If you are new to Cryptocurrency, you may get a little lost just trying to understand what everyone is talking about since there is so much crypto terminology that is slang being used in the discussion. Some of these same terms are used to define stock terminology also.
Terms like DeFi, HODL, FUD, NFT, and Farming were all a little strange to me when I first started. Hopefully, this short post will give you a little better understanding and help you as you venture through the crypto space.
What is DeFi?
DeFi stands for decentralized finance. ETH is an excellent example of DeFi. Decentral finance aims to push away from the central finance banking system.
What is FOMO?
The Fear Of Missing Out. Anyone who has been in crypto for some time has some FOMO experience. It may even be why you started or are looking to start investing in crypto. A handful of people have invested $8,000 to $10,000 to be some Millionaire or maybe even Billionaires in just a few months. That is something I would Fear missing out on, so we chase the dream that we may be about to get that lucky break one day.
What is FUD?
FUD is an abbreviation for fear, uncertainty, and doubt. This abbreviation is usually used to describe a situation where fear controls the user or fear-based factors associated with mining cryptocurrencies.
In the stock market, the short-sellers are Notorious for spreading FUD on social media to try and drive the price of stocks down.
What is NFT?
NFT stands for nonfungible token. It is an asset that is minted to the blockchain for proof of ownership. By purchasing the NFT you are purchasing ownership of that asset. The asset can be a number of things like a PFP image, music, art, membership, etc. Each item has a unique address that is basically an individual serial number.
What is Farming?
Yield Farming is the staking of your Cryptocurrency to earn a gain. It is similar to purchasing a government bond where you are putting up your money to gain interest.
Hopefully, this gives you a general understanding of some of the main slang terminology used in crypto today. Want to know more?