Going to the moon with ‘diamond hands’ is a wish of many ‘hodlers’. But are you going for bitcoin or altcoins? And are they yours or ‘mine’? If you suffer from ‘FOMO’, do not despair. Radar explains some crypto terms.
- Bitcoin: Bitcoin is a cryptocurrency and the first decentralized digital currency to operate without a central bank or central administrator. The reciprocal transactions between users (peer-to-peer) are stored in a public database (a blockchain).
- Altcoin: the name says it all. Altcoins are all alternative coins / tokens, ie all cryptocurrencies that are not bitcoin.
- All-season: In continuation of the previous term, there is also a ‘season’ for these coins. This means that there has been a period where more altcoins are being bought than bitcoins.
- Blockchain: Simply put, a blockchain is a kind of digital database (a ledger) in which transactions are stored. These transactions are verified by miners and added to the blockchain.
- tokens vs. coins: The vast majority of the new coins are so-called ‘tokens’. The biggest difference between tokens and well-known coins like Ethereum is that a token does not have its own blockchain. Tokens use blockchain of existing coins. Some well-known coins are: Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC) and Ripple (XRP).
- Mining: Miners use (special) hardware to validate transactions on the blockchain. Random computers calculate whether the transaction is correct, after which the miner receives a fee.
- NOTE: This is the abbreviation for ‘All Time High’, which is the highest price a given cryptocurrency has ever reached.
- Bear market: one can talk about a ‘bear market’ or about being ‘bearish’. This is a downward trend in the market or for an individual cryptocurrency.
- Bull market: the opposite of a bear market. In a bull market, therefore, there is an upward trend.
- Buy Dip: is an abbreviation of ‘Buy The Dip’. That means you buy more of a particular cryptocurrency when it falls. This way you can apply ‘Dollar Cost Averaging’ and bring down your average purchase price.
- NFTs: is an abbreviation for ‘non-fungible tokens’. These are collectibles that can be sold digitally through blockchain technology.
- Stablecoins: are linked to an underlying asset. The most popular is Tether (linked to the US dollar).
- DeFi: stands for ‘decentralized finance’, a relatively new way of conducting transactions that does not involve banks and other traditional financial institutions.
- Dex: is an abbreviation for ‘decentralized exchange’, or a decentralized exchange that enables online crypto trading (peer-to-peer). So there is no central authority.
- DD: Abbreviation for due diligence, which literally stands for ‘due diligence’. This is also known as DYOR or ‘Do Your Own Research’. Do your research before investing your money (fiat). Basic and / or technical analyzes form the basis.
- Hardware ledger: this is a hardware (physical) wallet in which various cryptocurrencies can be stored. The purse is secured with private keys.
- ICO: is the abbreviation for ‘Initial Coin Offering’. When an ICO takes place, you can invest in advance in a new coin on the blockchain. You get a certain amount of coins in return. This corresponds to the term ‘IPO’, ‘Initial Price Offering’ for a share or a listing of a company. NB! After an ICO, there is often a dip (‘post ICO dip’).
- Whitepaper: A document that describes the full protocol of the cryptocurrency. Usually found on the token’s or coin’s website.
In addition to these terms, there are also words and phrases used by the crypto community on social media and forums:
- Diamond Hands: If you have diamond hands, you are a hodler. This means that you are not selling your crypto even if there is a (temporary) downward spiral.
- To the moon: This phrase is often accompanied by a spaceship emoji. Investors who say this expect the coin or token to rise massively (in the short term).
- Holdler: ‘To hodle or not to hodle’, is the question. This means ‘inventory’ of your cryptocurrency. This term was originally a joke. It actually meant ‘to hold’, but ‘hodl’ held on.
- FOMO: stands for ‘Fear of Missing Out’, the fear of missing out on a certain upward trend.
- Pump and Dump: This involves buying a large quantity of a cryptocurrency at a low price. The token or coin is then promoted to drive up the price. This is usually done through forums like Reddit. At the moment it is very worthwhile, a large amount is sold. Those who sell their crypto first get the most profit. The losers cannot sell their tokens / coins in time, so they lose (a large part of) their bets. At least if you sell the crypto. Of course, the price may increase, but this is usually not the case when there is ‘Pump and Dump’.
We also explain Pump and Dump in this animation:
Radar broadcast on crypto
Radar showed in the broadcast on September 13, 2021, how easy it is to create a worthless token. Just to use some terms: ‘DYOR’ and do not fall for ‘Pump & Dumps’. You can see how easy it is here:
Look for! That’s how simple it is to make a crypto token
This is not financial advice. Investment involves risks.