Learn the Crypto Slang – Part One
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 one, we prepared for you the following ten terms from the world of cryptocurrencies:
- DeFi – DeFi is short for decentralised finance. Decentralised finance is an ecosystem of financial applications developed on blockchain. These applications often functionally resemble various services and organisations we know from the traditional financial world. However, unlike the traditional financial services, in DeFi, there is nobody else with control over your assets besides yourself.
- dApp – DApp is short for a decentralised application. It’s a digital application or a program that exists and runs on the blockchain or peer-to-peer (P2P) network created by massive amounts of computers around the world. Decentralised applications function outside of the control and competencies of any central organs. Most dApps are presently built on the Ethereum blockchain and can be developed for various purposes, including financial services, games, or social media.
- DEX – Dex is short for a decentralised exchange. Decentralised exchanges function on a peer-to-peer basis where the transaction takes place directly between the cryptocurrency traders without the need for an intermediary. Some of the most familiar DEX exchanges are Uniswap, PancakeSwap, or SushiSwap.
- Diamond Hands – The term “Diamond Hands” stands for a trader with strong perseverance against risk. The trader with “diamond hands” doesn’t panic and doesn’t sell their assets during a rapid market drop because they see immense long-term potential.
- DYOR – DYOR is short for “Do Your Own Research”. Before investing in any asset, it is recommended to do your own research and choose a proper investment strategy.
- Flipping – Flipping means buying assets to sell them for a quick profit. Flipping is popular in cryptocurrencies and NFT, where users often buy various NFT collections to sell them as soon as possible for profit.
- FUD – FUD stands for “fear, uncertainty, and doubt.” FUD is about sharing negative and often false information and news to create pressure on a price drop. Many investors tend to panic and sell their assets when they catch new FUD information.
- FOMO – FOMO is short for “fear of missing out.” It describes investors that, out of fear of missing out on a once in a lifetime opportunity, make a rash asset purchase just because other investors are buying. Under the influence of FOMO, investors often act irrationally without doing their own research into what they are actually buying.
- Gas – Gas is a fee necessary to be paid on the blockchain network for any transactions. This fee is paid to the miners and validators on individual networks to compensate for the costs of processing and validating transactions.
- HODL – HODL is a term that you have undoubtedly heard already. HODL stands for the strategy of the long-term hold of an asset regardless of its price. This term came from a typo in the word “hold” at one bitcoin forum and since then got adopted by the whole crypto community worldwide.
Do you want to improve and know all of the essential terms from the world of cryptocurrencies? Take a look at our Fumbi Glossary, where you’ll find many more terms and abbreviations.
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