The world of cryptocurrencies can be overwhelming, especially for beginners. As the crypto space expands, so does the jargon, with new terms emerging to describe the features, utilities, and behaviors surrounding decentralized finance (DeFi). Understanding these terms is crucial to navigating crypto blogs, discussions, and investment strategies. In this article, we will break down the most common cryptocurrency slang that every crypto enthusiast and investor should be familiar with.

1. Ape

“Ape” refers to someone who buys into a new cryptocurrency or token without conducting proper research. This impulsive decision is often driven by FOMO (Fear of Missing Out), where the investor fears missing a potential profit. While this behavior can lead to quick gains, it often results in significant losses due to a lack of understanding of the project’s fundamentals.

2. Bagholder

A “bagholder” is an investor who holds onto a cryptocurrency long after its value has declined, often hoping it will rebound. This term is typically used to describe someone who is left holding a “bag” of worthless tokens after a significant market crash.

3. Bitcoin Maximalists

Bitcoin maximalists are individuals who believe that Bitcoin (BTC) is the only cryptocurrency worth investing in. They often argue that Bitcoin is the only digital asset that has proven security and potential for long-term value.

4. Bearish

The “bearish” market

A “bearish” market describes a period in which cryptocurrency prices are consistently declining, leading investors to feel pessimistic about the future of the market. This contrasts with a “bullish” market, where prices are rising.

5. Bullish

When the market is “bullish,” cryptocurrencies experience a rising trend, with prices and trading volumes increasing. Traders and investors often see this as an opportunity to profit.

6. BTD (Buy the Dip)

BTD, or “Buy the Dip,” refers to the strategy of purchasing cryptocurrencies when their prices fall to a lower level. The idea is to acquire assets at a discount, anticipating a future price rally. This tactic, sometimes known as “shorting crypto,” capitalizes on market swings in an effort to amass additional cryptocurrencies at reduced rates.

The “bearish” market

7. CEX (Centralized Exchange)

CEX stands for centralized exchanges, a platform that acts as an intermediary for buying, selling, or swapping cryptocurrencies. Unlike decentralized exchanges (DEX), CEXs are controlled by a central authority, making them more user-friendly but also more vulnerable to hacks.

8. Cryptojacking

Cryptojacking is a form of cybercrime where hackers hijack a user’s device to mine cryptocurrency without their consent. This malicious activity can slow down the victim’s computer and increase energy costs.

9. Cryptosis

“Cryptosis” is a term used to describe individuals who are extremely enthusiastic about cryptocurrencies. These people are deeply invested in learning about crypto and staying updated with the latest trends and news.

Cryptosis

10. DAO (Decentralized Autonomous Organization)

A DAO is a decentralized, community-driven organization that governs blockchain projects. Decisions are made via voting by token holders, allowing for greater decentralization and collective decision-making.

11. DApps (Decentralized Applications)

DApps are applications that run on decentralized networks like blockchain rather than on centralized servers. These apps offer greater transparency and security but often require more technical knowledge to use.

12. DeFi (Decentralized Finance)

DeFi refers to financial services that operate on blockchain networks without the need for intermediaries. DeFi platforms allow users to lend, borrow, trade, and earn interest on their digital assets.

13. Diamond Hands / Paper Hands

Diamond Hands / Paper Hands

These terms describe an investor’s willingness to hold or sell assets. “Diamond hands” refer to those who hold onto their investments despite market fluctuations, while “paper hands” describe investors who sell at the first sign of a price drop.

14. DEX (Decentralized Exchange)

A DEX operates without a central authority, allowing users to trade cryptocurrencies directly with each other. DEXs prioritize privacy and security but can have a steeper learning curve.

15. DYOR (Do Your Own Research)

DYOR (Do Your Own Research)

DYOR is a common acronym in the crypto space, encouraging investors to thoroughly research any cryptocurrency before buying it. This practice helps avoid scams and poor investment choices.

16. FOMO (Fear of Missing Out)

FOMO is the emotional impulse that drives individuals to invest in an asset simply because they don’t want to miss out on a potential profit. This behavior can often lead to hasty decisions and poor investments.

17. FUD (Fear, Uncertainty, Doubt)

FUD refers to the spreading of negative information about a cryptocurrency to create fear and uncertainty among investors. This tactic is sometimes used to manipulate market sentiment.

18. Gas

In the context of Ethereum and other smart contract blockchains, “gas” refers to the transaction fees paid to miners to process operations and transactions on the network. Gas prices fluctuate based on network demand.

19. HODL (Hold On for Dear Life)

HODL is a term for long-term crypto investors who avoid panic selling during market fluctuations. It originated from a typo but has since become a rallying cry for those who believe in the long-term potential of crypto assets.

20. NGMI (Not Gonna Make It)

NGMI is used when an investment or crypto venture doesn’t meet expectations. It’s often used as a reminder not to panic and to reassess the situation calmly. 

21. No-Coiner

A “no-coiner” is someone who has no cryptocurrency holdings and is typically critical of the crypto market. No-coiners are often skeptical about the value of digital currencies.

22. Normie

Normies are people who are unfamiliar with cryptocurrency and blockchain technology. They might be aware of Bitcoin but don’t fully understand its underlying principles or the crypto market dynamics.

23. Pump-and-Dump

A “pump-and-dump” scheme involves artificially inflating the price of a cryptocurrency through misleading or false information. In this scam, a coordinated group of individuals buys large quantities of a cryptocurrency, pushing its price up. As the price rises, new investors are enticed to buy in, only for the original group to sell their holdings (the “dump”) at a profit, leaving the latecomers with worthless tokens.

24. Rug Pull

A “rug pull” occurs when the developers of a cryptocurrency project suddenly abandon the project, taking all of the invested funds with them. This leaves investors with worthless tokens and no recourse to recover their money. Rug pulls are common in smaller or unverified crypto projects.

25. SAFU (Secure Asset Fund for Users)

SAFU is an initiative started by Binance, which stands for Secure Asset Fund for Users. This fund is designed to compensate users in the event of a hack or security breach on the Binance platform. The fund is financed by a portion of Binance’s trading fees and is intended to ensure that users’ assets are protected during emergencies.

26. Sats (Satoshis)

“Sats” is short for Satoshis, the smallest unit of Bitcoin. Named after Bitcoin’s pseudonymous creator, Satoshi Nakamoto, 1 Bitcoin (BTC) is divisible into 100 million Satoshis. This allows users to own fractions of a Bitcoin, making it more accessible for smaller investors.

27. Shill

Shill

Shilling is the act of promoting a cryptocurrency with the intention of driving up its price, often without disclosing the risks. While shilling can be done with good intentions, it’s often used in manipulative ways to attract uninformed investors.

28. WGMI (We’re Gonna Make It!)

WGMI is the opposite of NGMI (Not Gonna Make It). This term is used to inspire optimism and solidarity within the crypto community, with the belief that by sticking together, everyone will succeed in the long term. WGMI encourages a positive outlook and motivates people to continue investing or supporting a particular project, regardless of short-term volatility.

29. Whale

A crypto whale refers to an individual or entity that holds a significant amount of a particular cryptocurrency. These whales can influence the market by making large buy or sell transactions. Approximately 40% of all Bitcoin is held by fewer than 2,000 wallets, which means that whales can have a substantial impact on the price of digital assets.

Conclusion

The world of cryptocurrencies is vast, and understanding the evolving terminology is crucial for staying informed and making wise investment decisions. Whether you’re new to crypto or a seasoned investor, being aware of terms like FOMO, HODL, DeFi, and SAFU will help you navigate the complexities of the space with greater confidence.

The crypto community is filled with unique slang, but by mastering these terms, you’ll be better equipped to engage in discussions and make informed choices. Always remember to DYOR (Do Your Own Research) before diving into any investment, and protect yourself from potential scams like rug pulls and pump-and-dumps.

As crypto continues to grow, new terms and phrases will likely emerge, so staying up-to-date will keep you ahead of the curve. Happy investing!