If you are new to the cryptocurrency world, you must have come across quite a number of terms that leave you perplexed. This new industry is defined by unique terminologies whose meaning is yet to be added to existing dictionaries. Let us take a look at popular jargon associated with the space and the meaning behind them to help you get up to speed.
HODL
HODL first appeared in 2013 under a thread on BItcointalk forum. It was initially a misspelling of “hold” made by a forum member but was immediately adopted by the community. It was later used as an acronym for Hold on for Dear Life. It basically means that when market prices for a digital currency plummet, you do not sell it but ride it out because sooner or later, they usually bounce back.
FUD
This is an acronym for Fear, Uncertainty and Doubt and refers to baseless negative claims that are deliberately spread to bring market prices down. It usually preys on the speculative nature of the cryptocurrency industry and its inherent unpredictability.
FOMO
This acronym stands for Fear of Missing Out. It usually describes a sensation common within this space when the price of a virtual asset unexpectedly begins to rise and you feel the need to join the hype.
Rekt
This cryptocurrency slang is a deliberate misspelling of the word “wrecked”. It refers to traders or investors who are completely ruined by the sudden plummeting of prices on a digital currency.
To the Moon
This refers to the upward potential of a crypto asset. When a digital coin seems to have an unstoppable positive price momentum then its investors celebrate this as a journey to the moon.
Altcoin
This is a portmanteau combining alternative and coin. It refers to all other cryptocurrencies other than bitcoin. This is because bitcoin pioneered the space and is still the most dominant coin in the space. There are currently almost 1500 of these altcoins and the list is ever growing.
Mining
This is the process through which new coins on a network are discovered and transactions carried out are validated. Rewards are given to miners for the supportive role they play on such networks.
ASIC
ASIC stands for Application Specific Integrated Circuit and refers to advanced mining equipment. The equipment makes it possible to run mining operations at rates that far exceed those of regular PCs or Graphical Processing Units (GPUs). Every ASIC miner is designed to execute a single task. A bitcoin mining ASIC will only process SHA-256 puzzles to create new coins.
Hashrate
This refers to the speed at which new blocks of a crypto chain are discovered or mined. It is usually determined by the capacity of the equipment being used to solve the mathematical puzzles involved in the mining process.
Node
A node refers to a computer on a cryptocurrency network. There are numerous nodes on decentralized networks that support operations. They each contain a full copy of the blockchain in question and carry out the primary role of verifying and approving transactions carried out.
With these basic crypto terms explained, now you are in a position to become a better trader and make the most of the virtual currency technology. You can also learn more term here.