10 Crypto Jargon Terms You’ll Hear Everywhere (and What They Mean) | by Tracy Hardwick | The Capital | Mar, 2025

If you happen to’ve ever tried to comply with a crypto dialog and felt fully misplaced, you’re not alone. The crypto house has its personal distinctive language crammed with acronyms, slang, and technical phrases that may be complicated to newcomers. However don’t fear — when you perceive the fundamentals, you’ll be talking crypto fluently very quickly.

Listed here are 10 widespread crypto phrases you’ll hear in all places, together with easy explanations that can assist you navigate the house with confidence.

HODL began as a typo for “maintain” in a 2013 Bitcoin discussion board publish, nevertheless it rapidly grew to become a time period used to explain long-term investing in crypto. If somebody says they’re “HODLing,” it means they’re holding onto their crypto property reasonably than promoting, even throughout market crashes.

Instance: “Bitcoin is down 20%, however I’m nonetheless HODLing as a result of I consider in its long-term worth.”

FOMO occurs when traders rush to purchase an asset as a result of they see others creating wealth and worry they’ll miss out on potential earnings. It’s a strong emotion that usually results in shopping for at excessive costs and regretting it later.

Instance: “I purchased that new altcoin at its peak due to FOMO, and now it’s down 50%.”

FUD refers to damaging information or misinformation that causes panic available in the market. Generally it’s actual, however different instances, it’s exaggerated and even unfold deliberately to drive costs down so massive traders can purchase at decrease costs.

Instance: “There’s loads of FUD about authorities rules, however crypto at all times finds a approach to adapt.”

DeFi refers to monetary companies constructed on blockchain know-how that function with out banks or conventional monetary establishments. As a substitute of going by way of a financial institution to get a mortgage or earn curiosity, customers can do it instantly by way of decentralized purposes (dApps).

Instance: “I take advantage of DeFi platforms like Aave and Uniswap to lend and commerce crypto and not using a intermediary.”

Gasoline charges are the transaction prices required to course of operations on a blockchain. These charges differ relying on community congestion and the complexity of the transaction. Ethereum is infamous for prime fuel charges, however newer networks like Solana and Layer 2 options provide cheaper alternate options.

Instance: “I needed to purchase an NFT, however the fuel charges had been virtually as a lot because the NFT itself!”

A wise contract is self-executing code on the blockchain that mechanically performs an motion when particular situations are met. They take away the necessity for middlemen and energy all the things from DeFi to NFTs.

Instance: “After I staked my Ethereum, the good contract mechanically paid me rewards.”

Layer 2 refers to blockchain options which might be constructed on high of a primary blockchain (Layer 1) to enhance pace and scale back charges. Ethereum Layer 2 networks like Arbitrum, Optimism, and zkSync assist course of transactions extra effectively.

Instance: “I take advantage of a Layer 2 community to keep away from Ethereum’s excessive fuel charges.”

An NFT is a singular digital asset saved on the blockchain that represents possession of things like artwork, music, or in-game objects. In contrast to cryptocurrencies, that are interchangeable (1 BTC = 1 BTC), NFTs are one-of-a-kind.

Instance: “I purchased an NFT that offers me unique entry to a members-only membership.”

A whale is an investor who holds a considerable amount of cryptocurrency and might affect the market by making large trades. When a whale buys or sells a large quantity of crypto, it will probably trigger important worth swings.

Instance: “A Bitcoin whale simply moved 10,000 BTC, and now the market goes loopy.”

A rug pull is a rip-off the place builders create a crypto undertaking, entice traders, after which all of the sudden disappear with the funds. This normally occurs within the DeFi and NFT house, the place new initiatives pop up rapidly.

Instance: “That new meme coin was a rug pull — the builders disappeared in a single day with thousands and thousands.”

Crypto has its personal language, however when you perceive the fundamentals, it turns into a lot simpler to comply with discussions, make knowledgeable choices, and keep away from widespread pitfalls.