What is crypto jargon? If you’re interested in investing, trading, or mining cryptocurrencies like Bitcoin, Litecoin, Ethereum, and more, you should know some common crypto-jargon to be prepared. These are often abbreviated in complicated ways that are hard to remember. The list below will give definitions for the most popular terms used when discussing crypto-currencies or other types of blockchain technology.
Common Crypto Jargon
1) Altcoins
This is when investors purchase alternative cryptos instead of Bitcoin. For example, Ethereum is an altcoin because investors can purchase it in addition to Bitcoin if they want to invest in blockchain technology.
2) Bearish
This describes a downward price trend with a coin. For example, if the price of Bitcoin starts to fall and investors start selling, the market is bearish.
3) Bullish
This describes an upward trend with a coin. If the prices of a crypto-currency starts to spike, then it’s considered bullish.
4) Btc
Stands for “Bitcoin”. Sometimes people will say things like, “I bought $500 worth of BTC yesterday”. If you don’t know what they’re talking about, just ask them what they mean. They’ll probably tell you how much Bitcoin they bought or how much money they spent on it.
5) BtcDice
This is a gaming site that’s similar to the CryptoGames. It allows users to place bets on how long the price will go up or down in. Just like CryptoGames, it has a group of people who bet on the future price trend of Bitcoin with the house taking 65% of all profits.
6) Shill
Someone who is paid to make posts on social media sites to make the value of a coin go up. This is illegal in most countries, but not all. Sometimes it’s called “pump and dump”, but that’s another topic for another time.
7) Dogecoin
This is a joke on Reddit that’s similar to Bitcoin, however, there are more faucets than Bitcoin so it’s actually faster.
8) Faucet
Someone who has set up a site where users can earn money by doing small tasks and shows potential investors how well the coin works. Most people use sites like Freebitcoin or FaucetHub to earn Bitcoins via micro-transactions.
9) Fork
This is when a blockchain splits into 2 different chains. One thing you should know is that the original chain will always continue because it’s been proven over time to be the strongest chain. A good example of a fork would be Bitcoin Cash and Bitcoin Gold.
10) Forging
The use of your computer to verify blocks and earn coins from the crypto-currency network. This is similar to mining, except there isn’t a huge risk of burning out your graphics card. The biggest advantage forgers have is that they’re getting paid more than miners are, but have fewer electricity costs.
11) FUD
This stands for “Fear, Uncertainty, and Doubt”. This is someone who is trying to scare everyone into selling their coins at a loss. They might even post incorrect information like, “Jason isn’t the lead developer anymore”.
12) ICO
This stands for “Initial Coin Offering”. It’s a new type of crowdfunding that allows people to invest in projects using digital tokens and cryptocurrencies. A lot of them have been hacked, but many have also made investors millions.
13) IDO
This is short for “Initial Dex Offering” – it’s a new type of fundraiser that allows you to invest directly in the project, without buying tokens.
14) Miners
This is the name for people who use their computers to earn coins by verifying blocks through proof of work. If the network can accept more blocks, then they’ll get paid more. The primary reason a lot of people do this is because they believe that the price of coins will rise and won’t have to work forever. Although it’s true if they hold on long enough, but if they’re wrong, then they’ll be really broke when the price is at its peak.
15) Mining
This is proof-of-work. A good description would be: “The technology behind Bitcoin”. It uses the SHA-256 cryptography to create new coins and secure the network.
16) Mining Pool
A group of miners who work together to earn more money than they would be working by themselves. There are many types of ways to split up the profits, such as: proportionally or proportional/profit. The first option means that everyone gets paid exactly what they deserve and the second means that people who do more work will get paid more, but may not end up with as much as others in their group unless everyone works equally hard.
17) Meme
An idea that’s spread around on social media to make fun of a coin’s community or something else related to the crypto-world.
18) PoS
This is short for “Proof-of-Stake”. It’s a consensus algorithm which means that it secures a blockchain without the use of miners. The main advantage is that there are no fees for transactions. However, there are downsides to it like the possibility of being hacked and more centralization.
19) CEX
This is short for “Centralized Exchange” – it’s an exchange that has its own servers and the owner can control them however he wants. This is risky because you don’t control your own coins, but it does make trading a lot faster.
20) DEX
This stands for “Decentralized Exchange”. This is when there is no user account, no server to hack and the buyer and seller don’t know each other. It’s fast, but not as widely used.
21) Wallet
This is the equivalent of a bank account in terms of how you keep your funds and store them.
22) Ponzi
This is a type of investment that pays returns to previous investors but not to new ones. It’s a pyramid scheme, meaning it’s run by someone who wants money for themselves, not for the general good of everyone involved.
23) Lending
This is when someone lends you coins and you give them interest on it. If the price of coins goes up, then they’ll get paid more, but if their coin goes down then they’ll take less in interest.
24) Pump and Dump
This is when a coin’s price goes up quickly but then quiets down. This happens because of FUD and people who come in and buy up a lot of coins to sell at a high profit. Eventually, it can crash down again where anyone who is holding the coins on exchanges will lose money because they don’t know what happened beforehand.
25) Scam
This is when someone steals your Bitcoins/Coins using various means like phishing scams or malware, or when a project is not legit or legal.
Conclusion
So now you should have a good idea of what the crypto-world is. It’s a pretty cool world with many opportunities, but keep in mind it’s an unregulated market where anything can happen. Make sure you know how to protect yourself from hackers and scams before making any investments.
Read this article on how to start investing in crypto.