The whole crypto-industry is growing and its language is continuously evolving as well, which means cryptocurrency is still a confusing place for most people, especially those who are not in the tech industry. There’s an overwhelming number of crypto-terms out there and If you want to be a cryptocurrency investor or an enthusiast or simply a newbie who’s just curious and wants to learn more about it, let’s get you started with these 10 crypto slangs you need to know:
If you’d rather watch a visual demonstration, watch the video below:
Sats was derived from the chosen name of Bitcoin’s unknown inventor, Satoshi Nakamoto. It’s basically short for Satoshis and it is currently the smallest unit of the bitcoin currency on the blockchain.
Example: “How many Sats is this worth?” “How many Sats is equal to 1 Bitcoin?”
The term HODL kind of like became an anagram for the word “hold”. It first appeared in a bitcoin forum when a person unintentionally typed “hodl” instead of “hold”. Some actually thought “HODL” stands for “Hold On For Dear Life” but it basically just means to hold your coins.
Example: “Don’t be afraid of price drops, just HODL!” “I am HODL-ing!”
Whale is what you call people who owns a LOT of bitcoin. If a “whale” sells a lot of their stake, it can cause the price of a cryptocurrency to dip.
Example: “Do you think the recent price dip was because of a Whale?” “Who is the mystery $1 Billion whale?”
FOMO is what you call a person who doesn’t want to miss out on something great. It is an abbreviation of “Fear OF Missing Out”. In the crypto industry, it’s often used to call those who get into bitcoin just because of the hype. FOMO is often associated to people who suddenly bought Bitcoin when it hit just below $20,000.00
Example: “At first Brad didn’t want to get into Bitcoins but eventually FOMO got the best of him.” “He FOMO’d into buying that coin.”
5. Pump and Dump
In the world of crypto, a group of people take a “pump” when they all decide to buy a certain coin and therefore creating a sudden demand in the market and then a “dump” when they decide to sell it all at once to make profit.
Example: “If the Whales tried to pull off a pump and dump then we’re in for a rollercoaster ride!” “Someone is still holding an altcoin after a pump and dump crash”
Someone who HODL-ed to a cryptocurrency bought at a high price for too long and, overtime, is now left with a bag of worthless coins.
Example: “He didn’t sell his Stellar in the hopes it will still rise and now he’s a bagholder.”
A person who makes a commotion about a certain coin is called a Shill. Scammers in the industry usually do this to manipulate people into buying their coin or if they bought a coin that is going down and now they’re saying that xxx is the next Bitcoin.
Example: “We caught a shiller in our forum, no one even knew the coin he was talking about!”
This one is obvious, “shit” meaning worthless and you know what a coin means. So basically a coin that no one sees the potential in, therefore, it’s a shitcoin.
Example: “You gotta know the red flags to look out for in shitcoins!”
Faucets, also known as bitcoin faucets are websites that give you bitcoins as rewards for completing specific tasks.
Example: “My little bro actually found a faucet where you just play games and you get bitcoins!”
If you know what “WTF” stands for, you can easily guess or might have an idea what “BTFD” means with relevance to crypto. Yes, it’s “Buy The F***ing Dip!”
Do you have a favorite out of these 10 crypto lingos? Let us know in the comment section down below.
11. Moon (Crypto Moon)
Moon also referred to as crypto moon is an optimistic price projection for the cryptocurrency in concern. Every crypto investor is seeking a crypto moon to cash out their hodled coin and shrewd investors buy coins when the price is low in the hopes of that sweet bright moon. Usually, tank is used as an antonym for moon. Oh god! please do not let this coin to tank. I am chasing that moon so bad!
12. Silk Road
In ancient times, the Silk Road was the main trade route between the east and west. Spanning across multiple countries in Eurasia. Things like silk (from which the road gets its name), philosophies, diseases and opioids were traded between these regions. Taking inspiration from the original silk road, a darknet illegal marketplace came about in existence in the year of 2011. Because of the pseudonymous nature of bitcoin transaction, the digital currency became a method of the transaction in Silkroad making bitcoin associated with criminal activities in mainstream knowledge.
Just like a regular fork which has a stem that branches out into their own in different directions, fork in cryptocurrencies means when the original blockchain diverges into two different instances of itself. There are two types of forks:
- Hard Fork: Software validating the old blocks will see the blocks produced according to the new rules as invalid. All the nodes must update their software to the latest version.
- Soft Fork: Backward compatible fork where the old software recognizes the blocks made by the new software update.
A hash is a digest obtained when a data goes through a cryptographic hash algorithm. A hashing algorithm is a mathematical algorithm that maps data of arbitrary size to a bit string of a fixed size (a hash). Usually, the function is one way and requires insane computational power to revert the data from the hash making it perfect to be used for cryptocurrencies. Bitcoin uses the SHA-256 algorithm for hashing.
Altcoin is the portmanteau word of alternative bitcoin and is used to refer to any cryptocurrency that is not bitcoin. Buy by now, ethereum also has made it big and this term is used for any currency that is not bitcoin or ethereum.