In modern times, we have heard of the term crypto one way or another. But what is cryptocurrency, and how deep is our understanding of this topic? Let’s equip ourselves with the knowledge. To learn it, we must first understand and be familiar with the different terms and vocabularies used in the crypto space. It might be as daunting as learning a new language, but it will be worth it! This episode will be beneficial as you jumpstart into the world of cryptocurrency!
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Learning The Crypto Vocabulary (In Plain English)
If you’re like me when you first started learning about crypto and DeFi, it was like studying a whole new language. The definitions often sound like they are also being given in a new language like, “Let me translate that Greek for you using Swahili.” While you can always look up for the technical definitions all over the internet, here are some useful definitions. As always, please share this with others who you know this episode will help.
Cryptocurrency is what I like to call the new energy of money. Think of this as money’s next evolution. It is the first time that money has changed fundamentally in hundreds of years. DeFi is short for Decentralized Finance. This means there’s no gatekeeper and sometimes no proof required for creating an account. This helps over two billion people in the world who don’t have access to banks or IDs to use money. It will change the way we use money a lot in the future, including reducing fees and transaction times.Cryptocurrency is the new energy of money. Click To Tweet
Noob is a newbie. That’s you unless you have any experience with crypto. I have no idea why everything needs a new spelling because the old newbie was “newbie,” but apparently, it does, which brings us to frens. Where did the I and the D go in friends? I don’t know but at least on Twitter, your frens are the ones rooting for you even if you’ve never met. HODL stands for Hold On for Dear Life. It is one of the core philosophies of cryptocurrency investing. It started because someone misspelled hold. HODL or hold your crypto instead of trying to buy low and sell high.
Bag, like a bag of money, is the amount you are holding of a single crypto. The next one is Pump, which means going up. In my first week of studying crypto, I heard a guy saying, “His bags were pumping,” and thought he was sharing too much personal information. Moon is when crypto goes up fast and it can, super fast. It’s called going to the moon. This means a big spike that can last a day or permanently change the price of a token.
FOMO stands for Fear of Missing Out. It’s an acronym. In crypto, you get FOMO watching people’s bags pump. The best remedy for FOMO is to get educated and get involved. Get in the water now so you can learn to surf before the financial tsunami hits. FUD is the opposite of FOMO. It stands for Fear, Uncertainty and Doubt. Most people have FUD, especially when something feels new and therefore scary because let’s face it, almost no one likes change. FUD will paralyze you. Mindset is everything when becoming an investor and trying anything new.
Dip is a temporary downswing in the market. Most people in crypto will ask, “Did you buy the dip?” It’s because their assumption is that going forward, everything will go up over the long term. HODLing and buying the dips are often used as a combined strategy. AMA is Ask Me Anything. People who know what they’re talking about will offer this as a way to be transparent so people don’t feel stupid asking low-level questions. I’m always going to default to AMA.HODL stands for Hold On for Dear Life. It is one of the core philosophies of cryptocurrency investing. Click To Tweet
GMI is Going to Make It. Twitter has a whole language of its own. The people who make up CryptoTwitter, also known as CT or a whole subset of people on Twitter who eat, sleep and breathe crypto, encourage each other by saying GMI or Going to Make It. Also, WGMI, We’re all Going to Make It. The opposite is NGMI or Not Going to Make It. If you’re not GMI, you’re NGMI. It’s usually said when someone in the old White guy establishment says how awful crypto is, which is still every day.
Let’s have a little test. Here are all our vocabulary words. “Now that you understand a little bit about DeFi and crypto, noob or newbie, did you get FOMO before you went into crypto? Did you buy the dip and then HODL because now you and your frens’ bags are pumping? You can AMA about DeFi and people will FUD or NGMI, but WGMI because we are going to the moon.” How did you do? You can always read this episode multiple times.
I will be doing more of these crypto vocabulary episodes going forward because we’re all learning every single day new things all the time. It’s because it wasn’t even invented until yesterday. There’s always going to be new stuff to learn. If you’re a little bit nervous about jumping in, take the time to get educated and check out all the other episodes of the show to do so. In the meantime, please like and share the show with the mothers, grandmothers, daughters, and all the other women in your life. I’ll see you next time.