When I first started my cryptocurrency journey, there were many words flying backwards and forwards which seemed very strange. Once I had these words down, my life became much easier. Here’s a list of cryptocurrency words that once understood will make you feel right at home in the cryptoverse.
1. Address – every wallet has an address which is kind of like a bank account number. You need different addresses for different cryptocurrencies. If you send the wrong crypto to the wrong address, then it will be lost so watch out
2. Altcoin – an altcoin is every other coin to that of Bitcoin. The term derives from these coins being alternative cryptocurrencies
3. ATH – All time high. This means that the price of a cryptocurrency has broken all of its past records and is trading at the highest price it has ever achieved.
4. Bear/Bearish – like in any market, this means the market is going down
5. Block – this is a batch of transactions that is recorded on the blockchain
6. Blockchain – this is a digital ledger where all transactions are recorded and is the basis of cryptocurrencies
7. Bull/Bullish – this is when the market is going up. E.g. I’m bullish on Nucleus Vision
8. Distributed Ledger – A distributed ledger is a database that is consensually shared and synchronized across a network and spread across multiple sites.
9. Fiat – traditional currencies like USD and Euro are what you would call “Fiat” currency. This is in counter point to digital crypto money
10. Exchange – An online market place for trading cryptocurrencies such as Bittrex or Binance.
11. FOMO – Fear Of Missing Out. People can often worry about missing out and chase a pump only to find themselves at the mercy of the dump which often proceeds.
12. FUD – Fear, Uncertainty, Doubt. This describes a general disinformation strategy to cause fear among consumers or competition. For example, JP Morgan’s Dimon spreading FUD about Bitcoin
13. Hash Rate – this is the speed of how much computing power is being used to mine a coin on a network
14. Hard Fork – when code or software changes for a particular coin or token, then this is called a fork. For example, Bitcoin Gold and Bitcoin Cash forked from Bitcoin
15. HODL – Hold On for Dear Life. This is an acronym, and it means batten down the hatches for the long term and accumulate crypto through peaks and troughs. For me, it’s a state of mind ?
16. ICO – an Initial Coin Offering is when a crypto project first puts its coin or token on the market for purchase. Early adopters can make great gains, but also painful losses, so be aware.
17. Noob – when your playing a multiplayer first person shooter game, someone spawns and is blown to pieces in the first 10 seconds whilst running the wrong way. This is a noob. Try to pass through this phase without losing too much blood.
18. Mining – this is the process of using computer power to process transactions on a blockchain; miners are rewarded for processing blocks
19. Node – A node is software or a computer that is connected to a cryptocurrency network and keeps a copy of the blockchain
20. POS – Proof of Stake. This is a different way to validate transactions. The block is chosen and mined based on how much wealth it has or “stake”. POS is considered, by some, to be an evolution of crypto as it does not require the high energy demands or tech that comes with POW
21. POW – Proof of Work. This is a way to validate transactions. It prevents an attack on the network by making mining calculations difficult and preventing multiple fake requests. Some people disagree that POS is an evolution, and argue POW is the proven best way to validate transaction (you get a lot of this in crypto as people argue their cases)
22. Private Key – as far as cryptocurrency words go, this is perhaps the most important. Your private key is a top-secret password that protects your wallet. Many people have given this out unsuspectingly thinking it to be a receiving address only to be fleeced of their hard earned crypto
23. Public Key – this is used when people send you crypto to your wallet; you can give this out freely without fear of said fleecing
24. Pump & Dump – this is where a coin is pumped up and then dumped something to watch out for in crypto trading
25. Satoshi – Bitcoins can be bought and sold in tiny amounts. A Satoshi is the smallest sub-unit of a Bitcoin currently available (0.00000001 BTC)
26. Satoshi Nakamoto – the pseudonym of the creator of Bitcoin. Know one knows who he is and so he’s like a ghost in the system
27. Token – a token is something that can be built on another platform, like Ethereum, and a token plays role within the business operations and transactions of the company that issues it. Not to be confused with a coin such as Bitcoin which is just a coin, or means of payment. A token has wider functionality
28. TO THE MOON – this refers to a crypto’s upward momentum as it keeps climbing in price
29. Wallet – a digital place to store your coins are tokens. There are many types both online and offline
30. Whale – this is what you may become one day with a few (or many) moon shots. This is someone who controls a large portion of a cryptocurrency and thus can manipulate price
Thank you for reading my top cryptocurrency words and phrases. I’m sure there are some that I’ve neglected to mention, so feel free to drop them in the comments below.