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30 Common Crypto Words and Terms

Greetings Crypto enthusiasts! Are you looking to build a more substantial Crypto vocabulary with which to converse with fellow traders and HODLers? If you find yourself puzzled and in a bit of a quandary because you don’t understand the discussion, don’t feel alone! The answer to “what the heck did they just say?” is there, let’s pull some definitions into one place so we can learn them, and therefore understand and use them!

Below is not a complete list but enough to begin to build a primary platform of verbiage. Perhaps print out and learn a couple of words per day. In no time, you will learn these common words and phrases and then add more to your repertoire as you grow.

ATH (All time high) – this refers to the highest price a Crypto coin has reached. For example, Bitcoin’s ATH was $19,800 (in USD), and this value reached its high on December 26, 2017. The amount took a plunge shortly after reaching this height. As of the writing of this document 7/22/2020, it is back up to $9350 (less than half of its ATH.) An ATL (all-time low) is, of course, the opposite of ATH.

Altcoins – Bitcoin isn’t the only Crypto available on the markets now. Since its introduction, there have been many other Cryptocurrencies that have made their debut—each unique and some more popular than others. Bitcoin remains the most valuable, however. These other Cryptocurrencies or “coins” are all classed as Altcoins. Some have “flashed out” and lost their value while some are still here and increasing in value.

Bitcoin Maximalist – This is a person who believes only in Bitcoin and won’t entertain that any Altcoin is worth buying, holding or trading. They feel any coin that isn’t Bitcoin is a “shitcoin” and unworthy or useless.

Block Reward – Remember reading my Blog on Mining? Well, a block reward is a compensation a Bitcoin miner receives when he successfully validates transactions and adds them to the blockchain.

Blockchain – A Blockchain is a ledger or file of all successful and valid Bitcoin transactions ever made and recorded.

Centralized exchange (CEX) – a Centralized Crypto exchange is an online platform where you can buy, sell and in most cases will only allow swaps of Crypto to Crypto; Some of the larger Exchanges do allow trading Crypto for Fiat. A Centralized exchange is owned, operated and controlled by a specific entity. Some of the centralized exchanges are Coinbase, Binance, Kracken, BitFinance and BitStamp.

DAO (Decentralized Autonomous Organization) – is a decentralized organization usually run by its shareholders. It has no central governing authority and has a clear set of rules which are coded on a Computer program. A hacker back in 2016 found a weakness in the code and managed to gain access and steal over 3.6 Million ETH in just a few hours. This theft caused ETH to experience a drop in the value of over 30% in one day.

dApps – stands for “decentralized Applications” which are built on Blockchain Technology. Since they are decentralized, they have no governing authority.

Decentralized Exchange (DEX) – is a decentralized exchange where no one central authority governs. Crypto’s are bought, sold, and exchanged and security is much harder to breach than with a CEX.

DeFi (Decentralized Finance) – Another blog I authored was on this very subject and a very exciting subject to write about!! DeFi is an alternative decentralized monetary system run on the public blockchain. Alternative because it is not a traditional centralized centrally controlled institution. Watch this one!!

Digital Address – A digital address is a wallet address that is unique to the receiver the same way as his/her home address is unique to them. Composed of 27 to 34 letters and numbers; it allows crypto funds to be sent straight to the receiver’s Crypto Wallet.

Digital Wallet – These wallets are created to store mainly Bitcoin, but some can store other cryptocurrencies. They can be mobile apps, Desktop apps, remote servers and even hardware wallets. The most secure wallets are the cold storage wallets. These include paper wallets or hardware devices such as a Trezor or Ledger. All make use of public the public digital address which you share to those sending funds to you. Never ever, give anyone your private keys.

Fiat – is a currency backed by country or state-owned currency. I.E USD, Euro, CAD, etc.

F.O.M.O. – This acronym stands for Fear Of Missing Out. This fear generally refers to missing out on a trade deal of some sort, and we act without thinking it through. Most often we make a bad choice because of being fear led and not using our common sense.

FUD – This is another acronym meaning Fear, uncertainty and Doubt. If we succumb to Fud, we are again allowing FEAR to control our emotions and thereby tend to make bad judgements.

Hodl – this is an off spelling of the word Hold which Bitcoiners use to mean the same thing – hold. If I remember correctly, someone misspelt HOLD with HODL and it was adopted. Bitcoin owners and some other cryptocurrency owners “Hodl” through fat and lean price times. This practice started in the Crypto Bubble pop of December 2013.

ICO (Initial Coin Offering) – The practice of raising capital from the public for Crypto projects. ICO Investors only hold the tokens and do not have voting rights or hold any equity. The ICO bubble lasted from October 2017 to March 2018 when hundreds of successful ERC-20 type based on Etherum. .ICO’s are very risky as most turned out to be scams, and investors lost their money. Binance was the first successful IEO (Initial Exchange Offering)

IEO (initial exchange offering) – Much the same as ICO’s high-risk wise. IEO’s are fundraisers for new coin creation on exchanges. The first IEO was for GIFTO a new token created by Binance in 2018. They successfully raised thirty million on Binance exchange for GIFTO.

KYC (Know your customer) – These are identity checks required by regulatory commissions which require users to provide proof of identity with passports, drivers licenses, proof of address and webcam versification.

Market Cap – Market capitalization is the current price on the market of a cryptocurrency multiplied by the total number of coins in the market or circulation supply. Bitcoin holds the highest place in market capitalization.

Mining and Miners – Mining is the creation of new bitcoins which are earned by the first miner to solve a difficult equation who receives the reward for the transaction (fee) and add it to the block. Every ten minutes a block is added to the huge distributed public ledger. Today most of the mining is done by big companies such as the Chinese-based Bitmain. Mining is not limited to Bitcoin, but any PoW (proof-of-work) type cryptocurrency.

To the Moon! – This describes an asset whose value rises notably and quickly. “Bitcoin to the Moon!”

PoS (Proof of Stake) – A consensus algorithm used by some cryptocurrencies. PoS cryptocurrencies are faster and can handle more transactions therefore per second than PoW (Proof of Work) cryptocurrencies but are less proven. Many Cryptocurrencies are switching over to this Algorithm because of having less impact on the environment. Validators with larger stakes generally are selected to create the next blocks even though these choices are designed to be random.

PoW (Proof of Work) – is a consensus algorithm which is designed to secure transactions without 3rd party input. Miners compete with each other to be first to solve difficult puzzles. The first to solve earns the Bitcoin reward. This work builds on previous puzzle solutions and serves as a way to verify current and past solutions. The main goal of PoW protocol is to stop cyber attacks such as DDoS (denial of Service) which results in shutting down a computer’s resources by sending in tons of fake requests. Both PoW and PoS are checking against double-spending.

Private Keys and Seeds – Major cryptocurrencies function by using three fundamental pieces of information derived from the Seed or recovery phrase. The address is generated after the private key (the private key gives ownership of the funds) From there a known algorithm is used to generate the public key. The address is a shortened representative version of the public key and can be used for sending and receiving funds. Think of the seed as the root of the tree. It is never exposed and supports the whole wallet. Never give this 12-word seed phrase nor the private key to anyone!

P & D (Pump and Dump) – Be aware that the value/price of a Cryptocurrency can be manipulated to artificially raise the value with intentions of selling it quickly to make lots of money. This action gets fueled by F.O.M.O. The psychological fear of missing out of a deal. Do your due diligence and keep your mind and eyes open.

Satoshi – Besides being the alias first name of the creator of Bitcoin (Satoshi Nakamoto) a Satoshi is also the smallest unit of Bitcoin. 1 Satoshi = 0.00000001 ฿.

Shitcoin – This is a cryptocurrency with little or no value. Coingecko evaluates Shitcoin like this: ShitCoin price today is $0.00000000 with a 24-hour trading volume of $0.727584. SHIT price is up 22.6% in the last 24 hours. It has a circulating supply of 0 coins and a max supply of 1 Trillion coins.

TOT (Total Market Cap) – The total cryptocurrency market cap is calculated by adding together the market capitalization of all of the cryptocurrencies listed.

Bitcoin Whale – this is a person or entity who owns such a large amount of Bitcoin that if they sold it or bought mass amounts, the affect could change the Bitcoin value/price in the markets.

WP (Whitepaper) – These are reports or guides that explain with authority about a problem and provides the solution. Marketers create Whitepapers to outline or to educate their audience about a particular issue or illustrate and promote a specific methodology or new cryptocurrency.

About the author

Gail holds one of the most challenging role in the Compumatrix Leadership: Membership. She ensures that that members and potential members enjoy the benefits of being part of the Compumatrix community.

Comments

  1. It is always good to be able to join in a conversation and actually be able to talk the same geek language..lol Seriously I appreciate you taking the time to search meanings to words that are new to most of us and put them all in one area. This is a tremendous help!!

  2. When i first started with Compumatrix I had a “homework” notebook,first thing was crypto terminology. Its very helpful if your new to the crypto world.

  3. most definitely very appreciative of this blog posting –it is very informative with not just the words but a good description of the meaning — I do not know them all and I will be adding to my notebook very soon — Gail you do so very well in your help all around here and thank you —

  4. Interesting Gail! I was aware of most of those terms but now I realize that I had a wrong understanding of some of them. One of those I hadn’t even knew about. It is important for all people wanting to sail these cryptocurrencies waters to take notice of all terminology needed for a correct understanding of this complex environment.

  5. Thank you, RJ, It is a pleasure to contribute and to help in any way I can. I love this business and the people in it are the best too! And thank you, Michael and Rose, too! You, youngsters, are just beginning your journey and all of us here at Compumatri want to make sure we provide all the tools to arm you and prepare you for the greatness this business is bringing!!

  6. Appreciate your comments too, Jeimes and Rain. Jeimes, even when we think we know things and are fairly comfortable in that knowledge it never hurts to revisit and deepen our understanding as you have. I believe it was Kevin Bowser who said, “we don’t know what we don’t know until we know it!” That is a profound statement and it sticks with me.

  7. At Sophye, what an incredible lesson here 👏👍. Quite awesome. We always say knowledge is power to success. On this note, this’ where I have been struggling a lot. Interpreting those terminologies, was so hectic. Most of the time, I had to run to Mr. Google. And, sometimes the searching engine couldn’t allocate the correct meaning!

    This’ so enlightening, more so the ambitious me. Imagine when you join a certain conversation going on. Some words like Blockchain, DeFi, Digital Wallet etc being pronounced. You feel the odd one out. Which translates to Fear Of Missing Out. At this sphere moment of life, am still counting up my desirable merits as a Compumatrix member. No FUD at all, the future is so bright.

    1. Hi Thaddeus! So happy that this helps you. It is much much better if we are armed with knowledge as this is our shield of confidence! People will put more faith in what you have to say if you have the knowledge and the words to engage them on any subject. It may not be right but it is the way it is and I don’t see that changing. So, congrats and I know you will feel even more confident when you speak your message to others!

  8. Wow! What an excellent article; it helped me to understand the terminology we work with and how essential those words are. Thank you, Gail, for taking the time to write it.
    Thaddeus is correct, “knowledge is power,” and when that power is used for Good, and not evil many beautiful things will happen and many deserving souls will be honored. There are many incredible things happening in the world right now. I believe we are on the cusp of a new beginning. We are “going to the moon,” and FUD will no longer exist!

  9. Thanks so much Gail for this new resource. Saved and printed out for referral. Of course as I read through right away the Bitcoin Maximalist stuck in my mind and then further reading down I learnt there is a shitcoin (that was a first for me:) Now terms, stick in my brain’s hard wallet! We just can’t have too much information.

  10. Wow, that’s amazing! It’s incredible how new words to depict different things in our crypto world are popping up all the time. Almost like a new language is being born. Printing this out and I am going to add to it every time I hear a new word. I actually saw a whole bunch of WhatsApp icons that were created around Binance, all with their specific crypto words and the actions of the icons showed the emotion that followed each icon. Very cute. Thanks for this Gail. (((HUGS)))

  11. Hahaha, Good one Gail. Yes, we crypto fans must learn the new crypto lingo, so we can better communicate and share.
    Of course, there are many more, that I’m sure you will teach us in part 2
    I have been “Hodling”, quite a while, waiting for that “ATH” “bull run” to reach “to the moon!” for a “when Lambo”.

  12. Great Gail ! we always learn from your blog.we need to note all the details of your previous and this blog.  Your mind is full of encyclopedia you have always introduced new incredible terminology which needs time to learn and we learn from you. Thank you Gail and compumatrix.

  13. Great definitions Gail and such a helpful glossary. I am going to print it out for future reference. Its interesting for those of us who have been around a few years or more, and all these acronyms just become second place to them. If I am explaining something to someone I throw them around as if, ” oh yeah, everybody knows what a_____________ is ” ! But most people don’t even have a clue. It’s nice to chat so much in the chat room with folks who know exactly what you are talking about.

  14. gotta love this part — we go thru each day and put knowledge with information and in the thought process we try and make the process wisdom for us — it is not easy or simple to put all info in the proper spot — however as we look at the truth and the facts — if we work truthfully then legit answers are with us — it is good all around and each moment can be used appropriately and wisely — enjoy i do —

  15. Gail you seem to come up with some of the most interesting and beneficial blogs I read. So simple, yet beneficial!! Most of these I knew were nice refreshers. But there were a few that I was not aware of. I love these educational blogs. Being able to pick up a golden nugget here or there helps bring this massive cryptocurrency puzzle to clear sight.

  16. This is a funny blog Gail. Most of the words I knew (one more familiair than the other) but not PoW and PoS, they are new to me. Maybe I shall never use these words in my life but it is good to have read them. We are never to old to learn.

  17. Although I knew many of these terms while reading the blog post, I did not know any of these terms when first starting out in this company. I distinctly remember having to google what “fiat” meant. This is so helpful for someone who is just getting started out – a gem!
    What I found the most interesting in this blog post was how cryptocurrency trading terms are also used in the stock market trading world. This gives me hope that when the trading platform is opened up through Compumatrix that I will be able to use my trading skills from the stock market and apply it to the Compumatrix trading platform.

  18. this is such a valuable blog — seriously having the definitions of these very prominently used terms thru-out the crypto world and then seeing the use of these in the everyday world of finance and business the more and more just puts the confidence level growing more and more — it all fits into the acceptance and eventual use of crypto also — smily face —

  19. Well I learned some new ones here that I had not seen before I thought I knew most of them but tech is always moving, very good info here nice how you outlined everything with descriptions. It is very important to know all the ins and outs of crypto, a lot of them run different then others. I personally like the way Compumatrix is set up with this blog and portal and DEX. Looking forward to the launch of the new CDAP.

  20. Well done, Gail! Your knowledge of cryptocurrency is extensive and your ability to pass on that knowledge with clear, understandable wording is amazing! These terms are good to know and new ones are coined each day. I definitely am printing your list of terms and hope to see more in the future as they come to life. Thank you much!

  21. Gail this is a great cheat sheet! Over time I have slowly come to understand many of these terms. This is a great guide to share with those that we are teaching about the crypto community. It may save them some time and confusion. They may also understand articles and videos they are watching if they better understand these terms.

  22. Thank you for the list of Crypto words and their terminology Gail. I took screenshots of the whole thing so I can refer to them easily if I need a reminder of what one means. I’ve heard of, used or read about most of them, but there is always something new in this Crypto World. It’s much easier to do anything when you understand the terminology.

  23. Thank you Gail. I appreciate you taking the time to compile this list of crypto words and terms with their meanings. Being young to this crypto world, having so many words and terms, can be quite confusing. Having this reference and entirely is a definite help. I will keep it close for a quick reference. I had said early on I wish someone would write a guide like this pertinent Compumatrix. I had started to make one for myself, but the somethings changed, and I was unsure if I was accurate, so I abandoned the idea. All my attention then was turned to learn all I could the best I could. The learning in this new arena is not one time and know all. It takes reading and listening, reading, and listening, over and over until understanding clicks in. This adventure has certainly stirred my dormant brain.

  24. Thank you Gail for helping us to know and understand so many terms that are part of this fantastic world of cryptocurrencies. It is very important to have this knowledge!

  25. just keep reading this blog and getting the definitions of so many pertinent terms and words and then read other postings and put this into the mix — it is just so important to have this part to go with the rest of the postings — am so appreciative of the effort and time spent by so many to help us understand and also improve our chances for success in entrepreneurial business known as Compumatrix —

  26. Out of many articles that I have read I feel like I learned the most facts and new terms from this one. Although I am constantly educating myself on Cryptocurrency vocabulary, no one will ever know every single word. I will definitely be saving this article to review the words from time to time. Everyday there are new processes and “lingo” surrounding these new currencies and it is important to stay up to date.

  27. This is very informative. There are some expressions and abbreviations that are new to me and that I never heard of. This explains the purpose of this blog. It is very good to educate myself about the cryptoworld and Compumatrix. I am never too old to learn and with the bright future that our company has it is good to know all these things.

  28. Revied the definitions again.Becoming more familiar with the terminology of the Cryptoworld and trying to keep abreast with the newer words that are being coined frequently and making the list longer and longer just as the abbreviations of the computers language such as LOL .BBL etc etc.Thankful to you for taking the time to put this together foe the benefit of all the Compumatrix members.Greatly appreciated

  29. it is so important to me and my understanding to learn the definitions of terms and business ideas — so here i am again studying these terms –it is so appreciative of the effort and time put into this blog area to help us less schooled business partners — but am learning each day and getting more understanding –Thank You —

  30. I’m scrolling through and just keep finding all this juicy information from Gail. Thank you for writing this out. This is something that keeps us up to date with the terms of words we hear but have no idea what they mean. Well, now we do. Thank you again for all the great information. This is the kind of stuff that’s great for a little crypto folder for newbies.

  31. agree so much with you Tracy on the info put out here thru-out the blogs by Gail — so much usable pertinent info and keep coming back all over the blog and reading again n again — am hoping that am learning but do know it is not same as 40+ years ago in school though — lol

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