Getting involved with cryptocurrency can be difficult when it comes to understanding the terms, phrases, and slang used in this industry. Most times, it has been mistaken for another language or deeply coded language because of how tedious it might be to understand it for a beginner. Since the inception of cryptocurrency, experts have created new ways to illustrate and give meaning to the activities of cryptocurrency. Here are a few of the slang you need to know:
The blockchain is a common term in the crypto world that consists of a series of blocks as a digital ledger that contains all transactions made on a certain cryptocurrency that has been verified.
This is what makes up the blockchain. Each of the blocks hauls a historical database on cryptocurrencies that have been transacted until the block is full of the transaction.
This is the phrase that is used to classify all other cryptocurrencies that aren't Bitcoin. Bitcoin Maximalist This is an individual who believes that the only cryptocurrency that has value is Bitcoin.
This is a string of characters that has the function of a place where cryptocurrency can be sent, stored, and received by individuals. The address is more like a zip code, with each cryptocurrency having a unique address
This is an acronym that stands for "buy the F*cking dip". This acronym is mostly used by traders to tell other investors to purchase a currency that dropped in value.
This has the full meaning of "decentralized app", which means any practical application of blockchain or cryptocurrency. This decentralized app can be in the form of social media sites, mobile games, and so on.
DeFi is the short form for Decentralised Finance. It is known as the movement within the digital assets to trade in a decentralized way, decentralized currencies. The DeFi that is widely known is the decentralized exchange protocol, it robotizes the exchange of currencies between sellers and buyers, by so doing eliminating middlemen
This is mostly recognized as the currency issued by a particular government. It's used to describe currencies that are controlled by the government or its central authority. The decentralized design of the Cryptocurrencies like Bitcoin portrays as an alternative to the governmental Fiat currencies.
This occurs when a Blockchain-based network breaks off into two different projects with each having its separate codes and principles that govern them. Fork is also classified into two, soft and hard fork. A soft fork is a scenario when there is only one Blockchain remaining in operation, while the hard fork, is when two new and different Cryptocurrencies are created. For example, the hard fork occurred in Bitcoin, where Bitcoin Classic was also created from it with their different group of miners.
This is a cost or fee that is being passed down to network participants. It is initiated when power is computed, completing a transaction on Ethereum Blockchain.
Halving is done to ensure that the amount of Bitcoin in circulation does not increase immensely. This act takes up to 4 years, it is the most sought-after event for Bitcoin. It's a process whereby the reward of mining Bitcoin is halved after blocks of up to 210,000 are mined.
The Hash Rate is a measure whereby power is being processed and computed to mine crypto, and also process where specially designed software and computers that are powerful to obtain Cryptocurrency. A strong network also leads to a higher hash rate
Most individuals see this word as a misspelling of the original word "hold", but it is not, it is crypto slang. According to the story behind this was that an expert mistyped "Hodl" to a chat forum on the internet, informing his fellow traders not to sell. This has remained and become a generally used word even when Bitcoin value drops, investors use the word "Hodl" to advise other investors to not sell on the basis that Bitcoin price will spring back up, no matter the huge dip currently.
This is an acronym that stands for Initial Coin Offering. This is the medium by which Blockchain projects raise finance and launch their digital currency. The concept of ICO got its wide fame during the broader market frenzy between 2017 and 2018. But many ICOs turned out to be a pump and dump scheme, in which the Security Exchange Commission Sued most of them.
Mining is known as a process where new Cryptocurrencies are minted. Most Cryptocurrencies are dependent on a mining system called proof of work. It's a mining system where computational power is distributed just to solve a complex mathematics riddle to secure and power a network and mint a new token
This is a digital asset fully known as a Non-fungible Token, it confers the ownership of virtual items like an online collectible or digital artwork. Unlike regular Cryptocurrency which is known as fungible, meaning there is no difference between a coin and another when it comes to NFT, there are different item that is up for trade. NFT became widespread famous in 2021.
Pump and Dump
This is a term describes a form of manipulation of price, whereby Cryptocurrency prices are increased based on a recommendation that is false just before the assets are sold at a high price. This instance is known as pump and dump
Satoshi has two different meanings as to its slang. First, it's known as the name of the founder of Bitcoin "Satoshi Nakomoto" who no one knows personally, thereby leaving the Bitcoin project to be collectively managed and decentralized. And it also commotes as a unit of exchange which is equal to .0001 Bitcoin.
This refers to any Cryptocurrency which has its value attached to a source of value, basically a Fiat currency. It's mostly used to facilitate cross-border finance and trading of Cryptocurrencies.
This is known as a unit of digital currency, coins, Cryptocurrencies like Bitcoin, Ethereum, and so on.
To the Moon
This is one of the happiest moments of a trader as prices are about to rise. When a trader says To The Moon or uses a rocket emoji or Jpeg, they mean a certain Cryptocurrency price is about to increase.
Its source is from the word wrecked. It depicts losing a large amount of money. When a trader uses the word Rekt, it means that the trader has lost a huge amount of money.
It has the same function as a physical wallet, though it is online and also offline. It serves as a store to put in coins. When a wallet is online-based, it is called a Hot wallet, and it is susceptible to hackers, while a cold wallet is an offline store for the digital asset, keeping it secured from hackers, though it's difficult to trade.
These are feared traders, who have large amounts of Bitcoin and other coins. A Whale can be an individual investor or large firm that buys currencies in large quantities. They are feared because any action by them can have a major influence on the price of Cryptocurrency.
This is an acronym that stands for "Fear, Uncertainty, and Doubt". This is a trick used by people called Fudders who spread negativity about a crypto coin, spreading FUD in the crypto traders' minds, which then drops the price of the coin.
These are known as people who continue to hold a huge amount of certain Cryptocurrency no matter how it is performing in the market. For them, the prices of Cryptocurrencies don't matter, they stubbornly prefer to hold their position coin even though the tumble of the coin is fast approaching.
This is a means of promoting a coin through an implicit advert. It is an act, whereby the advertiser is under the pretense that advertising the crypto is an act of unpaid promotion, which is false. Just so it could attract attention to coin and spike buyers.
This is an investor who would exit a trade at the sight of risk. Investors have a low-risk tolerance, they are shaken easily by the volatility in the market.
Exchange for better understanding is like crypto middlemen. If you want to purchase a cryptocurrency, you would need to start with an exchange. It enables you to exchange your Cryptocurrencies for money and vice versa.
This is the first block of Cryptocurrency that was ever mined.
This is a computer that connects to a blockchain network.
This is an electronic cash system that was formed from the original Bitcoin. This act is known as a hard fork. The Bitcoin case was created to be a better optimization for transactions.
This is just like your bank password, only that this is related to Cryptocurrency. It is an encrypted code that gives you direct access to your Cryptocurrency.
This is in comparison with a bank account number, which can be sent to anyone. The public key is your wallet address, and it can be shared with the public, especially when you want to receive Cryptocurrency from another party or give another party money when you authorize it.