Crypto 101

Our Crypto Glossary

Jul 21, 2022

There are also some "Urban" dictionary terms added in as well for a complete newbie as a reference - Something i wished i had when i started out.

AltCoins: Alternative Coins, usually refer to all the coins besides the main coins, namely Bitcoin and Ethereum.

AMA: Ask Me Anything - Usually QnA session in Twitter Space or Discord Voice Chat (VC).

Aped or Apeing: Buying without much thought or Impulse buying.

APY: Investment terms for "Annual Percentage Yield", usually associated with Interest Earnings.

Bear Market: A period where market prices are falling.

Bull Market: A period where market prices are rising.

Buy The Dip: Buying when the market price has dropped substantially, with a strong belief that it will rise again.

CEX: Centralized Exchange. Trading cryptocurrencies on a large scale, where you'll have an account to trade with them. Note: You may not own the tokens you are trading, but you may be insured with FDIC, like money in a bank. Examples: Binance, FTX, KuCoin.

Circulating Supply: basically the number of tokens/coins available in the whole market.

Coins: To some people, tokens have the same meaning. But technically they are Layer 1 cryptocurrencies where they operated as a currency and have their own blockchain. Examples: Bitcoin, Ethereum, and Dogecoin.

CT: Crypto Twitter. You might ask why Twitter? Why no CFB? Because that is where the crypto or web3 communities are. Another place to look for them would be Discord.

DCA: Dollar Cost Averaging - One of the most important investing strategies to reduce risk by buying or even taking profits in intervals so as to adapt to the fluctuations as no one knows where is the peak or abyss of an investment.

DeFi: Decentralized Finance

DEX: Decentralized Exchange. For getting new tokens where there are more earning potentials before they get popular and listed on Centralized Exchanges. Tokens are stored in personal wallets and we are responsible for them individually.

Examples: UniSwap (Ethereum), PancakeSwap (Binance), TraderJoe (Avalanche), QuickSwap (Polygon), SushiSwap (Multiple), and more.

Degen: Crypto term for Degenerate aka Gambler or the verb form, gambling.

Diamond Hands: Holding onto investments asset regardless of extreme loss or profit possibilities. Opposite of Paper Hands. Having "Diamond Hands" will have the possibility of holding onto extraordinary results in both extremes.

For example last year, someone had $5 Billion worth of Shiba Inu with an $8k investment. If that were you, would you still hold on and not sell when your investment gained millions with $8k? Or a negative example is how the DogeMillionaire is no longer a Millionaire.

Dry Powder: Cash reserves to buy the "deeper' dips

Farming: Similar to Staking, method to increase your crypto holdings through lending.

FDIC: "Federal Deposit Insurance Corporation" In short, your money deposited is insured up to a certain amount in the event that the company goes bankrupt, just like how banks deposits are insured. But a case-by-case basis. Read the fine prints.

FML: "F*ck My Life"

FOMO: Fear Of Missing Out

FTW: "For The Win"

GameFi: Term for Combination of Gaming and Decentralized Finance (DeFi)

GG: "Good Game"

GM: "Good Morning"

GN: "Good Night"

HODL: "Holding On Dear Life" or simply a unique spelling of Hold.

IYKYK: "If You Know, You Know"

KYC: "Know Your Customer" Standardized Legal Requirement to Identify and Verify Customer by their ID or Passport to prevent crimes like Fraud, Money Laundering, Terrorism, etc.

L-T or LT: Long Term

LFG: “Let’s F*cking Go” or "Let's Freaking Go" but in NFT gaming terms, it could means "Looking For Group" too. Context Applies.

Liquidity: Availablity of funds to invest.

LMK: "Let Me Know"

Long: Investment terms for Buying.

MarketCap: Short form for Market capitalization. In simple terms would be the total amount of money invested into a cryptocurrency token or coin.

Mint: Creation derived from Cryptocurrencies terminology in Making (Minting) of Coins.

MR: "Market Rally" - a period of price increments aka pump.

NFA: Not Financial Advice

NGL: "Not Gonna Lie"

NGMI: "Not Gonna Make It"

Paper Hands: Hands made of Paper are unable to hold anything. Describing people who are unable to hold on to their investments - those that usually ended up selling at a loss. Then again, Crypto is full of opportunities that it could be a strategy to cut losses and refocus liquidity on the next opportunity.

Probably Nothing: There could be some potential gains but possibly a risky move that results in nothing, waste, or loss.

Proof Of Stake (PoS): Miners are Pledging a certain amount of the token to validate transactions. And typically the more coins they staked, the higher chances of rewards. Compared to Proof of Work, this is the new alternative for a more environmentally friendly solution and would be more costly to be "attacked".

Proof Of Work (PoW): Miners compete with each other to solve complex mathematical problems for a chance of reward using high-powered computers. These will cost you more electricity bills and are usually frowned upon for being not eco-friendly. The solution is moving toward Proof of Stake.

Pump and Dump: Promoting a crypto opportunity, quickly raising the price, and selling off at a certain price point. In other words, pumping the price and dumping the goods on others.

Rug Pull: Another word for a scam, as though someone pulled the rug that you were standing on, causing you to fall (Losing money). However, it can be hard to prove, as the founders could still be genuinely working on the project, just that nothing to show and progress has been slow.

S-T or ST: Short Term

Shill: Promotion of a crypto opportunity (coins, tokens, or NFTs) usually for personal gains as they could have bought a lot and are now pushing the price.

Short: Investment terms for Selling.

Stable Coins: Cryptocurrency coins that are pegged to another currency. Example Tether's USDT or CoinBase and Circle's USDC that are tied to U.S. Dollars.

Staking: Similar to Farming. But usually you would be locking your holding for a certain period to generate interests.

To The Moon: phrase to describe that the price of an investment rises greatly.

Tokens: To some people, coins have the same meaning. But technically they are the rest of the cryptocurrencies or so-called Layer 2s that operate on the coins' blockchains. Example: Polygon's Matic, Immutable X's IMX, and Shiba Inus are tokens operating on the Ethereum Coin Blockchain.

Utility: Usual term used in asking about the Value of Holding an NFT.

WAGMI: "We All Gonna Make It" or "We Are Gonna Make It"

WDYM: "What Do You Mean?"

More to come as we share this journey together, feel free to ask below, but then again, a simple search online would have been faster.