Most people I talk to about cryptocurrency have no idea what I’m talking about. Then there’s the vocabulary my peers and I use, which can be cryptic in and of itself. Here is a list of commonly used words when talking about crypto:
FIAT: A government-issued currency, such as the US dollar.
WHALE: Someone who owns a lot of crypto. This person typically makes large bids (buys) and asks (sells) in the crypto market which sometimes has an affect on the prices, especially when several whales place trades at the same time.
BULLISH: When the market believes coin prices are going to increase in value.
BEARISH: When the market believes coin prices are going to decrease in value.
ATH: All-Time-High. When a coin reaches the highest price it has ever had.
(Wow ETH hit $868, that’s an ATH!)
MARKET CAP: Total Supply multiplied by Current Price
FUD: Fear, Uncertainty, and Doubt. A disinformation strategy to lower prices in the market.
FOMO: Fear Of Missing Out. Buying any and every coin for the fear of missing out when it moons.
MOONING: When the price of a coin goes up extremely high.
Wow ADA is going to the moon right now!
HODL: Someone spelled HOLD wrong on Reddit, but it is used in the crypto community often. Some say it means Hold On for Dear Life. This means, don’t sell your cryptocurrency and hodl it until it goes to the moon.
ICO: Initial Coin Offering. A type of crowdfunding. A tech / crypto company comes up with a new idea for a coin and platform. They raise funding from investors (which can include the public), and they use the funds to build their company & platform. A few examples: Agrello, Dmarket, Bloom, Sia.
ROI: Pretty standard in the world of investment, means a Return on Investment. Once you’ve reached a point where you have more money than your initial investment, that’s when you are considered to have gained a profit.
COLD STORAGE / HARDWARE WALLET: When you decide to move your cryptocurrency “offline” to a paper or hardware wallet such as the Ledger Nano S.
BLOCKCHAIN: Simply put, a blockchain is a distributed ledger. A blockchain is essentially a public database that everyone can access and read, but the data can only be updated by the data owners. Data is copied across thousands and thousands of computers (nodes) worldwide. It is typically decentralized so that the data is not stored on one central server.
FORK: When a blockchain splits into two separate chains.
Did you hear that Bitcoin forked into Bitcoin Cash?
ALTCOIN: An alternative coin typically built on the Ethereum blockchain (but not always). Some examples of altcoins are: XVG, XRP, NEO, ADA, ARDR, LSK, CVC, ARK, NT, OMG, SYS, SC, STEEM. Each altcoin typically is backed by a technology platform that offers a service that theoretically will help society in the future.
SATS: Short for satoshis. The satoshi is currently the smallest unit of the bitcoin currency recorded on the block chain. It is a one hundred millionth of a single bitcoin (0.00000001 BTC). The unit has been named in collective homage to the original creator of Bitcoin, Satoshi Nakamoto.
I just put in a bid for XLM at 340 sats, and an ask for 560 sats, this way I can make a profit of 220 sats on each coin.
EXCHANGES: Websites where you can trade BTC or ETH for other altcoins. For example, you can make an account on Binance, deposit ETH or BTC to your wallet there, and then begin trading for altcoins. There are other exchanges such as Cryptopia, Bittrex, and others.
PUMP AND DUMP: When a large group of traders band together to raise the price (pump it) of a coin so that people FOMO and buy into the coin. Then when the coin reaches a certain price, the traders sell off the coins (dump them) for a nice profit. The people who FOMO’ed end up losing money. You have to watch out for this.