Learn the Crypto Slang – Part Four
When reading crypto articles, do you often come across slang expressions such as “DEX”, “DYOR”, or “FUD” that you might not completely understand? That won’t be a problem for you anymore!
Fumbi has prepared for you a five-week blog series with the most important abbreviations and terms from the world of crypto. It doesn’t matter whether you are a novice or a professional. The crypto world is rapidly evolving, so it’s essential to keep up with the slang used by the crypto community.
In part four, we prepared for you the following ten terms from the world of cryptocurrencies:
- AML – ‘Anti-Money Laundering’ (AML) is a cumulative term for laws, regulations, or decrees to fight against profits from illegal activities and financing terrorism. In the world of cryptocurrencies, centralised exchanges usually require KYC-AML procedures where they identify the customer and then actively prevent money laundering.
- ATH – ATH is short for “All-Time-High”, a particular asset’s historically highest achieved value.
- BTD (Buy the Dip) – During price drops, investors use the phrase as a recommendation for asset purchase because they expect that the price drop is just short-term, and the asset will most likely eventually return to its original or even higher value.
- ERC-20 – ERC-20 is a technical norm defining a list of rules common for most Ethereum network tokens. It is used for all smart contracts on the Ethereum blockchain for token implementation and provides an exhaustive list of rules that all Ethereum tokens must follow.
- Hard Fork – The hard fork is a backwards incompatible software update. Therefore, a hard fork occurs when nodes add new rules into the protocol that are not compatible with old nodes’ rules. As a result, nodes can communicate only with other nodes that accepted the new version of the software. Thus, the blockchain splits into two separate chains: one with old rules and one with new ones.
- ICO – Short for “Initial Coin Offering”. Through this process, new crypto projects receive capital from investors for future research and project development.
- KYC – “Know Your Customer” – a standard in the investment environment, when exchanges or brokers are required by law to know their customers. Initially, the main objective was investor protection. However, today it is more of a regulation frame to fight against money laundering and financing terrorism.
- NFT – Non-fungible tokens “NFT” are digital assets directly connected to their owners through cryptography. Every NFT represents an individual digital item, whether an image, sound recording, or other files.
- Node – A network node is any computer that ensures the functioning of the network. Nodes usually accept blocks, share them, and verify whether the miner follows the network rules. A Blockchain network is usually made of thousands of independent nodes worldwide.
- Soft Fork – A soft fork is a backwards-compatible network upgrade, meaning nodes that moved on to the newer version can still communicate with nodes that run the old version. The core attribute of the soft fork is that it is an addition of new rules that aren’t in conflict with the older ones.
Do you want to improve and know all of the essential terms from the world of cryptocurrencies? Take a look at our Fumbi dictionary, where you’ll find many more terms and abbreviations.
In case you’ve missed our previous crypto slang articles, you can find them at the following links:
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