Just like the traditional financial world, the cryptocurrency space has its own set of specialized terms and slang. For those new to the scene, understanding this unique lingo is crucial for grasping information and engaging effectively with the crypto community. This guide compiles the most common cryptocurrency jargon to help you quickly get up to speed.
25 Must-Know Crypto Trading Terms
Navigating social platforms like X (formerly Twitter) and Discord means encountering a flood of crypto-specific slang. Here’s a breakdown of what these terms mean and how they’re used.
1. FOMO
Stands for Fear Of Missing Out. This term describes the anxiety that an exciting opportunity is passing you by. It’s a powerful driver in crypto markets, often leading investors to buy into assets, like a surging meme coin, purely based on hype without conducting proper research.
2. FUD
An acronym for Fear, Uncertainty, and Doubt. FUD is a strategy to spread negative sentiment and manipulate the perception of an asset. The crypto community also uses it to label individuals who express overly pessimistic views about the market.
3. HODL
Originally a misspelling of "hold" in a forum post, HODL has been retrofitted to mean Hold On for Dear Life. It refers to the strategy of holding onto your cryptocurrency investments for the long term, regardless of market volatility or downturns, based on a belief in their future value.
4. REKT
Slang for "wrecked." This term is used when a trader’s portfolio experiences a significant loss, often due to a bad trade or a market crash. It’s also commonly associated with large-scale liquidations in leveraged trading.
5. Mooning
Refers to a cryptocurrency’s price that is expected to rise dramatically—"going to the moon." Investors use this term to discuss the optimal time to sell an asset for maximum profit during a strong bullish trend.
6. ATH / ATL
ATH stands for All-Time High, the highest price a cryptocurrency has ever reached. Conversely, ATL stands for All-Time Low, the lowest price it has ever traded at.
7. Whale
A "whale" is an individual or organization that holds a large amount of a particular cryptocurrency. Their trades are significant enough to influence the market price. An entity holding 5% or more of a coin’s total supply is typically considered a whale.
8. Shill
To "shill" is to aggressively promote a specific cryptocurrency project or token, often without disclosing one's own vested interest. It’s seen as a form of marketing that can be unethical if it involves exaggerating a project's potential to encourage others to invest.
9. Pump and Dump
A fraudulent scheme where a group of investors artificially inflates ("pumps") the price of a cryptocurrency through coordinated buying and hype. Once the price peaks and new buyers enter the market, the schemers sell ("dump") their holdings, causing the price to crash and leaving others with losses.
10. Rug Pull
A type of exit scam in decentralized finance (DeFi). Developers abandon a project after raising funds from investors, often by embedding a hidden function in the smart contract that allows them to drain all the invested funds. This is frequently preceded by a pump-and-dump scheme.
11. Ape / Apeing In
To "ape" into a project means to invest a significant amount of money into a cryptocurrency, typically a new or meme coin, based on hype or social sentiment rather than thorough research. It’s a impulsive, FOMO-driven action.
12. Sat (Satoshi)
The smallest unit of a Bitcoin, named after its creator, Satoshi Nakamoto. One Bitcoin is equal to 100 million satoshis (sats). Think of it as the "cents" to Bitcoin’s "dollar."
13. ICO
Stands for Initial Coin Offering. Similar to an Initial Public Offering (IPO) in stock markets, an ICO is a fundraising method where new projects sell their underlying crypto tokens to early investors.
14. KYC
Stands for Know Your Customer. It’s a mandatory verification process used by most regulated cryptocurrency exchanges to confirm the identity of their users. This helps prevent fraud, money laundering, and ensures regulatory compliance.
15. NFT
A Non-Fungible Token is a unique, non-interchangeable digital asset stored on a blockchain. NFTs can represent ownership of a specific item, such as digital art, collectibles, music, or in-game items.
16. BTD / BTFD
Stands for Buy The Dip or Buy The Fing Dip*. This is a strategy where investors buy more of an asset when its price experiences a temporary decline, viewing it as a discount with the expectation that the price will rebound.
17. Airdrop
A marketing strategy where a project distributes free tokens or coins to its community members. This is done to promote awareness, reward loyalty, or encourage specific actions like sharing social media posts or signing up for a platform.
18. DAO
A Decentralized Autonomous Organization is an entity with no central leadership. Decisions are made collectively by its members, who vote on proposals governed by smart contracts on a blockchain. It’s like a digital cooperative.
19. Dapp
A Decentralized Application is an application that runs on a decentralized peer-to-peer network (like a blockchain) rather than a single central server. Dapps are fundamental to the Web3 ecosystem, covering areas from finance to gaming.
20. DeFi
Short for Decentralized Finance. This term refers to a system of financial applications built on blockchain networks that aim to recreate traditional financial systems (like lending and borrowing) without central intermediaries.
21. Gas
A fee required to successfully conduct a transaction or execute a contract on a blockchain network, most commonly associated with Ethereum. Gas fees compensate network validators for the computational energy required and fluctuate based on network congestion.
22. Address
A crypto address is a unique string of characters where cryptocurrency can be sent to and stored, much like a bank account number. Each address on the blockchain is unique to its owner.
23. Mint / Burn
To mint means to create or generate a new cryptocurrency token or NFT. Conversely, to burn tokens is to permanently remove them from circulation, often to reduce supply and increase the value of the remaining tokens.
24. Shitcoin
A derogatory term for a cryptocurrency perceived to have little to no value or practical use case. It can refer to any coin other than Bitcoin or, more specifically, to low-quality projects created purely for speculation.
25. DEX / CEX
A DEX is a Decentralized Exchange that allows peer-to-peer cryptocurrency trades to take place without an intermediary, using smart contracts. A CEX is a Centralized Exchange, which is a traditional platform operated by a company that manages users' funds and matches buy/sell orders.
Crypto Culture and Community Slang
Beyond trading, a rich culture has developed its own unique slang to describe behaviors and mindsets.
1. Diamond Hands
Refers to an investor with extremely high conviction and risk tolerance. They hold onto their investments through severe market downturns and volatility, believing strongly in long-term gains.
2. Paper Hands
The opposite of diamond hands. An investor with "paper hands" sells their assets at the first sign of trouble or a minor price dip, often to avoid further losses, demonstrating low risk tolerance.
3. Degen
Short for "degenerate." This term describes a trader who engages in high-risk, speculative investments, often in new or obscure tokens, with a strategy that prioritizes potential high returns over fundamental analysis.
4. Normie
A term for someone with little to no knowledge about cryptocurrency and blockchain technology, often a new or casual observer entering the space.
5. Bagholder
An investor left holding a significant amount of a cryptocurrency after its price has crashed. They often continue to hold onto these devalued assets, hoping for a recovery that may never come.
6. WAGMI
An acronym for We're All Gonna Make It. This phrase embodies the optimistic, communal spirit of the crypto space, expressing belief in collective long-term success.
7. NGMI
Stands for Not Gonna Make It. Used to critique someone's poor investment decision or lack of understanding, suggesting their strategy will lead to failure.
8. Copium
A portmanteau of "cope" and "opium." It describes the false hope or rationalization an investor clings to after a bad investment to cope with their loss, often denying reality.
9. Hopium
A blend of "hope" and "opium." It refers to unrealistic optimism or excitement about a cryptocurrency's future potential, often based on speculation rather than facts.
10. Wen Lambo?
A humorous, often sarcastic question: "When Lamborghini?" It pokes fun at the ultimate goal of many crypto investors—making enough profit to buy a luxury car—and highlights a focus on price speculation over technology.
11. LFG
Stands for Let's Fing Go!* An expression of extreme excitement or bullish enthusiasm for a project or a piece of positive market news.
12. GM / GN
Abbreviations for Good Morning and Good Night. These are common, friendly greetings used within crypto communities on social media to build camaraderie.
13. DYOR
Perhaps the most important acronym: Do Your Own Research. A reminder that investors should never blindly follow others' advice but should instead conduct their own thorough due diligence before investing.
Getting Started with Crypto Trading
Now that you're familiar with the essential jargon, you might be ready to explore cryptocurrency investing. The space offers a wide range of methods, from beginner-friendly to advanced, each with its own risk profile.
It's crucial to start slowly. Don't feel pressured to imitate complex strategies like yield farming, staking, or participating in ICOs immediately. Build your knowledge foundation first. Avoid making impulsive decisions driven by FOMO, as they often lead to significant losses. Always prioritize security and choose reputable, well-established platforms for your transactions.
👉 Explore trusted trading platforms to get started
Frequently Asked Questions
What does HODL mean?
HODL is a crypto slang term that originated from a misspelling of "hold." It stands for "Hold On for Dear Life," advocating a long-term investment strategy where investors retain their assets despite market volatility, based on a belief in their future appreciation.
What is a rug pull in crypto?
A rug pull is a type of DeFi scam where developers abandon a project and abscond with investors' funds. This is often facilitated by a hidden function in the project's smart contract that allows the creators to drain all the liquidity from the project.
Why is KYC important on crypto exchanges?
KYC (Know Your Customer) procedures are crucial for security and regulatory compliance. They help exchanges verify user identities, prevent fraud, money laundering, and other illicit activities, creating a safer trading environment for everyone.
What is the difference between a CEX and a DEX?
A CEX (Centralized Exchange) is run by a company that acts as an intermediary, holding users' funds and facilitating trades. A DEX (Decentralized Exchange) operates without a central authority, allowing users to trade directly from their personal wallets using smart contracts. DEXs offer more privacy, while CEXs often provide easier onboarding and more features.
What does it mean to have diamond hands?
Having "diamond hands" means you have the strong conviction to hold onto your cryptocurrency investments through major price dips and market panic, without selling. It reflects a long-term, high-conviction investment mindset.
Is FOMO a good strategy for investing in crypto?
No, investing based on FOMO (Fear Of Missing Out) is generally a poor strategy. It leads to impulsive decisions, buying at inflated prices, and often results in significant losses when the hype dies down. The best strategy is always to DYOR (Do Your Own Research) and make informed decisions.