CryptoSpeak 101
A glossary of crypto terminology for dummies? Nah, you're not dumb you just haven't learned what it means yet.
So glad you're here- welcome to the party!
If this feels like you're about to transfer back to school and already brings back some lunchroom PTSD, or a college lecture snooze fest flashback don't worry; we are here to try to make it fun.
"The world learned that when a bunch of nerds, gamers, coders, zoomers, boomers, and millennials mash together you get terms like HODL, REKT, pump and dump, hodlers, whales, bag holder, shills and FUDsters"
Let's get you set up for conversation so you can keep up during future SNL skits. Here are a few of the most commonly used words and slang
ATH (All-Time High):
The highest price ever reached by a cryptocurrency in its trading history.
Altcoin:
Any cryptocurrency other than Bitcoin. Altcoins may have different features and use cases, such as Ethereum, Ripple, Litecoin, and many others.
Bag Holder:
A person who holds a significant amount of a cryptocurrency that has lost substantial value, often referring to someone who bought at a higher price and is now "holding the bag" of a devalued asset.
Bear Market:
A period of declining cryptocurrency prices
Bull Market:
A period of rising cryptocurrency prices
Blockchain:
A decentralized and immutable digital ledger that records all transactions across a network of computers. It ensures transparency, security, and prevents double-spending.
Bitcoin:
The first and most well-known cryptocurrency, created by an anonymous person or group known as Satoshi Nakamoto in 2009. Often referred to as digital gold, it paved the way for other cryptocurrencies.
Cryptocurrency:
A digital or virtual form of currency that uses cryptography for security and operates independently of a central authority, such as a government or financial institution.
Decentralization:
This means no single entity, like a government or a bank, has control over them. Instead, they're run by a global network of computers that work together to keep the system running smoothly. This also means that you have more control over your own money and transactions. It is a key characteristic of cryptocurrencies. Think of it as a super-locked digital ledger that records all the transactions and keeps everything transparent. This means no sneaky business, and you don't need a bank or any middlemen to handle your transactions.
DYOR:
Do Your Own Research, a reminder to investigate before investing in a cryptocurrency
FOMO (Fear of Missing Out):
The fear of missing out on potential profits in the cryptocurrency market, leading to impulsive and emotional investment decisions.
FUD (Fear, Uncertainty, Doubt):
Spreading negative information or rumors about a cryptocurrency or the market to create fear and uncertainty among investors.
FUDsters:
People who spread Fear, Uncertainty, and Doubt (FUD) within a community or market. They may disseminate negative or misleading information to create doubt and panic among investors or users.
Gas Fee:
The fee paid for transactions on a blockchain network. Users can set the gas fee they are willing to pay when sending a transaction or interacting with a smart contract. If the gas fee offered is too low, miners or validators may prioritize other transactions with higher fees, potentially causing the transaction to be delayed or even fail. It's important for users to set appropriate gas fees to ensure timely processing of their transactions while not overpaying. Wallets and platforms often provide estimates of the current gas fees to guide users in making informed decisions
HODL:
A misspelling of the word "hold," originating from a famous post on a Bitcoin forum in 2013. It's used in the cryptocurrency community to humorously encourage people to hold onto their cryptocurrencies instead of selling, regardless of market volatility.
Hodlers:
Individuals who hold onto their cryptocurrency investments for the long term, regardless of short-term market fluctuations. The term originates from the misspelling "HODL" and has become a symbol of the belief in the long-term potential of cryptocurrencies
ICO (Initial Coin Offering):
A fundraising method used by startups to raise funds for new cryptocurrency projects. Investors receive tokens in exchange for their investment.
Pump and Dump:
A fraudulent tactic often seen in financial markets, including cryptocurrency markets. It involves artificially inflating the price ("pumping") of a specific asset through misleading or false information, and then quickly selling off ("dumping") the asset at the inflated price, causing the price to crash and resulting in losses for unsuspecting buyers.
Mining:
The process by which transactions are verified and added to the blockchain. Miners use powerful computers to solve complex mathematical problems, and in return, they are rewarded with new cryptocurrency tokens.
Private Key:
A unique, secret alphanumeric code associated with a cryptocurrency wallet. It is used to access and authorize transactions related to the wallet's holdings.
Public Key:
A unique alphanumeric code that serves as an address to receive cryptocurrencies. It is derived from the private key and can be shared with others for transactions.
Pump and Dump:
A fraudulent tactic where manipulators artificially inflate the price of an asset, like a cryptocurrency, through misleading promotions. They then sell their holdings at the high price, causing the price to plummet and leaving other investors with losses. It's a form of market manipulation and is considered unethical.
REKT:
A slang term used in online communities, especially in the context of cryptocurrency trading, to describe someone who has experienced significant losses due to a bad trade or investment.
Sats (Satoshi):
A satoshi is the smallest unit of Bitcoin, representing one hundred millionth of a Bitcoin (0.00000001 BTC), named after its creator, Satoshi Nakamoto.
Shills:
Individuals who promote or endorse a cryptocurrency or investment with the intention of misleading others. They might give positive recommendations or provide false information to manipulate opinions and drive up demand.
Stacking Sats:
Stacking Sats is a slang term creferring to accumulating or buying small fractions of Bitcoin, referred to as "sats." The idea behind stacking sats is to gradually accumulate Bitcoin over time, regardless of its current price, with the belief that Bitcoin's value may increase in the long run. It's a strategy that emphasizes the importance of long-term investment and the potential for Bitcoin to appreciate in value over time. By stacking sats, individuals aim to build their Bitcoin holdings over the years, regardless of short-term price fluctuations.
Wallet:
A software or hardware tool used to store, send, and receive cryptocurrencies securely. Wallets come in various forms, such as software wallets (online, desktop, mobile) and hardware wallets (physical devices).
Whale:
In the cryptocurrency world, "whales" refer to individuals or entities that hold a large amount of a particular cryptocurrency. Their significant holdings can influence the market due to their capacity to make substantial trades.
Understanding these cryptocurrency terms will help you navigate the world of digital currencies more confidently and participate in discussions and investments effectively.
