Cryptocurrency Terms Coined By Experts
Cryptocurrencies are taking the world by storm. But if you're a beginner, it can be hard to keep up with all the fancy new terms that crop up... so you're soon left scratching your head and wondering what everyone's talking about.
If you're looking for some insight into what all these cryptocurrency terms actually mean, then you've come to the right place. In this a-to-z crypto dictionary, you'll find all the key cryptocurrency terminology explained simply and clearly.
Let's dive in.
ATH
Short for "All Time High." This is used to describe when the price of a cryptocurrency has reached its highest point ever.
ATL
Short for "All Time Low." This is used to describe when the price of a cryptocurrency has reached its lowest point on record.
Altcoin
Altcoin is simply another name for a cryptocurrency that isn't Bitcoin.
Apeing
Apeing is the term used for when a buyer purchases a token without proper research, but simply wants to "ape in" to the project, often due to a fear of missing out on the potential gains.
Bagholder
A bagholder is somebody who is still holding onto a cryptocurrency that has lost a lot of its value.
Bear/Bearish
Bearish is the term used to describe what happens when a cryptocurrency's price drops. It comes from the idea of a bear market, where prices are dropping and investors are pessimistic about the future.
Bear Trap
A bear trap is a situation where it looks like the price of a cryptocurrency is going to drop, but then it suddenly starts rising again. It often occurs when a group of traders works together to influence the market in this way.
Binance
Binance is a cryptocurrency exchange. It's one of the top exchanges in operation, with hundreds of different altcoins available to be traded on it.
BEP-20
BEP-20 is the type of token standard used by the Binance exchange.
Bitcoin
Bitcoin is the first and most well-known cryptocurrency (and likely a term you're already familiar with).
Blockchain
Blockchain is the technology that underpins Bitcoin and other cryptocurrencies. It's a digital ledger that records all transactions in a secure and tamper-proof way.
Bull/Bullish
Bullish is the term used to describe what happens when a cryptocurrency's price goes up. It comes from the idea of a bull market, where prices are increasing and investors are optimistic about the future.
Coinbase
Coinbase is one of the most popular cryptocurrency exchanges and is often used to buy and sell Bitcoin and other cryptocurrencies.
Cold Storage
This is the idea of keeping your cryptocurrency offline to protect it against hackers. This can be done by using a hardware wallet or storing your cryptocurrency in a secure offline location.
Cryptocurrency
Cryptocurrency is a digital or virtual currency that uses cryptography to secure its transactions and to control the creation of new units.
DeFi
DeFi stands for "Decentralized Finance." It's a term used to describe the growing number of financial applications that are being built on top of blockchain technologies.
Decentralized Applications (DApps)
DApps are applications that are built on top of blockchain technologies. They're decentralized, meaning they don't rely on a single entity to function.
Dead Cat Bounce
A dead cat bounce is a small upward movement in the price of a cryptocurrency that occurs after a really long downward trend.
Dead Coin
A dead coin is a cryptocurrency that has essentially become worthless.
Delisting
Delisting is when a cryptocurrency is deleted from an exchange, either because it doesn't meet the standards of the exchange or because the project behind it has been abandoned.
Dip
The dip is the term used to describe a small drop in the price of a cryptocurrency. It's often considered the smart time to buy, and there are many popular memes centered around the theme of "buy the dip."
DYOR
DYOR stands for Do Your Own Research. It's a term used to remind people that they should always research a project for themselves before investing in it.
Ethereum
Ethereum is a blockchain platform that allows developers to build decentralized applications. It's the second-largest cryptocurrency after Bitcoin.
ERC-20
ERC-20 is a standard for Ethereum tokens. It's the most common type of token standard.
Exchange
An exchange is a website where users can buy, sell or trade cryptocurrencies. They also allow investors to convert fiat currency (i.e. dollars) into cryptocurrencies and vice versa.
FOMO
FOMO stands for "Fear of Missing Out." It's the feeling that you're missing out on something if you're not investing in cryptocurrencies.
FUD
FUD stands for "Fear, Uncertainty, and Doubt." It's used to describe negative sentiment surrounding a cryptocurrency or blockchain project.
Fundamental Analysis (FA)
Fundamental analysis is the study of a cryptocurrency or blockchain project to determine its intrinsic value. This is done by looking at factors such as the team, the technology, and the use cases. FA is often a key part of a good long-term investment strategy.
Fiat Currency
Fiat currency is a term used to describe regular 'fiat' currencies such as dollars, pounds, and euros.
Gas Fee
The Gas Fee is an extra fee attached to some transactions, which is used to pay for the processing of those transactions.
HODL
HODL is an acronym for "Hold On for Dear Life." It's a term used to describe the strategy of holding onto your cryptocurrencies even when the price drops.
Know Your Customer (KYC)
KYC is a process by which exchanges and other financial institutions verify the identity of their customers.
Leverage
Leverage works by allowing users to borrow in order to trade with more cryptocurrency. It's seen as high-risk because any drop in the value of the cryptocurrency could lead to you losing more than your initial investment.
Liquidity
Liquidity describes how easily an asset can be converted into fiat currency or another cryptocurrency.
Market Cap
The Market Cap is the total value of all the cryptocurrencies in circulation. It's calculated by multiplying the total number of coins by the current price of each one.
Mining
Mining is the process by which new cryptocurrencies are created. Miners are rewarded with cryptocurrency for verifying and recording transactions on the blockchain.
Moon
The Moon is a term used to describe an extremely bullish trend for a cryptocurrency. It's often used as a sign of confidence in an asset.
NFT
NFTs stands for "Non-Fungible Tokens." They're a type of cryptocurrency that represents unique digital assets.
Pump And Dump
Pump and dump is a scheme to artificially inflate the price of a cryptocurrency. This often works by promoting it through social media and creating an artificial sense of demand by buying up your own tokens before selling them off when they increase in value.
ROI
ROI stands for "Return on Investment." It's a term used to describe how much you've earned (or lost) relative to the money you've invested.
Rekt
Rekt is (one of many) crypto slang terms used to describe when you've lost money on an investment. It comes from the word "wrecked." Cryptocurrency terms like these are considered informal slang, but you're sure to come across them at some point.
Satoshi Nakomoto
Satoshi Nakomoto is the mysterious creator of Bitcoin. Very little is known about this person, but the name is also used as a label to represent one of many units of Bitcoin (referred to as Satoshi).
Shilling
Shilling is the act of promoting a cryptocurrency or blockchain project, often for personal gain. This is usually done by a team member of the project in question.
Short/Shorting
Shorting is the process of betting that the price of a cryptocurrency will go down. It allows investors to profit from falling prices.
Smart Contract
A Smart Contract is a self-executing contract that runs on the blockchain. It's a program that allows two or more parties to exchange money, property, shares, or anything of value in a transparent and trustless manner.
Stablecoin
A stablecoin is a type of cryptocurrency that's designed to maintain a stable value. It's often used to reduce the volatility of other cryptocurrencies or to act as a digital currency reserve.
Swing Trading
Swing trading is a strategy that involves buying and selling cryptocurrencies over a period of time in order to profit from price swings.
Technical Analysis (TA)
TA involves using charts and graphs to predict which way a cryptocurrency will move in the future. It can be used by trading beginners, but it also helps experienced traders see patterns that they can exploit.
Transaction Fee
A Transaction Fee is a fee charged by a cryptocurrency exchange for processing transactions.
Tokenomics
Tokenomics is the study of the economic features of a cryptocurrency or blockchain project. It includes things such as token distribution, use cases, and value drivers.
TLT
TLT is an acronym for "Think Long Term". It's a term used to encourage investors to focus on the long-term potential of projects, rather than just seeking short-term gain.
Vitalik Buterin
Vitalik Buterin is the creator of Ethereum and one of its co-founders. He's also involved with a number of other blockchain projects.
Volatility
Volatility is a measure of risk for an investment. It's defined as how much the price changes over time.
Wallet
A wallet is a software program that stores the private and public keys needed to send and receive cryptocurrencies. It also allows you to track your transactions and holdings.
Whale
A whale is an investor with significant holdings in a cryptocurrency. They can often be found in the waters of crypto investing and can have a big influence on market movements.
White Paper
A White Paper is a term used to describe an in-depth document that outlines the design, features, and technology of a particular project or cryptocurrency. It's often used to attract investors and partners.
Yield Farming
Yield Farming is a way to invest your crypto to earn interest, often from the transaction fees associated with the token. The process can be highly profitable, but also very risky.
YOLO
YOLO stands for "You Only Live Once." It's an acronym that often appears in investment memes, reflecting the risky nature of crypto investing.
Zombie Coin
A Zombie Coin is a term used to describe a cryptocurrency that's fallen out of favor at some point but has since seen a resurgence of support and interest.
Final Thoughts
We hope you've enjoyed reading about all of these cryptocurrency terms. As you can see, there's a lot to know when it comes to this exciting and ever-growing industry. But now that you've had all the key terms of cryptocurrency explained, you should be in a better position to understand and participate in the market.
If you're still feeling lost, don't worry. The best way to learn is to simply jump in and start investing. The more you learn, the better equipped you'll be to make smart investment choices. And remember, always do your own research before investing in any cryptocurrency.
Take Care of Your Financial Future.