A-Z Crypto Lingo For Beginners
Crypto Currency Lingo, Abbreviations & Their Meaning
When you first start looking into the crypto currency industry, it can feel extremely confusing and daunting, there is so much to take in and learn that it can all be a little bit overwhelming for a new comer.
Whether you just want to buy a fraction of a bitcoin, a whole bitcoin/s or any of the other altcoins, maybe you’re interested in mining, trading or investing in crypto currency, along the way you’ll discover that cryptocurrency enthusiast have developed a language of their own with abbreviated/slang terminology.
So we’ve compiled a quick A-Z guide to get you started with some of the frequently used cryptocurrency slang terms and phrases.
(Please do your own research for further explanation and more abbreviations)
Airdrop represents a distribution of tokens in the initial stage of the coin offering, also used as a giveaway to maintain coin holder loyalty.
With the market price of over $000’s, Bitcoin is by far the strongest cryptocurrency. However, there are many other coins such as Ethereum, Stellar, or Litecoin. All those non-Bitcoins are called Altcoins in cryptocurrency slang.
Ask me anything
“All-Time High” is the phrase used to describe the highest price any given digital currency has reached so far. This is when digital coins become very interesting for the wider audience, but it’s definitely not the right time to buy them.
Bag Holder is a person who is holding onto a currency that drops in price to the point of being worthless. These people are essentially optimists without a cause.
Negative price movement
Is a false signal that the rising trend of a stock or index has reversed when it has not. A bear trap prompts traders to place shorts on the stock or index, since they expect the underlying to decline in value.
Positive price movement
Is a false signal indicating that a declining trend in a stock or index has reversed and is heading upwards when, in fact, the security will continue to decline;
Buy The Fucking Dip (an indication to buy a coin when it has dumped so hard)
Buying the Dip
Buying the dip essentially means taking coins when their price is down. Although you must sometimes invest in All-Time highs, buying the dip is much more lucrative in the long run.
Stands for “Crypto to Crypto” With crypto-to-crypto trading, you can exchange one cryptocurrency for another.
(Outside crypto terms it would mean customer-to-customer, or consumer-to-consumer)
The term CFD stands for Contract For Difference. This is a contract to exchange the difference in value of a financial instrument (the underlying market) between the time at which the contract is opened and the time it is closed.
Someone looking to gain popularity & fame off of someone else's name/reputation
Coin, Cryptocoin & Alt coins
There is no difference between a Coin, a Crypto Coin or Altcoin; coin is just an abbreviation of crypto coin. Altcoins simply refers to coins that are an alternative to Bitcoin. These can only be bought with legal currency, USD, EUR…..
In other words a coin is what you buy and sell from an exchange and has its own platform which is called blockchain.
However, when the price of these coins increases; new names are used, term such as (Moon & Lambo 🙂 but when the price of these coin collapses and are then referred to as Shitcoins.
Correction is the next logical step in the cryptocurrency evolution. When a given coin reaches the All-Time high, it gradually stabilizes at a slightly lower price. In the dynamic cryptocurrency market, corrections and stabilizations usually don’t last for too long.
Cryptocurrencies are digital or virtual currencies that are encrypted (secured) using cryptography. All coins and tokens are regarded as cryptocurrency. Cryptocurrency is a standard currency which is used for the sole purpose of making or receiving payments on the blockchain.
Decentralized Autonomous Organization: A complex form of a smart contract, where the bylaws of the decentralized organization are embedded into the code of the smart contract, using complex token governance rules.
“Decentralized Applications” or dApps are digital applications or programs that exist and run on a blockchain or P2P network of computers instead of a single computer, and are outside the purview and control of a single authority.
Distributed ledger technology
Downward price movement where investor sell their holdings.
DYOR is one of the most popular cryptocurrency acronyms. It’s an abbreviation formed from the initial letters of Do Your Own Research. It’s always good to hear someone talking wisely about the market, but every investor needs to DYOR before making concrete moves.
Initial Exchange Offerings
An Initial Exchange Offering (IEO) relies on having an exchange (or set of exchanges) function as the counter-party. Developers mint the project’s tokens and send them to the exchange, which will then sell the tokens to individual contributors for Ether. Subject to the agreement between the developers and the exchange, conditions traditionally found in an ICO can be emplaced in an IEO. These conditions include capping the contribution per individual and having a fixed price per token.
Exponential Moving Averages
Moving Average Convergence/Divergence
Percentage Price Oscillator
ERC20 - ERC stands for Ethereum Request for Comments. This is an official protocol for proposing improvements to the Ethereum (ETH) network, the number 20 is just the number allocated to it.
FOMO is the famous Fear of Missing Out. It happens when people buy coins at their highest prices just because they are too afraid of missing out the next big thing in the cryptocurrency universe.
The Flippening is an expected change in the economics of cryptocurrency where the values of altcoins would no longer primarily based on the value of Bitcoin. It would mark the end of the absolute dominance and special status, in the form of market cap and brand awareness, that Bitcoin has had in cryptocurrency markets ever since its inception in 2009.
Most altcoin standards have some technical advantages over the older Bitcoin protocol, like being more scalable and offering faster and cheaper transactions. Some altcoins use newer generation blockchains with added features like smart contracts, while others forego blockchains altogether, and rely on alternative technologies.
FUD is another cryptocurrency acronym that stands for Fear, Uncertainty, and Doubt. Some traders use it as the tactic to cause mass panic and bring down the price of a given coin.
HODL is another acronym that tells people to Hold On for Dear Life. You will hear this expression a lot when coins start entering the usual corrections after their “To the Moon” phases.
Initial Coin Offering is a new coin launching onto the cryptocurrency market. Similar to IPO, Initial Public Offering but in cryptocurrency it’s known as ICO.
In My Opinion
Joy Of Missing Out
Lambo is the status symbol that becomes an elusive goal for most investors. It’s a car industry reference that makes people believe everyone who has entered the cryptocurrency business will buy a Lamborghini very soon.
The Lightning Network is a "second layer" payment protocol that operates on top of a blockchain (most commonly Bitcoin). It enables instant transactions between participating nodes and has been touted as a solution to the bitcoin scalability problem. It features a peer-to-peer system for making micropayments of digital cryptocurrency through a network of bidirectional payment channels without delegating custody of funds.
Margin bull position
Mining is the essence of cryptocurrency business. It means using software to solve cryptographic problems and earn new digital coins.
To the Moon resembles the All-Time high. It’s a statement that explains a cryptocurrency is reaching the peak value. Some investors even ask “when Moon?” to find out when to sell their coins.
A Nocoiner can be any person who doesn’t own Bitcoins. However, the term is generally used to describe cryptocurrency pessimists and sceptics who don’t believe in real value of digital currencies.
A person who is inexperienced/ new to a particular sphere or activity,
OCD suggest the Obsessive Cryptocurrency Disorder. It happens to some Bitcoin owners who obsessively monitor price changes and follow the latest cryptocurrency news around the clock.
Over The Counter
Proof-of-work (PoW) system (or protocol, or function) is an economic measure to deter denial of service attacks and other service abuses such as spam on a network by requiring some work from the service requester, usually meaning processing time by a computer.
Proof of Stake (PoS) concept states that a person can mine or validate block transactions according to how many coins he or she holds. This means that the more Bitcoin or altcoin owned by a miner, the more mining power he or she has.
Peer to Peer. In a P2P network, the "peers" are computer systems which are connected to each other via the Internet. Files can be shared directly between systems on the network without the need of a central server. In other words, each computer on a P2P network becomes a file server as well as a client.
Pump and Dump
A group of investors may sometimes work together to create online hype and boost the value of a coin. This way, they increase the price artificially and sell it upon reaching the All-Time high. It’s not an ethical tactic, but it’s there and you should try to avoid the FOMO effect.
When investors make a terrible move – such as selling coins right before their prices skyrocket – we say they got rekt. The term derived from the good old expression “wrecked”.
Relative Strength Index; The RSI provides a relative evaluation of the strength of a security's recent price performance, thus making it a momentum indicator. RSI values range from 0 to 100. The default time frame for comparing up periods to down periods is 14, as in 14 trading days.
Secure Asset Funds for Users.
SAts / Satoshi’s
“Sats” is short for Satoshis (a unit of Bitcoin equal to 0.00000001 BTC, i.e. one hundred millionth of a Bitcoin). Thus, “sats” is used to refer to the price of something in Bitcoin. This unit's name is derived from Satoshi Nakamoto the legendary cryptocurrency character who allegedly invented/created Bitcoin.
A shakeout is a situation in which many investors exit their positions, often at a loss, because of uncertainty or recent bad news circulating around a particular security or industry.
Security Token Offering can create a thriving ecosystem that allows the stock market to trade on a global network based on blockchain technology, smart contracts, etc. Therefore, transforming the archaic 9-5, Monday to Friday stock trading system into an automated global liquid network that can perform 24/7, 365.
Unlike ICO, STO holders need to be compliant with KYC/AML requirements, and securities laws in whatever jurisdictions. Since security tokens are actual financial securities, tokens are backed by something tangible like the assets, profits, dividends or revenue of the company. STO buyers will be guided through the complex legal and technological processes before issuance of STO’s.
Shill is the holder/owner of altcoins who just wants to promote his digital currency for his own benefit.
A Shitcoin is a weak token with no real strength or utility. This kind of coin is usually promoted by fake authorities who just want to do the pump and dump trick.
Margin bear position
A coin meant to hold a stable value. Each stable coin has a unique set of mechanisms, but they all generally work the same way: For example, Tether (USDT) is a blockchain based asset meant to trade for $1 USD. Tether is a price-stable cryptocurrency that is pegged to the U.S. dollar. They hold collateral of some type and manage the supply to help incentivize the market to trade the coin for no more or less than $1.
The benefits of having stable coins is that in the cryptocurrency world the Bitcoin and other altcoins can be extremely volatile in price, making them unsuitable as units of account, additionally; it isn’t always easy to circulate dollars due to regulations and restrictions. Therefore A dollar substitute like cryptocurrency stable coin tethered to the $USD price helps to trade globally, so a Stable coin acts like real currency but in cryptocurrency form.
Price movement Upwards and Downwards sometimes referred to as zig zag
TA, FA & SA, Methods used to analyse coin price movement
TA: Technical Analysis
FA: Fundamental Analysis,
SA: Sentiment Analysis
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Tokens are digital assets, issued by the respective project developers. Tokens represent asset; security and Utility. Security tokens are designed to be the company’s share, while Utility tokens have certain use case inside the project. You can buy a token with coins, but you can’t buy a coin with a token. Coin operates independently, while token has a specific use in the project’s ecosystem.
Tokens are representation of company’s share, can be used as a method of payment inside the project’s ecosystem, performing similar functions as coins, but the main difference is that it also gives the holder a right to participate in the network.
A Unicorn is a startup company valued at over $1 billion. The term was coined in 2013 by venture capitalist Aileen Lee, choosing the mythical animal to represent the statistical rarity of such successful ventures. Canadian tech unicorns are known as Narwhals.
A Decacorn is a word used for those companies over $10 billion,
While Hectocorn is the term for a company valued over $100 billion.
Vaporware is a virtual asset that has been built up by hype, but has nothing to back it up and is only going down in value.
A coin holder prone to selling at the first sign of a dip in price
Whales are the richest of all cryptocurrency traders. They own a large quantities of Bitcoins or other digital currencies, which makes them powerful enough to influence the entire market. They can buy or sell in large volume of coins in one transaction, thus making a big confusion and forcing the coin price to go drastically up or down.
Heads up to Pixabay & Tumisu for the image,