Crypto Definitions: An Intermediate’s Guide to Crypto Lingo #2
With increased exchange in cryptocurrency across the globe, new slang has emerged. You might have seen crypto enthusiasts online say something like “when LAMBO” or even “Hey, CryptoSis.” New investors or even veterans might find it challenging to understand the meaning of these cryptocurrencies’ lingo.
We’ve compiled a list of 20 popular slang used in cryptocurrency to help you stay more informed.
1. LAMBO: is a term cryptocurrency owners use when measuring their crypto wealth compared to a Lamborghini. When Lambo, a trader has enough crypto to buy a Lambo, a high-end car that represents the potential value of cryptocurrencies as a symbol of desire. Many wealthy cryptocurrency investors have even invested in Lamborghini as a status symbol for their success in the market.
2. Bagholder: this is a trader who has held a certain cryptocurrency for an excessive amount of time and now must deal with the effects of that choice. Extreme situations can cause a bagholder to buy at a high or fail to sell, leaving them with valueless coins.
3. DYOR: denotes “Do Your Own Research.” This is a common term that cryptocurrency enthusiasts frequently employ. The implication is that you shouldn’t ever trust anyone or anything without first independently confirming any trading claims made.
4. Shilling: crypto shilling is implicit advertising in which a reputable person tries to spread the buzz about cryptocurrencies on various platforms. Typically, the person, often famous, touts their support for the cryptocurrency through unpaid advertising despite receiving payment to do so.
5. REKT: is a phrase used in cryptocurrency trading to show that a person has lost a sizable investment. For instance, an individual new to cryptocurrency would be regarded as REKT if they put all of their money into a cryptocurrency that appeared to be increasing in value, but a few days later, the price fell noticeably.
6. Liquidity: in cryptocurrency liquidity is the simplicity with which a digital token can be changed into another digital asset or cash without depreciating. Cryptocurrency liquidity lowers the risk associated with investments, but more crucially, it facilitates the creation of an exit strategy, making it simpler to liquidate your holdings. Cryptocurrency liquidity enables price stability, lowers volatility, and aids in investigating trader activities.
7. Leverage: in cryptocurrency trading is the practice of making transactions with borrowed money to increase profits. Traders can use leverage to increase their trades’ purchasing or selling power. As a result, traders with limited starting capital can engage in leveraged trading by using it as collateral.
8. Volatility: is a consistent up-and-down swing in an asset’s value. Many traders are afraid of the potential difficulties or the potential volatility their investments may suffer when placing funds elsewhere other than the bank.
9. Farming: is lending or staking cryptocurrencies for benefits such as interest. To calculate their returns, farmers use annual percentage yields (APY). Farming for yield can be highly rewarding or extremely risky.
10. Double-spending: is when a trader changes a blockchain network and inserts a unique one that enables them to purchase a coin again. Although it is possible to double-spend, it is more likely that a coin will be taken from a wallet that wasn’t properly encrypted and protected.
11. White-label Wallet: a crypto wallet is a ready-built white-label solution for creating, storing, trading, swapping, paying, and using new and existing cryptocurrencies. Such a wallet enables a business to save time and money.
12. Bitcoin Maximalist: refer to individuals who believe that Bitcoin is the only digital asset that will be useful in the future. According to maximalists, Bitcoin is superior to all other digital currencies.
13. Cryptojacking: entails the theft of digital currencies, including Bitcoin, Monero, Dash, and Ethereum. It involves infiltrating other devices to access their processing power.
14. Flippening: refers to the speculative time in the future when Ethereum overtakes Bitcoin in terms of market capitalization. Some traders believe in the potential of Ethereum (ETH) replacing Bitcoin in terms of market value. Despite consistently ranking as the top cryptocurrency by market capitalization, BTC’s market dominance has dramatically decreased in recent years.
15. Seed Phrase: is a collection of random phrases generated by a cryptocurrency wallet when one initially configures it. An individual must remember these words. If one loses access to the device where it was originally kept, their seed phrase effectively serves as the crypto wallet recovery password.
16. Weak Hands: are traders and investors who lack confidence in their methods or the means to implement them. Weak hands frequently buy at market peaks and sell at bottoms, which is a definite way to lose money.
17. Dip: is a brief decline in cryptocurrency values, especially when a particular coin is anticipated to appreciate soon. A dip could be brought on by several things, such as unfavorable market circumstances, government intervention, or even manipulation.
18. BTD (Buy the Dip): is the recurring act of going long for an asset or security after a temporary price decrease. Buying the dips can be advantageous in long-term uptrends, but it might be unprofitable during cyclical downtrends. The average cost of holding a position can be reduced by dip purchasing, but the risk and reward of dip buying should always be considered.
19. Pump and Dump: is an illegal way of increasing the price of a stock or investment using false, deceptive or excessively overstated assertions. Typically, micro- and small-cap stocks are the focus of pump-and-dump scams. However, the practice is illegal and attracts heavy fines.
20. Cryptosis or OCD (Obsessive Crypto Disorder): is someone that has a strong desire to learn everything there is to know about cryptocurrencies. Such investors can get obsessive cryptocurrency disorder (OCD), in which they become fixated on it. A cryptosis is typical of keeping track of the daily and nocturnal fluctuations in Bitcoin prices.
Dive into the crypto world now!
Cryptocurrency is now more prominent, and you need to know its terminology. There is way more to learn!
Apply your knowledge and enjoy the crypto journey with blockbank. Download blockbank app and start buying, selling, and trading your favorite cryptocurrencies!