Due to the expansiveness of the Crypto space, people have decided to shorten a few terms used in this space. These Crypto acronyms are a must-know for all users who want to join the space and not feel confused or left out. Though there are many terms used in this space, there are a few abbreviations that stand out and are used frequently. Follow up in this guide to the frequently used Crypto acronyms.
The following Crypto Acronyms are widely in use in the Crypto space. As many newbies seem to be joining, many are confused with the terms and lingo that are used. Since the terms are extensive and span over multiple categories, we will start with the acronyms. You can check out the full list of Web3 terms here. Here is the list of Crypto Acronyms:
2FA stands for ‘Two-factor authentication.’ This is a way to add an extra layer of security using a second verification step along with the password to gain accessibility to the user. The most common way for 2FA usage is by sending codes through text message to the user.
The acronym ATH stands for All-Time High. ATH is the highest price of an asset in market capitalization. In other words, ATH refers to the highest price paid for a Crypto asset.
BTD is the acronym for ‘Buy the Dip.’ The term is a reference to a Crypto trading event focused on encouraging the purchase of an asset after a drop in the market pricing. BTD highlights the necessity of capitalizing on the chance to lock an asset at a lower price.
CEX stands for Centralized Exchanges, which are Cryptocurrency exchanges. Examples of CEXs include platforms such as Coinbase and Binance. They work by matching Cryptocurrency buyers and sellers while taking custody of customer assets.
DEX is a must-know for all Cryptocurrency newbies. This acronym refers to Decentralized Exchanges. Decentralized exchanges are different from centralized exchanges. Decentralized exchanges match orders of buyers and sellers using a peer-to-peer approach with no need for leveraging intermediaries to take custody of user assets.
DAO is a Crypto acronym that stands for Decentralized Autonomous Organizations. DAOs are digital organizations overseen by members of the organization with no need for any central ownership authority, such as a CEO. It also offers an organizational structure with rules and regulations fixed in the code. Moreover, the rules and regulations present in the code are applied by smart contracts.
DeFi is a well-known word in the crypto acronym list. Decentralized Finance is the approach of transforming financial services by taking out third parties, such as agents, from financial transactions. An example of DeFi is having the ability to borrow money directly from lenders without the involvement of banks and other loan agents.
An important Crypto acronym in the Crypto community is DYOR or Do Your Own Research. It pushes users to research on their own before making any kind of investment in any Crypto asset.
If you are an avid Blockchain user then you must have come across this Crypto acronym. dApp or Decentralized application is the decentralized version of traditional apps. These dApps are based on a peer-to-peer network without a third party or middlemen. dApps use blockchain networks as a base layer for data storage and for verifying transactions.
Another Crypto Acronym is EVM. EVM stands for Ethereum Virtual Machine. EVM is a virtual environment that enables smart contract execution along with effective management of the internal state of smart contracts.
FOMO is the Fear Of Missing Out. It is a phenomenon that collects hype about new crypto assets, which encourages new investors to find better opportunities for returns. FOMO is an emotional response that makes people make impulsive decisions and buy tokens at high prices.
FUD or Fear, Uncertainty, and Doubt are the three elements that create instability in the crypto space. It is a strategy followed by certain groups to create doubt and spread misinformation about a specific transaction. It is one of the most common strategies to reduce the price of a crypto asset.
GM or Good Morning is the most famous crypto acronym in the space. It encourages positivity in the crypto space along with the development of online relationships. It is most commonly used in the Twitter Crypto communities.
HODL means Hold On for Dear Life, initially, it was a misspelling of the term HOLD. Ir represents an important period during high short-term volatility with continuous fluctuations in crypto prices. With the reduction of Crypto assets, owners should hold their assets instead of selling them off for fear of losses.
ICO is a frequent term in the crypto space. It means Initial Coin Offering. ICO is an instrument for raising funds to support Crypto projects through minting and selling digital tokens.
KYC or Know Your Customer is a process that involves references to the procedures that businesses follow during the verification of customer identity.
NGMI is a must-learn for beginners before completely emerging in the crypto space. It is an acronym for ‘not gonna make it’ and is used when people make uninformed or impulsive decisions regarding Crypto financing. It refers to a mindset a user concludes in terms of participation in certain Crypto events. For example, making unrealistic goals like the idea of claiming millions in profit in the first few months.
NGU or Number Goes UP is a request for raising crypto prices in difficult times. It also explains the state of crypto markets during intense bull runs.
PoW or Proof of Work is a common acronym among crypto phrases that new users should learn. It is a consensus mechanism used to verify transactions in Blockchain networks. PoW is also an essential requirement to create Cryptocurrencies through mining. Miners can use the PoW protocol for engaging in competition solving complex puzzles and adding transaction blocks to the Blockchain.
PoS or Proof of Stake is a consensus algorithm where users need to stake their crypto assets to become validators for the verification of transactions on Blockchain networks. Upon success, validators qualify to receive rewards.
PoA is the Proof of Authority consensus mechanism. Here, a specific centralized authority chooses validators to verify transactions based on their credible track record on the network.
P2P is peer-to-peer. It points to interactions that do not need any third parties between the users involved in the interaction.
This is another crypto acronym that implies a Pump and Dump scheme. PnD happens when an individual or a group of users inflate the price of a crypto asset by buying more assets, which creates demand. The users thus exchange their high-priced Crypto assets for profits, in return leaving customers with worthless assets.
WAGMI is a common crypto acronym that users might come across. This acronym is the phrase ‘We Are Gonna Make It’ and it is used as a motivational catchphrase. The catchphrase helps encourage and spread positive vibes in the Crypto community and industry.