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ABC of Trading: Cryptocurrency Slang and What it Means
Are you new to the crypto realm and finding the number of new words puzzling? We’ve all experienced a learning curve when it comes to the crypto market. Nevertheless, it’s easier than you think to start using the industry lingo like a pro. To help you with crypto trading proficiency, we’re rounding up 10 well-known crypto slang terms you’re bound to stumble on.
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For all intents and purposes, hodl is now a legit crypto term. However, its origins can be traced back to a 2013 message in the Bitcoin Forum. The (somewhat exhilarated) user who said ‘I AM HODLING’. The word is commonly used to denote a scenario where someone decides to hold a cryptocurrency rather than selling it.
An amalgamation of the words alternative and coin, altcoin is used to describe any crypto coin that is not Bitcoin.
Pump & Dump
A commonly used term that describes the scenario where a group of individuals comes together with the intent of inflating the price of a crypto coin (very often a smaller coin with more controllable parameters) through information without any factual basis. As soon as the demand for this particular coin increases, these individuals sell their coins at highly inflated prices.
This is an acronym for the words fear, uncertainty, and doubt. It is largely used to describe instances where these sentiments are spread through social media and in turn, lead to price drops.
A crypto whale is essentially a big player in the crypto world. A whale holds a very substantial amount of coins and could potentially impact the market with their actions. While crypto whale is a generic term that could be used for the different cryptocurrencies, the term Bitcoin whale is used to describe someone who holds between 1,000 BTC and 1 million BTC or more. We have an entire article dedicated to this topic if you’d like to know more, read Crypto Whales: Investors That Shake The Blockchain
A marketing endeavor where a small number of complimentary crypto coins are sent to some users in a bid to increase awareness.
Bitcoin’s second layer technology that is aimed to decongest the blockchain by processing smaller transactions instantly with reduced fees.
This term is the benchmark that is used to describe the processing power of the Bitcoin network and provides a good indicator of how efficiently this network is operating.
A token is not a crypto coin since it is not mined, It is a unit of value that exists within the blockchain ecosystem. We’ve delved deep into the topic of tokens and coins in our Coins vs Tokens: Understanding the Difference.
Your crypto wallet is the virtual space where you store your crypto coins. Just like a physical wallet contains your coins and banknotes, your virtual one keeps all your digital assets in one convenient place.
The exciting thing about the crypto market is that it is a dynamic scene that is continuously evolving. So, expect more slang words and terms to emerge as the market expands and permeates more aspects of everyday life.