Commonly Used Crypto Terms

Commonly Used Crypto Terms

“Did you hear about the new ICO that wants to create a new ASIC miner and fork the Blockchain?” – Chad “No, that’s all FUD! But if it’s true, the FOMO will be big!” – Mike “Yea, I’d DYOR though, I’d hate to HODL it all the way down and become a bagholder. I’m here for the Lambos!” – Chad

Now, you might be asking yourself what ANY of this means. The crypto-universe can seem daunting, technical, and overall confusing with these terms that get tossed around on a daily basis. But don’t let that deter you from learning about crypto and getting involved because it isn’t as complex as it sounds. Below is a list of commonly used crypto terms in the space that you might come across in news articles, blogs, Discord, Twitter, or even your co-worker who keeps telling you how he’s going to get a Lambo once Bitcoin “Moons”!

Crypto Terms

Altcoin: Any cryptocurrency other than Bitcoin

ASIC: “Application-Specific Integrated Circuits” – Powerful computer chips that are

designed to only mine cryptocurrency

ATH: All Time High(s) (in terms of price)

Bagholder: A person who holds a certain coin/token which continues to decrease in value, sometimes to the point that it’s worthless

Bear/Bearish: Negative sentiment or downward price movement

Block: A unit of work that miners process; a group of transactions on the blockchain

Block Reward: What a miner receives as pay for successfully confirming a block of crypto transactions

Blockchain: A decentralized database (or ledger) of accounts that is maintained by a decentralized network, and verified using complex math called cryptography

BTD: “Buy The Dip” – purchasing a coin when it has decreased in price

Bull/Bullish: Positive sentiment or upward price movement

Coins: Digital money

Cold Wallet: Offline wallet for storing crypto; considered to be the safest way for storage

Cryptography: Method of protecting communications and information via the use of codes, ciphers, and algorithms

Cryptocurrency: A digital asset used as a form of exchange; utilizing cryptography to secure financial transactions/information

Decentralized: A system that requires multiple independent parties to make their own decisions; there is no single centralized authority making decisions on the party’s behalf

Difficulty: A measure of the network’s given cryptographic puzzle and how hard it is to solve

DYOR: “Do Your Own Research”

Exchange: A place to buy and sell cryptocurrencies or digital assets for a fee

FA: Fundamental Analysis

Fiat: Paper money such as the U.S. Dollar or the Euro

Flippening: An idea indicating a shift of dominance by another coin becoming more valuable, and often more important than Bitcoin

FOMO: “Fear of Missing Out”, specifically in potential profits

FORK: A change made in the blockchain code. A “Soft Fork” is a change where the old and new code can co-exist, whereas a “Hard Fork” is a permanent change to the previous version of the blockchain used by a cryptocurrency and cancels all the previous code versions

FUD: “ Fear, Uncertainty & Doubt” – Usually a panic period where negative sentiment is overexaggerated

Hardware Wallet: A product similar to a USB stick that can secure and store your crypto

HODL: To hold; holding your coins and resisting the urge to sell, even when market conditions are poor

Hot Wallet: Always connected to the internet and readily available

ICO: “Initial Coin Offering” – a crypto project going public that offers tokens, often at a discount, in exchange for funds; similar to a traditional IPO

KYC: “Know Your Customer” – The process of identifying and verifying the identity of an individual; often required by exchanges and other crypto businesses

Mining: The process of contributing computer power by solving complex math problems and verifying the transactions on a blockchain

Moon: A sudden surge of upwards price movement, usually resulting in significant profits (200%-1000%+)

Node: A computer running software that enables a cryptocurrency to work and stay operational

OTC: “Over the Counter” – Buying or selling digital assets outside of exchanges

Proof of Work (PoW): Consensus mechanism that keeps the blockchain secure and correct, using miners with large amounts of computing power to solve a cryptographic puzzle.

Currently used on the Bitcoin Network

Proof of Stake (PoS): Allocating a trusted user (who owns a significant amount of coins) to validate transactions on the network

Private Key: This is the password that only YOU should have and should NEVER be shared or left out. Only the owner of the key can access the funds at the address.

Public Key: Unique wallet address that is visible to everyone (public) and is a long string of numbers and letters. Used to receive crypto assets into a wallet

Satoshi Nakamoto: The name used by the pseudonymous person or persons who created Bitcoin and wrote the original whitepaper.

Sats: Short for Satoshis, the smallest unit of Bitcoin (BTC). One Sat is equal to 0.00000001; 1 Bitcoin is equal to 100,000,000 Satoshis

Smart Contact: Code in the blockchain that allows users to enforce contracts without the use of a third party such as a lawyer or bank. They are immutable.

TA: Technical Analysis

Whale: Someone who owns a massive number of coins with ability to influence price

Whitepaper: A document that includes a problem that a project is looking to solve. Usually includes a detailed description of the entire product, team, and roadmap. Essentially a business plan