The crypto industry is unique in its ability to provide both passive and direct income to individuals. However, its uniqueness is also tagged as its ability to coin a new language.
This language is often referred to as slang terms or crypto lingo; they connote some critical aspects of the industry, and without accurately understanding them, investing could be a burden because they are used now and then by many investors in the industry.
Sometimes understanding what these slang terms mean could be difficult as some could be similar to another word or be four words shortened to 3 letters. This article will discuss 30 of the most commonly used crypto slang terms, including a description.
Fear of missing out (FOMO) is a well-known crypto slang that is, literally, a fear that grips an individual, usually an intuitive feeling that crypto prices are about to rise. If they don't act quickly, they may miss out entirely. FOMO is essential because it makes market sentiment positive, bringing in more investors to buy and hold a crypto asset and driving its prices upward.
A perfect example is that of Dogecoin and Twitter CEO Elon Musk, who 2021 announced his keen interest in the token on his Twitter page; the news spread like wildfire, and news bodies circulated it on their platform; this singular event brought about FOMO as individuals rushed to purchase Dogecoin, making the token to rise sporadically in value.
Hold On For Dear Life (HODL) is a popular crypto slang to encourage investors to hold on to a cryptocurrency, even when the crypto market is in bad shape, or the token has lost much value due to various factors. Many times the reason for holding on is linked to the fact that the cryptocurrency, even though down in value, has a massive potential to rise in price value.
For example, Bitcoin, the largest cryptocurrency by market capitalization, is currently down by over 76% compared to its ATH of over $68,000 in 2021; BTC is currently trading at around $16,432. This massive price drop is primarily based on the bear market that affected the industry in May 2022; however, despite this predicament, Bitcoin enthusiasts always encourage their fellow investors to HODL as prices will skyrocket when the crypto market resumes its bullish course.
Decentralized finance (DeFi) Is generally known as a sector in the crypto industry that champions self-custody of assets and collective governance instead of giving full authority to a single individual or entity
For some in the industry, DeFi is the solution to insecurities as individuals have full custody over their crypto and can access their asset anytime as long as they have a good internet connection; Ethereum is sometimes referred to father of DeFi as it houses most of the DApps in the industry today.
Joy Of Missing Out (JOMO) is another cryptocurrency slang term commonly used in the industry; it refers to a reverse condition of FOMO, where an individual is glad to miss out on a project that likely collapsed or failed to meet the expectation of its investors.
Many times individuals who are not interested in cryptocurrency or are pessimistic about a particular crypto asset feel JOMO when prices of cryptocurrencies fall due to a prolonged bear market or when an ICO scam occurs. Also, individuals who hold on to a crypto asset during turbulent times, up until it experiences a massive price increase, feel a sense of JOMO.
A good example is when Bitcoin crashed in 2018, dropping from $20,000 to $3,000; investors who held on to BTC from 2018 likely felt a degree of JOMO when prices surged in 2020.
Airdrop is a crypto slang term used when developers of a new coin decide to give members of the crypto community part of the new token to drive broader adoption and create awareness. Also, it can be used when an established crypto platform decides to reward their users, likely long-term users, for sticking with them.
Airdrops also take the form of learn & earn or AMA's, where an individual will have to do something before receiving the free tokens; in the case of Learn & earn, the individual answers a few questions about the platform, and receives the airdropped tokens if they pass all the questions.
An example is when Uniswap, one of the largest DEX in the industry, airdropped its native token to long-term users in 2020, those eligible must have performed at least one transaction before September 1, and qualified users received 400 units.
This refers to a condition when the market develops a negative sentiment and crypto prices fall spontaneously; sometimes, weak assets are consumed by the bear, losing value so much that it becomes useless. Other assets experience terrible losses, with some even touching their all-time low. When a bear market extends beyond its expected date, it becomes a prolonged bear market, which often proves disastrous to cryptocurrencies.
In May 2022, the crypto market experienced a severe bearish plumb that drove prices down; Bitcoin dropped from its close to $70,000 price to trading below $16,000 and is still currently within that range.
This cryptocurrency slang refers to a trader who fails to sell a token when it was still priced at a high value, likely due to Holding On For Dear Life, and is now left with crypto assets with little or no value.
Most times, Bagholders are investors who bought a large quantity of specific crypto assets when it was at its peak; the sentiments that it will rise beyond its current price always drive them to hold on and wait, eventually the token drops in value resulting in a massive loss on their part.
This is a crypto slang term used to describe all cryptocurrencies that emerged after Bitcoin, the first cryptocurrency created in 2008 by the anonymous Satoshi Nakamoto.
The first altcoin was created in 2011, and for the next few years that followed that we're only a handful of altcoins. But currently, there are thousands of them in the industry, and many more are still created regularly.
Ethereum is currently the largest altcoin in the industry, worth $1,172.26, having a market cap of over $147 billion, and ranking number 2 in the crypto market. It was co-founded by Vitalik Buterin, its current CEO, in 2013, just 5 years after Bitcoin, and was officially launched in 2015.
This crypto slang term describes a period in the crypto industry when the market condition is favorable to assets and, most times, is accompanied by price pumps and dramatic increases in all cryptocurrencies in the market.
The crypto market experienced a bull run in 2020 and 2021 during the Covid-19 pandemic when crypto assets gained more traction worldwide due to strained economies and the lockdown which prohibited people from going to work.
The need for a source of income without mobility was highly needed, and cryptocurrency came to the rescue; due to an influx of buyers and investors. Bitcoin touched an all-time high of $68,000, and Ethereum hit a peak of close $5000 in 2021.
Decentralized exchange (DEX) is a term used to describe all cryptocurrency exchanges that facilitate peer-to-peer transactions without needing a third party but instead use Smart Contracts to execute transactions.
The largest DEX in the industry by market volume, Uniswap was built on the Ethereum network in 2018 by Hayden Adams; before Uniswap, he worked as an engineer in a Siemens company.
Other exchanges include Balancer, Curve, and pancake swap.
A crypto trader who is highly pessimistic about price actions in the market and believes the crypto market will soon experience a downtrend in prices. Sometimes the sentiment of a bear may turn out right. However, other times, it proves to be the opposite.
Bears who predicted that there would be a downturn in prices, especially after the massive uptrend of 2021, proved to be right as the market experienced an unexpected bearish plumb that created a massive downtrend and crippled the prices in the market, forcing some assets to their all-time low.
This crypto slang term is used when an individual tries to send a crypto asset to two different crypto addresses. However, mining and decentralized consensus prevent such kind of activity. Without the prohibition of those features, hackers or users with programming knowledge can easily modify transaction information on a blockchain when some conditions are met and thus recover and spend a token that has already been consumed.
This is a term used to describe a situation whereby the owners of a crypto project decide to abandon it and run away with investors' funds. Many times this kind of event is linked to ICOs, DeFi projects that sell their new tokens as a bid to market them, when investors flock to the platform and buy the tokens with the false hope that it has the potential to provide high-end yield, the project owners will cart away all the liquidity meant to run the platform, which is also essentially users funds.
Sometimes why this kind of scam is hard to recognize because they seem genuine and run operations like well-meaning platforms. However, the sinister agenda is to gather as many funds as possible. Therefore during the increase, many users may make a profit, but they are suddenly left with valueless tokens.
This is a term used for all currencies that are not cryptocurrencies; some examples are the US dollar, European EURO, and Chinese Yen.
A slang term often used by investors to ask when the price of a token will be enough to buy a Lamborghini, which is currently worth $200,000-$331,000 at the lowest price in the market. Therefore when an investor asks a fellow trader when Lambo is, they are referring to when the token will surpass at least $200,000, and currently, no crypto asset in the market has achieved such price action. However, some predict that during the next bullish run, Bitcoin, the largest cryptocurrency by market cap, will overtake it to an all-time high of over $68,000, rising to over $100,000 in price value.
This slang is somehow similar to Lambo. However, it refers to when crypto will experience a spike in price; when crypto is experiencing a spontaneous increase, it is said to be mooning, and sometimes crypto enthusiasts make a statement to the moon, this means they are confident that the token will experience a massive surge in price.
Proof Of Stake (POS)
This consensus protocol utilizes staking instead of mining to secure a blockchain and mint new tokens and blocks and is regarded as one of the significant alternatives to proof of work. Those who stake their tokens on a proof of stake blockchain are eligible to become validators, charged with verifying transactions and minting new blocks; they receive new tokens as block rewards for their hard work. Some platforms require an individual to stake a minimum amount of tokens to become a validator.
Ethereum, for example, the second-largest cryptocurrency by market capitalization, requires an individual minimum of 32 ETH, currently equivalent to $38,966.08, which is entirely on the high side for most traders, who only own between 1-5 ETH.
This stands for an individual who holds many cryptocurrencies; most times, their decision could either weaken the market or strengthen it.
BTD (Buy The Dip)
This term encourages traders and investors to buy a cryptocurrency that has lost value due to market decline or bear market. The reason is that they believe the cryptocurrency will increase in price, bringing massive yields to those who decided to buy when it was at its lowest. Many skilled traders use this strategy when buying crypto assets for investment purposes.
DYOR (Do Your Research)
Do your research is a crypto slang term used to encourage potential investors not to buy a cryptocurrency without due diligence on its potential for growth. Many times when dealing with price predictions, writers include this slang term in their writeup to tell readers that buying based on only the information they read is a bad idea, as it is essential to carry out research before investing.
It is also instrumental when trying not to portray a post or token as an advertisement or promotional material.
ICO (initial coin offering)
This slang is used when new projects market their token for the first time to drive adoption and attract the attention of long-term investors. Also, they use this avenue to raise funds for their projects through the sale of their token; sometimes, these projects have a specific sum to reach, while others are not.
A good example is 1inch, a DEX aggregator built on Ethereum Virtual Machine and launched in May 2019. Their token, which functions like a standard ERC-20 token, was sold at an ICO held 7 months after its launch in December 2019 to raise Ether.
ATH (All-Time High)
It refers to the highest value a crypto token has ever reached since its launch. Bitcoin, the king of cryptocurrencies, reached an all-time high of $68,000 in November 2021 and has since remained at that ATH. However, some experts expect the coin to surpass that price and reach $100,000 when the market sentiments become favorable.
If that happens, then Bitcoin will have crossed a new threshold and an all-time high. Ethereum, the second largest crypto, also achieved its all-time high in November 2021, reaching $4,891.70. Analysts are also optimistic that it will surpass that price too when the market sets on a bullish course.
This slang term is used to describe individuals, who resort to panic selling when the market sentiments turn negative, es start a steady decline, or a massive dump occurs. They are the opposite of Hodlers, who stay committed to crypto assets regardless of market conditions. Weak hands are often revealed and washed off the crypto market during a bearish plumb, leaving the whales and the Hodlers.
The current bearish plumb that affected the crypto market in May 2022 saw a lot of panic selling, likely from weak hands, driving prices down, however with weak hands washed off, the market started to experience some increase in later months, even though the momentum it was not enough to bring about a bull run. However, prices steeped recently due to some developments in the crypto industry.
FUD ( Fear Uncertainty, Doubts)
Fud is a cryptocurrency slang term used to describe a situation whereby an individual or organization spreads false information to mislead the general public and change their perception of a particular cryptocurrency or the crypto market, in general, to cause a price drop. They can purchase it at a lower price.
However, the Fuder can also work, with the same momentum, to drive up the prices of the same assets so that they can make profits. The term was first used in 1970 as a platform marketing technique to sabotage a competitor's products by spreading false rumors to discourage people from buying.
An example in the crypto industry is Bitcoin antagonists, individuals who, for some reason known to them, only believe Bitcoin will crash. This moves them to say nasty untrue things about the token, most times on their social media pages.
A wallet is a crypto slang term used to denote a computer interface or physical device used to store cryptocurrency assets. However, while some believe the token is stashed in a crypto wallet, the asset is on the blockchain. Still, the wallet controls access to the funds by facilitating private keys or seed phrases unique to each individual.
These keys are generally 12-24 characters long. In addition, crypto wallets are now used to store cryptocurrencies and send, receive, and even perform DeFi functions like staking and Yield farming.
This is a set of programmable computer instructions that executes a transaction on the blockchain without authorization from a third party or centralized body as long as the set requirements are met.
Blockchain platforms like Ethereum leverage Smart contract functionalities to run their operations in a fast, scalable and secure manner.
This term refers to the fact that information stored on-chain and added to the blockchain and added to the blockchain is permanent. As such, it can not be reversed or amended; this feature makes it possible for individuals and stakeholders to trust that all information on the chain has not been amended or tampered with. In addition, it is one of the many factors that make the blockchain industry unique from other industries in data storage.
This slang term is used to describe an investor that is keenly interested in cryptocurrencies and constantly talks about the benefits that are derived from trading or simply holding cryptocurrency. These investors are sometimes said to be evangelistic about crypto because, like evangelizer users who use all opportunities to preach, they seize all opportunities to share information about cryptocurrencies on the blog and social media platforms all day long.
Flippening is a slang term used when talking about the glorious future moment when ETH will surpass Bitcoin, according to SoFi. This cryptocurrency platform offers borrowing and lending services in the industry. While such predictions are not inevitable, the chances of that happening is very slim because Bitcoin is Currently trading at around $16,483.14. In comparison, Ethereum trades at $1,217.69, with a difference of about $15,265.24.
For ETH to overtake Bitcoin, currently, it will have to multiply by 15. In addition, Bitcoin is expected to experience a massive increase that will surge its prices. Nevertheless, cryptocurrencies are highly volatile. Therefore, nothing is impossible about cryptocurrency prices.
This term denotes wrecked, a condition whereby a crypto enthusiast's portfolio runs out of liquidity or a crypto investment has lost value so much that it is on the brink of ruin. Sometimes when conversing about a platform that has the potential to crash, a crypto enthusiast says their investors or users got rekt.
Understanding the most commonly used language in an organization will help to know how the organization works quickly. The crypto industry, though relatively new compared to other established industries, has a set of words or slang terms used to pass information between traders and investors.
Individuals or potential investors who want to be successful at trading cryptocurrencies need to understand these terms and familiarize themselves with them, as they crop up multiple times in crypto discussions on social media platforms or other mediums. This article was designed as a guide to help all intending traders and investors know and understand about 30 cryptocurrency slang terms in the world of crypto that are essential.
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