Let’s Talk Crypto
Have you ever tried having a conversation on a topic you know nothing about? How about talking with someone who uses a lot of contemporary lingo? It can be downright puzzling. What about a conversation that uses a specific type of idiom on a subject that seems to use a different language altogether…say cryptocurrency, for example. Now things are infinitely more challenging.
While it is true that cryptocurrency is gaining ground around the globe, the language around it can still be baffling for those new to the conversation. Not to worry though, we’re here to help demystify the crypto lingo.
Below are some of the most common terms used in crypto-related conversations, both on and offline, and a brief description of each, to help you get started on your road to crypto mastery.
Common Crypto Terms
FUD, HODL, Whale, Mining, NTF, Token, FOMO, ATH, DYOR and Blockchain. These are just a few of the crypto terms that you will often come across on crypto forums or in the news. But what do they mean, exactly? Let’s take a look:
FUD – Fear, Uncertainty, and Doubt, a psychological tool that is used to sow fear and doubt that could result in the precipitous drop in the value of a particular coin or the crypto industry itself.
HODL – Hold on for Dear Life. This refers to a strategy of holding on to a coin even if it crashes, in the hope that it will eventually regain its value.
Whale – The term Whale refers to an investor who holds 5% or more of any cryptocurrency (especially the highly valued Bitcoin).
NTF – A Nonfungible Token is a digital asset that confers ownership of a piece of digital art or some other virtual product to its purchaser. Its value often comes from its subject matter and can vary wildly. To provide some context, in 2021 a piece of digital art was sold for $69 million at a Christie’s auction.
Token – A Token is a virtual denomination of a cryptocurrency. It represents a tradable asset on the blockchain and can be invested by its holder.
FOMO – Fear of Missing Out. This term is often used for the is anxiety someone feels when they have an urgent need to buy what everyone else is buying just before an anticipated price jump of a particular cryptocurrency.
ATH – All-Time High, as in the highest historical price that a crypto coin attains.
DYOR – Do Your Own Research. This one is pretty self-explanatory. If you want to be a successful cryptocurrency investor, do your research. Don’t depend on hype or overheard conversations to make your investing decisions.
Mining – Mining is the process that “produces” new cryptocurrencies. It relies on computer-generated complex mathematical equations that have to be solved in order to generate new crypto. It is also a way to confirm new transactions by the network and is critical to ensuring the integrity of the blockchain ledger.
Blockchain – A Blockchain is a decentralized ledger that lists all of the transactions on a particular network. This bit of technology allows participants to confirm transactions without the need for a centralized authority (like a bank). It makes it easy to transfer funds, trade and has multiple other uses. Banks and other financial institutions have begun to adopt blockchain technology.
These are just a few of the terms you may come across in the world of cryptocurrency. There are many others but these will help you get started so that the next time you find yourself in a conversation with someone who speaks crypto, you’ll not only be able to understand them, but you may even have something helpful to add to the conversation.