HODL, DYOR, REKT the 41 cryptocurrency terms you need to know!
Almost everyone who’s been around the Bitcoin and cryptocurrency scene has heard of the term HODL. But don’t worry if you don’t yet know what it means. In this guide we will take you through the 41 most popular and important cryptocurrency terms that you need to know. Are you ready to be a Bitcoin and cryptocurrency expert?
What does HODL mean, and where did it come from?
But don’t worry if you didn’t know what it meant, or if there’s more words that you’ve seen but still don’t understand. There’s nothing wrong with that. And at the end of this guide you will have a good understanding of the most commonly used terms by cryptocurrency fans across the world. So lets take you through the list of cryptocurrency terms that you need to know!
The term ‘HODL’ was accidentally coined by an enthusiastic Bitcoin fan who stated on a well known Bitcoin forum that he/she was ‘hodling’. As in not selling. So today that term has become a much known and used word in Bitcoin and cryptocurrency communities. Referring to that someone is holding their Bitcoins, hoping it will increase in value. Instead of selling. (link to Bitcointalk forum post)
The cryptocurrency terms that you need to know about!
An airdrop is a distribution of a cryptocurrency token or coin, sent out to a large number of wallet addresses, usually for free or as a reward for doing some smaller task. Airdrops have often been used as a tactic to reach a great number of people. They can help to attract a large user-base and attention across media and social forums like Reddit.
Bitcoin is far from the only cryptocurrency out there. Today there are thousands of cryptocurrencies. Often they are labelled as altcoins as in alternative coins. And Bitcoin is the original. Today some see Ethereum, Litecoin and others to belong to the same category as Bitcoin, and no longer an ‘altcoin’. But this is highly subjective.
All Time High. The highest value a cryptocurrency has ever reached
All Time Low. The lowest value a cryptocurrency has ever reached.
Someone who holds bags of coins, as in a lot of cryptocurrencies with little to no value. Perhaps after a big loss in value. And a bagholder would of course like to sell their ‘bags’ to someone else.
During market periods the overall sentiment and market trends can be going up or down. When the market is in a downwards period it can be referred to as a bear market. And the bear is taking down the value of all cryptocurrencies (as with stocks and other markets).
Means that someone is pessimistic and that the price will go down
During market periods the overall sentiment and market trends can be going up or down. When the market is in an upwards period it can be referred to as a bull market. And the bull will bring up the value of most/all cryptocurrencies (as with stocks and other markets).
Means that someone is optimistic believes the price will go up
10. Buy the dip
Suggesting to people that this is their chance to buy at a lower price. Suggesting that this is just a dip and soon the price will go up again.
11. Buy wall
A buy wall can be genuine but is often referred to fake buy volume. Where a person or group of people puts up very large buy orders that pushes the price up. So anyone that also wants to buy needs to up their buy orders to move past the buy wall, which is the tactic from the people putting up those buy walls.
Refers to very large green or red ‘candles’ that appears on trading screens when the price goes up or down by a lot quickly. When viewing the market you can see the price be represented by bars or candles in a candlestick chart.
Do Your Own Research. A term used in the crypto community. It basically means that you should do research into the tokens/coins that you might want to buy, and decide for yourself if they are worth investing in. Following this advice will mean that you will, educate yourself, be in control of your decisions, and less likely to be tricked/scammed.
14. Exit scam
When a cryptocurrency project team are exiting the project. Often there’s no genuine value attached to it and they are trying to gain as much as possible while exiting.
Fiat currency is legal tender whose value is backed by the government that issued it. The U.S. dollar is fiat money, as are the euro and many other major world currencies. This approach differs from money whose value is underpinned by some physical good such as gold or silver, called commodity money. It’s also different to what a digital currency or cryptocurrency is.
The flippening refers to when Ethereum’s market cap will be higher than Bitcoin’s. Check out this website that follows this in real time.
Fear Of Missing Out. Means that someone wants to get in when something is increasing in value very quickly.
FUD or Fear Uncertainty and Doubt is a term that exists within crypto but also in other areas like sales, marketing, PR, etc. It essentially is a strategy mean to influence others to become sceptical. The information spread through FUD is often dubious at best or in most cases false.
In economics and cryptocurrencies it means that all assets are essentially interchangeable. And it doesn’t matter which one you have, they all are valued the same. And they are indistinguishable from another.
20. Hard fork
A hard fork is when a single cryptocurrency splits in two. It occurs when a cryptocurrency’s existing code is changed, resulting in both an old and new version. This is more commonly used when wanting to make a major change to the protocol. Examples of this is when Ethereum hard forked and created a new Ethereum, and the previous but not the ‘original’ was called Ethereum Classic. Other examples of this is Bitcoin Cash, and the other Bitcoin forks.
When someone is holding on to a cryptocurrency and not selling. A tactic hoping that the price will eventually increase.
22. Hot and Cold
You might hear the terms ‘hot and cold‘ wallets when it comes to Bitcoin and cryptocurrencies wallets. The difference between the two is that a hot wallets is connected to the Internet and ‘online’. While cold wallets are not and completely kept ‘offline’. Usually big exchanges like Binance, Coinbase, OKEx both keep hot and cold wallets for their users’s cryptocurrencies.
Initital Coin Offering. Means that a cryptocurrency startup is seeking funding from investors so that they can build their project. The word has taken inspiration from IPOs (Initial Public Offering).
Know Your Customer is a banking term originally. And means that a company or business needs to identify who their customers are. And make sure they are not engaging in any criminal activites.
Means that someone is betting that the price of a cryptocurrency will go up in value. And they ‘bet’ on it while margin trading.
26. Market cap
The total value of a cryptocurrency, calculated by multiplying the total supply times the price of one individual asset (cryptocurrency). The sum of this represents the market cap of a cryptocurrency. Find all of this at our live cryptocurrency price tools
Masternodes are full nodes that secures the blockchain network. Kinda works like a traditional computer that needs to be running at all time to secure transactions and in return you earn an income from new coins as a reward. They are part of a Proof of Stake (PoS) blockchain.
28. Pump and Dump
Refers to an organised activity where a group of people are pumping (increasing) the value of a cryptocurrency to lure others in and then sell that cryptocurrencies at a higher value, and then dumping it on new users who are ‘FOMOing’ in.
Means that someone has been ‘wrecked’. It could have a broad usage, referring to traders who loses out in a big way, buying into an ICO or crypto that later on fails or exit scams.
Return of Investment (ROI) is a commonly used term in the business and investment world. And it means how much will you get back from your initial investment. Often calculated in percentage – 100% ROI, 200% ROI, etc.
A term commonly used when describing how different blockchain can ‘scale’ to increase their overall capacity. When more users become active on a blockchain in needs to be able to handle the volume without slowing down or worse breaking down.
Are cryptocurrencies designed to have a stable price over time. Removing the volatility of the cryptocurrency by pegging its value to something, like Fiat currency, commodities or other assets.
Staking means that you ‘stake’ your coins on the blockchain as part of a Proof of Stake (PoS) activity to secure the network. Which is different to traditional Proof of Work (PoW), which is how Bitcoin works (best Proof of Stake coins guide).
34. Sell wall
Similar to buy walls it could be genuine or fake selling volume. Where the tactic of the sell walls is to push the price down by setting up very large sell orders. So that anyone that wants to sell needs to lower their prices to find a buyer. Thus lowering the price and potentially people who organised it could buy in for a lower price.
This refers to a person or group who is trying to promote a cryptocurrency or company to get others to buy into it. It could be refer to promoting scams or just promoting a project in an organised way.
The opposite of going long is short. And then you bet on the price of a cryptocurrency will go down in price, and places those orders when margin trading.
Technical Analysis, means that someone is using symbols or patterns in the market and charts to try and predict future events. TA is dividing the cryptocurrency world. Where some believes that by seeing a triangles, wedges and pennants in the chart it can be used to predict what will happen next. And the others believes it’s all bogus and it has no bearing on what will happen next.
A token represent a particular fungible and tradable asset or a utility that is used on a particular blockchain. In the context of cryptocurrencies it could mean different things, it could be referred to the tradable asset on the Bitcoin network is Bitcoin, Ethereum is Ether, etc. Or a token could mean a particular type of tradable asset on a blockchain. For example all ERC20 assets on the Ethereum blockchain could be referred to as tokens.
39. To the moon
Is a meme/slang cryptocurrency users might say when they believe/hope something will increase in value by a lot. As the price will increase so much it will go to the moon.
TX stands for transaction. And TX id (identification) is often used as a reference when someone wants to find out more about a specific transaction.
A whale is crypto slang for a person or group that owns so cryptocurrency that they can influence the market and essentially the price of that cryptocurrency. In the beginning of Bitcoin and many other cryptocurrencies the price was so low that it was easy for the early adopters to acquire a large quantity of those cryptocurrencies. And today there are groups and individuals that holds thousands of Bitcoins and use that to influence the price and take advantage of this to buy at a lower price or selling at a higher price.
We hope that you found this guide helpful and that you now are aware of the most commonly used terms in Bitcoin and cryptocurrency communities. Please share it if you did. If you have questions or comment please feel free to leave them here below and we will try and answer them as soon as possible. In the meantime good luck and be safe.
Best ways to get started with Bitcoin and cryptocurrencies
If you are looking for smart tips to get started with Bitcoin and cryptocurrencies then we have a full popular guides that will help you.
Other popular guides:
- The best tools for your crypto taxes
- Best ways of converting Bitcoin to cash
- How to be safe with crypto
- The best way to invest in cryptocurrencies
- Best Proof of Stake coins 2019
Find more interviews and news here on our blog!