Updated: Oct 21
Below are common terms you may hear and see in the crypto world, we hope this helps you to get a better understanding of cryptocurrency.
ATH – Acronym for All Time High
Altcoin – A name for cryptocurrency coins that are not Bitcoin..
Blockchain – The digital ledger technology which allows cryptocurrencies to function securely.
Capitulation – to surrender or give up. In financial circles, this term is used to indicate the point in time when investors have decided to give up on trying to recapture lost gains as a result of falling prices.
Central Bank Digital Currencies (CBDC) – Digital fiat currencies being issues by Central Banks around the world.
DeFi – Decentralized Finance
Exchange – An online platform/website where you can both purchase and sell cryptocurrencies. Popular exchanges include Coinbase, Bittrex and Bitstamp.
FOMO – The acronym for fear of missing out
Fork – When a cryptocurrency splits in two resulting in an old and new version, essentially the blockchain gets split. There are hard forks and soft forks, a hard fork is meant to create two blockchain/coins and a soft fork is meant to result in one. An example of a hard fork would be Bitcoin Cash.
FUD – A three letter abbreviation for “Fear, Uncertainty and Doubt”. This is a disinformation strategy that predates cryptocurrency.
Hashrate – The speed at which a block is discovered and the rate at which the related math problem is solved.
HODL – A purposeful misspelling of the word Hold, signifying a sentiment of holding your crypto for a long term sell off for bigger profits. Also, represents the phrase “Hold on for Dear Life”
ICO – Acronym for Initial Coin Offering
IEO – Acronym for Initial Exchange Offering
Market Cap – Market Capitalization is the aggregate market value of a cryptocurrency or stock represented in a dollar amount
Mining – Mining is the term used for discovering and solving blocks along the blockchain. A mining reward is given for solving the algorithm and lengthening the chain. The mining reward for the Bitcoin blockchain is Bitcoin.
Proof-of-Stake (PoS) – A type of algorithm by which a cryptocurrency blockchain network aims to achieve distributed consensus. Ethereum uses the PoS algorithm. In PoS-based cryptocurrencies the creator of the next block is chosen via various combinations of random selection and wealth or age (i.e., the stake).
Proof-of-Work (PoW) – The original consensus algorithm in a Blockchain network. Bitcoin uses the PoW algorithm. This algorithm is used to confirm transactions and produce new blocks to the chain. With PoW, miners compete against each other to complete transactions on the network and get rewarded.
SoV – Store of Value
Technical Analysis (TA) – Technical Analysis is the art/science of trying to predict future trends from historic price and volume data in the crypto and stock market
Wallet – Refers to the wallet in which you store your cryptocurrency, there are different types of wallets such as a hardware wallet, paper wallet and software wallet.
Whale – An investor with a very large amount of coins or money. They are able to move markets with large transactions.