How to speak fluent crypto

How to speak fluent crypto
Everyone is talking about cryptocurrencies. The general consensus is that the revolutionary blockchain industry is here to stay. Besides producing mind-blowing tech and financial systems, the crypto industry also comes with its own unique language. If you don’t know the words, you won’t be able to join the conversation. Today we will teach you the a, b, c of cryptocurrencies and how to speak fluent crypto.

Herewith a few crypto words that are most often used. Learn them off by heart.

Alts

Alts refer to alternative coins. This includes all other cryptocurrencies besides Bitcoin. For example, Ethereum, Ripple, Monero, Doge etc. AltCoinTrader has an impressive selection of alts that is best suited to South African traders.

ATH

All Time High (ATH) refers to the highest historical price of a coin. This phrase is often used when referring to the potential price a coin can fetch. “The coin is down 20% from its ATH.”

Blood on the streets

When there is blood on the streets it means that cryptocurrency prices are going down by atleast 20% and are metaphorically “bleeding”. Bull and bear market

The terms “bull market” and “bear market” are not unique to the crypto space and are also used when trading stocks and bonds etc. Regardless, a lot of new traders get confused with the terms. A bull market indicates the market is aggressive and price can increase. A Bear market is when the bears are in control and the price will go down.

Bull and bear trap

A bull trap is when indicators show that the market is expected to turn bullish and prices will go up. Without prior notification, the market will do exactly the opposite and go down. A bear trap is when indicators show a downward trend. Then the market makes a sudden turn to the upside. Bull and bear traps are the number one cause for trader’s long and short positions getting liquidated.

DeFi

DeFi is so 2020! Decentralized Financing has taken the crypto industry by storm. DeFi offers investors the opportunity to secure financing by using cryptocurrencies as collateral. No approval or financial statements or KYC is required, as would be the case when securing a loan from a bank.

DEX

A DEX is a decentralized cryptocurrency exchange that operates without a central authority. Users do not have to transfer their cryptos to the exchange but rather peer- to-peer. This reduces the risk of theft.

Fomo

Fomo is applicable to traders who make bad decisions based on a Fear Of Missing Out (Fomo). This would typically happen when a coin is spiking and traders would buy in at a high price. Minutes later the price of the coin would consolidate or even dump.

Fud

Fud is news or gossip that is aimed at creating fear and consequently, makes traders hesitant to buy a coin.

Hodl

Hold On for Dear Life (Hodl) is a way to urge traders not to sell coins but rather to wait. It’s a misspelling of ‘hold’. Many traders are very successful by simply hodling a coin through low and high markets.

Liquidity Pools

Liquidity Pools are pools of coins/tokens that provide liquidity to DEXes. The tokens are locked in a smart contract and are used to facilitate trading.

Liquidity Tokens

Liquidity Tokens are a form of compensation when a trader supplied liquidity to a pool. Liquidity Tokens are awarded to traders based on how much liquidity they supplied to a specific pool.

Moon

The word ‘moon’ is often used in ‘When moon?’ and ‘to the moon’. This indicates that the price has or could increase significantly.

Noob

A Noob is someone who is new to the crypto space.

Peer-to-Peer

Peer-to-peer allows computers that are operated by individuals, to share certain information and resources directly with each other. These peer-to-peer networks do not rely on a dedicated central server.

Private keys

Your private key is a form of cryptography that acts as a key to unlock your cryptocurrency wallet. It is very important that you keep your private key a secret as it can be used to gain access to your funds.

Rekt

‘Alts are getting rekt’ is a popular phase that indicates that the price of alternative coins are going down significantly.

Sats

Sats refers to the smallest units of Bitcoin. Just like 100 cents make R1, there are 100 000 000 sats in a Bitcoin. Sats is derived from the creator of Bitcoin, Satoshi Nakamoto.

Shitcoin

A shitcoin is a cryptocurrency that becomes worthless after a while. It is mostly associated with scam operations.

Smart Contract

A smart contract is a computer program that automatically controls and executes transactions or actions in terms of a contract.

Stable Coin

A stable coin is a cryptocurrency that maintains a stable value throughout its existence. For example, Tether remains in the $1 price range. Stable coins are used as a hedge against cryptocurrency market volatility. Xzar is a popular stable coin used by many South African traders.

Wallet address

Your cryptocurrencies are kept in a wallet in the same way you would keep money in a wallet. Your wallet address consists of a variety of numbers and letters and is unique to your wallet type. Each coin will have its own wallet address that you can share with someone who is sending you cryptocurrencies. Remember that if you send Bitcoin to an Ethereum wallet address for example, your funds will be lost. Also, double check your wallet address before forwarding it.

When Lambo?

Traders will ask ‘when Lambo?’ if they want to know when a coin’s price will go so high they can afford to buy luxury items like a Lamborghini.

White paper

A white paper is a business plan of a cryptocurrency project. The document is usually freely available on the project’s website and serves as a roadmap for potential investors.

Yield Farming

Yield Farming goes hand-in-hand with the DeFi hype. Yield Farming allows investors to earn fixed or variable interest by investing various cryptocurrencies into a DeFi platform.