Reading about cryptocurrencies might be overwhelming for a crypto beginner. You might feel confused with content on blogs or websites because some are full of cryptocurrency slang. As cryptocurrencies grow, these terms have evolved to describe the unique features, utilities, and movements of the decentralised money. In this article, we walk you through the most common slang that crypto enthusiasts and investors should be familiar with.
1. Ape
Ape is when you just buy into a new crypto phenomenon without performing your own research about the assets. They often have a general fear of missing out on potential profits and invest in newly listed cryptocurrencies. However, making impulsive decisions without clearly understanding the fundamentals, risks or long-term potential of the project will cause them to suffer high financial losses.
2. Bagholder
A “bagholder” is a person who continues to keep their cryptocurrencies even when its value has been continuously dropping. They may hold their position even when an asset’s value crashes to essentially zero, usually out of hope that its price will eventually bounce back. As a result, they got left holding a bag of worthless or plummeting coins.
3. Bitcoin Maximalists
This phrase describes those who believe that Bitcoin is the only coins of value and the only digital asset worth investing in.
4. Bearish
A bearish market is one in which the prices of crypto coins and tokens have been falling for a period of time. This isn’t a short-term dip like during a correction when there are prices declining by 10% to 20%. Usually, a bearish trend leaves investors feeling pessimistic about the future of the crypto industry.
5. Bullish
By contrast, when the market is bullish, cryptocurrencies’ prices start to rise. Trading activities are more dynamic, and technical indicators also show positive signs. In a simpler term, “bullish” can be translated into “hold on tight, we’re going up! Yehaa!”
6. BTD
BTD stands for “buy the dip”, a term used to encourage people to buy in assets when their prices drop to a lower level. The idea is to purchase the asset at a discounted price, with the expectation that the price will eventually rally, allowing for potential profits. This strategy is often referred to as ‘shorting crypto’, which takes advantage of market fluctuations and aims to accumulate more cryptocurrencies at lower prices.
7. CEX
CEX is the abbreviation for centralised exchanges. A centralised exchange is an organisation that coordinates cryptocurrency trading on a big scale, employing a business model similar to that of traditional asset exchanges such as stock exchanges. These platforms enable users to buy, sell, or swap crypto assets. They offer users support and a better UX, but they’re more susceptible to cyber attacks and charge higher transaction fees.
8. Cryptojacking
“Cryptojacking” is a type of cybercrime where hackers secretly use someone else’s computer to mine cryptocurrency. It is a form of malicious activity that exploits others’ resources for personal gain. This unauthorised activity can significantly slow down the victim’s computer and increase their electricity costs.
9. Cryptosis
“Cryptosis” describes someone who is extremely enthusiastic about cryptocurrencies and wants to learn everything about it. These individuals are constantly searching for information about crypto, discussing it frequently, and staying updated on the latest news, trends, and technologies.
10. DAO
Decentralised Autonomous Organisation (DAO) are an organised collective with a ‘flat’ hierarchical structure centred around a shared cause or mission. Crypto projects which aim for true decentralisation often embrace the DAO model for governance.
In DAOs, participation rights are tokenised, and every token holder is considered a member of the DAO. Through voting portals, DAO members can vote on proposals and submit their suggestions to be considered by the rest of the collective.
11. DApps (dApps)
DApps is short for decentralised applications. Unlike traditional apps that run on centralised servers controlled by companies like Facebook or Google, DApps operate on a blockchain or a peer-to-peer network
12. DeFi
DeFi means decentralised finance. This notion refers to non-custodial crypto protocols which provide users with financial services without a central authority.
In fact, DeFi is a vibrant marketplace powered by smart contracts and blockchain technology, on which you can lend, borrow, trade, and invest in digital assets. It functions without intermediaries and gives you the freedom to be your own banker.
Common DeFi apps include decentralised exchanges (DEX), lending protocols, and yield farms – platforms that allow users to lock their crypto funds for a certain period to earn rewards.
13. Diamond hands/Paper hands
“Diamond hands” and “paper hands” are terms used to describe the risk tolerance of cryptocurrency traders.
- “Diamond hands” refer to investors with a high risk appetite who steadfastly hold onto their investments regardless of market conditions. These investors maintain their positions despite market volatility, demonstrating confidence in the long-term value of their assets.
- Traders with “paper hands” sell their cryptocurrency as soon as the price starts to go down. These traders have a low tolerance for risk and prefer to sell early to avoid losing money
14. DEX
It’s easy to guess the meaning of DEX. This phrase means ‘decentralised exchange,’ a completely opposite type of crypto exchange platform to a centralised one. In DEX, there is no single entity coordinating the trading. Instead, users are responsible for holding custody of their funds and protecting personal data and privacy.
The price to pay is a less friendly UX experience due to the higher complexity of such services and the lack of support for on-ramp and off-ramp processes (fiat currencies). DEX only enables trading between cryptocurrencies or tokens.
15. DYOR
This term may sound fancy, right? 🙂. “DYOR”, or “do your own research” is an essential practice that any investors should master. You are investing your own money, even many other people’s money, so due diligence is extremely important. Otherwise, your decision will make you bankrupt or kill your career.
16. FOMO
The word ‘FOMO’ stands for ‘Fear of missing out.’ It is a psychological phenomenon in which investors rush to buy a single or a bundle of cryptocurrencies because they fear of missing a potentially lucrative opportunity. This emotional behaviour makes them act fast without thinking carefully, which can lead to significant financial losses.
17. FUD (Fear, Uncertainty, Doubt)
“FUD” is a psychological tactic used to create negative perceptions about cryptocurrencies to cause fear and scepticism among investors. In the crypto world, FUD typically manifests in two ways:
- Deliberate Manipulation: This involves deliberately spreading fear, uncertainty and doubt about a particular project to push its price down. The goal is often to manipulate the market for personal gain.
- General Scepticism: This reflects a broader distrust of cryptocurrencies as an asset class. It can lead to the spread of excessive negativity or even ‘fake news’ on the topic.
FUD can significantly impact the market value of a cryptocurrency or even the entire market. Understanding FUD will help investors confidently make more informed decisions
18. Gas
Gas is like the essential fuel for the blockchain’s operation. Essentially, gas represents the cost of speed and efficiency. When the network gets congested, gas prices increase, making it feel like you’re fueling a large truck instead of a small car. Additionally, more intricate transactions require more gas, leading to higher fees for users.
19. HODL (Hold on for Dear Life)
“HODL” means keeping for a long-term investment, even when prices of the cryptocurrencies go up and down a lot. “HODL-ers” believe that their investments will grow in value over time no matter what. This strategy helps them avoid panic selling and making bad decisions based on short-term market changes.
20. NGMI (Not gonna make it)
“NGMI,” which stands for “Not Gonna Make It,” is a phrase used in the crypto world when things don’t go as planned. It signifies a sense of acceptance or resignation when an investment or trade fails to meet expectations. Additionally, it’s a reminder to remain calm and avoid getting swept up in the frenzy, as there’s always another opportunity ahead.
21. No-coiner
A “no-coiner” is someone who doesn’t own any cryptocurrency and is often very critical of it. No-coiners believe that cryptocurrencies have little to no value and are likely to fail. They are sceptical about the technology and the potential for profit in the crypto market.
22. Normie
It can be used to ridicule individuals who are sceptical about crypto or do not know basic crypto concepts. Normies can’t grasp the technicalities or understand the market dynamics. Moreover, they read about Bitcoin and several other cryptocurrencies in the CNN headlines, so they’re aware that decentralised digital assets will dethrone the US dollar sooner or later.
23. Pump-and-Dump
“Pump and Dump” is a sort of crypto scam. Pumping involves artificially inflating the price of an asset through false or misleading positive information. Typically, a coordinated group of individuals will purchase large quantities of a particular asset at a low price simultaneously, thereby driving up demand and the asset’s price. This sudden price increase attracts other investors, who then buy in. The original group then rapidly sells off (dumps) their holdings to realise a profit, resulting in significant financial losses for the latecomers who bought at the inflated prices.
24. Rug pull
“Rug pull” is another type of scams where the developers of a cryptocurrency project abandon before it completes, taking all the invested funds with them. This leaves investors with a whole bunch of ‘dead’ softwares and programmes and worthless tokens and no way to recover their money.
25. SAFU
SAFU stands for Secure Asset Fund for Users, an initiative developed by Binance to allocate a portion of trading fees to an emergency fund. The purpose of this fund is to have money set aside to compensate users in the event of a hack or other exploit.
26. Sats
Sats is short for Satoshis, the smallest unit of Bitcoin (BTC), named after the creator of this currency, Satoshi Nakamoto. Cryptocurrencies can be divided into smaller units, 1 Bitcoin is equivalent to 100 million Satoshi.
27. Shill
Shilling is a period when someone actively promotes a particular cryptocurrency to attract more investors. Shilling can be misleading because it exaggerates the benefits while downplaying the risks, making cryptocurrencies appear more attractive than they actually are. The goal is to push its price up, benefiting those who already hold that cryptocurrency
28. WGMI (We’re Gonna Make It!)
“WGMI” is precisely the opposite of NGMI. The term is used in the cryptocurrency community to spread optimism and confidence. People use it to encourage each other, believing that if they stay committed and support each other, they will all succeed and profit from their investments. It’s about fostering a positive and hopeful attitude within the crypto community.
29. Whale
A crypto whale is an individual or organisation that holds significant amounts of digital currency, who can influence the market through large transactions.
These whales are like the heavyweight champions of the crypto world, creating significant ripples with their actions. With about 40% of cryptocurrency stored in fewer than 2,000 wallets, they control substantial portions of the market.
If you didn’t get into the crypto game early, you likely won’t become a whale. However, with smart investments, you might one day grow into an orca
