What are HODL, Whale, FUD, and Other Crypto Slangs, Terms, and Phrases?
The Bitcoin and altcoins bull run in early 2021 generated much interest among media and potential investors, whether you are in Singapore or abroad. To invest in the right project, you need to do your own research (DYOR). That is why I compiled the A-to-Z of crypto slang, terms, and phrases which are thrown a lot in the crypto space.
Use the find command to quickly find a term you want to understand. As such, use Control+f if you are on Windows or Command+f for Mac users.
What are HODL, FUD, and whale?
HODL
It is a misspelling of “hold” that originated in a Bitcoin forum. Since then, HODL becomes a staple motto of a buy-and-hold strategy in crypto trading. You will see more people type or shouting HODL at the top of their lungs when they see the market is in a downward movement.
Over time, some people also see it as the short of Hold On for Dear Life.
FUD
Fear, Uncertainty, and Doubt. It describes incorrect, negative, or misleading information regarding a cryptocurrency or the whole crypto market. FUDsters (people who spread FUD) often use FUD to influence investors’ perception toward the bag they are holding.
FUD also tells a lot about the volatility of the crypto market to potential investors. Hence, you must always DYOR before investing your money in a crypto project.
Whale
Whale refers to someone, a group, or a company that holds a lot of a particular coin. They own a large percentage of the supply that makes them possible to manipulate the price if they wish to do so.
The A-to-Z of crypto slangs, terms, and phrases
The slangs, terms, and phrases are in alphabetical order. Do not forget to use the find command if you want to jump from one term to another quickly!
51% attack
It is an attack on a blockchain — possible since a group of miners controls more than 50% of the computing power of a blockchain. As such, they can interrupt the blockchain.
Address
An address is a location for your crypto coins. You will use the address to store, send, and receive coins. In simple words, it is just like your home address.
An example of a crypto address can be:
- 4sdd5w6mh8kkknamjgbnwrimxsaaf
- xm3u665it8rg5rdqw84qrypzk
The address often is a row of digits and letters. It is also a part of two encrypted keys (private and public keys) which an address’ holder will use to verify a transaction involving said address.
Airdrop
Airdrop is a term for a giveaway of crypto coins. For example, a new blockchain project distributes its cryptocurrency for free to participating users. The goals of airdrops can be:
- Marketing ploys and stunts
- Decentralising the token holdings
- Raising liquidity
- Encourage people to use the coins
Altcoin
It is an abbreviation or short for alternative coin. It is a term to call other crypto coins that are not Bitcoin. For instance, altcoins can be Ethereum (ETH), Litecoin (LTC), Binance Coin(BNB), and Cardano (ADA).
Altseason
It is short for altcoin season. Altseason is a period where many altcoins outperform Bitcoin. As a result, an exchange may see investors buy more altcoins than Bitcoin.
AMA
AMA means Ask Me Anything. It is a marketing strategy for new or existing crypto or blockchain project where potential users can ask questions regarding the project and get answers from the team behind the project.
AMM
An abbreviation for Automated Market Maker. It is a part of the decentralised finance (DeFi) ecosystem. AMM helps people to trade digital assets without centralised intermediaries, like a centralised exchange.
That can work because AMM is using liquidity pools instead of a traditional market between buyers and sellers.
Arbitrage
Arbitrage is a trading technique. It involves trading the same asset on two or more exchanges to capitalise on price differences on those exchanges.
ASIC mining/miner
Digital currency, like Bitcoin, can be digitally mined. The two most popular mining methods are GPU (Graphics Processing Unit) mining and Application Specific Integrated Circuit (ASIC) mining.
Therefore, ASIC mining/miner is a mining method using ASIC — a system explicitly developed to mine coins faster than a normal computer or laptop.
ATH
ATH stands for an all-time high — which in terms of the crypto world refers to the highest price a cryptocurrency has ever achieved. A real-life example is the ATH price of Ethereum (ETH) is $4,356.99, while the current price, as of publishing date, is $1,938.64.
ATL
All-time low (ATL) is the opposite of ATH. It is the lowest price a cryptocurrency has ever experienced.
Bag
The bag is slang in the crypto world. People use this slang to refer to any coins or tokens they hold that they believe will bring profit for them.
Bear market
A bear market is to define a market trend that is moving downward. During a bear market, prices are falling, supply is greater than demand, and confidence is notoriously low.
Blockchain
In the crypto world, a blockchain is a digital ledger of transactions — stored in blocks which then chained together — and stored in a decentralised network. As a result of decentralised blockchains, any data entered will be immutable.
Miners will add information, such as date, size, etc when they commit a new transaction, which will transform into a new block on the blockchain.
Through cryptography, that digital ledger works because a massive number of computers create and hold the network together.
Block
If a blockchain is a digital ledger, then a block, in simple words, is “pages” in that ledger. The block is filled with irreversible data and permanently stored on the blockchain.
Block reward
Miners receive a reward for finding a mathematical solution within a block. And people involved in the crypto world usually call the reward the block reward. For example, miners will receive 25 Bitcoins for every mined block. Every 210,000 mined block, the block reward of Bitcoin will be halved.
BTFD
It is Buy the F***ing Dip. The dip itself is a term for a cryptocurrency or market price that is in a dip. The dip may cause pessimistic investors to pull their investment to prevent or stop their loss. However, some people see the dip as the golden opportunity to buy coins or tokens cheaply before their price rise again in the future.
BTD
Same as BTFD, just forget the expletive F word.
Bull market
A bull market is the opposite of a bear market. The bull market is a market with an upward moving trend. The rising crypto prices make people bullish or optimistic with their investments.
Cold storage
It is “offline” storage for your coins. It works using a combination of the offline and online environment. Therefore, it offers a higher level of security than a hot wallet — the typical crypto wallet that is connected online. An example of cold storage in the crypto world is a hardware wallet.
People often go for cold storage if they hold a massive amount of coins and intend to hold it for a long time.
Cryptography
Cryptography is the origin of “crypto-” in the word cryptocurrency.
The term itself means a practice to hide and encrypt information to be transmitted, to minimise the risk of anyone — who has access to the channel on which the information is sent — finding out what the information is.
Cryptography is also known as secret writing.
Cryptocurrency
A digital or virtual currency secured by cryptography to reduce the risk of counterfeit and double-spending and based on blockchain technology. Many developers build cryptocurrencies to be decentralised structures, allowing them to exist without centralised entities.
DAO
DAO stands for a Decentralised Autonomous Organization. It is an open-source blockchain protocol created by developers with a set of rules and elected members.
dApps
dApps is short for decentralised applications. They are programs or applications running on a blockchain or peer-to-peer network. dApps do not run on a single computer and, as a result, decentralised and free from the control of a centralised authority.
DeFi
DeFi stands for decentralised finance. It is a decentralised, global, and open alternative to the current financial system. DeFi runs through blockchain technology, making it possible to perform financial transactions and services through applications.
The nature of decentralisation also eliminates the need for intermediaries, brokers, exchanges, and traditional financial institutions.
Some of DeFis in the crypto world are Kava.io, ChainLink, and Fantom.
DEX
DEX or Decentralised Exchange is a cryptocurrency exchange that supports direct peer-to-peer cryptocurrency trades or transactions without an intermediary.
DEX also does not require users to provide identification to use their platform.
Some DEXs in the crypto world are Uniswap, Quickswap, PancakeSwap, and 1inch.
Distributed and central ledger
A distributed ledger is a database of transactions or contracts in a blockchain. The ledger is synchronised and shared across several networks, allowing it to be maintained in a decentralised form and accessed from different locations.
In contrast with the distributed ledger, a central ledger is controlled by one individual, group, or network.
Double spending
A term for a technical issue in a virtual currency. Double spending is when a crypto coin can be spent more than once. To illustrate, double spending is a slight chance where a user can successfully spend the same 0.5 Bitcoin they have to purchase a product at merchant A and merchant B simultaneously.
Dust transaction
A tiny transaction, almost worthless, but takes up space on the blockchain.
ECDSA
Elliptic Curve Digital Signature Algorithm (ECDSA) is a digital signature algorithm utilising the elliptic curve cryptography to sign transactions on the Bitcoin protocol.
ERC-20 Token
ERC-20 token is a token only issued on the Ethereum network and already followed the Ethereum Request for Comments 20 (ERC-20) standard. On the Ethereum network, a token can represent virtually anything, from financial assets to a reputation point in an online forum. They have value, and hence, you can send and receive them.
Escrow
In the crypto world, Escrow is just like a traditional escrow. It is a third party that holds cryptocurrency, in their account, on behalf and agreement of two parties in a transaction. The escrow will distribute the assets once the transaction fulfils any requirements set.
Fiat money
Fiat money is a traditional currency. It is whatever money you use, be it SGD, USD, or EUR etc.
FOMO
It is called “Fear of Missing Out”. People use it to describe a potential feeling of being left out to buy and sell cryptocurrencies at higher prices. FOMO often occurs when the crypto prices are roaring higher, making their way into headlines, and suddenly become a trending topic among your circles.
Fork
A fork is a change in a blockchain’s protocol. Sometimes, a fork happens to enhance the security of a blockchain or add features.
However, it is also possible that a fork happens to split from the original blockchain, essentially creating a new coin or ecosystem, such as Bitcoin Cash which is a hard fork from the Bitcoin blockchain.
Genesis block
Referring to the first block that ever mined in a blockchain.
Halving
Halving is a reduction in the block reward after a certain amount of mined blocks. The block reward is cut in half or halved from the previous reward.
To illustrate, the block reward for Bitcoin was 50 in 2009. The first halving in 2012 reduced it to 25, then dropped to 12.5 in 2016 halving, and on the last halving in May 2020, the block reward became 6.25 Bitcoin.
Hash
Hash is a fixed-length alphanumeric code to represent messages, words, or data. The hash is generated after processing a variable number of data mathematically.
Hashrate
An estimated speed of solving mathematical problems for a block in a blockchain. Simply put, it is how fast a mining system can discover a new block.
ICO
Initial Coin Offering (ICO) is crowdfunding to invite people to invest in a blockchain project or startup. Investors that contribute their funds through ICO will receive tokens issued by the startup. It is more or less the same as Initial Public Offering (IPO).
IEO
It stands for an Initial Exchange Offer and a variant of ICO. In this case, a cryptocurrency exchange will manage the fundraising. As a result, it may be a less risky investment for interested enthusiasts and supporters since the exchange will thoroughly check the project because they do not want to tarnish their reputation by supporting a potential fraudulent project.
KYC
KYC is Know Your Customer/Client. In the crypto world, KYC refers to the identity verification process traders must go through before getting full access to their accounts in a crypto platform. KYC usually requires customers to provide their valid ID.
Meme coin
To describe a coin that borns out of a satirical nature from its developers and did not serve any purpose in mind other than a joke. The most famous example of a meme coin is Dogecoin (DOGE).
Mining
In simple words, mining is a process to search for new block rewards in a blockchain. Miners will receive block rewards in the form of cryptocurrency after finding and solving blocks.
Moon
People use the term “moon” to describe a cryptocurrency with a solid upward moving trend. They believe that the price of their chosen cryptocurrency will rise exponentially. A few examples of this term are:
- Ethereum will go to the moon after Layer 2 rollups
- Dogecoin is mooning after that tweet
Multisig
Multisig is short for multi-signature. It is an extra layer of security for Bitcoin transactions. As the name suggests, multisig requires more than one user to authorise a transaction in a blockchain.
NFT
NFT is a Non-Fungible Token in a blockchain, like Ethereum, Enjin, Binance, Ecomi, or Flow. Non-fungible means the digital token that you own is unique and not interchangeable. NFT use cases are for digital arts, in-game items, collectables, music, etc.
Node
In the crypto world, a node is another word for a computer. However, it is a computer set to run a client (application) to monitor and verify transactions in a blockchain. The nodes are vital in a blockchain because they keep the network secure and prevent inaccuracies in the data.
P2P
P2P is short for peer-to-peer — it refers to an exchange of information or assets among parties involved without an intermediary that acts as a central authority. In simple words, the P2P technology allows decentralised interactions between parties in a P2P network.
Privacy coin
As its name suggests, a privacy coin is a type of cryptocurrency with built-in privacy options and features. The goal is to conceal the identities and transactions of its users. For instance, privacy coins can:
- Hide the identities of the sender and receiver
- Allow users to trade without revealing their address.
The most popular privacy coins as of publishing date are Monero (XMR) and Zcash (ZEC).
Private key
Remember, never share your private key. A private key is a string of letters and numbers that proves ownership of a cryptocurrency. Users will use the key to validate transactions associated with their address and its public key.
Public key
Also, a string of letters and numbers. However, its nature is public, and anyone can see it. Still, to decrypt the public key, the user needs to know its accompanying private key.
Pump and dump
Pump and dump is a fraudulent scheme in which offenders accumulate a cryptocurrency over a period of time, then pump the price artificially through misinformation or false advertising, and sell off — or dump — the asset at the higher price.
Buyers who fall for that trap and buy at higher prices due to this scheme will experience a loss since the higher price happens due to manipulation. That is why always DYOR when you want to invest in a crypto project.
PoW
Proof-of-Work is a method to mine cryptocurrencies with computing power. The more powerful a computer is, the greater the block rewards will be for miners.
PoS
Proof-of-Stake is a cryptocurrency mining method based on how many coins the miners have. As a result, the more coins miners have, the greater the coin they will receive.
DPoS
An evolution of PoS. The next block that will be verified in a blockchain that uses DPoS is not decided by how many coins the miners own, but also voting to delegate who will validate the transactions.
Scam coin
A coin whose primary purpose is to make its creators and groups become rich through a fraudulent scheme, like pump and dump. Think of it as a pyramid scheme of the crypto world.
SHA-256
Stands for Secure Hash Algorithm 256. Bitcoin uses it as its cryptographic algorithm.
Signature
A mathematical process to check proof of ownership.
Smart contract
A smart contract is an irreversible two-way agreement on a blockchain. The contract will be executed once the conditions for the self-executing code are met.
Staking
Staking means locking a cryptocurrency to support a blockchain’s operations and security. The blockchain will use the staked coins to perform various network functions. In return, users who stake their coins will receive staking rewards, such as receiving a percentage of coins based on how many coins they stake.
Wallet
Same as address.
Whitepaper
A whitepaper is a detailed document to introduce a crypto project — explaining its purpose as a project, the technical information, and the expected growth as a project. The goal of the whitepaper is to help potential investors to understand the project.
The most famous whitepaper globally is undoubtedly the Bitcoin: A Peer-to-Peer Electronic Cash System by Satoshi Nakamoto.
Yield Farming
Yield farming is a passive income opportunity in the crypto world. It is a practice to lend coins to receive high returns, usually higher than the rewards received in staking. However, it is also riskier than staking.
Getting into cryptocurrencies for the first time can make you feel overwhelmed with all those terms thrown around. Hopefully, the explanations above will help you. Let me know your thoughts if you have a better description of the above terms!
