Crypto jargon is a language all its own. If you’re new to the game, it can be tough to get your bearings.
That’s why we’ve put together this list of crypto terms that every investor should know. Whether you’re an experienced trader or just getting started, this glossary will help you understand what everyone is talking about on the trading floor—and give you a leg up as you start investing.
DCA: Dollar-Cost Averaging- Crypto Jargon
DCA stands for dollar-cost averaging. It’s a strategy of investing in cryptocurrencies at regular intervals, even if the market is going down. This helps reduce the risk of buying at the wrong time and ensures that you are always buying at an average price that is better than other opportunities available to you at that time.
The simplest way to implement DCA into your portfolio is by purchasing one bitcoin on each day of the month: January 1st, 2nd, and so on until December 31st (the Friday). The total price will be higher than if you had invested all on January 1st since it takes time for prices to rise.
However, this also means that there will be less money lost if bitcoin prices go down substantially between each purchase date (i.e., losing 10% when buying one unit every two days rather than all-in). Additionally, this process would result in around 0% profit after 12 months due to compound interest from holding onto your original position instead of cashing out early – an added bonus!
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DYOR: Do Your Own Research- Crypto Jargon
The acronym DYOR means “Do your own research.” This is a common phrase in the cryptocurrency community, and it’s one you should keep in mind as you explore new opportunities. The main benefit of doing your own research is that you can more easily identify scams which continue to plague the industry.
There are many resources available to help investors do their own due diligence before investing. On this site alone, we have compiled several lists:
- A list of ICOs (with detailed reviews)
- A list of all exchanges currently operating in the crypto market (a good starting point for further research)
Once you’ve done some reading and found an investment opportunity that seems promising, there are still steps you should take before investing any money into it. First, check if the company has received praise from news outlets or institutions like CoinDesk or Bloomberg; this indicates they’re involved with reputable publications that wouldn’t endorse fraudulent ventures without doing their own research first.
You should also look at other details, such as whether there was an open-source code base released when launching the project; if not then chances are high that someone could abuse its functionality later on down the road when they discover how easy it was created through backdoors built into their software code implementation process during development stages—so always make sure these things exist before spending any more time on researching further!
HODL: Hold On for Dear Life- Crypto Jargon
If you’re reading this guide, you’re likely already familiar with the term HODL. It originated from a typo in a Bitcoin forum and has since become synonymous with long-term cryptocurrency investors.
Holding on for dear life is a strategy of holding onto your cryptocurrency investments regardless of market conditions; HODLers believe that the long-term value of cryptocurrencies will increase. HODLing is a long-term investment strategy that requires patience and discipline to succeed—but it can be incredibly rewarding if you have the patience to wait it out!
FUD: Fear, Uncertainty, and Doubt
FUD is a common tactic to make people sell at a low price. It can be spread through social media, and it’s often used to create panic and uncertainty among investors. FUD spreads because it’s an easy way for manipulators to manipulate the market by spreading fear in the community and making people sell their tokens at a low price.
For example, someone who has invested in any cryptocurrency might claim on Twitter or Facebook that their wallet has been hacked. This could cause others to check if they were affected, which leads them to realize that their wallets have also been hacked—and this just continues spreading until everyone thinks they’ve been hacked too!
The truth is that all wallets are vulnerable; there’s no such thing as “unhackable.” Even hardware wallets like Ledger Nano S or Trezor have flaws (for example, some can be cracked with RFID scanners). But even though you won’t see these vulnerabilities often reported publicly, they’re still real threats worth considering before investing in any crypto wallet technology.
FOMO: Fear of Missing Out
FOMO, or fear of missing out, is the feeling you get when you see a friend posting about some big crypto investment and wish you had jumped in first. It’s also what causes people to buy high and sell low.
To avoid this common investor pitfall, remember: You do not need to invest in every coin that comes along. Even if it seems like everyone and their grandmother is investing in it right now, that doesn’t mean it won’t be worthless tomorrow—or even before the end of this sentence!
When we see others getting rich overnight thanks to crypto investments gone right or wrong (depending on who you ask), it can trigger FOMO quickly, causing us to jump into something without knowing all the facts or doing our own research. If something looks too good to be true—and especially if all your friends are jumping on board with an investment—then maybe it should wait until later down the road when everyone has forgotten about it for good reasons or bad ones.
Fiat currencies are the currency we use in our daily lives. Fiat currencies are regulated and issued by a country’s central bank or monetary authority, and they’re not backed by a physical commodity like gold or silver. Here are some examples of fiat currencies:
- US Dollar (USD)
- British Pound Sterling (£)
- Euro (€)
Bitmex (“Bitcoin Mercantile Exchange”)
BitMex is a cryptocurrency derivatives trading platform. It’s one of the most popular crypto derivatives exchanges for traders who want to leverage their position on the price of Bitcoin and other cryptocurrencies.
The exchange supports multiple cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Cardano (ADA), and Ripple (XRP). Due to its popularity, BitMex has faced criticism from many cryptocurrency enthusiasts as well as regulators for allowing users to trade with extremely high leverage.
Bitcoin ATM (BTM)
A Bitcoin ATM is an internet-connected kiosk that lets you buy, sell, or trade cryptocurrency. You can typically find them in major cities and at some airports.
BTM’s are relatively expensive, with most charging between 5% to 10% per transaction. This means that buying Bitcoins on a BTM will be more expensive than other options such as exchanges or peer-to-peer trading platforms.
However, if you’re looking for a quick way to invest in cryptocurrency, BTM’s offer an appealing alternative to those who don’t have time to wait for bank transfers and other lengthy processes required by traditional ways of buying digital coins.
Learn the terminology, and you’ll be more comfortable with the crypto world. If you invest in cryptocurrencies, it’s important to know what terms like “DCA,” “HODL,” and “FUD” mean. The jargon can confuse new investors or those who aren’t familiar with the crypto culture, but as long as you learn some of this common language and understand its meaning, it will help make your journey easier.