20 Cryptocurrency Terms Every Trader Should Know

No matter what you think about cryptocurrencies, one thing is for sure: our world is rapidly evolving into a Metaverse. As we’re evolving into a digital setting, cryptocurrencies are slowly becoming the currency of the future. Since these digital assets have become so mainstream online, you probably come across cryptocurrency news and blockchain investment advice on social media platforms every day.

If you’re in the trading circles, you may come across industry-specific terminology. These terms make trading easier and help the crypto community create a stronger bond through industry-specific communication. Even though this investment advice and market cap fluctuations can be comparatively easy to read, a regular person might have a hard time understanding every now and then when they encounter these terms and idioms.

Below, we’ve gathered 20 crypto terms every trader should know and their respective explanations in detail. Scroll down to learn all about them.

20 Crypto Terms Every Trader Should Know

1. Bagholder

A bagholder refers to a trader who is holding onto a cryptocurrency that has considerably dropped or risen in price even to the point where it becomes worthless. Bagholders can be likened to real-life hoarders. These people will save their money even if it’s lost its value for even worse days.

2. Blocks

The blocks used in crypto mean the blocks that make up a blockchain. Each of these blocks carries databases of all the transactions done on crypto until they’re full.

3. Bullish/Bearish

Bullish and bearish both refer to a pattern in the crypto market. Although they were mainly used in traditional stock markets, they’ve found their way into the cryptocurrency industry. A bullish market will have upward trends in price, while a bearish market will have downward trends.

4. BTFD

In layman’s terms, ​“buy the dip” is used by traders to encourage people to invest when a stock has dropped in price. BTFD is an acronym that stands for “Buy The F**king Dip.” This acronym is used at times when a trader calls out to other traders to buy a cryptocurrency that has dropped in value in order to pick it up.

5. Cryptosis

When a trader is obsessing over cryptocurrencies with an endless thirst for knowledge, it’s called cryptosis. The tell-tale signs include reading through community forums, following crypto discussions online and in-person, and basically trying to make the most of cryptocurrencies while trying to minimize any kinds of risks while trading. It can come off as annoying to some, however, many traders go through cryptosis in their crypto journeys.

6. Diamond Hands/Paper Hands

Similar in meaning to HODLing, having diamond hands mean holding Bitcoin even when there’s a lot of pressure to sell and the currency is on a downward spiral. On the contrary, paper hands refer to traders that sell their assets way too early due to their fear of losing money.

7. Fiat

Fiat is the common name for government-issued currencies, like the U.S. dollar in crypto. Basically, a fiat is any currency that is controlled by a central authority. To explain in simpler terms, Bitcoin, in its decentralized form, acts as a counterpoint to general fiat currencies.

8. Fork

Fork in crypto is a term used to describe an event where a cryptocurrency or blockchain network divides into two separate projects with their own codes and principles. Fork in itself divides into two types. When a soft fork occurs, only one of the two projects will remain. During a hard fork, two new chains are created.

9. FUD

FUD means short for fear, uncertainty, and doubt in crypto. FUD refers to the feelings of anxiety when people spread negative feelings about Bitcoin.

10. Gas

Gas is the name of the cost of computing power used during transactions on the Ethereum blockchain. The used gas is passed on to network users and participants in the form of transaction fees and payments.

11. Halving

Halving refers to one of the most anticipated events for Bitcoin. It is a process of halving the rewards of mining Bitcoin after around 210,000 blocks are mined. This usually takes around four years. Halving is to make sure that the number of Bitcoin in circulation does not increase exponentially.

12. Hash Rate

Hash rate refers to the measure of computing and processing power that is used in crypto mining and the process of obtaining a cryptocurrency through powerful computers and specially designed software. A higher hash rate is the indicator of a stronger network.

13. HODL

HODL is a common acronym that means to buy-and-hold digital assets indefinitely. The name allegedly comes from an online user’s misspelling, where he meant to type hold. Initially, the idea behind HODL was that Bitcoin’s price will continue to rise, regardless of huge dips. Today HODL has become a motto for cryptocurrency enthusiasts where traders hype each other to not sell their assets in the hopes that prices will go up again.

14. ICO

ICO is short for Initial Coin Offering. The term refers to how blockchain projects raise money and launch their currency networks. While ICOs became popular in 2017 and 2018, many ICOS turned out to be pump-and-dump schemes, resulting in the Securities and Exchange Commission having sued many of them.

15. Pump and Dump

Collectively buying a cryptocurrency in order to increase the value of a coin and selling it at higher prices is called a Pump and Dump. A form of price manipulation, Pump and Dump is based on false recommendations used to boost the prices of a currency where they’ll be sold at a higher price than they originally would have been.

16. Satoshi

The commonly used term Satoshi has two meanings. The first meaning of the term refers to Satoshi Nakomoto, also known as the anonymous founder of the decentralized project Bitcoin who vanished shortly after his creation. Since Satoshi is absent, Bitcoin is now collectively managed. The second meaning is a unit of exchange. To be exact, one Satoshi is equal to .0001 Bitcoins.

17. Shill

Shilling in crypto means the promotion of a cryptocurrency for a trader’s own personal benefit. Those who shill are people that have likely invested in a specific project or currency that is not performing well and those who are trying to get others to invest in order to pick up the price.

18. To the Moon

When you see a “To the Moon” tweet or message with a rocket emoji among fellow traders, it means that the said project or cryptocurrency is expected to reach a new height in its price. It’s best to look out for it.

19. WAGMI/NGMI

Short for we’re all gonna make it, WAGMI is a hopeful acronym used among traders. The acronym is often used in the crypto community to encourage others not to lose hope in spite of the volatility of the market. Whereas, NGI, the acronym for not gonna make it is the opposite form of WAGMI, referring to bad decisions and unsuccessful investments.

20. Whale

Whales are used to define individual investors and rich trading firms with large amounts of Bitcoin and other cryptocurrencies. In crypto circles, whales are both feared and respected among day traders for their power to move prices up and down with single trades. Some of the well-known whales include celebrities, big corporations, and visionary individuals who bought Bitcoin in its early years and never sold it.