While the crypto industry is incredibly interesting and ever-changing, it is also highly complex.
The huge amount of terminology one needs to learn to truly understand cryptocurrency can be overwhelming.
Trading Acronyms
1.
Image Credit: Besjunior/Shutterstock
Either way, this acronym relates to a specific trading tactic.
Price dips are commonplace in the crypto realm,but tan range from minimal to somewhat catastrophic.
But the crypto industry is very unpredictable, so there’s no knowing if this tactic will pay off.
Image Credit: marcoverch/Flickr
Like HODLing, BTD also relates to the idea that a given asset will recover from its price dip.
FOMO
You may have heard of “FOMO” in your everyday life.
It is an abbreviation of “fear of missing out.”
In crypto terms, FOMO is the fear of missing a potentially huge investment opportunity.
This can drive individuals to make sudden or unwise decisions under the pressure of not grasping a worthwhile investment.
FOMO is pretty common when an asset or project receives a lot of hype.
Image Credit: marcoverch/Flickr
Trends are common in crypto, and new coins become highly sought-after every week.
So it’s no surprise that investors often worry about missing out on big profits.
DYOR
DYOR, or “do your own research,” ties into FOMO.
Coin Acronyms
1.
BTC
BTC is the shortened version of Bitcoin, the world’s most valuable and popular cryptocurrency.
Chances are you’ve heard of Bitcoin before.
Even those who have no interest in crypto are often aware of it.
Bitcoin has amassed millions of investors worldwide and a huge mining community.
It is undoubtedly the most successful crypto of all time.
ETH
ETH is the shortened version of Ethereum or Ether.
ETH is the native coin of theEthereum blockchainand is currently the second-most popular cryptocurrency in the world.
Its blockchain is hugely popular among DApp developers and NFT collectors.
DOGE
Dogecoin, the well-known meme coin, also goes by “DOGE.”
The coin was also popularized by billionaire Elon Musk when Tesla began accepting the asset for payment.
Crypto Platform Acronyms
1.
DEX
A DEX is adecentralized exchange.
These exchanges are just thatdecentralizedallowing for the non-custodial, peer-to-peer crypto trade between individuals.
These platforms also use smart contracts to execute trades.
Most DEXs exist on the Ethereum blockchain, such as Uniswap and SushiSwap.
CEX
CEX is an acronym for “centralized exchange.”
Centralized exchanges are among the most popular in the crypto industry and include Binance, Coinbase, and Kraken.
CEXs are operated by private companies and use third parties and intermediaries.
Some traders prefer centralized exchanges, while others lean towards decentralized exchanges.
ICO
ICOs are a key element of the crypto realm.
If a project receives enough hype, it can raise huge amounts of money via ICOs.
Additional Acronyms
1.
DeFi
DeFi, or decentralized finance, is an increasingly popular industry that provides financial services for decentralized assets.
In short, DeFi is an umbrella term that spans the cryptocurrency market.
Mining can be very lucrative, as miners are paid for their work.
This financial aspect has attracted hordes of eager individuals looking to earn rewards for contributing to blockchain security.
The proof of stake mechanism uses validators instead of miners.
These validators verify transaction blocks and secure the online grid.
As the name suggests, the proof of stake mechanism allows users to stake their cryptocurrency to receive rewards.
P2P
P2P stands for peer-to-peer.
This is a very common term in crypto and refers to a online grid that can directly connect computers.
These connected computers can then interact with each other and share resources.
P2P networks are commonly used for file-sharing platforms but are also prevalent in crypto.
