Learning the ropes in the complex world of cryptocurrency can be a daunting challenge for many as the crypto industry is packed with jargons of engineering, coding, trading and finance.
Here we break down the most common crypto terminology.
This is a marketing campaign that refers to a population of people speeding up the sale of a cryptocurrency.
This usually occurs when a cryptocurrency creator offers the coin to low-ranking traders or current members of the community to create their use and popularity.
Typically they are given away free of charge or in exchange for simple tasks such as sharing coin news.
Any alternative crypto to Bitcoin. An example of an altcoin would be XRP
There are several exchanges in the same cryptocurrency at any given time trading, and they can do so at various rates.
Arbitration is the process of purchasing from one exchange and then selling it to the next exchange to make a profit margin between the two.
Someone who then buys a crypto at its peak value and missed the opportunity to sell it, leaving it with worthless coins and broken dreams.
Bearish (Bear market)
When there is a drop in the market prices or a particular crypto. It always seems to coincide with any purchase you make (sarcasm).
The word that causes the minds of most people to melt.
A blockchain is basically a decentralized database or account ledger, which is managed by a decentralized network instead of being controlled by a central authority, and checked by complex maths called cryptography.
It is most cryptos underlying surface, like Bitcoin. Get more detail about blockchain here.
Bullish (Bull market)
A bear market’s reverse.
More probably it will happen when you decide to sell your cryptos and miss a 2,000 percent increase, losing your chance to get a Lambo.
Buy low, sell high
What you should do when trading cryptos.
Buy high, sell low
Rather, what each noob ends up doing.
Buy the dip
A word sometimes tossed in crypto groups that refers to the best time to buy into a crypto-during an extended price drop.
A vague word for the industry as a whole.
Often refers to the coins, utility tokens and tokenized securities generally referred to as cryptocurrencies.
I’m not going to use the word cryptocurrency because most cryptocurrencies are not currencies.
Confusing AF, but commonly used interchangeably at the moment.
A place online to buy and sell cryptos. Coinbase, Bitrue, Binance, CEX and many more are some of the largest exchanges.
Paper or coin money without any intrinsic value (not backed by a product like silver).
It’s value comes from the currency issuing government alone.
The US dollar was backed by gold, but this ended in 1971, which meant that its value was essentially arbitrary.
Fear of missing out (FOMO)
Often it happens after all the coworkers have quit their jobs because they have invested in an ICO 2 months ago that has jumped by 3000 percent and now all of their own Lambos. (See: Lambo, ICO)
Fear, doubt and confusion.
This usually happens when you’re reading about a crypto all night, remember that this is what will make you rich and decide to spend $4,000.
The next day you’re sharing your excitement with your friend saying it’s just a shitcoin and you’re going to lose your cash.
You’re scared, uncertain, and doubtful.
“Hold on for dear life” The mantra of the crypto-investor.
A deliberate ‘ hold ‘ deceptive, referring to what to do when you buy your crypto and hold.
The dream of a crypto hodler and an abbreviation for ‘ Lamborghini. ‘
It was expected that once Ethereum moons, crypto-hodlers would obtain their Lambos.
You can use it to take advantage of relatively small price movements, use your portfolio to increase the size of your investment, and grow your assets faster.
For more information on Leverage Trading check out out review on ByBit.
Short for ‘ capitalizing the market. ‘ Refers to the value of a crypto determined by multiplying the price of the coin the number of coins.
Pump and dump
A coordinated effort to inflate the price of a crypto artificially by enticing investors to buy in before selling off their own share while the price remains high.
Usually carried out by bands of whales.
Not a sex act, too.
A nasty altcoin. Either a fraud or just a dumb idea that pulled in naive investors.
Essentially a small piece of software stored inside a blockchain that enables users to execute contracts without a third party like a bank, an attorney, or a business like Kickstarter.
For check, promote and enforce contracts, these systems can be programmed.
They are fully decentralized and irreversible because they live on the blockchain-they can not be manipulated once they are released.
Crypto processing as a piece of software-an app or computer program. Metamask and Jaxx are common wallets for technology.
Anyone who owns a lot of crypto and is able to influence its value.
Traditionally a white paper is known as an authoritative document that summarizes a complex subject.
White papers are used in crypto as a way to explain the engineering behind and explore a new crypto’s future applications.