Tips & Tricks

Decoding Crypto Slang: From FUD to zk-SNARKs

Lera

• 4 min read
Decoding Crypto Slang: From FUD to zk-SNARKs
Photo by Markus Spiske / Unsplash

In the wild world of cryptocurrency trading, the jargon can be as unpredictable as the market itself. From FUD to zk-SNARKs, the crypto community has its own language. Whether you're a newcomer looking to dip your toes into the crypto sea or a seasoned trader needing a refresher, this guide will help you decode the most common crypto slang terms.

FUD

"FUD" stands for Fear, Uncertainty, and Doubt. It is a strategy to influence perception by spreading harmful, misleading, or false information. The aim is to drive investors to sell their holdings out of fear.

Mooning

"Mooning" is what every crypto investor hopes their coin will do. But, of course, when a coin is "going to the moon," its value is skyrocketing.

Bagholder

A "Bagholder" is an investor who holds onto a significantly devalued cryptocurrency, hoping it will rebound. Instead, they're left "holding the bag" of depreciated assets.

Pump and Dump

"Pump and Dump" represents a deceptive scheme where the cost of a cryptocurrency is intentionally escalated, or "pumped," to draw in investors. Then, once the price peaks, the fraudsters sell off their holdings ("dump"), causing the price to plummet and leaving other investors at a loss.

Satoshis

"Satoshis" is the smallest unit of Bitcoin, named after Bitcoin's mysterious creator, Satoshi Nakamoto. One Bitcoin is equivalent to 100 million Satoshis.

Sharding

"Sharding" is a method of splitting and storing a single logical dataset in multiple databases. It is used in blockchain technology to increase the number of transactions a blockchain can process at one time.

Gas

"Gas" is a term used on the Ethereum platform that refers to the price amount required to successfully conduct a transaction or execute a contract on the Ethereum blockchain.

Dapp

"Dapp" stands for Decentralized Application. These are applications that run on a P2P network of computers rather than a single computer.

Dust Transactions

"Dust Transactions" refers to the transfer of a tiny amount of Bitcoins or other cryptocurrencies that is so small it's almost zero. It's a tactic sometimes used to identify the owners of different Bitcoin addresses.

Merkle Tree

A "Merkle Tree", named after computer scientist Ralph Merkle, is a fundamental part of blockchain technology. It's a structure that helps in the verification of data sent between computers on a network.

Oracles

In the context of blockchain technology, "Oracles" are sources of data that are able to interact with smart contracts, providing them with real world information that triggers the contract execution.

zk-SNARKs

"zk-SNARKs" stands for "Zero-Knowledge Succinct Non-Interactive Argument of Knowledge". It's a concept used in the cryptography field in relation to privacy coins. It allows one party to prove that they know certain information without revealing that information.

Byzantine Fault Tolerance (BFT)

"Byzantine Fault Tolerance" is the property of a system that allows it to resist "Byzantine faults", where components of a system fail and there is imperfect information on whether a component has failed.

Let's also add some crypto slang that is relevant to the analytics side of things:

ATH

"ATH" stands for All-Time High. This term is used when a cryptocurrency reaches its highest value point in history.

ATL

Conversely, "ATL" means All-Time Low, representing the lowest value point a cryptocurrency has ever reached.

RSI

"RSI,” short for Relative Strength Index, is a tool in technical analysis acting as a momentum gauge. It measures the intensity of recent price variations to ascertain if a stock or other asset is in a condition of being excessively bought or sold.

MACD

"MACD" stands for Moving Average Convergence Divergence. It's an indicator that follows market trends and illustrates the correlation between two moving averages of a security's value.

Bullish/Bearish Divergence

In technical analysis, “Bullish Divergence” occurs when the price of an asset is moving lower, but a technical indicator is moving higher. Conversely, “Bearish Divergence” is when the price moves higher, but a technical hand moves lower.

Trading Journal

A “Trading Journal” is an essential tool for serious traders. This is where they document and review their trades, noting the strategy used, the key metrics of the trade (entry point, exit point, profit, or loss), market conditions, and even their psychological state during the trade.

Keeping a trading journal helps traders understand their behavioral patterns and identify what works and doesn't in their trading strategy. In addition, it's a way of learning from experiences to make better trading decisions in the future.

While the above jargon and terms help you understand and communicate within the crypto community, a trading journal can be a practical tool to improve your trading skills over time. It promotes self-awareness, accountability, and discipline, all of which are vital for success in the volatile world of cryptocurrency trading.

Conclusion

Understanding crypto slang is just one part of navigating the exciting yet unpredictable world of cryptocurrency trading. While these terms can add some color and humor to trading, remember the importance of doing your research and making informed decisions.

To help you stay on top of the ever-evolving crypto jargon, we're excited to announce a new column on our social networks. We'll dive into and decode interesting and unusual slang expressions in the crypto world. So, whether you're a seasoned crypto trader or a curious newcomer, our weekly slang analysis will keep you in the loop.

Stay tuned, keep learning, and may your crypto always be mooning! Happy trading!

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