TOP 10 Terms And Abbreviations You Need To Know Before Entering The Crypto Space

TOP 10 Terms And Abbreviations You Need To Know Before Entering The Crypto Space


Entering the cryptocurrency space as a newbie can be quite confusing, not only because of the new tech that you have to learn but also because of all these strange terms and abbreviations that you have never heard of before.

Make sure that you make yourself familiar with the most important crypto terms before you start trading coins and tokens because otherwise, you might get rekt. 

Here are the TOP 10 terms and abbreviations you definitely need to know before you buy your first Bitcoins in alphabetical order.

 

1. Blockchain Explorer

There are different blockchains for different coins. Ethereum, Bitcoin, and Binance Coin, all have their own blockchain explorers.

Explorers are certain applications or websites that can display information and the status of transactions of the corresponding public blockchain. Blockchain explorers allow everyone to look at the progress of transactions or verify that a transaction has occurred.

The most popular blockchain explorer for Bitcoin is explorer.btc, for Ethereum it’s Etherscan, and for Binance Coin it’s BscScan.

 

2. DeFi

DeFi is the abbreviation for Decentralized Finance. In contrast to Centralized Finance (CeFi), DeFi has no central authority and is censorship-free. DeFi applications cover many use cases and most of them are already known from the traditional finance sector.

Some DeFi applications are stablecoins, while others are enabling lending and borrowing. A crucial part of DeFi is trading cryptocurrencies on decentralized exchanges (DEXs) like Uniswap or Pancakeswap. 

DeFi applications have two main benefits. They are able to achieve a better rate of returns for their users while lowering the barrier of entry, maybe not in a technical sense but the DeFi application itself does not discriminate or censor any particular party from joining. 

All this is possible by removing the central middleman from the financial systems and replacing him with a protocol.

 

3. Degen 

If you trade your first cryptocurrencies before making yourself familiar with the TOP 10 terms and abbreviations you need to know before entering the crypto space then you are most likely a degen trader. 

I know, you don’t want to be that guy and this is basically why you are reading this article right now.

I found this explanation of the term “Degen” in the CoinGecko Glossary of Cryptocurrency Terms:

“Degen trading or Degen mode is when a trader does trading without due diligence and research, aping into signals and FOMO into pumps. A Degen Trader does not know about metrics like FDV or TVL nor do they care.

They will buy because the asset logo looks cute, or because the slogan is memeable, or because some twit-famous anime girl on the internet says she’s looking into crypto and the first two shill comments get more likes than others.

Essentially, a degen trader buys into an asset not because they see value, rather they do so with the belief that others will join in after them and speculate on the price swings.”

I don’t know what genius from the CoinGecko staff came up with this explanation but it pretty much nails it and I don’t have much to add to it.

 

4. FOMO

Fear of missing out (FOMO) is a cryptocurrency term that is crucial to understand because otherwise, you will be amongst those who always buy the top and sell the bottom. 

FOMO describes a feeling of anxiety that everyone else is having fun and getting incredibly rich while you are standing on the sidelines staying poor and missing out on all the fun. 

This feeling is particularly prevalent when an asset rises in value drastically over a relatively short period of time. This feeling of FOMO is so strange that someone makes market decisions based on emotion instead of logical thinking. 

The feeling of FOMO is especially dangerous for the undisciplined investor or someone who is simply new in the space because it frequently leads to a situation where they buy overpriced assets which results in much greater risks of financial losses.

 

5. FUD

FUD is short for Fear, Uncertainty, and Distrust and is often used to manipulate the markets by influencing the perception of certain cryptocurrencies or the cryptocurrency market as a whole by spreading negative, misleading, or simply false information.

FUD also exists in traditional markets as well where unscrupulous market participants release FUD in order to profit from it.

There always has been FUD in the past and there always will be FUD in the future. Sometimes it can be difficult to separate baseless FUD from unpleasant facts.

 

6. Gas Price

When someone complains about high gas prices then he is usually talking about the price he has to pay at the gas station for filling up his car.

This is not the case in the crypto space. Here the term “Gas Price” refers to the price that a user is willing to pay for a transaction on the Ethereum blockchain. The gas price is measured in Gwei and fluctuates depending on the number of transactions that the Ethereum Network has to process.

You can track the current gas price for sending Ethereum and ERC20 tokens or making a swap on Uniswap here on Etherscan.

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7. HODL

HODL is probably the most used abbreviation in the cryptocurrency space and it basically means Hold

The term HODL probably originated in a post on the Bitcoin Forum message board. Someone posted a message with a typo in the subject “I am HODLING.” 

Since then the term HODL is often used in the crypto community for holding on to their coins and tokens instead of selling them, sometimes also with Diamond Hands.

 

8. Non-Custodial Wallet

Since the collapse of the FTX exchange a few weeks ago, everybody is talking about non-custodial wallets but what is it?

A non-custodial wallet is a decentralized type of wallet, to which you hold the private keys. Holding the private keys of the wallet equals you owning full control of your funds but be careful. Everyone is saying: “Not your keys, not your coins.” but almost no one talks about the danger of going non-custodial. For example, if you lose your private keys or if your wallet gets compromised, you will lose your coins and tokens that were stored in that wallet forever.

You can further differentiate between hot wallets like Trust Wallet, Atomic Wallet, or Metamask and cold wallets like Ledger or Trezor.

 

9. Shiller

A Shiller is someone who presents himself in forums, groups, or comments as a genuine customer. They hype their own coin or token without disclosing their relationship to the project. You can frequently find Shillers in the replies on Crypto Twitter, Telegram, and many other social media platforms.

 

10. Whale

You guessed it. When a crypto HODLer or trader talks about whales then he is not referring to the creature from the ocean. A crypto whale is someone who holds a large amount of a certain cryptocurrency like Bitcoin in his own private wallet. 

The amounts of crypto that a whale holds are uncommonly large, especially those with enough holdings to manipulate the market.

The opposite of a crypto whale is a crypto shrimp. 

 

My Final Conclusion

I hope that reading my post helps you to navigate through the crypto space, especially if you are new to it. 

If you still stumble upon an unknown term on your journey through the cryptocurrency space then I recommend looking it up in the CoinGecko Glossary of Cryptocurrency Terms.

Thank you for reading and if this is the kind of stuff that you like to read here on Publish0x, make sure to follow me for more.

If you like, you can also follow me on Twitter and Medium.

 

 

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