51 Crypto Terms You Need to Know - New Investor

In this article, we define some of the terms and slangs you should know as a new cryptocurrency trader or investor.
Before embarking on investing in cryptocurrency, it would be of great value to you as a new cryptocurrency trader or investor to have a good understanding of terms and slangs used frequently in the crypto community.

There is more to learn but terms and slangs mentioned in this article would would make a fine start for the newbie investor.

Blockchain
A digital system of records management that serves as the foundation for cryptocurrencies. A blockchain is made up of successive blocks that are built on top of one another to form a permanent and permanent log of transactions (or other data).

Cryptography
For security reasons, cryptographic protocols or mathematical techniques are used to encrypt communications transferred between parties, which are subsequently decoded using a key.

Decentralisation
Decentralisation and blockchain go hand in hand and to understand decentralisation, you have to understand centralisation. Most websites we visit are centralised in nature as there is a single point server or a single authority that receives data, and distributes such data. The issue with such a system is that if the single point fails the whole system collapses.

In a decentralised system, there is no single authority and data is shared between users directly.

Blocks
A blockchain is made up of blocks, each of which contains a history database of all cryptocurrency transactions until it is full.

Cryptocurrency
A cryptocurrency is a digital or virtual money protected by encryption, making counterfeiting and double-spending practically impossible. A type of virtual currency that controls the generation of new units and verifies transactions on its decentralised network using cryptography as its primary security measure.

Altcoin
Any coin that isn’t Bitcoin is referred to as an altcoin.

Peer-To-Peer
Peer-To-Peer is a decentralised system that makes it possible for individuals to exchange digitals assets like cryptocurrencies directly without the interference of middlemen or a central authority like banks or government.

Even before digital currencies gained popularity, platforms like Bittorrent were peer-to-peer in nature as people shared music, movies and other forms of digital files between themselves.

dApps
dApps is the term used for decentralised applications. It refers to any practical use of blockchain technology in communications tools, social networking sites or mobile games, for example.

Cryptocurrency Exchange
An exchange is a digital marketplace where cryptocurrencies are bought and sold. Exchanges can be centralised or decentralised. Examples of a centralised exchange are Binance and Coinbase. Uniswap and Pancakeswap are examples of decentralised cryptocurrency exchanges.

Initial Coin Offering (ICO)
An ICO is a method of raising funding for new digital currency projects. It can be likened to Initial Public Offerings (IPOs) that is used in the stock market.

Initial Decentralised Offering (IDO)
An initial decentralised offering (IDO) is similar to an ICO. However, it allows customers to test a project before it goes public.

Initial Exchange Offering (IEO)
The very first time a coin is sold on a digital currency exchange.

Gas Fees
When executing transactions on the Ethereum network, gas is the cost of computing power, which is transferred onto the network users in the form of taxes or fees.

Dead Coin
A failed project that was started with the idea of being utilised as a digital currency.

DeFi
DeFi is the abbreviation for Decentralised Finance. It is a new financial system that is built on secure distributed ledgers just like those used by digital currencies. The aim of decentralised finance is not just to exchange decentralised cryptocurrencies but to do so in a decentralised manner, eliminating middlemen like banks and their charges.

Decentralised exchange protocols, which automate the exchange of digital currencies between buyers and sellers without the need for an intermediary, are the most prominent DeFi initiatives. Aside from being able to exchange assets directly, many DeFi platforms also include cryptocurrency leading and staking.

NFTs
Non-fungible tokens are digital assets that are not replaceable, such as art or antiques. The Ethereum blockchain is where most NFTs are stored.

Metaverse
Metaverses are virtual worlds that have enormous social and commercial possibilities. Their use of blockchain technology allows them to leverage the broader crypto market, allowing virtual products to be exchanged for real-world cash beyond the metaverse.

Transaction Hash
Every transaction that is confirmed and added to the blockchain is given a transaction hash/id, which is a unique string of characters.

Halving
A mechanism built into Bitcoin’s code that reduces the quantity of new Bitcoin entering circulation once a specific number of blocks are mined (usually every 4 years). Bitcoin’s price may be affected by the halving.

Node
A computer that is linked to the blockchain network.

Mining
Mining, the process of discovering new currencies and verifying them for rewards, entails using supercomputers to solve – or “hash” – the complex mathematical riddles contained within each block.

Genesis Block
The very first bitcoin block ever mined.

Fork
When the rules of a blockchain are changed by its users. Changes to a blockchain’s protocol frequently lead to two new paths: one that maintains the existing regulations, and another that breaks away from the prior one. (For instance, a Bitcoin fork resulted in Bitcoin Gold.)

Staking
It is the process of freezing or locking up assets in order to get incentives or earn interest within the locked period. Just as there are fixed deposits in the traditional banking system, investors are able to stake (lock up) in their crypto wallet or exchanges for rewards or interest. It is widely believed that the interests gained from staking outperforms that of the traditional banking system.

Futures
A contract to purchase or sell an asset at a future date at the same price as today. These are used by traders as a risk hedge as well as a profit strategy.

Market Order
A market order is a one-time buy or sell of a cryptocurrency at the best price available in real-time.

Limit Order
A buy or sell order that is made at a future price to execute when the set price is reached

Rekt
This is a slang used by the crypto community to denote “wrecked”. It is used when a crypto investor or trader suffers a significant loss.

Pump and Dump
This is a term used when the price of a cryptocurrency is artificially inflated through misleading information, falsehood and manipulation. Usually the people involved in the scheme do so to sell at a high price.

DYOR
This means “Do Your Own Research” You have probably seen this term on social media. It is used a lot by cryptocurrency analysts and gurus as a way to warn you not to totally depend on their crypto predictions.

NFA
This is another term used to warn you not to solely depend on market predictions you find online meaning “Not Financial Advice”. The phrase is also used to mitigate against potential lawsuits, in case you suffer losses after implementing an investment strategy you got online.

Entry and exit points
The entry and exit points are areas where a trader or investor chooses to sell or buy a coin or token.

Fear and Greed Index
This is a technical indicator that uses the prices of seven different assets to determine market sentiment.

FOMO
Fear of missing out in abbreviated form. When a trader sees a huge green % right on the chart and does not own the coin or token, then decides to rush to purchase it or even sell other tokens to get in on it.

Stable Coin
Any cryptocurrency or blockchain-based token whose value is tethered to another source of value – often a fiat currency – is known as a stablecoin. One dollar-pegged stablecoin, for example, is worth $1.

Token
Can be described as a single unit of a cryptocurrency.

FUD
The term ‘FUD’ refers to the negative overtones of a debate or article about crypto projects..

ALT
It is “All-Time High” in abbreviated form. It is used in the crypto community to indicate a coin’s highest historical price.

HODL
It is a deliberate typo of the word ‘hold’ that became synonymous with the word ‘keep.’ A hodler is a crypto trader or investor who purchases a coin with no intention of selling it in the near future.

Public and Private Keys
A private key is a code made up of a series of letters and numbers that you use to get access to your crypto-assets. A public key is a code that is identical to a private key, but it is an unique identifier for receiving cryptocurrencies. The terms “public key” and “address” are interchangeable. You can share your public key but your private key should not be given with anybody

Whale
A whale is a single investor or institution that is holding enormous quantities of Bitcoin or altcoins. They are revered and feared for their capacity to influence price with single trades.

Shilling
Shilling is a term that refers to the increasingly widespread practice of promoting any cryptocurrency through indirect promotion. Typically, a shill seeks to entice investors to rush the coin, pushing up prices.

Bag Holder
An investor who, regardless of a coin or token’s success, continues to retain enormous sums of it.

Margin Trading
Margin trading lets users borrow funds against their present assets in order to trade bitcoin “on leverage” on an exchange.

Market Cap
Market capitalization is a metric for calculating and tracking a cryptocurrency’s current market value.

Short
This refers to buying a cryptocurrency at a high price to take profit when it dips in the near future. To enter a short position, you’ll need to borrow cryptocurrency and sell them at the current market price on an exchange.

Long
Refers to buying a cryptocurrency with the perception that the price will rise in the future, allowing the asset to be sold for a profit. A long position is the polar opposite of a short position.

Circulating Supply
This is the entire amount of a cryptocurrency token that is being traded publicly through exchanges at any particular time.

Moon
When a coin is said to be “mooning,” it signifies the price of that coin or token is rising in value quickly.

Cold Storage
Cold storage comprises holding cryptocurrencies offline in a device known as a hardware wallet, which is often viewed as more secure than a wallet.

Hot Wallet
A cryptocurrency wallet that is software-based and linked to the Web. Although digital wallets are more handy for instantly retrieving your crypto, they are often more vulnerable to cyber attacks than cold storage wallets.

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