The lingo is part of what makes the crypto world so unique, but it can definitely be intimidating at first. In this beginner’s guide, we’ll break down some of the most common crypto slang so you can start navigating the space like a pro.
We’ll cover all the need-to-know terms. Before you know it, you’ll be dropping crypto lingo like you’ve been in the game for years. So get ready to level up your crypto vocabulary!
Crypto Jargon 101 🙂: Common Terms and Phrases
Altcoins
Altcoins refer to any cryptocurrency other than Bitcoin. With over 2,000 altcoins in existence and counting, some of the popular ones are Ethereum, Litecoin, and Ripple. Altcoins aims to improve on Bitcoin’s technology or have a specific use case.
Wallet
A wallet is essential for managing cryptocurrencies and tokens, serving as a storage space for addresses and public and/or private keys. It’s important to note that the actual cryptocurrencies are not stored within the wallet itself; instead, the wallet holds the necessary information for accessing the cryptocurrencies, which are recorded on the blockchain. A wallet can store various access details.
For security reasons, crypto holders often choose to utilize multiple wallets. There are various types of wallets available, but the two most common ones are Hot wallets and Cold wallet.
DEX
A DEX, short for Decentralized Exchange, refers to a type of cryptocurrency exchange that facilitates direct peer-to-peer transactions securely over the Internet without needing an intermediary. Users can transact cryptocurrencies directly with each other without requiring any form of identification on these exchanges.
Airdrop
An airdrop is when a crypto project distributes free tokens to raise awareness and promote their new cryptocurrency. It’s a way for crypto startups to gain exposure and build their community. All you have to do is sign up, verify your identity, and claim your free crypto!
Blockchain
The blockchain is the underlying technology that powers cryptocurrencies and crypto assets. It is a decentralized digital ledger that records transactions securely and transparently. Blockchain allows for peer-to-peer transactions without the need for a third-party intermediary.
ATH
ATH stands for All-Time High. This is the highest price a cryptocurrency has ever achieved.
FUD
FUD stands for “fear, uncertainty, and doubt”. It refers to negative rumors or misleading information meant to drive down the price of a cryptocurrency. Do your own research to determine if the FUD is substantiated before panic selling.
Whale
Whale refers to an individual or entity that holds a significant amount of a particular cryptocurrency. These whales typically possess large amounts of cryptocurrency, often influencing market trends and prices with their trading activities
FOMO
FOMO is the “fear of missing out”. It refers to the feeling of anxiety you get when a cryptocurrency’s price starts skyrocketing and you regret not buying it earlier. Try not to make emotional decisions based on FOMO, as you may end up buying at the top!
HODL
HODL refers to holding onto your cryptocurrency for the long run instead of panic selling. It originated from a 2013 Bitcointalk forum post where a user misspelled “hold” as “hod!”. The crypto community adopted HODL as a rallying cry during market downturns. If you believe in the long-term potential of a project, HODLing is often the best strategy.
DYOR
DYOR means “do your own research”. It’s crypto slang that reminds investors they should look into
cryptocurrencies themselves to evaluate the pros and cons, instead of just buying because of hype or someone else’s recommendation. DYOR is the responsible, intelligent approach to investing in such a volatile market.
Conclusion
So there you have it – a quick crash course in some of the most common crypto lingo making the rounds these days. Getting familiar with these terms and phrases will help you better navigate the exciting world of cryptocurrency as you dive deeper.
