7 Crypto Terms You Need to Know

In 2009, Bitcoin entered our lives and many terms began to be used with it. These terms emerged by shortening a sentence, misspelling a word, or using it directly in its own meaning. These terms gained importance in terms of the field of use rather than how they were produced.
7 Crypto Terms You Need to Know

Crypto terms quickly spread among people on cryptocurrency exchanges, forums, and social media platforms like Twitter, Instagram, and Telegram. With the increasing number of crypto investors day by day, these terms are also spreading rapidly.

We have prepared for you seven terms that should be known in the crypto world, which are also used in trading platforms such as cryptocurrency exchange and Forex.

1. HODL

The concept of Hodl is the equivalent of the word “Holding”, meaning “to hold what you have in your hand, not to let go”. Interestingly, the word hodl emerged as a result of the correct word (hold) being spelled as “hodl” by making a typo.

In 2003, an investor on the Bitcointalk forum typed “I am hodling” instead of “I am holding” to state that he would not sell his Bitcoin. Then, this expression, which is highly appreciated and loved by users, became viral among users in a short time.

2. FOMO

FOMO is the abbreviation of “Fear Of Missing Out” and is formed by combining the initials. The cryptocurrency exchange is a platform where buyers and sellers from all over the world participate 24/7. As a result of the live-action of the platform, instantaneous or long-term opportunities arise. It is the name given to the situation where the user misses the opportunity and participates in the trade with panic purchases, resulting in the feeling of missing an opportunity.

The investor constantly follows the crypto market afraid of missing the opportunity, and cannot take his eyes off the trading screens. He trades without a strategy or against his/her own strategy so as not to miss the appropriate position. After the transactions and the resulting situation, the investor has a difficult time psychologically and starts to question the decisions made. Since he questions every move made, he can no longer make his own decisions correctly.

3. FUD

The word FUD is derived by using the initials Fear, Uncertainty, and Doubt. The word FUD expresses the emotional states an investor can experience. With this term, which is frequently used on social media platforms, people who want to manipulate the market cause cryptocurrency trading.

There is a lot of data that will provide the FUD environment. The most important of these is fake news. Investors are imposed FUD by rumors circulating on social media platforms.

There are many psychological studies about these terms, which express two different emotional states in the crypto money world. Due to human nature, experiencing instant hormonal changes, these emotional states can be easily caught.

4. MINING

Cryptocurrency mining is the process of confirming cryptocurrency transfer transactions by solving complex mathematical problems, verifying it with crypto, and rewarding it with cryptocurrency produced in the network as a result.

Users who identify themselves as miners work collaboratively to develop and improve the network. People who have the necessary hardware or enough cryptocurrency can do different types of mining.

Mining Types:

CPU Mining: It is mining based on the Proof of Work algorithm, which is done on a normal computer using the CPU (Central Processing Unit).

GPU Mining: It is the mining done by combining Graphics Processing Unit (GPU) graphics cards to obtain high processing power.

ASIC Mining: Application-Specific Integrated Circuits (ASIC) is a method of mining using specialized hardware and specialized software.

Cloud Mining: It is a method preferred by miners who do not have the necessary equipment but want to mine. The necessary hardware and software are rented and a share is given over the mining reward.

5. ALTCOIN

Bitcoin is the first and most popular cryptocurrency in the cryptocurrency exchange. All coins and tokens other than Bitcoin, which pioneered cryptocurrencies, are expressed as altcoins as an alternative to Bitcoin. The creation of altcoins is for the creation of alternatives to Bitcoin. Some of the developed altcoin projects are traded on their blockchain network.

According to CoinMarketCap.com, there are 10118 altcoins. There is no limit on the number of altcoins. Some cryptocurrencies expressed as altcoins: Ethereum, Ripple, Solana, Litecoin, BNB, Lego Coin, Moneta Digital, Apeborg, etc.

There are 3 different types of altcoins. These; Stable coins based on dollar or Euro, ICO coins distributed for initial coin offering, and coins distributed as mining rewards.

6. PUMP

The word PUMP is used to express the sudden rise of Bitcoin and altcoin prices. The cryptocurrency exchange has not stabilized. A stable price policy has not been followed in a short time.

The reasons for the realization of PUMP are to reduce the supply amount by burning coins, to carry out high-volume transactions, and to make enough purchases to reduce the amount of supply in the cryptocurrency exchange. At the same time, the projects and commodities owned by the developers of the relevant cryptocurrency also contribute to the PUMP.

7. DUMP

The opposite of a sudden price increase, a sudden price drop is called DUMP. In the event of a DUMP, the relevant cryptocurrency may lose value at high rates. This loss of value is due to many reasons, as well as the increase in supply in the cryptocurrency exchange after high volume sales together with the rumors in general. The burning of cryptocurrencies to balance the DUMP is one of the first measures taken.

In this article, we have compiled 7 terms that you need know in the cryptocurrency world. Apart from these 7 terms, there are hundreds of other terms in the cryptocurrency world. In the future, the number of these terms will perhaps reach thousands. Those who want to be effective and profitable in the cryptocurrency exchange should have a good command of cryptocurrency terms.

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The opposite of a sudden price increase, a sudden price drop is called DUMP. In the event of a DUMP, the relevant cryptocurrency may lose value at high rates. This loss of value is due to many reasons, as well as the increase in supply in the cryptocurrency exchange after high volume sales together with the rumors in general. The burning of cryptocurrencies to balance the DUMP is one of the first measures taken.
In this article, we have compiled 7 terms that you need know in the cryptocurrency world. Apart from these 7 terms, there are hundreds of other terms in the cryptocurrency world. In the future, the number of these terms will perhaps reach thousands. Those who want to be effective and profitable in the cryptocurrency exchange should have a good command of cryptocurrency terms.