Language

When you first start in crypto you may quickly find that you have no idea what people are talking about. So as to understand the markets and discussions around crypto it is important to understand the terms used so CryptoWales has put together a list to help you.

 

Airdrop – when a new crypto is given to people for free because they already own a specific crypto or due to completing promotional tasks like retweeting

Altcoin/alts – any crypto other than Bitcoin

Arbitrage – the trading of the same crypto on two different exchanges to take advantage of the price difference

Bagholder – someone who owns a relatively large amount of a specific crypto

Bear/bearish – when the market price is trending downwards

Blockchain – the underlying technology that crypto operates on

Block explorer – an online portal to track crypto transactions and creation of new blocks

BTFD – ‘buy the f***king dip’, to buy a crypto when the price has declined significantly

Bull/bullish – when the market price is trending upwards

Candles – the most common indicator on a chart that displays price movement

Dapp – ‘decentralised application’, an app that runs on a blockchain

DYOR – ‘do you own research’

FA – ‘fundamental analysis’ of a crypto or the entire market based on news, rumours and facts

FIAT – is a government issued currency such as £ / $ / €

FOMO – ‘fear of missing out’, when someone acts emotionally when trading

Fork – when an existing blockchain splits in two creating a new crypto alongside the existing one

FUD – ‘fear, uncertainty and doubt’, often FUD is cited as the cause for price drops and can come from people, the media or organisations

HODL – ‘hold’, a misspelling of ‘hold’ that is also referred to as ‘holding on for dear life’. To hold a crypto through high and low price movements

ICO – ‘initial coin offering’, the launch of a new crypto

KYC – ‘know your client’, for anti money laundering purposes many exchanges and investment opportunities will require you to prove your identity

Lambo – what someone will own when they make it rich in crypto

Long – a trading position taken out on a crypto that expects the price to rise

Low/High Cap – description of the size of a specific cryptos market capitalization (size)  

MCAP – ‘market cap’, refers to the overall market size of a crypto or the entire market usually in $

MEW – ‘MyEtherWallet’, a well used site to interact with the Ethereum blockchain and manage wallets

Mining – an intensive computational process to solve the next block in a blockchain, success is rewarded with the specific crypto being mined

Mining rig – the computer hardware used for mining

Moon – where the price of a crypto is expected to go in that direction, massively upwards

Node – a computer on the network working to maintain the blockchain

OTC – ‘over the counter’, the trading of usually large quantities of crypto, not through an online exchange but between two parties with a middleman facilitating and no public knowledge of the transaction

Pump & dump – the often manipulated and unnatural dramatic pumping rise in the price of a crypto followed quickly by a dumping of price to lower levels

Shill – someone who promotes a crypto they own hoping others will buy it and increase the price

Shitcoin – an altcoin with no inherent value or purpose

Short – a trading position taken out on a crypto that expects the price to fall

TA – ‘technical analysis’ of a crypto or the entire market based on price analysis of a chart

REKT – when you have lost money on a crypto trade or are in a losing position

ROI – ‘return on investment’

RSI – ‘relative strength index’, an indicator used in technical analysis

Shilling – when someone promotes a crypto that they usually already own as a good buy

Stable coin – a crypto usually linked to a FIAT currency that is supposed to not be volatile

Ticker – the 3 letter symbol that represents a crypto, BTC = Bitcoin, ETH = Ethereum

Token – a crypto token issued on a pre-existing crypto blockchain such as Ethereum

Whale – someone who owns a large amount of a specific crypto and is able to move the market price in their chosen direction through trading large amounts

It’s like another language but we promise once you have spent a short time in crypto, it becomes second nature. With the constant evolution of crypto there will be many more we need to add to this list, feel free to send us your suggestions.