You got that money, and you're ready to splurge a little on some cryptocurrencies, but you enter these crypto forums and get confused. Why? Because the "experts" are using terms you don't understand. Here are some terms you can familiarize yourself with before joining these forums.
Address
Addresses are where a cryptocurrency is received. Like your bank account number, crypto addresses are a collection of letters and numbers that represent your wallet, allowing you to send and receive cryptocurrencies. Double-check addresses before sending your crypto because coins will be lost forever if sent to the wrong address.
Altcoins
Any cryptocurrency that isn't Bitcoin is referred to as an altcoin. Altcoins range from Ethereum, the second most popular coin, to thousands of coins with relatively low market value.
ATH
All-time high. The cryptocurrency's highest price tag.
Block
Blocks are made up of transaction data that is acquired when users buy and sell coins on cryptocurrency blockchains. There is a limit to how much data each block can carry. A new block is produced to continue the chain when it reaches that limit.
Blockchain
This technology started cryptocurrencies. It's essentially an online digital ledger for storing verified and public cryptocurrency transactions. The data for transaction records are stored in "blocks," linked together by "chains (i.e., hashes)." Since subsequent blocks are placed on top of prior blocks, changing one requires changing all previous and subsequent blocks. One of the most significant advantages of a cryptocurrency over regular trading is the security offered by blockchain technology.
Cold wallet
No, you are not putting your wallet in the freezer to keep your crypto safe. This is a method of completely storing your cryptocurrency offline. Cold wallets look like USB devices that are protected with the use of passwords. Although this form of wallet can protect you from being hacked, you will lose all of your cryptocurrency if you lose it.
DeFi
Decentralized Finance (DeFi) is the practice of conducting financial activities without the need of a middleman, such as a bank, government, or other economic entity.
Diamond hands
This is a term for investors who avoid selling their assets even if that asset drops to the bottom.
DIP
buy the "dip". You've probably heard this almost on most discord and reddit groups. Buying the dip is when investors keep buying more crypto coins when the price drops.
Fiat
This is your US dollars, Euros, yuan, basically all government-issued currencies.
Fear of missing out (FOMO)
This term is quite self-explanatory. On some exchanges, there are lots of gains for a particular coin. You decide to buy, thinking you might miss out on massive gains. This is FOMO.
Fear Uncertainty and Doubt (FUD)
This is a tactic pushed by people or media to scare away investors from a potential investment opportunity. Just like when bitcoin was launched in 2009, it was termed:" currency for the nerds."
HODL
"Hold on to dear life." This is essentially an investing strategy in which people buy and hold a cryptocurrency without selling it. They hope to see its value rise, or skyrocket, in the future.
Hot Wallet
Hot wallets are the opposite of cold wallets, and they aren't actually "hot." It works in the same way as virtual wallets or online banking accounts. While these are more convenient, they are more vulnerable to hacking than cold wallets.
Initial Coin Offering (ICO)
This is a method of raising funding for a cryptocurrency project comparable to IPOs (Initial Public Offerings). The only difference is that instead of stocks, coins - or tokens - are utilized.
Mining
This is when "crypto miners" solve complex mathematical problems to verify new blocks and are rewarded with new coins. Mining is frequently tagged as cryptocurrency's weak point, as it consumes a lot of energy and is not environmentally friendly.
NFTs
These are blockchain-based digital assets with publicly verified intellectual property. The token cannot be duplicated, although the original NFTs can.
P2P
Peer-to-peer is defined as two users interacting directly without the involvement of a third party.
Paper hands
Or, as I like to call them, "scaredy kittens." These investors, mostly newbies, sell their assets when there is a slight drop. They mostly buy high and sell low because they are scared to lose their investments.
Rekt
Or "wrecked" is termed used when investors take a massive loss to their investments.
Stablecoin
This is a cryptocurrency whose value is tied to non-digital money or commodities, such as fiat currency. USDT, BUSD, PAX are examples of stable coins.
I hope these explained terms give you a voice on these crypto forums and help your crypto investment journey.