So you’re new to the crypto space and you’ve been hearing about FUD, WAGMI and other terms. The crypto community is full of acronyms, slang terms and unusual phrases but what do they mean? Where can you find a glossary of terms to get you started? Well, you’ve come to the right place.
1. Cryptocurrency
A type of currency that’s digital and decentralized. It can be used to buy and sell things, or as a long-term store of value.
2. Blockchain
A digital form of record keeping, and the underlying technology behind cryptocurrencies It is the result of sequential blocks that build upon one another, creating a permanent and unchangeable ledger of transactions (or other data).
3. Exchange
This is a digital marketplace where you can buy and sell cryptocurrency. For example, Pancakeswap (a decentralized exchange) and MEXC (a centralized exchange).
4. Gas
A fee that users pay to the network in order to use the system.
5. HODL
Stands for “Hold On for Dear Life” though the term originated from a user typo on a Bitcoin forum in 2013. It refers to a passive investment strategy in which people buy and hold onto cryptocurrency — instead of trading it — in the hopes that it increases in value.
6. Initial Coin Offering (ICO)
A way that funds are raised for a new cryptocurrency project. ICOs are similar to Initial Public Offerings (IPOs) of stocks.
7. Mining
The process where new cryptocurrency coins are made available and the log of transactions between users is maintained.
8. Non-fungible Tokens (NFTs)
Non-fungible tokens are units of value used to represent the ownership of unique digital items like art or collectibles.
9. Private Key / Seed
The encrypted code that allows direct access to your cryptocurrency. Like your bank account password, you should never share your private key.
10. Wallet
A place to store your cryptocurrency holdings. Many exchanges offer digital wallets. Wallets may be hot (online, software-based) or cold (offline, usually on a device).
11. Fiat
Fiat currency is 1) government-backed and 2) not backed by any commodity (like gold). Those green US dollars in your wallet? That’s fiat currency.
12. Know Your Customer (KYC)
KYC refers to “knowing your customer”. Major platforms require KYC as part of their onboarding process to deter money laundering and scam accounts.
13. DYOR
Do Your Own Research. Lots of blockchain projects pop up all the time and you should research whatever you plan to invest in before you throw money at it.
14. FOMO
Fear of Missing Out. This crypto acronym is used occasionally in the wider world but almost daily in crypto.
15. FUD
Fear, uncertainty, and doubt. This crypto phrase is used as a way to dismiss concerns about market volatility and its resulting emotional impact.
16. Pump and Dump
Essentially, a pump-and-dump scenario unfolds when investors hype or inflate the price of an asset, like a cryptocurrency, and subsequently sell their holdings before the price falls again. They pump it up — and then dump it before it falls.
There you have – 16 of the most common crypto terms you’re bound to read about while getting started. We hope this blog put these terms into perspective and gave you a good foundation to begin your crypto journey. If there are any terms you want us to cover, drop them in the comments below.
