Hey There! If you’re new to the crypto world, you might want to take time in understanding the crypto terminology. I have compiled the list of famous crypto jargons that are used on a daily basis by crypto communities across social media platforms. Let’s get started.
Crypto Terminology –
Altcoin:
Alt or Alternate coin represents all coins that are not Bitcoin. If you’re wondering about Ethereum (ETH), it is also an altcoin.
Address:
It’s a destination where the user either sends or receives crypto coins. Just like you have a home address for the delivery of your parcel, the address in crypto has the same use case. This is how a Bitcoin crypto address looks like (that’s my BTC receive address) –
3LWD9yo1hN7qbD3ggTTVDX44M1hk1zUSYi
ATH:
All Time High. It represents the highest price value of the coin.
Blockchain:
Cryptocurrency is all about blockchain. It’s a secure online decentralized system that stores information of each transaction on its network. To learn more about blockchain, checkout my post on What is Bitcoin.
Coin Market Cap:
Market cap in cryptocurrency is calculated on the basis of the total supply of coin multiplied by the current price of the coin. A higher market cap indicates a high growth potential and vice-versa. However, it is not the only factor to consider before investing in a coin. You have to study the use case, team members and other relevant factors before jumping the gun.
Crypto Whale:
A whale is a market mover. Big investment firms and top hedge funds with high transactional volumes are known as Crypto whales. Elon Musk is also one of them.
DAPPS:
Just like your mobile apps, DAPPS or Decentralized apps are also apps that run on peer-to-peer networks i.e blockchain.
ESCROW:
When a third party holds financial resources on behalf of the other two parties involved in a financial transaction. The third party is termed as ESCROW that prevents chances of theft and increases trustworthiness.
FIAT:
The paper currency in circulation printed by the banks like Indian Rupee, US Dollar etc.
FOMO:
Fear of Missing out. An emotion when a trader or investor jumps into the trade without logical analysis. Mostly observed in a bull run.
FORK:
A change in the digital currency protocol is termed FORK. Hard FORK and Soft FORK are two variations being explained in the video on crypto jargons, shared below.
FUD:
Fear, Uncertainty and Doubt. A wave of panic in the market which leads to bearish cycle.
HODL:
“HODL guys, you need to HODL”. Must have heard this a zillion times. HODL actually means HOLD, It’s a suggestion to buy the coin and hold it in your portfolio in order to reap high gains later.
ICO:
Initial Coin Offerings. When a coin gets listed on crypto exchange to raise money for the project.
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JOMO:
Joy of Missing Out. When you miss taking a trade or buying a coin, which later turns out to be a blessing in disguise.
KYC:
Know Your Customer. It’s a verification process conducted by the crypto exchange to identify the person, trading or buying the coins.
Mining:
Process of creating new blocks in the network by solving the complex mathematical problems inside the blockchain network. Of course, you need highly configured computers to get the job done.
NODE:
It’s an interface that handles communication and private keys between crypto wallets.
PUMP & DUMP:
A sudden rise or crash of price levels in the market.
Shilling:
A bad practice of endorsing a coin by the investor in order to hype the price.
Sharding:
A process of taking the load off the network by breaking the process into parallel sub-processes. Something you will learn when you read about ETH 2.0 and ZIL tokens. Harmony ONE Coin has mastered Sharding
TOKEN:
The coin of crypto projects that can be bought, sold or hold like BNB,WRX etc.
WHITEPAPER:
A detailed document published by the developers or founders of the coin explaining the coin fundamentals, technology and the problems it wishes to address.
Watch the video on Crypto Terminology:
That’s about Crypto Terminology. You can bookmark this page as I will keep on adding new jargons to the list. Remember to sign up for the newsletter. Keep learning about cryptocurrency. Spread and share.
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Paras is a blockchain writer & video creator at Katoch Tubes. In his free time, he loves watching space exploration documentaries & Hollywood movies.