Crypto Terms You Should Know

crypto terms

The happenings around cryptocurrencies are no longer unfamiliar events and its good you get your self familiar with almost all the crypto terms you should know.

crypto terms

In this article, I have put out a list of crypto terms that every beginner in crypto trading is expected to know. This is not the full list but I have put a list that is quite comprehensive.

  • Bitcoin: the first ever created cryptocurrency. It was created in 2008 by Satoshi Nakamoto. It is referred to as the king of coins because, it does not support or allow other projects on its blockchain.
  • Alt Coin: all other coins or tokens aside bitcoin. Example is Ethereum, Doge, e.t.c.
  • Coin: a coin is a cryptocurrency with its own blockchain. Examples are bitcoin, ethereum, Solana, e.t.c.
  • Token: a token is a cryptocurrency that is built on another blockchain or existing blockchain but not its own blockchain. Examples are Shiba Inu Token built on ethereum blockchain and binance smartchain, Doge built on ethereum blockchain…
  • Block: blocks makes up a blockchain. Block holds records of a cryptocurrency transactions. When a block is full, another is created.
  • Blockchain: series of blocks linked to each other by cryptographic signature forms a blockchain. It holds all transactions information on a particular crypto.
  • ATH: abbreviation for All Time High. Refers to the highest point a crypto asset has risen to.
  • ATL: abbreviation for All Time Low: it refers to the lowest point price of a crypto asset has fallen to.
  • Addresses: every cryptocurrency has it’s own unique addresses. These are strings of more than 30 character comprising of both numbers and letters. It stores the coins ownership. You can only receive or send coins/tokens through the address. It is like your local bank account number.
  • Airdrop: these are free tokens that are distributed to community members to aid campaign or rewards for performing tasks.
  • Bear: when the price of an asset is fallen, the bears(sellers) are in charge. The price is negative and red. Its said to be bearish.
  • Bull: when the price of an asset is risen, the bulls(buyers) are in charge. The price is positive and green and said to be bullish.
  • BTFD: abbrev. for “Buy The Fucking Dip”
  • MCAP: abbrev for Market Capitalization. It is calculated by multiplying the circulating supply by the current price of the crypto asset.
  • Circulating Supply: the amount of a crypto that is tradable. Some can be blocked and all these put together with circulating supply gives the “total supply”.
  • Dump: Selling off almost all of a cryptocurrency. This happens in minutes, seconds or hours. This causes price to fall insignificantly. The process is called ” Dumping”.
  • DYOR: meaning of “Do your own research”.
  • Rugpull: happens when a developer of a token sells or withdraws all the liquidity of a token and there’s a huge fall in price leading to bad loss.
  • Honeypot: tokens you buy but are not sellable
  • FA: fundamental analysis
  • TA: technical analysis
  • Fiat: money recognised by governments as legal tender. USD, GBP, EURO are all fiats.
  • Stable coins: encrypted form of fiats. USDT, BUSD, USDC are all stable coins and don’t appreciate or depreciate.
  • FOMO: Fear of missing out.
  • FUD: Fear, Uncertainty and Doubt.
  • Gas: measurement given to an operation on a blockchain network that relates to the computation power needed to complete a transaction. Also called the Gas fee.
  • Hard Cap: the maximum stipulated amount a developer of coin/token plans to raise during ICO and when reached, offers of the coins/tokens will stop.
  • ICO: Initial Coin Offering
  • HODL: ” Hold on for dear life”. It is actually a misspelling for HOLD- hold on for life dear.
  • KYC: Know your customer.
  • Market Order: trading an asset at its current price.
  • Limit Order: trading an asset at your own stipulated price.
  • OCO: one cancels another. When two orders are placed simultaneously, if one is executed, the other is automatically cancelled.
  • Overbought: overbuying an asset leading to significant increase in price. After this period, a selling period is expected.
  • Oversold: overselling an asset leading to an significant fall in price. After this, buying period is expected.
  • P2P: Peer to peer.
  • Presale: period where investors are allowed to buy a coin/token before ICO and when launched, profits are made.
  • Private key: strings of numbers or words that are used to access a wallet or recover a lost wallet.
  • Pump: when investors with large funds (Whales) buy an asset, the price rises significantly. Its process is called pumping.
  • Moon: the price of an asset is expected to reach a particular price level.
  • Exchange: platform where cryptocurrency transactions takes place.
  • CEX: Centralized exchange. E.g Binance and kucoin
  • DEX: decentralized exchange. E.g Uniswap, Pancakeswap.
  • Rekt: another form of “wrecked”. Used when there’s a bad or huge loss.
  • Shitcoin: used to refer to coins that are don’t have a positive future.
  • Long: refers to buying an asset (future traders).
  • Short: refers to selling an asset (future traders).
  • Buy: buying an asset (spot trading)
  • Sell: selling an asset (spot trading)
  • CA: Contract address. This address is attached to tokens and allow transactions on DEXs.
  • Uptrend: upward movement of price forming a trend that takes the upward motion.
  • Downtrend: downward movement of price.
  • White paper: written documentation showing all the informations and plans to be executed by a crypto dev concerning that coin or tokens. Its the same thing as the “Road Map”.
  • Whale: wealthy investors that can manipulate market.

You can read more about crypto terms on https://www.nairaland.com/7026929/crypto-terms-should-know

If you loved this article about crypto terms you should know, please drop your comments and recommendations and your own crypto terms that are missing so that we can update the list of crypto terms.

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