There are a lot of slang terms and jargon in the world of crypto and DeFi that Newcomers to Bitcoin, Ethereum and blockchain technology should know
For a beginner, coming into bitcoin and cryptocurrency can be confusing. With hundreds of terms that make up the crypto lexicon, you may be thinking about where to begin. Wendy’s Whitepaper has you covered.
Related: What is DeFi
In this article, the first of a series, we will examine some of the terms, so you are better prepared for your trip down the rabbit hole.
51% Attack: A 51% attack is a hostile event when an entity or persons attempt to takeover a cryptocurrency’s network by controlling 51% of the mining power.
Airdrop: Distributing cryptocurrency to users currently using a wallet associated with a particular currency. Airdrops may require the wallet to contain already the asset or the original asset of a forked cryptocurrency.
Altcoin: Any cryptocurrency or token that is not Bitcoin
All-Time High (ATH): The highest price point a cryptocurrency has reached to date.
Anti-Money Laundering (AML): Policies used by banks and financial institutions to prevent using their resources for money laundering and avoiding sanctions and typically used with Know Your Customer (KYC).
Bag: The digital assets currently being held by an investor’s portfolio.
Bag Holder: An investor currently holding a digital asset that has lost a considerable amount of value or someone holding an asset promoted and pumped in a pump and dump scam.
Bear/Bearish: A feeling that the price of a currency will decrease.
Consensus: A mechanism of verifying the data uploaded to a blockchain
Buy The Dip (BTD): To Buy The Dip is to buy a crypto that has lost value but sees the downturn as an opportunity to buy in low, believing the price will turn around.
Buy The Fucking Dip (BTFD): See BTD but a bit more vigorous.
Decentralized Autonomous Organizations (DAO): A decentralized autonomous organization is a decentralized organization governed by smart contracts.
Related: What is Bitcoin
Dump/Dumping: A sharp price moves downwards. Dumping also refers to the sale of a large amount of a coin/token, driving the price down.
Do Your Own Research (DYOR): A critical factor in sound investing, looking into an asset for yourself and not making an investment decision based on the word of a promoter or developer.
Exit Scam: When a developer or promoter of a crypto disappears with investor funds. See Bag Holder and Rug Pull.
Fear Of Missing Out (FOMO): Investing in a particular crypto, typically as the price rises, because the investor does not want to miss out on an opportunity. FOMO can potentially lead to a Rug Pull. See Rug Pull.
Fork: When a blockchain splits from its parent blockchain due to a difference in philosophy, ideology, or protocol.
Fear Uncertainty and Doubt (FUD): FUD is typically negative news or chatter surrounding a crypto. The information may have merit but could also be malicious gossip or unfounded rumor. See Do Your Own Research (DYOR).
Hold On for Dear Life (HODL): Refusing to sell no matter what.
Know Your Customer/Client (KYC): meant to fight and deter money laundering and other criminal activity. Typically includes providing identification and proof of residence. See AML.
Layer One: The underlying blockchain architecture and protocol
Layer Two: The next level is built on top of the Layer One architecture. An example of this is Bitcoin and Lightning Network. Bitcoin is the Lay One architecture and protocol; Lightning is Level Two.
Related: Yield Farming vs Staking
Long: A positive view of a crypto and its future. Investors of the crypto typically hold a long view or position.
Market Capitalization (MCAP): The value of the crypto calculated by the current price and the number of coins/tokens on the market.
Moon: Anticipated upward movement of a crypto, or when crypto’s price shows a strong upward momentum.
Pump: When a crypto price starts to increase in value.
Pump & Dump: A scam where a crypto price is artificially inflated and dumped once a set amount is met and the organizers of the scam exit the crypto. See Bag Holder.
REKT: To get destroyed by a bad investment or investing strategy.
Rug Pull: A Rug Pull is when a crypto’s developers abandon a project and disappear with investor funds. See Exit Scam.
Shitcoin: A coin with no visible use or value. Typically attributed to a currency or token the investor doesn’t like.
Short: To borrow from an exchange to sell for a profit when the value of the crypto declines.
Stablecoin: A coin/token that claims to be pegged to a real-world asset, i.e., gold, oil, or the United States Dollar.
Stacking Sats: Earning or accumulating Satoshis, aka Bitcoin, through staking, mining, or buying through an exchange.
Related: Proof of Work vs Proof of Stake
Staking: Keeping funds in a wallet or staking pool.
Technical Analysis (TA): Using statistical analyses of the market’s activity using charts and other tools to identify patterns to make investment decisions.
Whale: A holder of a considerable amount of a currency, coin, or token who can influence the price action of the crypto, i.e., bitcoin whale.
This article is a small portion of the terms and definitions in crypto and blockchain technology, but we hope it helps you understand the market better.