The rise of cryptocurrencies made it extremely appealing for retail investors to jump onboard. It’s fantastic that as the time goes on, more and more people are joining, but the feeling of being lost is still there. Has it ever crossed your mind that crypto enthusiasts speak another language? While it’s true that many words may seem confusing at first, especially to those who are new to this space, the meaning is usually straightforward and simple to understand. 

The best way is to divide the crypto slang into two categories: technical terms and commonly used words. This method of division is less confusing and separates the technical minds from “normies”. Are you ready to learn these terms? Let’s dive in.

What are altcoins?

Bitcoin is the original cryptocurrency, created in 2009. While many coins have established their position, BTC still remains the king, and thus all cryptos besides it are called altcoins, which is a short form of alternative coins.

Bitcoin is the king of cryptocurrencies and is very unlikely to be dethroned in the near future.

What is an all-time high & all-time low?

The price of a particular coin has a massive effect on how the majority feels about it. All-time highs are when a cryptocurrency is the most expensive it’s ever been. Therefore, this event is heavily celebrated by its community. On the contrary, all-time lows are when prices are the lowest. This may be the perfect moment to buy more or the worst; it’s up to what the price does next.

What is an airdrop?

Airdrop is free cryptocurrency that every community member is entitled to, provided they met the criteria. It is a way of saying thank you to the community for joint efforts in making the coin the best it can be.

What is a bull market?

A bull market is when assets are appreciating. This may be a reason for happiness and greed at the same time. Many are prompted to make reckless financial decisions, which impact their lifestyle and families.

What is a bear market?

A bear market is the opposite of a bull market. During this period, everything is going down, and opportunities are very limited. It may not seem like it, but at the same time, it’s the best opportunity to get ahead of everyone and scoop some coins for long-term growth. It’s the bear market where wealth is accumulated, and later on, money can be made.

What is EVM?

The Ethereum Virtual Machine is a decentralized computation engine that executes smart contracts. It enables the code to execute the way it should. EVM is native to the Ethereum blockchain, but there are tons of other alternatives developed for other networks that work in a similar manner.

What are fiat currencies?

Fiat currencies, also known as fiduciary currencies, are traditional currencies like the US dollar or Euro. The value of fiat money is not backed by any commodity; thus it is based on the faith in the government and the stability of the financial system. Unlike Bitcoin, which has a limited supply of 21 million BTC, fiat currencies are not capped, and their supply increases over time, making their value diminish.

Fiat money and cryptocurrencies are fundamentally different. Trust the math, not the financial system.

What is the UTXO model?

UTXO stands for Unspent Transaction Output and is similar to a change you receive when paying with cash. In essence, it is a part of a crypto transaction that has been received but not yet spent. The next time you make a transaction, UTXOs are consumed first. Many older cryptocurrencies like Bitcoin or Cardano utilize this model. One of its advantages is that it regenerates your crypto address every time you receive or send crypto. It doesn’t guarantee any privacy; however, it makes it much harder to keep up with someone’s transactions.

What is technical analysis about?

Technical analysis, or TA for short, is a way of analyzing the market structure and predicting the next move. There are many tools available for you to choose from, such as moving averages, Elliott waves, Fibonacci retracements, or technical patterns. The key is to not overuse these indicators, as it may do more harm than good. Technical analysis, even if done correctly, doesn’t guarantee any profits and success. The more traders use it, the more of a self-fulfilling prophecy it becomes.

What are gas fees?

Every time you interact with a blockchain network, you have to pay a fee. Gas fees refer to the cost to execute an operation on Ethereum. Two key components are gas price and gas limit, which are multiplied and provide an approximate estimation of the total cost. Gas fees are measured in Gwei, which is a fraction of ETH.

What is MEV?

Maximal extractable value refers to the value that can be extracted from a block in a blockchain network. The issue of MEV typically arises in DeFi, with strategies like front-running or arbitrage. Front-running happens when you place your transaction higher in the queue by bumping its fee for the hope of monetary gain. Arbitrage is taking advantage of price discrepancies for the same cryptocurrency across different exchanges.

What does it mean to burn tokens?

Burning is an event reducing the supply of a cryptocurrency by sending coins or tokens to an address that doesn’t have a corresponding private key, thus making it impossible to retrieve said assets. Burns are usually accompanied by buybacks.

What is sharding?

Sharding is a technique used to improve the scalability of a network by splitting the data into small pieces called shards. Each shard can process transactions on its own, allowing the network to handle them in parallel. This solution increases TPS, reduces network congestion, and lowers transaction fees as a result.

What is a bridge?

Bridge is a tool that enables interoperability between different blockchains and facilitates communication. As a user, you may want to use a bridge to move your assets between supported networks, for instance, Ethereum to a layer-2 solution like Arbitrum.

What are LP tokens?

These tokens are issued to users who provide liquidity to a decentralized exchange. When you pool ETH and USDC in equal proportions, you receive LP tokens in return, which represent your share of the pool and can be used to claim your pooled assets and earnings.

What is slippage?

Slippage is the difference between expected and actual price when the trade is executed. Slippage is always existent, but to a different extent. The main causes of its occurrence may be a volatile or an illiquid market.

What is a liquidity pool?

In simple terms, a liquidity pool is funds locked in a smart contract belonging to a DeFi protocol. Because of liquidity pools, activities such as trading and lending can take place without the need of a centralized order book. Liquidity providers contribute their assets to the pool, which raises liquidity and reduces slippage. In return they earn a fair share of transaction fees and different rewards.

What is impermanent loss?

Impermanent loss is what a liquidity provider faces when the prices of the assets in a liquidity pool change in relation to when they were deposited. After some time, if withdrawn, the value of your tokens may be less than if you simply held onto them outside of a liquidity pool. The loss is called “impermanent” because if the prices return to the original value, the loss disappears. If assets were withdrawn, however, the loss becomes permanent.

Master these casual crypto slang phrases and become a true community member.

What do GM and GN mean?

Both GM and GN are shortened forms of “Good morning” and “Good night”. They are simple greetings used in a crypto world to announce when you are active and when you leave.

What does HODL mean?

A misspelling of “hold’, it has gained popularity as a term meaning to hold onto an asset despite price volatility, usually to the downside. “HODLing” is a long-term strategy with a belief that the asset will appreciate over time. The word dates back to 2013, with its origins being on a Bitcoin forum.

What does DYOR mean?

DYOR means to do your own research. Cryptocurrencies are filled with various scams, Ponzi schemes, and rug pulls, so you should always exercise caution when making important decisions.

What does FOMO mean?

When prices go up and you’re sidelined, it’s very hard to not feel a sense of FOMO. Fear of missing out is something present not only in crypto but in traditional financial markets as well. You should always approach investing or trading carefully and refrain from making emotional decisions since these are the ones you will regret the most.

What does FUD mean?

Fear, uncertainty, and doubt is what FUD stands for. While it sometimes is spread by competitors or people who lost money, always strive to have a balanced viewpoint. Don’t worship a project and be blind to obvious failures it has experienced.

What is a crypto whale?

A whale is an entity that holds a substantial amount of coins and therefore has the ability to manipulate price to their own advantage. Moving large amounts of money on a transparent blockchain can’t go unnoticed. Tracking their movements is usually beneficial for a user.

What is a crypto bag?

A bag is an informal way to refer to the allocation you have in a certain project. It often implies you have a long-term outlook and hold the coin regardless of market conditions.

What is an "addy"?

A cryptocurrency address, or an “addy,” is your gateway to send and receive crypto. Think of it as a unique identifier on a blockchain. Every time you receive cryptocurrencies, this is “where” it goes.

What do "trenches" mean?

Trenches has a very broad meaning. In general, it refers to early stages of crypto projects with participants taking on significant risk. Memecoin-oriented Telegram channels are often called “the trenches”. It is where degens gather, share alpha (valuable insights), and discuss the next high-conviction play.

What does it mean to "lock in"?

To “lock in” is a term also used outside of crypto. It means to focus on yourself and achieving your goals. It is specifically used as a motto of degens sitting in the trenches who aim to make as much money as possible with minimal effort and during a short period of time.

What is a "degen"?

This term describes someone who is a risk taker, does minimal due diligence, and is often associated with speculative and risky investments.

What is a "gem"?

A gem is an undervalued investment that is expected to appreciate over time. A one is usually difficult to find because it hasn’t gained mainstream attention yet.

What does the term "bagholder" mean?

A bagholder is a person who holds an asset despite its massive drawdown. They are left with lots of worthless coins, which they hope will rebound in the future.

What is a "rug pull"?

It is a type of scam where the developers of a project withdraw all their funds, leaving investors with worthless assets. Rug pulls are commonly known in DeFi and all of crypto.

What does "pump and dump" mean?

This type of scam is when people with insider information buy tokens, and due to FOMO, others follow just to be left with nothing after the insiders sell. This process can perpetuate indefinitely across multiple tokens and networks.

What is the meaning of "rekt"?

Rekt is a slang term for “wrecked”. It basically describes a person who has suffered financial damage due to poor decisions, lack of knowledge, and an undeveloped due diligence process.

What does sniping mean?

Sniping is an act of buying at the exact moment, usually when the token launches, for profit. The entire process is automated with the help of bots to secure an early allocation of tokens.

What does mooning mean?

Mooning is a descriptive word for going up exponentially in a short period of time. The word is typically associated with a sharp growth of cryptocurrencies.

What does aping mean?

Aping is a behavior embodied by degens themselves. Buying something impulsively without any research is its essence. The decision-making process is driven by hype and FOMO.