Like in any other industry, crypto enthusiasts also frequently use slang and acronyms to communicate ideas, concepts or descriptions quicker than with formal language. In this blog, you will be able to learn the terminologies used in the cryptocurrency world.
Here are some of the most common slangs/terminologies:
All Time High (ATH) – is an acronym used in respect to brokerage accounts, financial data, stock trading and cryptocurrency. It means a coin has reached its highest value ever recorded.
Bear/Bull Trap – when people talk about a bear market, that is when the price trend is stagnant or downward. A bull market is when the price trend is upward. The terms are used in different ways, but as a rule: bull means “up,” and bear means “down.”. A trap is when it’s been going one direction for a while and looks like it’s going up, but it comes back down.
BIP (Bitcoin Improvement Proposal) – is a design document for introducing features or information to Bitcoin. This is the standard way of communicating ideas since Bitcoin has no formal structure.
EIP (Ethereum Improvement Proposal) – describe standards for the Ethereum platform, including core protocol specifications, client APIs, and contract standards.
BUBBLE – is when something has grown in price way too rapidly, and it’s unsustainable. That stretches the bubble, and it might pop, and the price will drop back down rapidly.
BOT – almost all exchanges let users program or use a pre-programmed software that can interact with crypto platforms via an API. One type of software that can execute trades on exchanges is called a “trading bot” (often referred to as simply a “bot”). It may seem like cheating, and in certain hands, it can sure feel like it, but bots are important in many ways too. They can help implement strategies like trailing stop losses for you, and they can help “make markets” (all those little buys and sells that prevent wide spreads in a given market are generally “market maker” / “accumulation” bots). Like people, bots aren’t good or bad, they are neutral and depend on the ethics of the user.
DAPP (Decentralized Applications) – this is an app that you build using Smart Contract. It is often stored on a blockchain and is hosted on many distributed servers.
EEA (Enterprise Ethereum Alliance) – connects Fortune 500 enterprises, startups, academics, and technology vendors with Ethereum subject matter experts. They are a group of companies that are interested in exploring what they can do on the Ethereum platform.
FAUCETS – is a reward system in the form of a website or app, that dispenses rewards in the form of a satoshi, which is a hundredth of a millionth BTC. Now, for visitors to claim their Bitcoin reward, they need to complete a task as described on the website. There are also faucets that dispense alternative cryptocurrencies.
FIAT – is currency such as the US dollars, Yen or Euro. These are money backed up by the government.
FLIPPENING – is an expected paradigm shift in the world of cryptocurrency, where the values of altcoins are no longer primarily based on the value of Bitcoin. This happens when a potential future day when Ethereum’s market cap exceeds Bitcoin.
FORK – occasionally, users of cryptocurrency will see wild price fluctuations related phenomena called a fork. Forks can occur from two different events. An accidental fork happens if coin updates are not truly compatible. People using different versions of the software create two different ledgers–one from the older version, and one from the newer version. In this circumstance, the coin developer must rapidly eliminate the bugs causing the incompatibilities and decide how to merge the different blockchains. HARD FORK (is a radical change to the protocol that makes previously invalid blocks valid). SOFT FORK (is a change to the software protocol where only previously valid blocks/transactions are rendered invalid.
FOMO (Fear Of Missing Out) – The emotional response that makes people impulse buy tokens at their all-time high. If the prices go up rapidly, you tend to buy it because you don’t want to miss out on the possible significant return you can get from it.
FUD (Fear, Uncertainty, Doubt) – The emotion that people try to invoke in others when they want to bring the price of a coin down or drum up headlines. It can be smart to react to FUD, as one can’t stop widespread FUD from spurring on a correction, especially after a coin just hit an All Time High. FUD is what causes economic depressions. It is what makes bubbles burst.
HODL (Hold) – a typographical error of the word “hold” made by one member of a Bitcoin forum, which means holding onto your Bitcoin rather than selling it.
ICO (Initial Coin Offering) – an unregulated means by which funds are raised for a new cryptocurrency venture. An ICO is used by startups to bypass the rigorous and regulated capital-raising process required by venture capitalists or banks.
LAMBO (Lamborghini) – a status symbol goal post or meme. It is a reference to a Lamborghini that invokes this mashup of a lamb and Rambo. Somehow everyone’s cognitive dissonance kicks in, and there is this assumption that everyone who owns any amount of any tokens will somehow be driving a Lamborghini within the next six months.
MOON – mooning is when a coin goes on a “run.” That is when the price goes up quick. The opposite is a dip. Can’t get a Lambo without mooning, can’t see the moon if you don’t HODL.
POW (Proof Of Work)/POS (Proof Of Stake) – A proof-of-work system (POW). It is where mining is done by those who have the hash power, time, and energy. The result is that time and energy are traded for rewards. A proof-of-stake system (POS). It is where those who hold coins do mining. The result is a bit like getting paid interest for holding coins.
PUMP AND DUMP – this is very simple. Pump means the price or value of the coin is increasing while dump means the value of the coin is decreasing.
SATOSHI – named after Satoshi Nakamoto, the unknown person or people who developed Bitcoin, Satoshi is the smallest fraction of a Bitcoin.
SHILL – essentially an advertisement of another crypto-currency. It’s a hype created around a particular coin to increase its value. So, when you see anyone “Shilling” a coin, then you know that it’s a hype manufactured for one simple reason: So that you invest in it.
TOKEN – is the same word for a coin and can be used interchangeably
WEI – the smallest denomination of ether, the cryptocurrency used on the Ethereum network.
2FA (2 FACTOR AUTHENTICATION) – another term for this is TFA. Is when people use an additional security check for signing in to different exchanges or when doing actions like selling their coins
WHALE – someone that owns absurd amounts of cryptocurrency. Whales are cryptocurrency investors with many coins or dollars. These investors can help move markets, or they can help stop markets from moving. When you see a 250 BTC buy wall or sell wall, those are what you call a Whale.
And there you go, these are some of the most common slang used in the cryptocurrency world. Now that you know most of the terms used, do you think you’re ready to start dive head first in the cryptocurrency world?