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Crypto Acronyms
Do you speak crypto at all? What’s FOMO in crypto? What does FUD mean in terms of crypto? Here’s a hint: acronyms with the word fear are quite common in the context of crypto.
Sadly for us, things and terms commonly used by crypto enthusiasts and experts alike are not exactly intuitive and you have to do some research before you even try to join in. In the world of cryptocurrency, there is a multitude of common technical acronyms that you need to know if you want to learn to play the game.
CEX: A Centralized Exchange is a cryptocurrency exchange that allows users to trade cryptocurrencies for other assets, such as traditional fiat or digital currencies. CEX works similarly to a stock exchange, where buyers and sellers come together to trade different assets. The significant difference is that governments like stock exchanges do not regulate CEXs.
DEX: A Decentralized Exchange is a cryptocurrency exchange that does not rely on a third party to match orders. Instead, trades are executed directly between users through an automated process. DEXs typically have lower fees than centralized exchanges but can be less user-friendly.
DAO: Ever seen the term WAGMI DAO on Discord? A DAO or Decentralized Autonomous Organization is an organization that is run by an algorithm rather than by humans. DAO refers to a company or organization run by smart contracts on a blockchain. And what is WAGMI? It stands for We Are Gonna Make It, which has a nice optimistic ring to it, kind of like Keep Calm but in the context of crypto.
DApp: A Decentralized Application is a type of application that runs on a decentralized network. DApp uses blockchain technology to provide a secure and transparent way for users to interact with the app.
Defi: Decentralized Finance is a mode of payment where users can interact with each other directly without needing a central authority. Defi is built on decentralized technologies, such as blockchain and smart contracts.
EVM: The Ethereum Virtual Machine is a virtual machine that allows for the execution of smart contracts on the Ethereum network. The machine is responsible for executing all the code needed to run a decentralized application.
POA: Proof-of-Authority is a consensus algorithm that allows for a more efficient and secure way of running a decentralized network. Proof-of-Authority is typically used in networks where there is a need for high performance and low latency.
POW: Proof-of-Work is a consensus algorithm that allows for a more secure way of running a decentralized network. Proof-of-Work is typically used in networks where there is a need for high security.
POS: Proof-of-Stake is a consensus algorithm that allows for a more energy-efficient way of running a decentralized network. POS is typically used in networks where there is a need for low energy consumption.
Crypto exchange acronyms
2FA: Two-Factor Authentication is a process of authenticating a user’s identity using two different factors. 2FA helps increase security by making it harder for attackers to access accounts. When used with a password, 2FA can make it much more difficult for an attacker to access an account.
AML: Anti-Money Laundering is a set of regulations that require financial institutions to put in place safeguards to prevent the laundering of money. AML regulations help to reduce the risk of criminal activity and terrorist financing.
KYC: Know Your Customer is a process of verifying a customer’s identity. KYC helps to reduce the risk of fraud and money laundering. KYC is typically done by financial institutions when onboarding new customers.
P2P: Peer-to-Peer (P2P) is a decentralized network architecture that enables two or more devices to communicate directly without needing an intermediary. P2P networks are often used for file sharing and other collaborative tasks.
For instance, when you use a P2P network to download a file, the file is downloaded directly from another user on the web rather than from a central server. This decentralized design has several advantages, including improved security and privacy, increased resilience, and lower costs.
ICO: An ICO, or Initial Coin Offering, is a funding method where new companies trade their tokens for bitcoin. It is similar to an Initial Public Offering (IPO) in the traditional stock market. ICO s have become a popular way for cryptocurrency projects to raise funds.
IEO: An IEO, or Initial Exchange Offering, is a type of ICO where the project sells its tokens on an exchange rather than directly to investors. IEOs have become a popular way for cryptocurrency projects to raise funds as they provide increased security and trust.
STO: A STO, or Security Token Offering, is a type of ICO where the project sells security tokens rather than utility tokens. STOs have become a popular way for projects to raise funds, providing increased regulatory clarity and compliance.
PnD: Pump and Dump is a type of market manipulation where a group of investors artificially inflates the price of an asset to sell it at a higher price. Pump and Dump schemes are often used to defraud investors.
ROI: You may already be familiar with the meaning of ROI in crypto. It is a standard business term that stands for Return on Investment, which is a measure of the profitability of an investment. ROI formula is generally expressed as a percentage and is typically used to compare different investments.
SATS: Satoshi refers to the smallest denomination of Bitcoin. One Bitcoin can be converted to one hundred million Satoshi.
Trading advice acronyms
BTD: What is BTD and why do you need to adopt the meaning conveyed by this acronym as soon as possible? Buy the Dip is a saying that suggests that when the price of an asset falls, it is an excellent time to buy.
FUD: What’s the definition of FUD in crypto? Chances are you’ve had FUD. The acronym stands for Fear, Uncertainty, and Doubt, but it is actually a type of market manipulation where investors try to sell an asset by creating fear, uncertainty, and doubt about it. FUD can be used to drive down the price of an asset so that investors can buy it at a lower price. Especially notorious in this sense is Tether, and chances are you’re going to see the words Tether FUD thrown around a lot.
DYOR: The meaning of DYOR in crypto is Do Your Own Research, and it is a common phrase in the cryptocurrency community that encourages investors to take responsibility for their investment decisions. DYOR helps to reduce the risk of making bad investment decisions.
HODL: HODL is a term used to describe the act of holding onto an asset for an extended period. HODL is often used in cryptocurrency, where investors hold onto their assets for ample time to maximize profits.
FOMO: Fear of Missing Out is the feeling of anxiety that comes from thinking you might miss out on a good opportunity. FOMO is often used to describe the feeling of missing out on a good investment opportunity.
NGMI: The meaning of NGMI in crypto is No Guts, No Glory, No Money, and it illustrates what crypto investors are all about. It suggests that investors should not be afraid to take risks. NGMI encourages investors to take risks to make profits. It’s just one of the rules of the game.
WAGMI: In case you skipped the explanation above, what does WAGMI mean in crypto? It simply means We Are Gonna Make. It is a saying that suggests that the market will recover from a crash. WAGMI is often used to describe the feeling of optimism during a market crash. It is also a philosophy worth embracing in what is often a volatile market.
Crypto Acronyms are essential to understand because they are often used in trading and investing discussions. These acronyms can help you to make better investment decisions and to avoid making bad investment decisions. It is important to do your research before investing in any asset, and the use of crypto acronyms can help you to understand the market and the risks involved.
