In today’s article, you’ll find the meaning of popular cryptocurrency terms that will enable you to peruse this space seamlessly.
I divided them into groups based on the starting letters, so you can click on any of the jump links below to navigate this post faster.
A – B
Early and potentially valuable information that might generate a big upside in the future.
This is any cryptocurrency other than Bitcoin i.e. alternative to Bitcoin.
Stands for “Automated Market Maker”. They’re used in decentralised exchanges as a trustless automated service that can trade one asset for another.
4. Angel Investor
Wealthy investors that seek opportunities to provide funding to startups or other entrepreneurs.
Short for anonymous. A way to address random people in Crypto since most are anonymous.
6. Ape In
To Buy a Coin without doing any research
Stands for “Application Programming Interface”
A situation where you lost all your money.
Stands for “All-Time High” and “All-Time Low”, respectively
10. Bag holder
A person who holds a stock or coin to $0 despite signs along the way that it should’ve been sold. It’s common for Diamond hands to become bag holders.
Or, a person who buys and holds a particular coin(s) in large quantity hoping to make good profits in the future.
11. Beacon Chain
It is the POS layer network from Ethereum
Someone who has low confidence in the market
Negative/downward price movement
The general ledger that keeps track of all the transactions that happen within the network.
15. Blockchain Trilemma
It refers to blockchains’ inherent challenge in designing a fully scalable, secure, and decentralized chain.
16. Blue Chip
An established, stable, and well-recognized coin. In stocks, Google and Microsoft would be considered blue chips. In Crypto, only BTC and ETH are considered blue chips for now.
Buy The Fucking Dip. An indication to buy a coin when it has gone down in price.
Refers to a fortunate situation that is isolated from reality or likely to last.
This refers to focusing on developing the product more than anything else
Someone who has high confidence in the market.
Positive/Upward price movement
Stands for “Centralized Finance”
Stands for “Centralized Exchange”
24. Cold Wallet
A special type of hardware device that holds cryptocurrencies offline. Ledger and Trezor are the most popular cold wallet brands.
Overcome and deal with problems
Changpeng Zhao – the founder of Binance and one of the wealthiest men in Crypto.
Stands for “Decentralised Autonomous Organisations”. They are internet communities that self-organize around a specific niche.
Stands for “Decentralised Application”. This term is used for all applications built in a blockchain, since blockchains, in general, are decentralized.
Stands for “Dollar Cost Averaging“
Stands for “Decentralized Finance“
Stands for “Degenerate”. It refers to people who take ultra-risky behaviours in Crypto. Investing in Shitcoins, using leverage, or aping in without doing research.
DEGEN also refers to traders who trade without knowledge or experience
Stands for “Decentralized Exchange” e.g Uniswap, Sushiswap, Pancakeswap, etc.
33. Diamond hands
Someone who has a high-risk tolerance and can hold their portfolio through the most volatile times.
Long green or red candles on the chart
A sharp downward movement of a crypto coin.
To Sell off a coin or when a coin’s price drops suddenly.
This is also a downward price movement
38. Dutch Auction
A declining price format selling. The selling starts at a determined point and goes down progressively until all tokens/units are sold.
Stands for Do Your Own Research
E – H
Stands for Ethereum Improvement Proposal. It is how the Ethereum blockchain works through specific protocols.
Stands for “Ethereum Name Service”. It makes your blockchain address a name, for example, Edgy.eth.
Stands for Fundamental Analysis. FA is using the news and press to determine the direction of the price of a coin.
Government-issued currency like the US Dollar.
44. Filled order
This is when a buy or sell order on an exchange has been executed.
Stands for “First Mover Advantage”
Stands for Fear Of Missing Out
That is to say, a coin is pumping/going up and you buy without making due analysis thinking it will keep going up.
This is when a blockchain splits to create another coin e.g Bitcoin forked to create Bitcoin cash. It usually occurs when the community does not come to a consensus on a decision.
A way to address strangers in Crypto.
Fear, Uncertainty, and Doubt. It refers to scepticism about a coin. This happens when a piece of news is spread especially on social media. Oftentimes, the news is false/not verified and can cause a drop in the price of a coin.
It’s the computational effort to execute a specific operation. It requires a fee, that’s why GAS has a cost behind it.
The smallest Ethereum unit of value worth 0.0000000001 ETH
It’s the identity of a successful transaction like the address for a transaction.
This is advise to hold a position or hold a coin and not sell. It is a rallying cry when there are dips. You encourage people to not sell by saying HODL. Some have said it stands for “Hold on for Dear Life”
54. Hot Wallet
A software that holds cryptocurrencies online. This type of wallet is mostly used for fast transactions. Also, they’re way less safe than Cold wallets.
I – L
Stands for Initial Coin Offering
Stands for In Real Life
Joy Of Missing Out – expressing happiness for not buying a coin that is currently doing poorly.
Stands for Know Your Customer. Ensures entities over certain information about their clients.
59. Layer 1
Base layer blockchains e.g Ethereum, Bitcoin, Avalanche, Solana, etc.
60. Layer 2
Blockchains built on top of layer 1 to solve some issues such as high fees and speed e.g Arbitrum, Optimism, etc.
Predict upward price movement and take a position by buying.
Stands for Liquidity Pool
M – O
63. Maximum supply
This is the maximum number of a coin that can ever be mined or produced. e.g the maximum supply of Bitcoin (BTC) is 21 million BTC.
Market Capitalization – a term for the total market value of a coin.
When there’s a bad market or someone gets rekt, you say you’re applying to McDonald’s as a form of self-deprecating humour.
This is where nodes keep track of transactions that have not been confirmed yet.
When a coin has a strong upward trajectory
Stands for Not Financial Advice
Stands for Non-Fungible Token
Stands for Not Gonna Make It – describing someone who’s dumb or makes bad investment decisions.
A computer connected to a blockchain that supports the network by validating and relaying transactions.
Someone that doesn’t own any cryptocurrency.
Over The Counter.
P – S
Stands for Peer-to-Peer
75. Paper hands
A trader who lacks conviction in their investments. They sell at the first sign of a downtrend or FUD.
Stands for Proof of Attendance Protocol
Stands for Proof of Reserves
Stands for Proof of Stake
Stands for Proof of Work
80. Private Key
Series of numbers serving as the password to your digital assets. — Never share with anyone.
81. Probably Nothing
Ironic way of saying “probably something. — used when there’s news that affects things. Example: Shanghai allocates $1.5B to the Metaverse development fund. Probably nothing.
82. Public Key
Series of numbers that, when used in conjunction with your private key can validate and perform a transaction. A Public Key is always related to a Private key.
83. Pump & Dump (P&D)
When people promote a project to their audience, and then secretly sell the project’s coin for profit.
Upward price movement
Describes someone experiencing a severe financial loss.
It’s the plan for the short and long-term goals of a company, with an estimated timeline.
Stands for Return on Investment
Relative Strength Index – a crypto trading indicator that is used to point out overbought and oversold conditions.
89. Rug Pull/Rugged
When the founders of a project scam its users. The rug got pulled from under them.
Stands for Secure Asset Fund for Users
91. SAJ Candle
Huge green candle
The smallest unit of Bitcoins available (1 Satoshi = 0.00000001BTC)
Used in place of Sir. It’s gender-neutral. A combination of Sir/Her
To promote a project.
A coin with no potential value or use
Predict downward price movement and Take position by selling.
The difference between the lowest sell price and the highest buy price of a crypto asset.
To fully understand what spread is and how it works, check out this post.
It is a cryptocurrency that maintains a stable value over time. They are generally correlated with the US Dollar or other Fiat.
Zigzag price movement (Upwards and downwards)
T – Z
Technical Analysis – analyzing the market based on charts and several indicators.
102. The Dip
This means the lowest point of a cryptocurrency
103. The Flippening
The belief that Ethereum’s marketcap will surpass Bitcoin’s marketcap
104. The Merge
When Ethereum fully transitions to Proof of Stake.
Take Profit – Orders used to set a target profit price on a trade position.
Stands for “Transactions Per Second”
Stands for “Transaction ID”. It is the label for each transaction in the blockchain
Stands for “User Interface” and “User Experience” respectively
Stands for “Venture Capital”
Stands for “Voter Escrowed Tokens”. It serves for governance rights in crypto.
Stands for We’re All Going To Make It
Very Wealthy trader/Market mover with a wallet worth >$20m in value
A list of allowed individuals/entities concerning a service or event.
114. ZK Proof
Stands for Zero-Knowledge Proof
Stands for Zero-Knowledge Succinct Non-Interactive Argument of Knowledge. It’s another approach to ZK Proofs.
This is where we’ll draw the drapes in this post. I hope learning about these cryptocurrency terms was worth your time.
Do you have more terms to add? Please drop them in the comments section below.
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