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CRYPTOCURRENCY SLANG EXPLAINED IN DETAILS!...





If you are new to crypto here are  cryptocurrency abbreviations and words, phrases and slang broken down into easy-to-understand definitions. 


ADDRESS - A secure identifier marked by a unique string of characters that enables payments to an individual or entity via blockchain transactions. It usually requires a private key to exclusively access the funds. For example, Bitcoin addresses are alphanumeric strings that begin with a 1 or 3; Ethereum addresses begin with '0x'.

ALTCOIN - A cryptocurrency or a category of cryptocurrencies that are an alternative to bitcoin. Many altcoins project themselves are better alternatives to bitcoin in various ways like more efficient, less expensive, etc.

BEAR/BEARISH - Term used to denote that the market is going down.

BULL/BULLISH - Term used to denote that the market is heading up.

BEAR TRAP – This is a manipulation of a stock or commodity by investors. Traders who “set” the bear trap do so by selling stock until it fools other investors into thinking its upward trend in value has stopped, or is dropping. Those who fall into the bear trap will often sell at that time, fearing a drop in value. At this point, the investors who set the trap will buy at the low price and will release the trap—which is essentially a false bear market. 

BEAR MARKET – A market that is in a downtrend prices are going down. The term relates to the direction that a bear attacks. (Bears attack by swiping downwards with their claws.)

BITCOIN (BTC) - The first cryptocurrency created by Satoshi Nakamoto in 2009. It was the first digital currency that enables instant P2P payments. Bitcoins are created through a process known as bitcoin mining that requires a massive amount of computing power. 

BITCOIN CASH (BCH) - This cryptocurrency was created in August 2017 and is essentially a clone of the Bitcoin blockchain but has increased block size capacity (from 1 MB to 8 MB) as a way to solve the scaling problem.​

BLOCK- Refers to a collection of data related to transactions that are bundled together with a predetermined size and are processed for transaction verification and eventually becomes part of a block-chain.

BLOCKCHAIN - A decentralized, digital ledger where transactions made in Bitcoin or other cryptocurrencies are recorded chronologically and publicly. The block contains information that, once it goes into the blockchain, it becomes part of the permanent and immutable database, connecting to other blocks in the blockchain like the links in a chain.

COLD STORAGE - A kind of storage where you keep Bitcoin private keys offline.

DASH - A type of cryptocurrency based on Bitcoin software but has anonymity features that makes it impossible to trace transactions to an individual and other capabilities. 

DECENTRALIZED- A state where there is no central control, power or function, or in reference to infrastructure, no central point of failure. 

DECENTRALIZED APPLICATIONS(DApps) - A type of software program that runs on a decentralized P2P network rather than on a single computer. Although similar, it differs from smart contracts as it can have any number of participants on all sides of the market and it does not have to be financial. 

DISTRIBUTED CONSENSUS - A Collective agreement by various computers in a network that allows it to work in a decentralized, P2P protocol without the need of central authority.

DISTRIBUTED LEDGER -  A distributed ledger is a list of transactions that is cloned on every computer and software that is connected to the network. This ledger is updated in every location, all at once, each time a transaction is made.

DESKTOP WALLET – A wallet that stores the private keys on your computer, which allows the spending and management of your bitcoins.
ERC-20 - A type of token standard for Ethereum which ensures the tokens perform in a predictable way. This allows the tokens to be easily exchangeable and able to work immediately with decentralized applications that also use the ERC-20 standard. Most tokens released through initial coin offering (ICOs) are compliant with the ERC-20 standard.

(ETH) - A type of cryptocurrency that is used for operating the Ethereum platform and is used to pay for transaction fees and computational tasks. transaction fees are measured based on the gas limit and gas price and ultimately paid for in Ether

ETHEREUM- An open source, decentralized platform based on blockchain technology created by Vitalik Buterin in 2013. It runs smart contracts on a custom built blockchain that allows developers to create markets, store registries of debts, and so on. 

(ETC) - A type of cryptocurrency that is a continuation of the original Ethereum blockchain following the DAO attack in June 2016. Ethereum is essentially a hard fork of the blockchain that was formed to refund the money that was siphoned during the attack (around $50 million). Ethereum Classic assumes no hard fork occurred and is supported by those who believe in complete immutability of the blockchain.

FIAT- Refers to currencies that have minimal or no intrinsic value but are defined as legal tender by the government, such as paper bills and coins.

FOMO - An acronym that stands for 'fear of missing out' and in the context of investing, refers to the feeling of apprehension for missing out on a potentially profitable investment opportunity.

FUD - An acronym that stands for fear,uncertainty and doubt. It is a strategy to influence perception by spreading negative, misleading or false information about a cryptocurrency or other commodities.
GAS LIMIT - A term used in the Ethereum platform that refers to the maximum amount of units of gas the user is willing to spend on a transaction. The transaction must have enough gas to cover the computational resources needed to execute the code. 

HARD CAP - The maximum amount that an ICO will be raising. If an ICO reaches its hard cap, they will stop collecting any more funds. 

HODL - A type of passive investment strategy where you hold an investment for a long period of time, regardless of market volatility. The term was made famous by a typo error made in a bitcoin forum. Also referred to as 'buy and hold'

INITIAL COIN OFFERING(ICO) - An unregulated means by which a cryptocurrency venture can raise money from supporters by issuing tokens. It is often referred to as a crowdsale as participants may potentially earn a return on their investments. 

IOTA (MIOTA) - Refers to the cryptocurrency and the name of an open source distributed ledger founded in 2015 that does not use blockchain (it uses a new distributed ledger called the Tangle). It offers features such as zero fees, scalability, fast and secure transactions.etc.

MARKET CAPITALIZATION (MARKET CAP) - The market value of a crypto project/company, market or sector at a point in time is used to rank relative size. In equities, it refers to the total market value of a company's outstanding shares. In cryptocurrency investing, it refers to either price multiplied by the circulating supply (i.e. free float market cap) or price multiplied by the total supply (i.e. fully diluted market cap).
Maximum supply - An approximation of the maximum number of coins or tokens that will ever exist for a cryptocurrency or crypto asset. 

MINING- A process where transactions are verified and added to a blockchain. It is also the process where new bitcoins or certain altcoins are created.  anyone with the necessary hardware and access to the internet can be a miner and earn income, but the cost of industrial hardware and electricity has limited mining for bitcoins and certain altcoins today to large-scale operators

PEER TO PEER - (P2P) refers to the decentralized interactions between two parties or more in a highly-interconnected network. Participants of a P2P network deal directly with each other through a single mediation point.

PRE-SALE - A sale that takes place before an ICO is made available to the general public to participate.

PROOF OF STAKE (PoS) - An algorithm that rewards participants that solves difficult cryptographic puzzles to achieve distributed consensus. Unlike proof of work or PoW, a person can validate transactions and create new blocks based on their individual wealth (stake) such as the total number of coins owned. One of the key advantages that PoS has over PoW is lower energy consumption.

PROOF OF WORK (PoW) - An algorithm that rewards the first person that solves a computational problem (i.e. mining) to achieve distributed consensus. Miners compete to solve difficult cryptographic puzzles in order to add the next block on the blockchain. It prevents spam and cyber attacks such as DDoS as it requires work (i.e. processing time) from the service requester.

PUMP AND DUMP - A scheme in which the development team (or short-term traders) hypes up a project without fundamental basis in order to pump up the price of the tokens temporarily and then sell of their holdings immediately after launch to earn a profit. 

SEGREGATED WITNESS (SegWit) - The process where the block size limit on a blockchain is increased by removing digital signature data and moving it to the end of a transaction to free up capacity. Transactions are essentially split (or 'segregated'), into two segments: the original data segment and the signature (or 'witness') segment.

SMART CONTRACTS - An automated mechanism involving two or more parties where digital assets are put in and redistributed at a later date based on some preset formula and triggering event. The contract can run as programmed without any downtime, censorship, fraud or third party interference.

SOFT CAP- Generally refers to the minimum amount that an initial coin offering (ICO) needs to raise. If the ICO is unable to raise that amount, it may be cancelled and the collected funds returned to participants.
TOKEN- tokens enable the creation of open,decentralized networks, and provides a way to incentivize participants in the network (with both network growth and token appreciation). This innovation, made popular with the introduction of Ethereum, has given rise to a wave of token networks and token pre-sales, or ICOs.

WALLET - A store of digital assets such as cryptocurrencies, analogous to a digital bank account. Crypto wallets can be divided into two categories: hosted wallets (e.g. wallets store on exchanges or third-party servers) and cold wallets (e.g. hardware wallets such as the Ledger Nano S, paper wallets and desktop wallets).

WHALE - An entity or a person who holds an absurd amount of particular cryptocurrency and has the potential to manipulate the market.

WHITEPAPER- An informational document that generally informs readers on the philosophy, objectives and technology of a project or initiative. Whitepapers are often provided before the launch of a new coin or token.

THE FLIPPING-  It’s a crypto term that means some other crypto currency could take the number 1 spot and replace bitcoin.

BAGHOLDERS - A bagholder is a trader/investor who at the end of the day maybe from a pump and dump got 'held with the bag,' which means they wanted to sell at a higher price, but the market moved lower too fast. Then, that person is left with "a coin they don't want at a price they can't sell at.

MOONING - If something is "mooning," that means a coin's price is experiencing a spike. The term is often what you'll see on various social media sites.

SATS- Sats" is short for "satoshis," a term derived from the first name of bitcoins mysterious creator, Satoshi Nakamoto. It refers to the smallest fraction of a bitcoin that can be sent, which is 0.00000001 of a bitcoin. Instead of looking at bitcoin in terms of a dollar value, traders look at sats, or satoshis.

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