There are lots of new terms to familiarise yourself with if you are new to the world of cryptocurrency. It can be rather overwhelming, but we are here to assist you every step of the way, which is why we have put this series together on crypto terms. We covered a few in our previous blogs on Crypto slang, and here are some that you need to know:
- Halving – Halving is one of Bitcoin’s most ever anticipated events. It is the procedure of having the rewards of mining Bitcoin once approximately 210,000 blocks are mined. On average, this will take around four years. Halving is to ensure that the quantity of Bitcoin in circulation does not end up increasing exponentially.
- Hash rate – Hash rate is a term used to describe the measure of processing power and computing utilized in crypto mining, as well as the process of getting a cryptocurrency via powerful computers and software that has been specially designed.
- ICO – Next, we have ICO, which stands for Initial Coin Offering, and refers to how blockchain projects raise money and launch virtual currency networks. Back in 2017 and 2018, ICOs exploded in popularity due to the wider market frenzy.
- Mining – Mining refers to the process that is used when minting new cryptocurrencies. A lot of cryptocurrencies rely on a proof-of-work mining system, whereby computational power is delegated toward solving complicated math riddles as a way to simultaneously secure and power a network while minting new tokens in the process.
- Rekt – Rekt is simply the crypto slang version of ‘wrecked.’ This term is used when a trader ends up with substantial monetary losses.
- OCD – We are sure you have heard of OCD in the traditional sense. However, in the world of crypto, it stands for Obsessive Crypto Disorder. This describes a situation whereby an investor is very obsessed with the coins they hold. They try to get as much information as possible about the cryptocurrency they own.
- Paper hands – Paper hands is a term that describes a situation whereby an investor with a low-risk tolerance exits a trade whenever they spot the first sign of trouble.
- Mooning / to the Moon – This is a term used to describe a situation whereby a cryptocurrency reaches an all-time high price and is still increasing off the charts. If a coin crosses over a 100 per cent increase in value within a short period of time, you can use this phrase.
- FUD – Last but not least, we have FUD, which is an acronym that stands for Fear, Uncertainty, and Doubt. FUD is used to indicate to traders that some people are spreading false information and negativity about a virtual coin for the purpose of dropping its value. False data and negative news can cause panic, resulting in a major sell-off in the market.
So there you have it: some of the main crypto slang terms you should know about! Understanding and remembering all of the terms can be quite overwhelming at first, but don’t panic; you will soon get to grips with them and it will become second nature.