To the uninitiated, the world of cryptocurrency can be a strange and confusing place. This is in no small part to the lingo that cryptocurrency enthusiasts have developed through the years.
Though the crypto community largely utilizes a lot of terms which are common to all types of finance and investing, it's evolved in the last decade right into a unique vocabulary that's identified by enthusiasts the world over.
Below are some of the essential cryptocurrency slang terms you will need to know before diving into blockchain trading. If you wish to enter into crypto trading, knowing these terms is important, as these are all used and understood by just about any crypto trader. If you're ready to trade, you can keep your risks down by selecting secure coin storage solutions like getting an XMR wallet if you are exchanging Monero for instance.
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51% Attack. A kind of cyber attack where over half the accessible computing power has been consumed by one party.
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Address. A unique character string that functions like a location where parties can send, receive, or store cryptocurrency.
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Algorithmic Stablecoin. A cryptocurrency that utilizes a formula to trigger certain actions based on external events. For example, it could release more coins or purchase them based on market rates.
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Altcoin. These are coins with niche appeal. Generally speaking, any coin that's not Bitcoin or Ethereum.
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Bitcoin Maximalist. Otherwise known as a “Bitcoiner”, Bitcoin maximalists are those who value Bitcoin total other coins or otherwise believe only Bitcoin has real value.
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Blockchain. A digital ledge that includes a connected series of immutable number of data blocks.
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Blocks. Digital data blocks that carry a historical record, usually of coins and NFTs but also potentially other types of data.
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BTFD. An acronym for “Buy The F****** Dip” where traders encourage others to purchase a coin that has fallen in market value.
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Cold Wallet. A cryptocurrency wallet is stored on the physical device, such as a thumb drive. While secure from hacking, they can be more cumbersome to do business with.
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dApps. A “decentralized app”. This describes any practical leveraging of blockchain concepts like cryptocurrency. Usually by means of games, messenger platforms, and social media applications.
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Decentralized API (dAPI). API services that are meant to be used with blockchain technology.
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DeFi. A shortening of “decentralized finance”. It's a movement within blockchain communities that seeks to get rid of banks along with other financial institutions as “middlemen” for transactions between two parties.
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Fiat/Fiat Currency. Currencies that are issued by a government's central bank, also known as “conventional currencies”. Cryptocurrencies function as an alternative to these conventional currencies.
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FOMO. “Fear of Missing Out”. It is the anxiety that one might not be able to purchase and “hodl” (see below) a coin in the right time.
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Fork. A situation whenever a cryptocurrency or blockchain-based network splits off into several project, each with its own code.
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Gas. The price of computing power for transactions on the Ethereum blockchain.
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Halving. An event around the Bitcoin blockchain in which the mining rewards are halved after approximately 210,000 blocks are mined. This really is designed to control the availability of accessible coins.
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Hash Rate. A way of measuring computing power when mining cryptocurrencies. Higher rates usually mean a more efficient mining network.
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Hodl. A humorous misspelling of “hold”. Allegedly, the spelling was the result of the investor's typo on the forum, made because they were enthusiastically encouraging other forumites to not sell. Hodl has since become shorthand for faith inside a cryptocurrency.
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Hot Wallet. A digital wallet that is hosted online. They are accessible but much more susceptible to malicious actors than physical or “cold” wallets.
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ICO. An Initial Coin Offering. They are fundraising efforts much like an “Initial Public Offering” for other investments. Many of these are fraudulent “pump and dump” schemes which means investors ought to always be cautious about any ICOs.
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Mining. This is the procedure of using computing power to solve cryptography problems. This is intended to both secure a cryptocurrency network and power it. In some cryptocurrencies, fractions of coins are awarded for this work.
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NFT. A nonfungible token is really a unique digital certificate secured with a blockchain. It might be accustomed to secure ownership of products, including both real-world and virtual items. Memes, artworks, and social networking posts are among the many virtual assets that may be secured by an NFT.
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Paper Hands. Otherwise referred to as “weak hands”. This refers to an investor that sells their coins in the first sign of devaluation. Investors are often asked to “hodl” lest they be called paper hands.
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Pump and Dump. A price manipulation scam in which the market price of the coin is “pumped” or boosted according to false promises and misdirection (for example celebrity endorsements). Assets will be “dumped” or sold at high prices to naive buyers, after which the coin begins to devalue rapidly.
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Satoshi. This refers to an amount of .0001 Bitcoins. The word is really a reference to the mysterious founder of Bitcoin, Satoshi Nakomoto.
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Stablecoin. A cryptocurrency or blockchain-based token with a value pegged to that particular of the commodity or fiat currency. Stablecoins are gaining interest as an instrument for cross-border finance.
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Token. A unit of the digital asset, such as an NFT or perhaps a cryptocurrency.
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To the Moon/Rocket Emoji. The phrase “to the moon” and rocket emojis indicate a thought that the cost of a digital asset increases significantly.
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Rekt. Used to describe massive losses. Derived from the word “wrecked”. Rekt was originally a 2000s gaming term which has since been adopted by the crypto community.
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Wallet. A digital or physical storage solution for cryptocurrency and NFTs. Online wallets in many cases are known as “hot” while wallets hosted on physical devices are often described as “cold”. Wallets may also be designed for specific functions or coins, as with the case of XMR Wallet, which is primarily intended for use with Monero.
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Whale. Parties whose coin holdings can significantly affect cryptocurrency market values. Whales could be highly successful individual traders as well as businesses that have substantial holdings. They are able to be also influential, often imitated parties which have achieved consistent, long-term success in cryptocurrency trading.
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The list above is just the tip from the cryptocurrency lingo iceberg. Every coin's community features its own slang that's unique for them. Additionally, cryptocurrency traders may fall into different geographic subgroups or ideological camps, and every of those will build up unique terms that reflect their shared values. In addition, every sub-community's vocabulary is continually evolving. We'll doubtlessly see some of the words above fall out of favor and some brand new ones appear, proof of the vitality from the crypto scene.
