Cryptocurrency Glossary 2021: Bitcoin Buzzwords and Crypto Catch Phrases
The cryptocurrency industry is currently a Wild West where respected coins like Bitcoin and Ethereum are featured alongside meme coins, scams, and all sorts of scenarios that you don’t find anywhere else.
In this unique sector of finance, anything goes, and that also means that it comes with its own subset of terminology and vocabulary words that outsiders wouldn’t usually understand. But since crypto has sucked in so many newcomers in recent months, we wanted to provide an update to the constantly changing cryptocurrency glossary for 2021.
Here is a breakdown of all of the latest Bitcoin buzzwords and crypto-related catchphrases you need to know.
The 2021 Cryptocurrency Glossary Update
Airdrop: Airdrops are guerilla marketing campaigns where users are given free coins in exchange for free publicity. Remember to report any airdrops as income if you are from the United States.
ATH: An abbreviation for all-time high.
Altcoin: Any cryptocurrency that is not Bitcoin or a stablecoin. There are more than 10,000 of them in the market.
APY: An abbreviation for annual percentage yield or the rate of return on yield accounts.
Apeing: Buying a cryptocurrency or going long without doing any research or technical analysis.
Automated Market Maker (AMM): A decentralized protocol where users provide the liquidity for exchange operations and technology does the matchmaking.
BEP-20: The Binance Smart Chain token standard that is interoperable with ERC-20 tokens.
BEP-721: The Binance Smart Chain token standard that is interoperable with ERC-721 NFT tokens.
Basket: An index of coins or assets.
Black Swan: An event like COVID that crashes markets that cannot be predicted by technical analysis.
Bridges: A software designed to move coins from one blockchain standard to another.
Capital Gains: The tax traders and investors pay on crypto assets that have appreciated if they have sold in profit.
CBDC: CBDC stands for central bank-issued digital currency. An example of this is China’s digital yuan.
CeFi: Centralized finance, such as exchanges, banks, payment processors and more.
CEX: A centralized cryptocurrency exchange.
CME: Chicago Mercantile Exchange where BTC futures trade.
Collateral: Using a stablecoin, cryptocurrency, or other assets to access financial services such as lending or borrowing.
Crypto Cards: This references credit and debit cards such as BlockFi, Fold, or others.
Crypto Punk: An NFT collectible featuring a pixelated “punk” that often sells for hundreds of thousands of dollars.
DeFi: Decentralized finance, which offers permissionless lending and borrowing.
DEX: A decentralized cryptocurrency exchange.
Diamond Hands: Someone who can hold through anything due to strong emotional control.
Dominance: Refers to Bitcoin dominance against altcoins. BTC dominance has been dropping during altcoin season.
EIP-1559: EIP stands for Ethereum Improvement Proposal, and the EIP-1559 addresses things like high gas fees and added a token burning mechanism.
Flippening: An event where the market cap of Ethereum surpasses the market cap of Bitcoin. Those interested in Ethereum trading would stand to gain the most from such a scenario.
FUD: Fear, uncertainty, and doubt, almost always coming from China or Elon Musk.
Flash Crash: An abrupt crash in cryptocurrencies due to low liquidity, liquidations, and extreme fear.
Gas: The fee paid to use the Ethereum network.
Governance Token: Governance tokens are tokens that give holders certain voting rights that can alter the future operations of a protocol. Uniswap’s UNI is a popular example of a governance token.
Hash Crash of 2021: When China banned Bitcoin mining in the region, most of the cryptocurrency’s hash power was instantly shut off, causing a massive crash in hash rate.
Howey Test: A way investors can determine if a coin is a security as defined by the SEC.
Inflation: The rate at which prices increase based on the purchasing power of money.
Interest Rates: This can refer to many things in crypto, such as the rate of return on money deposited; however, it typically refers to the overall interest rates set by the Fed, which can impact markets.
Kimchi Premium: A phenomenon when South Korean crypto prices surpass other countries.
Leverage: The ability to amplify positions using margin offered by platforms such as PrimeXBT.
Moon: The final destination where all cryptocurrencies holders hope the price of their coin goes.
NFT: NFT stands for non-fungible token and references a token that isn’t like any other token, in contrast to Bitcoin, where all other BTC are exactly alike.
On-Chain Analysis: Refers to a new breed of fundamental analysis using blockchain tools.
OpenSea: The largest and most popular NFT marketplace today.
OTC: OTC stands for over-the-counter trading, which typically involves large shares of coins being traded at a discount to prominent players to avoid moving the market.
Passive Income: Making money on assets without any further activity or intervention after a deposit is made.
QR Code: A code similar to a barcode that can act as a cryptocurrency address, web address, and more.
Rank: This can refer to a cryptocurrency’s place in the overall list of assets by market cap or reference a Covesting strategy manager’s place on the leaderboards.
STO: Stands for security token offering and is essentially the regulated replacement for the ICO fundraising.
Security Token: A cryptocurrency deemed a security by the SEC and the Howey test.
Smart Contracts: A line of executable code designed to facilitate an agreement via the blockchain.
Staking: Locking up assets in order to receive an APY in crypto rewards. Staking can unlock other benefits, for example, a trading fee discount with the COV token.
Tokenize: To put on the blockchain as a token.
Utility Token: A token designed to offer users or holders access to goods or services.
Weak Hands: The opposite of diamond hands, these traders panic sell quickly.
Summary: Learn More Vital Crypto Intel With PrimeXBT
This glossary was presented by PrimeXBT, an award-winning margin trading platform. The advanced trading platform and its client-focused approach offer constant innovation and education around finance.
PrimeXBT offers an official blog, help center, and 24/7 live customer support outside of market reports published by third parties. Long and short positions can be opened on forex currencies, commodities, stock indices, and of course, cryptocurrencies like Bitcoin and Ethereum, which inspired this list.
PrimeXBT also recently added seven new altcoins to the constantly growing lineup, including Cardano, Dogecoin, Chainlink, Uniswap, Polkadot, Solana, and XRP.
