Crypto terms for starters

There is no time like the present to start looking at different crypto markets and investing in cryptocurrency. And with the recent proliferation of sports coins and NFTs, you can also now scratch the collecting itch too.

There is a lot to learn in terms of what crypto is, and some of the terms can be a little off-putting if you don’t have a good grasp of what these alt-coins do. So I have compiled a little glossary of terms that you will encounter in the best crypto exchanges to help new investors get a better grip on crypto investing faster.

Basic Crypto Glossary

I decided not to list these alphabetically as I wanted to highlight the importance of the Whitepaper to crypto investing.

Whitepaper: The Whitepaper is the document that explains the function of the crypto coin/currency. It provides investors with the concept, technical information, and the path to success. It will usually include details regarding the crypto tokens, including their value, how many are intended for use, and which crypto token platform they are designed to be issued on.

Crypto investors must research their investments beforehand. Reading and understanding the Whitepaper is the first step.

Blockchain: The distributed ledger system. A sequence of blocks, or units of digital information, is stored consecutively in a public database—the basis for cryptocurrencies.

Block: A file containing transaction information completed during a given time period. Blocks are the main component of a blockchain.

Address: Where crypto can be sent to and from, in the form of a string of letters and numbers.

Alt-coin: A catchall for just about any cryptocurrency released after bitcoin.

NFT: A ‘non-fungible token’ is a unit of data stored on a blockchain, usually in the form of an image, video, or even audio.

Etherum Killer: An Etherum killer is anything faster and cheaper than the Etherum Network. Projects like Solana (SOL) and Polygon (MATIC) have been dubbed Etherum killers due to their low cost and high speed. In the case of Solana, the reduced environmental impact is also driving interest.

Buy the dips: This refers to the practice of buying up crypto when it drops to a favorable price. This practice is popular with long-term investors who plan on holding crypto.

Bears and Bulls: Taken from the stock market, a bull is an investor who buys crypto in the expectation of a price rise or an investor whose actions facilitate a price rise. A bear is the opposite—an investor who sells crypto in anticipation of a price drop.

DeFi: Decentralized finance technology based on blockchain ledgers and Smart Contracts.

Fiat Currency: This generally refers to the currency your country uses.

Smart Contract: Smart Contracts are programs that are stored and run on a blockchain used to automate the execution of the terms of a contract.

DAO: A decentralized autonomous organization (DAO) is founded upon and governed by computer-defined rules and blockchain-based smart contracts.

dApps: Applications that run on a decentralized network, avoiding a single point of failure. A distributed network of computer nodes, as opposed to a single server.

HODL: Hold on for dear life, this is when you buy crypto and just on it for a long time regardless of the dips and peaks.

FOMO: Fear of missing out, this is when you buy crypto that is skyrocketing. A lot of the time it is already too late and you end up losing out on the surge, ending up with the correction.

Correction: When crypto decreases 10% or more, although there is no strict definition. It is sometimes called a correction because the asset returns to a “normal” price from an abnormal surge.

Web3: refers to the perceived future of a decentralized web. On built on blockchain technology and based on truth rather than trust.

Check back often to see what else has been added to the crypto glossary. You can also read more crypto terms at Alexandria.