There are many specific terms and abbreviations in the crypto circle, and understanding these terms is very important for participating in the cryptocurrency market. Here are some common professional terms in the crypto circle:
Token: A digital asset that represents certain rights on the blockchain. It can represent various forms of value or rights, such as shares, voting rights, etc. Unlike currency, it is typically not used directly as a medium of exchange but represents participation or privileges in a certain project.
Fiat Currency: Currency issued by a country or government that has legal status, such as the Renminbi, US Dollar, etc. They are backed by government credit, in contrast to cryptocurrencies.
Crypto Circle: Refers to the community composed of people who participate in cryptocurrency trading, investment, and discussions. Although this circle is not large, it is very active within certain communities and includes various players, from ICOs to trading coins and mining.
Airdrop: A marketing strategy that distributes tokens for free to existing or new users to increase project visibility and attract users. The amount of airdrop is usually proportional to the number of tokens held by the user.
Candy: Tokens distributed for free to users during a project's ICO or early stage to promote project publicity and user participation.
Break Price: Refers to the price of a certain cryptocurrency falling below its issuance price.
FUD (Fear, Uncertainty, Doubt): Often used to describe unfavorable information or rumors present in the market or project, which may lead to price declines.
FOMO (Fear Of Missing Out): The behavior of investors making impulsive investments due to the fear of missing out on opportunities, often leading to significant short-term price increases.
HODL: Derived from 'hold', refers to the long-term holding of a certain token or cryptocurrency, ignoring short-term fluctuations, with the expectation of future price increases.
BUIDL: Emphasizes building projects rather than just holding assets, encouraging community participation and development.
SAFU (Secure Asset Fund for Users): A fund used to protect user asset security, typically provided by exchanges.
ROI (Return on Investment): A percentage that measures the return on investment.
ATH (All Time High): The highest price that an asset has ever reached.
ATL (All Time Low): The lowest price that an asset has ever reached.
DYOR (Do Your Own Research): Reminds investors to research the project's background, team, and technology independently before investing.
DD (Due Diligence): The process of in-depth research and analysis of an investment target.
AML (Anti-Money Laundering): Measures to prevent money laundering activities through cryptocurrency.
KYC (Know Your Customer): The process of requiring users to provide identification to comply with laws and regulations by financial institutions and exchanges.
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