maximalist is a person who believes that Bitcoin is the best form of digital currency. They have an extremely high level of trust in Bitcoin and believe that it has no potential for competition.
BULL
A cryptocurrency bull is a term used to describe a person who believes that the price of a cryptocurrency will increase in the future.
CONSENSUS
A cryptocurrency consensus is a process that determines which transactions are valid and which are not. In order to prevent fraud and double spending, the system uses a decentralized network of nodes that agree on the validity of transactions.
CRYPTOGRAPHY
Cryptography is the study of how to convert information into an unreadable form in order to keep it secure.
CRYPTOJACKING
Cryptojacking is the process of using a computer to mine cryptocurrency without the knowledge or consent of the owner.
DECENTRALIZATION
Decentralization is the process of distributing or sharing power. It is a way to ensure that no one person, entity, or government has control over everything.
DEFI
Decentralized Finance (DeFi) is an umbrella term for all the various types of digital assets, systems, and services that are not based on banks or other centralized institutions but instead use blockchain technology to facilitate transactions.
DEX
A cryptocurrency DEX is a decentralized exchange that allows trading of cryptocurrencies without the need for intermediaries.
DOUBLE-SPEND
A cryptocurrency double-spend is when a person spends the same cryptocurrency twice, which means they are stealing from other people. The first time they spend the coin, it is valid and recorded in the blockchain. However, after that, the second transaction will be invalid and not recorded in the blockchain.
EXCHANGE
Cryptocurrency exchanges are platforms that allow people to trade digital currencies. They provide a way for investors to buy and sell cryptocurrencies, as well as a platform for cryptocurrency trading.
EXIT SCAM
An exit scam is when the founders of a cryptocurrency project disappear with the funds of their users after an ICO.
FIAT
A Fiat currency is a form of money that the government declares to be legal tender in a particular country. The value of fiat currencies derives from their acceptance, and they are not necessarily backed by any physical commodity.
FLIPPENING
A future scenario in which Ethereum’s market capitalization exceeds that of Bitcoin’s.
GAS
Gas is the measure of how much work an action requires in order to be completed. For example, if you want to send a transaction on the Ethereum blockchain, you will need to pay for gas.
GWEI
Gwei is the smallest unit of Ether, which is the cryptocurrency of Ethereum. In order to send or receive transactions in Ethereum, you need to pay a certain amount in Gwei. Consider it cents or pennies for every Ether sent or received.
HASH
A cryptocurrency hash is a string of characters that is generated by a cryptographic function and serves as a unique identifier for each transaction in the blockchain.
HODL
HODL stands for “Hold On for Dear Life”. It is used as a way to keep hope alive when the market crashes or if you are unsure about investing in cryptocurrencies.
IMMUTABILITY
Blockchain immutability means that once information has been placed on a blockchain, no one can alter the data without being noticed by everyone else on the network. This concept was made possible by the concept of distributed ledger technology, which enables different parties to share and agree on data in real time.
LAMBO
Cryptocurrency Lambo is a term coined by the cryptocurrency community. It means an investment that has the potential to make you rich if you buy it now and sell it later.
MINING
Mining is the process of using computer hardware to solve difficult math problems in order to validate transactions and create new coins.
MEMPOOL
The mempool is the list of transactions waiting to be confirmed. It is a queue that contains all the unconfirmed transactions waiting for miners to process them.
MOON
Moon is the term used to describe the point in time when a cryptocurrency’s value skyrockets.
NOCOINER
A cryptocurrency nocoiner is a term that refers to someone who has never owned cryptocurrency. It is also a term used to describe the idea of an individual who has never invested in cryptocurrency, but believes they know what it is.
NODE
A blockchain node is a computer that runs the blockchain software and helps to maintain the network. It verifies, relays, and records transactions on the blockchain.
P2P
Peer-to-peer is a term used in the cryptocurrency community that refers to the process of exchanging goods, services, or ideas without any intermediary.
PRIVATE KEY
A private key is like your password, which you can use to prove your ownership of cryptocurrency on the blockchain.
PROOF-OF-STAKE
Proof-of-stake (POS) is an alternative to proof-of-work (POW) as it doesn’t require any specialized hardware. Instead, POS relies on users to validate transactions by locking up their coins in a process called “staking.”
PROOF-OF-WORK
Proof-of-work is also known as mining. It involves solving highly complex mathematical problems to validate transactions on the blockchain. This process of solving these problems secures the network and prevents double spending.
PUBLIC KEY
A public key is an address that is associated with a private key. It is a long number that identifies a person or entity, and it is used for receiving funds from others who are sending crypto coins or tokens.
REKT
In the cryptocurrency world, “REKT” means that your investment was completely wiped out. This can happen if a cryptocurrency goes down in value or if there’s a hack on the exchange.
SATOSHIS OR SATS
Satoshi is the smallest unit of the cryptocurrency Bitcoin. Satoshi is also the name of its creator, who is identified as Satoshi Nakamoto. Each Satoshi is worth 0.00000001 BTC, which means a single Bitcoin is worth 100 million Satoshis.
SEED PHRASES
A cryptocurrency seed phrase is a phrase that you can use to access your cryptocurrency wallet. You will need it when you want to recover your account if it is hacked or lost.
SHILL
Cryptocurrency shills are usually paid by the company that created the coin, and they have no vested interest in its success. They may also be paid for promotional posts on social media, YouTube, or other platforms.
SHITCOIN
A coin with no or little value and purpose.
SMART CONTRACT
A smart contract is a computer program that facilitates, verifies, and enforces the terms of a contract.
STABLECOIN
A stablecoin is a cryptocurrency that is pegged to another stable asset, usually the US dollar.
WALLET
A crypto wallet is a software or hardware device that stores the public and private keys that allow users to receive and spend their cryptocurrency.
WEAK HANDS
Weak hands are people that usually make irrational decisions and sell their coins at a loss when the market is low. When they realize that they made a mistake, it is too late as the price has already shot up and they can no longer buy back in.
WHALE
Cryptocurrency whales are people who have a large amount of cryptocurrency. They can be either individuals or organizations that have a significant amount of cryptocurrency.
Acronyms
ATH
The acronym “ATH” stands for “All Time High.” It refers to the point at which a cryptocurrency has reached its highest price.
BTD
The cryptocurrency acronym BTD stands for “Buy the Dip,” and it is a popular saying among many cryptocurrency investors. It means that if you are in a dip, which is a downward trend, then it is best to buy the dip because this will help you in the long run.
DYOR
DYOR is an acronym that stands for “Do Your Own Research.” In the cryptocurrency world, it means that you should do your own research before investing in any coin. It’s a good idea to know what you’re getting into and read up on the project before making any decisions.
EVM
The EVM is the Ethereum Virtual Machine, which runs on top of the Ethereum network and allows developers to create decentralized applications on it by writing smart contracts in the Solidity language.
FOMO
FOMO has been used to describe the fear of missing out on an opportunity to invest in cryptocurrency because it’s going up in price rapidly and it’s going to go up even more — or at least that’s what many people think.
FUD
FUD is an acronym that stands for “Fear, Uncertainty, and Doubt”. It is a term that has been used to describe the spread of negative news about cryptocurrency.
ICO
ICO is an acronym for “Initial Coin Offering.” It is a way of crowdfunding a cryptocurrency project.
Am I missing a term? Make sure to leave a comment to get it added to this list!
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