If you’re new to the cryptocurrency world, you may be feeling a little left out. All of these people are talking about things that you don’t understand – what do they mean by “hodl,” “FOMO”, and “DYOR”?
Don’t worry, we’re here to help!
In this blog post, we will define 45 common crypto slangs and terms. By the end of this article, you’ll be able to hold your own in any conversation about cryptocurrencies!
The Importance of Understanding Crypto Slang and Terms
If you’re serious about getting involved in the cryptocurrency world, you must take the time to understand the language.
Not understanding what people are saying can lead to costly mistakes.
For example, if someone tells you to “hodl” and you think they’re telling you to sell, you could miss out on a huge opportunity!
It will also help you communicate with other cryptocurrency enthusiasts. By understanding the language, you can make friends and build valuable relationships within the crypto community.
Without further ado, let’s get into it!
DYOR
“DYOR” stands for “Do Your Own Research”. This is perhaps the most important crypto slang term, as it encapsulates the entire ethos of the crypto community.
At its core, crypto is all about taking control of your own finances and making your own decisions.
The DYOR principle applies to everything from picking which coins to invest in, to deciding when to buy or sell.
Shill
A “shill” is someone who promotes a coin or project without disclosing their financial interest in it.
When you see influencers promoting specific coins you’ve never heard of repeatedly, they might be shilling the coin.
Once the price increases high enough, these influencers will then sell off their holdings and leave you dry and hanging.
Shilling is generally considered to be unethical, as it can mislead investors and distort the market.
That said, there is a fine line between shilling and simply being enthusiastic about a project, so it’s important to exercise caution and use your own judgment.
Altcoins
“Altcoins” are simply alternative cryptocurrencies to Bitcoin. There are thousands of altcoins on the market, and new ones are created every day.
Some of the more popular altcoins include Ethereum, Litecoin, and Monero.
WAGMI/GMI
“WAGMI” stands for “We Are Going To Make It”. This acronym is often used by crypto investors who are confident that the entire cryptocurrency will benefit from positive developments.
This is commonly used when there is a downturn in the markets and investors are trying to stay positive.
It can also arise when different crypto communities begin arguing about which coin is better.
The WAGMI acronym is often used by members of the community who believe that crypto, in general, will eventually come out on top.
GMI is just a shorter version meaning “Gonna Make It”. It essentially means the same thing as WAGMI.
NGMI
“NGMI” stands for “Not Going to Make It”. This acronym is used by investors who are bearish on a particular coin or project.
If you are investigating altcoins and see this term being used a lot, it might be worth doing some extra research before investing.
SZN
“SZN” stands for “Season”. In the crypto world, there are two main seasons: bull and bear. A bull market is one where prices are generally rising, while a bear market is one where prices are falling.
The current state of the cryptocurrency market can be determined by looking at the overall trend of prices.
If prices are generally rising, then it is said to be a bull market, whereas if prices are falling, it can be said to be a bear market.
Cryptocurrencies can often cycle between Bitcoin and altcoin season. For example, if the market is bearish, you might say that “it’s not Bitcoin SZN right now”.
But if altcoins are rising, you might say that “it is altcoin SZN”
IYKYK
“IYKYK” stands for “If You Know, You Know”. This is a term that is often used in the cryptocurrency community to describe things that are only understood by those who are knowledgeable about space. It’s often used as a way of saying “you had to be there” or “you needed to be paying attention”.
For example, someone might say “IYKYK, the fork happened because of the DAO hack”. If you were not around during the DAO hack, then you might not know what they’re talking about.
In this case, the person is saying that only those who were paying attention at the time will understand why the fork occurred.
This term is also often used in a tongue-in-cheek way to point out how complicated and convoluted the cryptocurrency space can be.
Whale
A “whale” is an individual or entity that owns a large amount of a particular cryptocurrency.
Whales can have a significant impact on the market, as they can buy or sell large amounts of a coin, which can cause prices to rise or fall drastically.
It’s important to be aware of whales when trading, as they can often move the market in their favour. For example, if there is news that a whale is selling a large amount of Bitcoin, the price of Bitcoin might start to fall.
DAO
The “DAO” is short for “decentralised autonomous organization”. A DAO is a type of organization that is run by code, rather than by humans.
A DAO aims to be decentralised and autonomous, meaning that it can run itself without needing any central authority.
One of the most famous DAOs is the DAO stack, which is a set of protocols that allow developers to create and run decentralised applications.
ATH
“ATH” stands for “all-time high”. This term is used to describe the highest price that a particular cryptocurrency has ever reached.
For example, if Bitcoin reaches a new all-time high of $69,000, you might say that “Bitcoin just hit an ATH”.
HODL
“HODL” is a term that is used to describe holding onto a cryptocurrency, even when the market is crashing. The term originated from a misspelling of the word “hold” in a Bitcoin forum post from 2013.
The term has since been adopted by the community and is often used as a way of saying “don’t sell your coins, even when the market is crashing”.
Bag
A “bag” is a term that is used to describe a large amount of a particular cryptocurrency that someone owns. For example, if you own 1,000 Bitcoin, you might say that you have a “bag” of Bitcoin.
It’s essentially a way of saying that you have a position or investment in a particular coin.
Bag holder
A “bag holder” is someone who owns a large amount of a particular cryptocurrency that is not doing well. For example, if you own 1,000 Bitcoin and the price of Bitcoin crashes, you will be a bag holder.
It’s usually derived as buying high and watching the price of the crypto decline. This can be the worst feeling, being a bag holder.
To the moon
“To the moon” is a term that is used to describe the price of a particular cryptocurrency going up. For example, if the price of Bitcoin starts to increase rapidly, you might say that “it’s going to the moon”.
This term is often used as a way of saying that the price will continue to increase. It can also be used as a way of expressing excitement about the future price of a particular coin.
Rekt
“Rekt” is a term that is used to describe losing a large amount of money. For example, if you invest $10,000 in a cryptocurrency and it crashes, you might say that you got “rekt”.
This term is often used in a light-hearted way to describe how volatile the market can be. New investors may get “Rekt” if they are not careful. Sometimes scam coins causing hype can also lead to investors being “rekt”.
Rug Pull
A “rug pull” is a term used to describe when a team behind a cryptocurrency project abandons the project and sells all of their coins, causing the price to crash.
It’s also one of the most common crypto scams to be aware of.
This term is often used as a way of warning others about investing in a particular project.
It’s important to do your own research (DYOR) before investing in any project, as there is always a risk of a rug pull.
Pump and Dump
A “pump and dump” is a term used to describe when a group of people buy a particular cryptocurrency and then sell it at a higher price, causing the price to increase.
Often, they will hire celebrity influencers to help drive up the price (shill) causing people to buy at all-time highs.
To avoid pump and dump schemes, it’s important to DYOR and not invest in any project that you don’t understand.
ICO
An “ICO” is short for “initial coin offering”. An ICO is a type of fundraising event where a new cryptocurrency project sells coins to investors in exchange for funding.
ICOs are often used to raise funds for new projects, and they have become very popular in the cryptocurrency space.
However, they have also been associated with scams, so it’s important to be careful when investing in ICOs.
DeFi
“DeFi” is short for “decentralised finance”. DeFi is a type of financial system that runs on the Ethereum blockchain. It includes protocols and platforms that allow users to borrow, lend and trade cryptocurrencies in a decentralised way.
The most well-established DeFi apps are on the Ethereum blockchain, however, competing blockchains such as Polkadot and Cardano are also beginning to develop their own DeFi ecosystems.
DeFi has become very popular in recent years, as it allows users to access financial services without the need for a bank or other centralised institution.
CeFi
“CeFi” is short for “centralised finance”. CeFi is the traditional financial system that we have today. It includes banks, investment firms, crypto exchanges, and other financial institutions that are centralised.
dApps
“dApps” is short for “decentralised applications”. A dApp is a type of application that runs on a decentralised network such as a blockchain.
dApps are often associated with cryptocurrencies, as many of them run on blockchain platforms such as Ethereum. However, dApps can also be built on other decentralised networks such as IPFS.
BTFD
“BTFD” is short for “buy the f*cking dip”. This term is used to describe when the price of a particular cryptocurrency is going down and you think it’s a good time to buy.
This term is often used as a way of saying that you believe the price will increase in the future. It’s important to remember that you should only invest what you can afford to lose, as the market is very volatile.
Maximalists (maxis)
“Maximalists” is a term used to describe people who are very bullish on a particular cryptocurrency. They are often referred to as “maxis” for short.
Maximalists often have a lot of faith in the future of their chosen cryptocurrency and believe that it will become the dominant coin in its field. They believe every other coin other than their chosen one will eventually die out.
DEX
“DEX” is short for “decentralised exchange”. A DEX is a type of cryptocurrency exchange that allows users to trade cryptocurrencies in a decentralised way.
DEXs are often built on blockchain platforms such as Ethereum and allow users to trade directly from their wallets. This type of exchange is often seen as more secure than centralised exchanges, as there is no central point of control.
However, DEXs have high risks as there is no central point of control. With no one controlling it, if anything happens to them or you make a rookie crypto mistake, you have no way of retrieving your crypto back.
CEX
“CEX” is short for “centralised exchange”. A CEX is a type of cryptocurrency exchange that is centralised. This means that it is controlled by a single entity, such as a company or a government.
Centralised exchanges are often seen as less secure than decentralised exchanges, as they are a single point of failure. They are also often criticised for being opaque and for having high fees.
Despite this, CEXs can be regulated (and usually are to an extent), and have obligations to their users to maintain security and helping you retrieve lost crypto.
Crypto exchanges such as FTX, Crypto.com, and KuCoin are examples of centralised exchanges.
FUD
“FUD” is short for “fear, uncertainty, and doubt”. FUD is a term used to describe when negative news or sentiment surrounding a particular cryptocurrency causes the price to go down.
FUD is often spread by people who are trying to manipulate the market, so it’s important to be careful when considering buying or selling a coin.
FOMO
“FOMO” is short for “fear of missing out”. FOMO is a term used to describe the feeling of anxiety that you get when you think you’re missing out on something.
FOMO is often used in the context of investing, as it can cause people to make rash decisions and invest in something without doing proper research.
Before investing in a coin it’s important to make sure you understand what you’re buying and that you are not buying from a place of FOMO.
Airdrop
An “airdrop” is a term used in the cryptocurrency space to describe when a project gives away free tokens or coins to its community.
Airdrops are often used as a marketing tool to generate hype and build up the community around a particular project.
They can also be used to distribute tokens to people who are interested in using a particular decentralised application.
Address (Wallet Address)
An “address” is a string of alphanumeric characters that represent a particular crypto wallet. Wallet addresses are used to send and receive cryptocurrencies.
They are often generated by a wallet provider and can be thought of as similar to an email address.
It’s important to note that you should never give your private key to anyone, as this would allow them to access your funds. Public keys are safe to share.
Cold Wallet
A “cold wallet” is a type of cryptocurrency wallet that is not connected to the internet. Cold wallets are often seen as more secure than hot wallets, as they are less susceptible to hacking.
They can be stored on USB drives, paper wallets, or offline computers.
Hot Wallet
A “hot wallet” is a type of cryptocurrency wallet that is connected to the internet. Hot wallets are often seen as less secure than cold wallets, as they are more susceptible to hacking and phishing.
They can be stored on online exchanges or online wallets.
Node
A “node” is a computer that is connected to the blockchain and helps to verify transactions.
Nodes are often run by volunteers and can be located all over the world. They help to keep the network secure and running smoothly.
Double Spend
“Double spend” is a term used to describe when someone tries to spend the same cryptocurrency coin twice. This can happen if someone has two different wallets and tries to send the same coin to both wallets at the same time.
Double spending is often seen as a negative thing, as it can lead to an inflation of the currency. It’s important to be aware of double-spending when considering investing in a particular coin.
MultiSig
“MultiSig” is short for “multisignature”. MultiSig is a type of wallet that requires more than one signature to authorise a transaction.
This means that you would need more than one person to agree to a transaction before it could be processed.
MultiSig wallets are often seen as more secure than single-signature wallets, as they require multiple people to agree to a transaction.
Fork
“Fork” is a term used to describe when a blockchain splits into two. This can happen for a variety of reasons but often happens because the community cannot agree on a particular update or change.
Forks can be either hard or soft. A hard fork is when the new blockchain is not compatible with the old blockchain, and a soft fork is when the new blockchain is compatible with the old blockchain.
It’s important to be aware of forks when considering investing in a particular coin, as it could impact the value of your investment.
Gas
“Gas” is a term used to describe the fee that is paid to process a transaction on the blockchain. Gas is often seen as a positive thing, as it helps to keep the network secure and running smoothly.
It’s important to be aware of gas fees when considering investing in Ethereum, as they can impact the amount of money you make from a transaction.
POW
“POW” is short for “Proof of Work”. POW is a type of algorithm that is used to verify transactions on the Bitcoin blockchain.
POW algorithms require miners to solve complex mathematical problems to add new blocks to the chain.
POW algorithms are often seen as positive, as they help to keep the network secure and running smoothly. However, they can also be seen as negative, as they require a lot of energy to run.
It’s important to be aware of POW when considering investing in Bitcoin, as it could impact the value of your investment.
POS
“POS” is short for “Proof of Stake”. POS is a type of algorithm that is used to verify transactions on the blockchain. POS algorithms require users to stake their coins to add new blocks to the chain.
POS algorithms are often seen as positive, as they help to keep the network secure and running smoothly. However, they can also be seen as negative, as they can lead to an inflation of the currency.
It’s important to be aware of POS when considering investing, as it could impact the value of your investment.
Wrapped Bitcoin
“Wrapped Bitcoin” is a term used to describe when a person takes their Bitcoin and “wraps” it in Ethereum. This can be done for a variety of reasons but is often done to take advantage of the benefits of both networks.
Wrapping your Bitcoin can be seen as positive, as it allows you to use the benefits of both networks. However, it can also be seen as negative, as it can lead to an inflation of the currency.
It’s important to be aware of wrapped Bitcoin when considering investing in either Bitcoin or Ethereum, as it could impact the value of your investment.
Halving
“Halving” is a term used to describe when the block reward for miners is cut in half. This happens every four years and can have a big impact on the price of Bitcoin.
Halvings are often seen as positive, as they help to keep the network secure and running smoothly. However, they can also be seen as negative, as they can lead to an inflation of the currency.
It’s important to be aware of halvings when considering investing in Bitcoin, as it could impact the value of your investment.
NFT
“NFT” is short for “Non-Fungible Token“. NFTs are a type of digital asset that is stored on the blockchain. NFTs are unique, meaning they cannot be replaced or exchanged for another asset.
NFTs have been gaining in popularity lately, due in part to the launch of the Ethereum-based game CryptoKitties. In CryptoKitties, players can buy, sell, and breed digital cats. These digital cats are stored on the Ethereum blockchain as NFTs.
NFTs can be used to represent all sorts of digital assets, from art and music to in-game items and virtual real estate. The possibilities are endless!
Oracle
An oracle in cryptocurrency is a party that validates the transactions in a blockchain network.
It is similar to a notary public in the traditional financial system. For a transaction to be considered valid, it must be approved by an oracle.
An oracle can be either an individual or a group of individuals. In some cases, an Oracle may be a software program that is designed to provide validation for transactions.
Oracles are typically used in decentralised networks where there is no central authority to validate transactions.
One of the most popular Oracles in cryptocurrency is called Chainlink. Chainlink is a decentralised Oracle network that provides data and information to smart contracts on Ethereum.
Oracles are an important part of the cryptocurrency ecosystem because they help to ensure the validity of transactions. Without them, there would be no way to know if a transaction is valid or not.
Oracles are also important because they can provide data and information to smart contracts.
This data and information can be used to trigger events or execute transactions. For example, an Oracle can provide data to a smart contract that is used to trigger a payment.
Stablecoin
A stablecoin is a type of cryptocurrency that is designed to minimise price volatility. Stablecoins are typically backed by assets such as fiat currency, gold, or silver.
The most popular stablecoin is Tether (USDT). Tether is a USD-backed stablecoin that is designed to be used as a digital dollar.
Tether is the largest stablecoin by market capitalisation and is one of the most popular cryptocurrencies. Other popular stablecoins include Paxos Standard (PAX) and USDC.
Web 3.0
“Web three-dot-zero” (or “web three-dot-oh”) is a term used to describe the next generation of the internet. Web three is being built on decentralised technologies such as blockchain and distributed ledger technology.
The goal of web three is to create a more open, secure, and accessible internet. Web three-dot-zero is being built by companies and projects such as Ethereum, IPFS, and ENS.
The launch of web three-dot-zero is still in its infancy. However, the technologies that are being built on the web three-dot-zero are already having a major impact on the world.
Yield Farming
“Yield farming” is a term used to describe the process of earning interest in cryptocurrency. Yield farmers typically lend their cryptocurrency to projects or protocols in exchange for interest payments.
Conclusion
There you have it! These are just a few of the many terms that you’ll come across when reading about cryptocurrency.
It’s important to do your own research and understand what each term means before investing in any asset.
