The cryptocurrency industry, due to its specific terminology, may seem somewhat mysterious at first. Complex terms and a large number of acronyms can be overwhelming and make it harder to find the information you need. To help you navigate this space more easily, we have prepared a list of key acronyms worth knowing when exploring the world of cryptocurrencies.
HODL
An abbreviation for “Hold On For Dear Life.” The term “HODL” originates from a misspelling of the word “hold” on the Bitcointalk forum in 2013. It describes an investment strategy focused on long-term holding of cryptocurrency, regardless of short-term price fluctuations. Those who adopt this strategy are called “hodlers.” They do not react to temporary price drops or spikes, instead focusing on potential long-term gains. For hodlers, long-term vision is more important than short-term market emotions.
FOMO
“Fear Of Missing Out” refers to the fear of missing opportunities, in this case, investment opportunities in cryptocurrency. This psychological mechanism leads to impulsive decisions when investors worry about missing a chance for quick profits. In 2017, FOMO was one of the driving forces behind Bitcoin’s rapid price surges and declines. It often causes investors to make decisions based on emotions rather than thorough analysis, leading to financial losses.
DYOR
“Do Your Own Research” became especially popular in 2022. This acronym serves as a reminder for investors to thoroughly analyze and study projects or cryptocurrencies before investing. By doing so, they have a better chance of understanding risks and avoiding potential market pitfalls.
FUD
“Fear, Uncertainty, and Doubt” (FUD) is a psychological tactic involving the spread of misinformation to create a negative perception of a particular product, coin, or market.
In the cryptocurrency world, FUD is understood in two ways:
- Deliberate spreading of fear, uncertainty, and doubt about a specific project to manipulate its price downward.
- A general skeptical attitude toward cryptocurrencies, often spreading false information predicting the collapse of the industry.
FUD is often seen as the opposite of FOMO. When the market is bullish, many investors experience FOMO, eager to capitalize on potential gains. In contrast, during bearish trends, FUD becomes more dominant, leading to panic and impulsive selling. Investors should be aware of these emotions and base their decisions on rational analysis rather than emotional reactions.
GM
Traditionally meaning “Good Morning,” in the cryptocurrency world, “GM” has taken on an additional meaning. While still used as a greeting, it has become a symbol of positivity, community spirit, and engagement in online discussions. On platforms like Twitter, crypto enthusiasts often start their day by posting “GM,” reinforcing the sense of camaraderie.
ATH
“All-Time High” refers to the highest price ever reached by a particular cryptocurrency or digital asset. This term describes the peak market value recorded for an asset.
BTD
Short for “Buy The Dip,” this phrase encourages investors to purchase cryptocurrency during price drops, hoping for a future price increase.
DeFi
“Decentralized Finance” refers to financial applications built on blockchain technology that aim to remove intermediaries like banks.
DAO
“Decentralized Autonomous Organization” is a structure that operates without intermediaries or external supervision. It is managed collectively by its community through governance tokens. DAO decisions are made through decentralized voting and executed via smart contracts.
dApp
A “decentralized application” operates on blockchain technology. Its interface often resembles traditional web or mobile applications, but it requires connection to a cryptocurrency wallet. Unlike standard apps, dApps benefit from decentralization, providing increased security and censorship resistance.
DEX
“Decentralized Exchange” is a trading platform that allows users to exchange digital assets in a peer-to-peer manner without intermediaries. Transactions occur directly between users, ensuring greater privacy and security.
CEX
“Centralized Exchange” is the opposite of a DEX. In a CEX, a centralized organization or company manages users’ assets and transactions. Popular examples include Coinbase and Binance.
KYC
“Know Your Customer” refers to identity verification procedures required by centralized exchanges to comply with financial regulations and prevent money laundering. It typically involves providing personal information and document verification, such as passports or driver’s licenses.
LFG
“Let’s F-ing Go!” is an expression of excitement and enthusiasm about a project or event.
IYKYK
“If You Know, You Know” suggests that a particular piece of information is meaningful only to those familiar with the subject. Often used with a hint of irony.
NGMI / WAGMI
- NGMI (“Not Gonna Make It”) predicts failure, usually due to poor investment decisions. It can also refer to people who dismiss cryptocurrencies without understanding them.
- WAGMI (“We’re All Gonna Make It”) expresses optimism and community support, encouraging a positive outlook in difficult market conditions.
EVM
“Ethereum Virtual Machine” is the computing environment that runs applications and smart contracts on the Ethereum blockchain.
2FA
“Two-Factor Authentication” is a security measure requiring an additional verification step, such as a one-time code sent via SMS, to protect access to digital assets.
PnD
“Pump and Dump” describes a scheme where the price of a cryptocurrency is artificially inflated before being quickly sold off at a profit, causing a sharp price drop.
NGU
“Number Goes Up” is a phrase used to express optimism about the rising value of a cryptocurrency, often in response to market downturns.
TxID
“Transaction ID” is a unique identifier for tracking transactions on a blockchain network, such as Bitcoin or Ethereum.
ICO
“Initial Coin Offering” is a fundraising method where new cryptocurrencies are sold to investors in exchange for initial capital.
STO
“Security Token Offering” is similar to an ICO but involves regulated investment tokens backed by real assets.
P2P
“Peer-to-Peer” refers to direct transactions between users without intermediaries.
ERC
“Ethereum Request for Comments” defines standards for tokens operating on the Ethereum platform.
SHILL
Refers to aggressive promotion of a cryptocurrency to attract investors and increase its value.
WHALE
A term for investors holding large amounts of cryptocurrency, with the ability to influence the market.
ROI
“Return on Investment” measures the profitability of an investment compared to the initial amount spent.
To the Moon
A phrase indicating expectations of a significant price increase for a cryptocurrency.
REKT
A slang term used when an investor suffers a substantial financial loss in a short period.
CRYPTOSIS
An obsession with cryptocurrencies. Someone experiencing “cryptosis” is completely immersed in the crypto market.
FAUCET
A website that distributes small amounts of free cryptocurrency, often as a promotional tool.
LAMBO
Short for Lamborghini. The car brand has become a symbol of wealth in the cryptocurrency world, often used humorously to ask when a trader will become rich enough to buy one.
RUG PULL
A scam where developers artificially inflate the value of a cryptocurrency before abruptly abandoning the project, leading to a sharp price crash.
OG
“Original Gangster.” In cryptocurrency, this term refers to early adopters who were involved in the industry before it became mainstream, particularly around 2013.
Summary
Understanding cryptocurrency terminology is essential in the rapidly evolving crypto industry. Familiarity with these acronyms and concepts can make navigating this space much easier. We hope this glossary helps you better understand the language of crypto. Wishing you success in the world of cryptocurrencies!
