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BlogCrypto Beginner's Guide: Glossary of Basic Terms and Slang
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Posted on20.01.2025
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The world of cryptocurrency is an exciting and promising space, but it can also be confusing due to the abundance of terms and abbreviations. To help newcomers find their footing, we’ve compiled a glossary of essential crypto terms every beginner should know.

 

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1. DAO (Decentralized Autonomous Organization)

A DAO is a decentralized autonomous organization governed by participants using transparent code (smart contracts). Decisions are made collectively without the need for a central authority.
 

Example: DAOs can manage funds, allocate grants, or decide on project development.

 

2. Fork

A fork occurs when a blockchain splits into two separate branches. Forks can be hard forks, which create a new chain (e.g., Bitcoin Cash), or soft forks, which maintain compatibility with the original chain.
 

Example: Ethereum underwent a hard fork after a hacking incident, resulting in Ethereum and Ethereum Classic.

 

3. HODL

This means to hold onto cryptocurrency despite market volatility. It originated from a typo in a BitcoinTalk forum post, where "hold" was mistakenly written as "HODL." It’s now a meme and a strategy for long-term investors.

 

4. DYOR (Do Your Own Research)

A reminder to conduct independent research before making investment decisions. This is essential to avoid falling victim to scams or hype.

 

5. DEX and CEX (Decentralized Exchange and Centralized Exchange)

  • DEX: Decentralized exchanges allow users to trade assets directly without intermediaries (e.g., Uniswap).
  • CEX: Centralized exchanges, like Binance or Coinbase, control user assets and facilitate trades.

 

6. SAFU (Secure Asset Fund for Users)

A term popularized by Binance, indicating that user assets are protected, often through a reserve fund. It’s also used as a meme to describe security measures.

 

7. IYKYK (If You Know, You Know)

A slang phrase implying that something is only understandable to those familiar with the subject. Often used in the crypto community to hint at insider information.

 

8. FOMO (Fear of Missing Out)

The fear of missing out on an opportunity. In crypto, this often leads investors to buy assets at their peak during price surges.

 

9. Diamond Hands

A term describing investors who hold onto their assets despite significant price volatility.

 

10. Apeing

Recklessly buying tokens without proper research, usually driven by hype or speculation.

 

11. Cryptojacking

A type of cybercrime where hackers secretly use someone else’s device to mine cryptocurrency without their consent.

 

12. Airdrop

The free distribution of tokens to attract new users or as part of promotional campaigns.

 

13. POW and POS (Proof of Work and Proof of Stake)

  • POW: A method of validating transactions using computational power (e.g., Bitcoin).
  • POS: A system where owning more tokens increases your chances of validating transactions (e.g., Ethereum after its upgrade).
     

The world of cryptocurrency may seem complex, but understanding its basic terms makes it much easier to navigate. Remember to stay cautious, do your research (DYOR), and avoid making emotional decisions (FOMO).