Dictionary of Cryptocurrency Terms – Crypto Slang You Need to Know

crypto dictionary
A

AirDrop

is a method of distributing cryptocurrency or tokens in which they are sent to users for free by the owners of the project. It is like a "gift" of virtual assets that can be obtained without the need for purchase or mining. AirDrop is often used to bring attention to a new project, attract new users, or reward existing members for participating in the community. Recipients simply need to fulfill some conditions to receive their free tokens.

Altcoins

— all cryptocurrencies except Bitcoin. These are secondary or alternative cryptocurrencies.

AML (Anti-Money Laundering)

is the process and measures taken to prevent money laundering and legalization of criminal proceeds through financial means, including cryptocurrencies.

Arbitrage

— this is a strategy in which traders buy an asset (such as a cryptocurrency) on one exchange and simultaneously sell it on another exchange to benefit from the price difference between them. Thus, arbitrage allows you to make money on the difference in prices for identical assets in different markets.

ASIC

— these are special devices designed to mine cryptocurrencies such as Bitcoin with high speed and performance, making them more efficient than regular computers.

ATH (All-Time High)

is the highest price or value of a particular asset or cryptocurrency ever achieved. When the price reaches the ATH, it means it is higher than it has ever been before.

B

Bear

— these are traders who believe in falling prices and expect the market to go down. They try to make money on the decline in the value of cryptocurrency and sell assets in the hope of buying them back at a lower price.

Bitcoin

is the first and most famous cryptocurrency in the world. It runs on blockchain technology and is a digital form of money that can be used to make online payments, purchases or investments. Bitcoin is decentralized, meaning it is not controlled by governments or banks, and its value is determined by market supply and demand.

Block

is like a brick of information that contains records of events or data. These blocks are connected to each other, like construction blocks, to create a chain of blocks called a blockchain. Each block has its own unique number and a link to the previous block, which makes the blockchain reliable and protected from changes.

Blockchain

is a special way of storing information that is similar to a block chain. Each block contains information about what happened. When new information is added, it becomes part of a chain linked to previous entries. Such a system makes data protected from changes and tampering. It is important to note that this technology is not controlled by a central authority, and each participant in the network has a copy of all data, making it secure and open. Thanks to this technology, blockchain is used to create cryptocurrencies and for many other important tasks.

Bottom

— this is the minimum price level of an asset when it is believed that its price cannot fall below this level. Investors and traders hope that once the bottom is reached, the price will begin to rise.

Bounty

is an innovative form of reward and incentive for participation in projects based on blockchain technology. This unique concept features programs where participants can earn cryptocurrency by completing a variety of tasks that contribute to the development and successful implementation of the project.

Bull

— these are traders who believe in rising prices and expect the market to rise. They hope to make money from rising cryptocurrency prices and buy assets with the hope of selling them later at a higher price.

C

Crowdsale

— this is a way of financing a new project or startup when a company attracts investment from the general public by offering tokens or cryptocurrency in return for the invested funds.

Cryptocurrency

is a digital currency that uses encryption to ensure secure financial transactions and control the creation of new units. Cryptocurrencies operate on blockchain technology, which makes them decentralized and transparent.

D

Decentralization

is a feature in which there is no single central control or authority over the system. Instead, control and decision making are distributed among many network participants, called nodes. Each node has a copy of the data and participates in validating transactions and maintaining the reliability of the network. Thanks to decentralization, cryptocurrency becomes more resistant to attacks and interference, and also ensures transparency and openness for all users.

Deflation

— this is a situation where the total number of available cryptocurrencies is limited or decreases over time. As a result, the cryptocurrency becomes more valuable because its supply is reduced or limited, which can cause the value to rise.

Developer (dev)

is a specialist who develops software and technical work for a cryptocurrency or blockchain project. He creates and maintains the code that powers the cryptocurrency network and its functionality.

Dildo

in cryptocurrency, is a term used to refer to a large candle on a price chart that has a long upper or lower shadow. It is usually associated with sharp price changes and can indicate market instability.

Double spending

— this is an opportunity to spend the same cryptocurrencies twice. This is a problem in digital payment systems, but blockchain technology in cryptocurrency solves this problem by ensuring that every transaction is verified and confirmed, eliminating the possibility of double spending.

Dump

is a situation where the price of a cryptocurrency decreases sharply and significantly in a short period of time. This may occur due to a large number of cryptocurrency sales by traders who want to avoid losses or make a profit by selling assets at the current low price. Dumps can be caused by various factors, such as negative news, market events or the general mood of traders.

DYOR (Do Your Own Research)

is an acronym that stands for “do your own research.” This is a call to be proactive and responsible in gathering information and analysis before making financial decisions, especially those related to investments in cryptocurrencies or other assets.

E

Ether (Kefir, ether, marshmallow, ETH)

is a cryptocurrency that is used to execute smart contracts and payments on the Ethereum platform. It is the second most popular cryptocurrency after Bitcoin and has its own applications and features on the Ethereum blockchain network.

Exchange

— an online platform where users can buy and sell cryptocurrencies and other assets.

Exchange Glass

is a tool used on an exchange to display current buy and sell orders for cryptocurrency or other assets. It is a table that shows the prices and volumes of buy (bids) and sell (asks) orders for a specific cryptocurrency. Exchange Glass helps traders see the current supply and demand on the market, allowing them to make informed decisions about buying or selling assets. It also displays the best prices at which trades can be made at the moment.

F

Fiat Money

— official currency set by the government, such as dollars, euros, yen, etc.

FOMO (Fear of Missing Out)

is the feeling of fear of missing out on a profitable opportunity, especially in investing. In the context of cryptocurrencies, FOMO can lead to spontaneous purchases of assets due to the fear of missing out on price increases or profit opportunities. However, this often leads to rash decisions and loss of money if the market moves in the opposite direction.

FOMO

— fear of missing out, which causes investors to buy assets for fear of missing out on price increases.

FUD (Fear, Uncertainty, Doubt)

is a tactic used to spread fear, uncertainty and doubt about any cryptocurrency or project. Purpose of FUD— cause panic among investors and force them to make spontaneous decisions, which may lead to lower prices or losses.

FUD (Fadget)

— a strategy used to spread fear, uncertainty and doubt in order to drive down the prices of cryptocurrencies.

G

Genesis block

is the first block in the block chain (blockchain) that is created and initialized when the cryptocurrency itself is launched. It is the starting point for all subsequent transaction history and data in a given cryptocurrency. A genesis block does not refer to a previous block, since it is the beginning of the entire blockchain structure, and it usually has unique characteristics or data that distinguishes it from all other blocks in the chain.

H

Halving

is an event that occurs on the cryptocurrency blockchain when the reward for mining new blocks is halved. Halvings occur approximately every four years and limit the rate at which new coins are released, which can affect the price and supply of the cryptocurrency.

Hamster

— these are investors who prefer long-term investments and do not influence the market much. They usually hold their assets for a long time, hoping for their value to increase over time.

Hard Fork

— a change to the blockchain protocol that makes older versions of software incompatible with new ones.

Hare

— these are traders or investors who are inexperienced or have little experience in trading cryptocurrencies. They are often influenced by emotions and tend to follow fashion or popular opinion, making decisions based on short-term trends and news. Hares often make spontaneous trades without conducting proper market analysis, which can lead to unsuccessful investments or loss of money.

Hash

is a cryptographic function that takes input data and converts it into a unique set of fixed-length characters. Hashing is used in blockchain to ensure transaction security and confirm data integrity.

Hashrate

is a measure of the speed and performance of a cryptocurrency mining network. It represents the amount of computing power that network participants contribute to verify transactions and add them to the blockchain.

Hedge

is an investment strategy used to protect against potential losses. In the context of cryptocurrencies, hedging may involve the use of other assets or derivatives to reduce the risk of investing in cryptocurrencies.

Hodl

— this a misspelling of the word "hold", which has become a humorous term among the cryptocurrency community. It means holding or storing cryptocurrency for the long term instead of selling it, despite temporary price fluctuations.

I

ICO (Initial Coin Offering)

— an initial coin offering, where a new project offers investors the opportunity to buy their tokens in exchange for funding.

Inflation

is the process of increasing the total amount of cryptocurrency in circulation. When the supply of cryptocurrency increases and the demand for it remains the same or decreases, the prices of assets (such as cryptocurrencies) may decrease, reducing their purchasing power.

Instamine

— this is a situation where some cryptocurrency creators or developers receive a large number of coins (tokens) at the start of a project, which may cause uneven distribution of cryptocurrency and fairness issues at the start of the project.

K

KYC (Know Your Customer)

is a process of identity verification and customer identification carried out by financial institutions or cryptocurrency platforms to comply with laws against money laundering and terrorist financing.

L

Liquidity

— this is an indicator that reflects the ability to quickly and easily sell or buy an asset without significantly affecting its price. If an asset has high liquidity, it means that there are enough buyers and sellers in the market, making trading easier.

M

Margin Trading

is a type of trading in which traders borrow money from an exchange or other market participants in order to increase their investment and increase potential profits. However, margin trading also increases risks as losses can be compounded along with profits.

Market Cap

is the sum of the market value of all available shares or cryptocurrency tokens. Market capitalization is calculated by multiplying the current price of one unit of an asset by the total number of units available. It shows the total market value of a given cryptocurrency and helps determine its importance and size in the market.

Mining

is the process of verifying and confirming cryptocurrency transactions and adding them to the blockchain. Miners— are special computers or devices that solve complex mathematical problems to process transactions and create new blocks with new cryptocurrencies. For their work, miners receive rewards in the form of new coins or transaction processing fees. Mining ensures the security and reliability of the cryptocurrency network.

Moose

in cryptocurrency, it is a humorous term used to refer to a person who makes inappropriate or poor investments or trading decisions that result in them losing money. This word is used in a humorous context to describe unsuccessful investors or traders.

N

NFT (Non-Fungible Token)

is a unique digital asset or token that cannot be replaced with another token one-to-one. Each NFT has unique characteristics and an identifier, making it unique and different from other tokens. NFTs are used to represent unique items, art, games, music and other digital assets, allowing owners to demonstrate ownership of unique digital objects.

Nodes

— these are computers or devices connected to the cryptocurrency network that play a role in processing and transmitting transactions and data. Nodes serve an important function in maintaining the security and decentralization of the network by storing copies of the blockchain and verifying the correctness of transactions.

Nonce

— this is a random number used in cryptocurrency mining to create a unique hash for a new block. Miners constantly change the nonce value in their calculations to find the correct hash and add a new block to the blockchain.

O

OCO (One-Cancels-the-Other)

— this is a type of exchange order that automatically cancels one order when another is filled. For example, if a trader places a buy order and a sell order for an asset, then when one of the orders is executed, the second is automatically canceled.

OI (Open Interest)

— this is the number of open (unclosed) contracts for a specific futures or options asset on the exchange. OI shows the total volume of unallocated contracts and can be used to analyze the interest of market participants in a particular asset.

Ostrich (Ostrich)

— these are investors or traders who face a problem by ignoring or not recognizing risks and negative events in the market. They are unreasonably optimistic and refuse to see potential threats or problems in their investments. Just as ostriches hide themselves in the ground to avoid danger, these investors ignore reality and let their emotions drive their decisions, which can lead to financial losses.

P

Pig

— these are traders who try to make big money quickly with risky trades. They often play for luck and can be exposed to large losses as a result of aggressive actions.

POC (Point of Control)

— this is the price level on the chart where the largest number of trades occurred in a certain period of time. The POC is considered the highest volume level and can be an important support or resistance level.

PRZ (Potential Reversal Zone)

— this is a zone on the chart that shows where a potential change in price direction is expected. The PRZ is usually formed based on various technical indicators and patterns, and can be an interesting point for traders who are looking for possible market turning points.

pump

is a rapid and significant increase in the price of a cryptocurrency or asset, usually due to a massive infusion of capital from investors. Pumps are often associated with market manipulation, as after a rapid rise in price a large drop can occur.

R

RR (Risk/Reward)

— this is the relationship between potential risks and possible profits when making an investment or trading transaction.

S

Scam

is a fraudulent scheme or deception used to defraud gullible people of money. In cryptocurrency, scams can be associated with fake projects that promise quick and easy profits, but actually deceive investors.

Sheep

— these are investors who tend to follow the crowd and make decisions based on popularity or majority opinion. They can follow trends and often act based on emotions.

Shitcoin

is a negative term used to refer to a low-quality or low-value cryptocurrency that has no real value or promise. It can be a cryptocurrency with a limited or speculative purpose and is often created without proper verification and support.

Smart-contracts

— these are automated contracts on the blockchain that execute automatically when certain conditions are met. They are software codes that run and manage the execution of a transaction or contract without the need for intermediaries or third parties.

Stablecoin

is a special type of cryptocurrency that seeks to maintain a stable price relative to a specific asset or currency, such as the US dollar or euro. It is called stable because its value tries to stay at the same level and avoid large fluctuations, as happens with other cryptocurrencies such as Bitcoin.

Swing

is a term used in trading to describe the movement of price on a chart from one extreme value to another and back again. Traders and investors look for support and resistance levels to determine possible entry and exit points during such price fluctuations.

T

Taker

— this is a type of market participant who makes transactions immediately on available offers on the exchange. Takers “pick up” existing orders from sellers or buyers, paying a commission on their trades.

To the moon

is an expression used in cryptocurrency and investing to describe a sharp and significant increase in the price of an asset. When a cryptocurrency goes to the moon, it means its price is skyrocketing and investors are expecting even higher values.

Token

is a digital symbol or sign that represents a certain value or rights in a cryptocurrency or blockchain network. It is the equivalent of a coin or token that can be used to represent ownership, access services, vote, or make transactions on the platform. Tokens are created and stored on the blockchain, which ensures their security and transparency.

V

Volatility

is a measure of price volatility in the cryptocurrency market. When a cryptocurrency has high volatility, its price can fluctuate wildly up and down over short periods of time. Low volatility means prices change little and remain relatively stable.

VWAP (Volume Weighted Average Price)

is the average price of an asset over a certain period of time, taking into account trading volume. Traders often use VWAP to determine the fair price of an asset based on its trading volume, allowing for a more accurate assessment of price movements.

W

Wallet

is a tool that can be software or hardware and serves to store, send and receive cryptocurrencies. The wallet provides users with the ability to manage their cryptocurrency assets and provides secure storage of their private keys.

Whale (Whales)

— these are large investors or traders who have large financial resources and significant influence on the market. They are able to greatly influence the prices of cryptocurrencies by buying or selling large volumes of assets.

Wolf

— these are experienced and successful traders or investors who skillfully use knowledge and strategies to make significant profits in the cryptocurrency market. They have good market analysis skills, a sense of timing, and can make decisions that help them make money from cryptocurrency price fluctuations. Wolves can quickly respond to changes in the market and make strategic decisions to minimize risks and maximize their returns.