As a crypto enthusiast, it is necessary for you to know most of the commonly used terms in crypto and their meaning.
Some of these terms are:
Airdrop ▼
A way to promote cryptocurrencies by sending some free tokens to crypto enthusiasts.
ATH ▼
This means All Time High; The Highest point in price that a cryptocurrency has been in history.
ATL ▼
This means All Time Low; The lowest point in price that a cryptocurrency has been in history.
Altcoin ▼
This refer to coins that are alternative to bitcoin.
AMA ▼
This means Ask Me Anything; it refers to actions where individuals of certain profession or company conduct a session for users to ask them questions.
Bagholder ▼
A person who is holding a large quantity of cryptocurrency which is declining in value or becoming worthless.
Bearish ▼
A term used to indicate negative sentiment towards the market or an asset, where investors believe that there will be downward price movement.
Bear Market ▼
Contrary to bull market, it indicates the direction of the market going for downward trend.
Bitcoin Evangelist ▼
Individuals who are passionate about bitcoin, and are dedicated in spreading knowledge about bitcoin.
BUIDL ▼
An advice for investors to contribute new projects on blockchain rather than holding cryptocurrencies and waiting for the price to increase.
Bullish ▼
A term used to indicate positive sentiment towards the market or an asset, where investors believe that there will be upward price movement.
Bull Market ▼
A bull market indicates the direction of the market going in an upward trend.
Burned Tokens ▼
These are tokens which have been sent to addresses whose private key are not known, effectively becoming unusuable.
Centralized ▼
An organization structure wherein a small handful of actors have control over the entire network.
Cloud Mining ▼
It refers to mining on blockchains through rented processing power rented from companies that host the physical equipment.
Cold Storage ▼
It refers to the offline storage of cryptocurrencies which is arguably safer as they also require physical access.
Cold Wallet ▼
These are wallets that are offline and require physical access to certain devices.
DApps ▼
This means Decentralized Applications; These refers to applications that run on decentralized peer-to-peer networks.
DAO ▼
This means Decentralized Autonomous Organization; These are open source and decentralized systems that do not require centralized operators or controllers.
DeFi ▼
This means Decentralized Finance; it refers to the movement of holding decentralized financial applications that have no central authority and is censorship free.
Degen ▼
Crypto trading without due diligence and research which implies to be basically gambling.
DYOR ▼
This means Do Your Own Research; It is an advice for investors to do their own research on the coins they wanted to invest in.
Dump ▼
A common term used to describe downward market movement, or to describe the action of selling an individuals holdings.
FOMO ▼
This means Fear Of Missing Out; it refers to the feeling of apprehension for missing out on a potentially profitable investment opportunity and regretting it later. Generally an expression describing investors fear of missing out the good timing of buying cryptocurrencies that could eventually be profitable.
FUD ▼
This means Fear, Uncertainty and Doubt; it is a strategy to dissuade people from buying a particular cryptocurrency by spreading false information.
Halving ▼
Event that serves to reduce in half the reward of the proof of work miners that operate in the blockchain network.
Hard Cap ▼
The maximum amount that an ICO will be raising.
HODL ▼
It means Hold On for Dear Life; A crypto slang encouraging investors to hold on to their assets rather than selling it.
ICO ▼
This means Initial Coin Offering; it is the equivalent of Initial Public Offering (IPO), where a cryptocurrency venture raises funds through crowd sales.
IDO ▼
This means Initial DEX Offering; it is a type of decentralized and permissionless crowdfunding platform, which is opening up a new way of fundraising in the crypto space.
IYKYK ▼
It is an abbreviation for If You Know You Know; The phrase implies that the user has dropped some sort of insider knowledge about a specific experience.
KYC ▼
It stands for Know Your Customer; a process for business entities that are required to verify its clients and assessing them.
Ledger ▼
A record of financial transactions that cannot be changed, only appended with new transactions.
Leverage ▼
It is an investment strategy to gain potential return of the investment by borrowing the money.
Limit Order ▼
These are orders placed by traders to buy or sell a cryptocurrency when a certain price is reached.
Liquidity ▼
How easily a cryptocurrency can be bought and sold without impacting the overall market price.
Margin Call ▼
This takes place when investors margin account falls below the required amount to stay afloat.
Margin Trading ▼
It is a way of investing by borrowing money from a broker or in crypto, an exchange or platform to trade.
Market Maker ▼
Participant of the market who creates buy and sell orders.
Market Order ▼
A market order is s buy or sell order of stocks or cryptocurrency at the best price available in the current market as soon as possible.
Market Taker ▼
Participants that are responsible for processing blockchain transactions and receive a reward when a block is mined.
Metaverse ▼
The metaverse is a virtual space where users are able to interact with each other in a computer generated environment.
Miners ▼
Contributors to a blockchain taking part in the process of mining.
Mining ▼
It is the process of the miners verify and adding transaction records in a block.
Mining Reward ▼
The reward resulting from contributing computing resources to process transactions.
Mnemonic Phrase ▼
A mnemonic phrase (also known as mnemonic seed, or seed phrase) is a list of words used in sequence to access or restore your cryptocurrency assets.
Moon ▼
‘Moon’ or ‘To the Moon’ is a crypto slang that describes an exclamation when the cryptocurrencies prices are rising and when it hit the peak, the coin is said to be ‘Mooning’.
NFT ▼
This means Non-Fungible Tokens; it is a non-interchangeable unit of data stored on a blockchain, a form of digital ledger, that can be sold and traded.
OTC ▼
This means Over The Counter; it refers to the process that cryptocurrencies are being traded outside exchange and it is done directly between two parties.
Portfolio ▼
A portfolio consists all of your current crypto holdings in one place.
Presale ▼
A typically exclusive token sale events preceding a public ICO.
Private Keys ▼
The alphanumeric string which allows transactions from the cryptocurrency address.
REKT ▼
A shorthand slang for ‘Wrecked’, typically describes bad trades that results in losses.
ROI ▼
It is a short form for return on Investment, the ratio between the net profit and cost of investing.
Rug Pull ▼
It is the sudden removal of liquidity which typically leads to asset prices crashing from the lack of liquidity to absorb buy/sells.
SEC ▼
US Securities and Exchange Commission, an independent agency of the US Federal Government which oversees federal securities lows, proposing securities rules, and regulating the securities industry.
Shilling ▼
One who poses as a enthusiastic customer to swindle others as a form of covert advertising.
Shitcoin ▼
A coin with no obvious potential value or usage.
Smart Contracts ▼
Self executing contracts on the blockchain without needing human executors or notary.
Soft Cap ▼
Targeted fund raising limit of an ICO.
Stable Coin ▼
Cryptocurrency with a price peg to fiat currencies or commodity.
Staking ▼
The state of locking in significant amount of token to participate as a validator of a proof of stake network.
Token ▼
Blockchain based unit of value issued by an organization, which grants token holders a right to participate in a network.
Token Burn ▼
An event in which tokens are permanently removed from circulation.
Token Supply ▼
All the tokens and coins that will exist in a cryptocurrency network.
Trading Volume ▼
The amount of the cryptocurrency that has been traded in the last 24 hours.
Transaction Fee ▼
A payment to the network for performing a transaction to be recorded on the blockchain.
Utility Token ▼
Cryptocurrency tokens with specific utilities on a network besides used as medium of exchange and investment vehicle.
Wallet ▼
Software client that handles storage of cryptocurrencies and allows users to send cryptocurrencies.
Wallet Address ▼
The address in which cryptocurrency can be stored, sent to and receive.
Whale ▼
Someone who holds an enormous amount of cryptocurrency and has the ability to wave the market.
Whitelist ▼
List of approved participants that will be given access to a token sale.
Whitepaper ▼
An introductory paper or a document released by developers of a crypto project that explains the purpose of the project they are working on.
