The Most Frequently Used Cryptocurrency Terms
If you're looking to learn cryptocurrency terms, then you've come to the right place. We've built this guide and stuffed it to the gills with standard terminology. Even if you know nothing about digital currencies at this time, you'll be able to get a basic understanding of key industry words.
Below, we've included two main sections. Up first, we'll get you what you came here for, cryptocurrency terms along with definitions of each. After that, we've also included a section filled with additional resources about cryptocurrencies. While you're learning about the terms, you can also increase your knowledge of other areas of digital currencies.
Common Cryptocurrency Terms
In this section, we've gathered up a massive list of common cryptocurrency terms. We've included both official terms along with common crypto slang so that you'll be prepared for anything you come across. To help you locate things easier, we've sorted them in alphabetical order. If you're new to cryptos, then you may want to go ahead and scan the entire list so that you have a basic understanding of each of these terms.
An altcoin is any cryptocurrency that is not Bitcoin. Since Bitcoin was the first ever crypto, anything that's come after it is described as an altcoin, or alternative coin.
ATH stands for an all-time high. When you see this, it showcases the highest price that a given cryptocurrency has ever hit.
Something that you don't want to be in the crypto space is a bagholder. Bagholders are folks holding onto a cryptocurrency that is sinking in value and doesn't have any significant future prospects. In many cases, bagholders refuse to sell after a substantial price increase, which leaves them holding the bag with a much less valuable coin at the end of the day.
Someone that is bearish thinks that the value of a cryptocurrency is going to decrease.
The blockchain is the computerized ledger that keeps a record of all cryptocurrency transactions. It's secured by cryptography to keep things secure. Blockchain data is not stored in a singular place. Instead, it's stored across thousands of computers around the globe.
If you're bullish on a digital currency, that means that you expect the price of that coin is going to increase. Someone that is bullish is the opposite of a person that is bearish.
Cold storage is when you store your cryptocurrency private keys and information offline. By doing this, you're less likely to run into hacking issues that could cause you to lose your crypto funds. If you'd like to do this, you'll have two main options. You can use either a paper or hardware wallet. You'll want to avoid software-based wallets if you'd like to utilize cold storage, as this type of wallet is still connected to the internet.
When a cryptocurrency has a new all-time high, it often goes through a correction period. With correction, the price of the coin will decrease and level off before beginning to rise again.
Crypto is a generic term that can be used to describe anything related to cryptocurrencies.
Cryptocurrencies use the process of cryptography to help create and manage transactions of digital currency. It's this process that helps secure cryptocurrency.
DCA stands for dollar cost averaging. This is a common investment term that refers to buying into an investment in parts at different prices. Instead of buying your investment all at once, you'll spread out your purchases over time and end up buying at different rates which will then end up giving you an average purchase price.
A term that you'll commonly see on cryptocurrency threads is DYOR. This stands for do your own research. As you'll find, there are tons of "experts" out there in the crypto space. However, you should not just take the word of some random person on the internet. Instead, take the time to do your own research and determine which cryptocurrencies are best for you and your needs.
A cryptocurrency exchange is a website that allows clients the ability to buy or sell digital currency funds. One of the most popular exchanges is Coinbase. We've included a link below if you'd like to check their exchange out.
When you think of standard money like the US dollar, that's a fiat currency. Fiat currency is a type of money that is backed by some form of government. Since cryptocurrencies are decentralized and not tied to any government, they are not fiat currencies.
FOMO stands for fear of missing out. With cryptocurrency, FOMO occurs regularly when a digital currency begins to take off. Often, you'll feel like you're going to miss out if you don't buy some of the coins that are skyrocketing.
Think of a cryptocurrency fork much like a fork in a road. In some instances, a crypto may fork into two different blockchains. In many cases, this happens when the blockchain's code is updated due to additional governance rules. Bitcoin had a famous fork in 2017 when Bitcoin Cash was rolled out.
FUD stands for fear, uncertainty, and doubt. Unfortunately, FUD is very common in the cryptocurrency space as folks spread negativity about cryptocurrencies that they are not fans of. You'll find lots of FUD on crypto forums and pages.
A FUDster is a person that is spreading FUD amongst the cryptocurrency community.
Hardware wallets are one of the options for how you can store your cryptocurrencies and private keys. To many folks, these hardware wallets are the most secure way to store your crypto data, as they are offline devices that are not connected to the internet. Popular brands of hardware wallets include Trezor and Ledger Nano S.
In the crypto word, hodl represents hold. So, instead of saying hold when you're encouraging someone to hang on to their cryptocurrency investments, you'll instead use hodl. Legend has it that a drunken Bitcoin forum user misspelled it years ago, and it's been used ever since. In some circles, hodl also stands for hold on for dear life.
ICO stands for initial coin offering. An ICO takes places any time that a new cryptocurrency hits the market. ICOs in the crypto world are very similar to IPO (initial public offering) in the stock market.
With cryptocurrencies, there are two types of keys: public and private. Public keys are what you'll use to tell people where to send coins to you. However, private keys allow you to sell or transfer your cryptocurrency funds. If you lose your private crypto keys, then you'll lose the ability to transact the digital currency that you own. Because of this, you should strongly consider using a cryptocurrency wallet to keep your keys safe.
Lambo is short for Lamborghini, as in the high-end Italian sports cars. If you've joined any cryptocurrency-related forums or groups, then you're most likely already used to the Lambo thing. In the crypto world, images of Lambos are often posted as what everyone hopes to buy when their cryptocurrency investments take off.
Along with Trezor, Ledger Nano S is one of the most popular hardware wallets in the cryptocurrency space. With this particular crypto wallet, your funds are saved offline on a specialized and secure USB flash drive device.
As with stocks, you can also place limit orders on cryptocurrencies. With this process, you'd set a price at which you'd be willing to buy or sell a digital currency. Then, an automated process will execute your transaction if the amount you state is hit. Limit orders are great since they allow you to not have to watch the market closely if you know what price you'd like to buy or sell at.
Much like you can with stocks and bonds, you can also trade cryptocurrencies on margin. However, this is not something that beginners should do, as it is highly risky. With margin trading, you'll essentially get a loan against your existing cryptocurrencies to try and make higher profits on new ones.
A cryptocurrency's market cap is the total value of that digital currency. It's calculated by taking the total number of coins in existence and multiplying it by the current price for each coin. To view the current market cap of many different cryptocurrencies, you can use the link to CoinCap.
Mining is the process of verifying cryptocurrency transactions. Without folks mining, cryptocurrencies would not exist. To mine cryptos, you'll need a pretty stellar computer setup since it takes loads of computing power to process these transactions.
Another standard set of terms that you'll find in the crypto word is moon or mooning. Any time that you see these, folks are saying that they hope their investments in cryptocurrencies will grow to astronomical levels. For example, you might see someone post "To the moon!"
In late 2017 and early 2018, we saw lots of pumping and dumping in cryptocurrencies. With pump and dump, a digital currency gets lots of attention, which ends up increasing demand for the coin and driving its price up rapidly. However, it's often followed by a steep price decline as investors sell off their coins to collect a quick profit.
ROI is a common term in all investing circles. It stands for return on investment. ROI is expressed as a percentage and showcases how much profit has been made compared to the initial investment. For example, if you double your money, your ROI would be 100%.
A stable coin is a cryptocurrency that has very low volatility overall. Unfortunately, due to the nature of cryptocurrencies, there are not too many stable coins out there.
Another option for storing your cryptocurrency secure data is with the use of a software wallet. Unlike hardware wallets, software wallets are connected to the internet and are either website- or desktop-based. Due to their connection to the internet, software wallets are not considered as secure as hardware wallets since there is a possibility of them getting hacked.
In the crypto world, TA can mean either trend analysis or technical analysis. In both cases, TA refers to reviewing charts of current and historic performance to try and predict what will happen next.
Whenever you see this phrase posted, it's being done so by someone that feels like something positive is currently happening. For example, if you and some buddies bought into a new high-risk cryptocurrency, one of your friends might post this phrase when he sees some good things occurring with the price of the coin.
A ticker symbol is the trading signal for a cryptocurrency. For example, the ticker symbol of Bitcoin is BTC. Use of ticker symbols can make it easy for you to locate cryptocurrencies that you want to buy or sell via an exchange.
With most cryptocurrency transactions, you have to pay a minor transaction fee. This fee is used to help fund the miners that are processing and verifying the transaction.
Trezor is another hardware wallet that is similar to Ledger Nano S. With Trezor, your private crypto keys will be stored securely on a device that is not connected to the internet.
A cryptocurrency wallet is what you can use to store your secure crypto data like your private keys. Wallets can come in paper, software, hardware, or desktop forms. Use of a crypto wallet is highly advised so that you can help limit the likelihood of losing access to your digital currency funds.
A whale is someone with a lot of money. Specific to cryptocurrencies, whales are individuals that own a significant amount of digital currency.
Additional Cryptocurrency Resources
We didn't want to provide you with just cryptocurrency terms on this page. If you're seeking information on them, then you're also most likely looking to gain a broader knowledge of digital currencies as a whole. Below, we've gathered up a collection of other helpful crypto resources that we've built to help folks like you gain a better understanding of cryptocurrencies. No matter if you're brand new to them or if you have some experience with them, there's plenty in these guides that you can benefit from.
Your first stop if you're brand new to cryptocurrencies should be our beginner's guide. On this page, we'll start helping you understand all of the basics of cryptocurrencies and then build upwards from there. Even if you have a little bit of crypto knowledge, it's probably worth checking out this page using the link below so that you can make sure that you're up to speed on everything that you should be.
The chances are that you probably have cryptocurrency-related questions of some sort. After all, due to the complexity of digital currencies, it's common for people to have questions. That's why we developed our FAQ page for cryptocurrencies. Here, you'll find a vast collection of common questions that we hear about digital currencies. Click the link below to view our crypto FAQ guide.
If you already own some cryptocurrencies, or you have plans to do so in the future, then you'll need to understand cryptocurrency wallets and how they function. These specialized wallets play an essential role in helping you protect your funds and the associated private keys. Do yourself a favor and check out this valuable resource guide so that you make sure you've safeguarded your crypto funds to the best of your ability.
Some of you may be more advanced cryptocurrency folks looking to mine the digital currencies. If that's the case, then don't miss our guide on how to mine cryptocurrencies. In this guide, we'll let you know how it works, what equipment you'll need, and much more. To view this guide, simply use the link below.
We hope that our guide to cryptocurrency terms helped you learn all that you were seeking to understand. If you didn't check out the section above on additional resources, be sure to look at that and see all of the other valuable guides that we've developed to help you continue to increase your knowledge on cryptocurrencies. Thanks for visiting our site, and best of luck in all of your adventures with cryptocurrencies.