Crypto Dictionary for Dummies: Decoding GM, HODL and 48 More Magical Abbreviations

If you've just entered the crypto world, you've probably already noticed that people here speak some sort of their own language. GM, FOMO, HODL, LFG — seemingly just letters, but this is a whole subsystem of communication where each term carries meaning. Let's figure out what these “magic codes” actually mean and why it's important to know them.

50 basic terms that are encountered in crypto every day

Trading Psychology:

• FOMO — fear of missing out. When you see that a coin has risen and you didn't buy it.
• HODL — historically it was a typo of the word “hold” (hold), but the community turned it into a principle: buy and hold, don't sell.
• FUD — fear, uncertainty, doubt. A wave of panic and negativity on the networks.
• BTD/BTFD — buy the dip. A classic investment tactic

Market Conditions:

• Bull market — prices are rising, everyone is euphoric
• Bear market — prices are falling, everyone is in depression
• ATH — all-time high price
• ATL — historical minimum price
• Luna/Lunies — rapid price rise (symbolism: we are going to the moon)

Market Players:

• Whale — a large investor with a significant amount of coins
• Shill — a person who actively promotes the project ( often for a reward )
• Rekt — someone who has suffered serious losses

Manipulations:

• Pump and Dump — artificial price inflation, followed by a sharp sell-off
• Rug Pull — the developer suddenly disappears with investors' money

Blockchain Technology:

• Smart contract — a program that automatically executes the terms of a contract.
• Oracles — systems that provide real data to the blockchain
• Gas (gas) — fee for transactions on the Ethereum network
• Layer 1 — the main layer of the blockchain (Bitcoin, Ethereum)
• Layer 2 — second layer for scaling (Arbitrum, Optimism, Base)
• Cross-chain — the ability to interact between different networks

Financial mechanisms:

• DeFi — decentralized finance without intermediaries
• Staking — locking coins in the network to earn rewards
• Mining — the extraction of new blocks and receiving rewards
• Liquidity Pool — collective provision of funds for trading pairs
• Yield Farming — earning income through DeFi mechanics
• APY — annual percentage yield of your capital
• TVL — total value locked in the project

Tokens and their types:

• NFT — non-fungible token, a unique digital asset
• Airdrop — free distribution of tokens to the community
• ICO — initial coin offering at the project launch

Exchanges:

• DEX — decentralized exchange (no one controls)
• CEX — centralized exchange (there is an administration)

Legal/Security:

• KYC — identity verification (know your customer)
• AML — anti-money laundering
• Private Key — private key, access password to the wallet
• Seed Phrase — 12-24 words for wallet recovery

Things to remember:

• GM — just “good morning” in crypto chats
• LFG — let's f*cking go!
• DYOR — do your own research (don't believe blindly)
• Satoshi (SATS) — the smallest unit of Bitcoin (1 BTC = 100 million SATS)
• Gwei — the Ethereum unit for fees (1 Gwei = 0.000000001 ETH)

Classification of crypto: altcoins, shitcoins, memes, and air

Altcoins are an alternative to Bitcoin

Alternative coins are everything except Bitcoin. They emerged to improve what exists in BTC or to add completely new capabilities.

How they differ:

• Consensus mechanism: Ethereum uses Proof of Stake (stake), EOS applies DPoS (delegated stake), Bitcoin — Proof of Work (mining)
• Speed and fees: Many altcoins aim for fast transactions and low payments.
• Smart contracts: Ethereum allows developers to create decentralized applications
• Practical application: Some focus on DeFi, others on community management or a specific industry.
• Emission: While Bitcoin is strictly limited to 21 million, altcoins often have a different economy.

Conclusion: Altcoins are a source of innovation, but also of increased risk. Before investing, one needs to understand the technology, the team, and the prospects.

Shitcoins — altcoins without prospects

This is a negative label for cryptocurrencies that are considered scams. Characteristics:

• No innovations: Just a copy of existing coins with minimal changes
• Hype Dependency: Price depends only on the hype, not on the technology.
• Lack of a plan: Developers do not have a long-term strategy
• Risk of manipulation: Easy pickings for market manipulators
• Opacity: The team is unknown or hidden.
• Highest risk: Investing here is practically a casino

It is important to remember: This term is sometimes used unjustifiably, so it is important to do your own research.

Meme coins are entertainment that has become an investment.

These are cryptocurrencies created based on internet memes and pop culture. A classic example is Dogecoin (DOGE) with the logo of a Japanese Shiba Inu.

Their features:

• Community is the main force: Active fans on social media promote the coin
• Wild volatility: The price dances depending on the mood of Twitter and TikTok.
• No clear application: This is entertainment, not a practical tool.
• Media hype: Popularity is rising thanks to celebrities and influencers (Elon Musk and his Dogecoin — a legendary example)
• Speculation: Extreme risk

DOGE-Story: At first it was a joke, then people started buying it, a community formed, and now - Dogecoin is accepted as payment in some places.

“Ground Dogs” vs “Golden Dogs”

Within meme culture, there is a gradation:

• Groundhogs: New, unknown meme coins, usually an outright risk
• Golden Dogs: Meme coins that have risen dozens to hundreds of times have gained status and recognition from the community (DOGE, SHIB, PEPE)

Air Coin — air castles on the blockchain

These are cryptocurrencies without a real foundation — neither technology, nor application, nor prospects.

Red flags:

• Lack of a serious business model
• Value only holds on hype
• The price is artificially inflated and may crash to 0
• The team is opaque or does not exist at all.
• High risk that the project will simply evaporate

Conclusion: Air Coin is not an investment, it is an attempt to enrich oneself at the expense of the naive.

Practical advice for beginners

Before investing money in any coin, remember:

1. DYOR — do your own research
2. Don't give in to FOMO — even if everyone is shouting that it's going to start rising
3. Differentiate categories: altcoin ≠ meme coin ≠ air coin
4. Check the team: transparency and experience are the keys to reliability.
5. Evaluate TVL and application: is there real use of the project

The crypto market lives on emotions and speculation, but those who know the terminology and understand the differences have a serious advantage. Learn, analyze, invest consciously.