NGMI is a valuable acronym to know while investing in cryptos. If you are like me, you are used to financial terms, but some crypto terms and slang may come off as foreign language. More and more financial firms are investing in crypto with many large investors suggesting you have 1-3% of your portfolio in crypto.
Knowing acronyms and slang can set you up and help you sharpen your trading strategy. Crypto slang is meant to deliver quick, sharp messages. Messages could be intended either as warnings or some as encouragement.
So what does NGMI mean in crypto? NAMI, stands for “not going to make it.” What it means is that a huge profit could be missed on a trade by an investor. It could be a quick introduction to the market and its prevailing conditions for a beginner. It would initiate the investor into understanding investor views on coins and which ones they fear they could miss profits on, along with reasons. It could help you determine your own trading strategy.
Crypto slang is meant to deliver quick, sharp messages. Messages could be intended either as warnings or some as encouragement.
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Investors are always on the lookout for the next cryptocurrency to deliver outsized returns, ever since Ethereum and Bitcoin delivered huge returns to their investors. In this short article, I will go over a few terms.
NGMI is a crypto token too
To make stuff a little more complicated, NGMI is also the name of the new meme crypto. The token cannot be bought back once it has been sold, which is the reverse Honeypot model. Currently available through PancakeSwap and Binance Coin, its impending listing is expected to make it accessible more easily and give a fillip to trading.
Though not all meme coins have struck gold, some have been great investments, such as Dogecoin. Fred Ehrsam, the founder of Coinbase, perhaps articulates a truism when he says that a good meme should not be dismissed by investors.
Other popular crypto slangs
HODL is another oft-used crypto acronym. In a strange birth sequence, HODL took hold of the mind-space of investors after HOLD once got misspelled on a Bitcoin forum and has been is use ever since as an encouragement to investors to hold on longer to their crypto assets, regardless of the mood in the market.
A ‘DIAMOND HAND’ is another commonly used phrase’ and meant to indicate a good holding to its investors so that they don’t chicken out and sell when the going appears to be rough. It seems to have its origins in Tesla CEO Musk using a ‘DIAMOND HAND’ emoji on Twitter in response to fears that Tesla was about to dump its bitcoin holdings after they stopped accepting Bitcoin as payment.
We may understand ‘FOMO’ as part of everyday slang in messaging but we may not know that it is also a popular acronym in bitcoin trading. The meaning, perhaps, remains similar, with its reference to investors seeing a spike in a cryptocurrency they had chosen not to invest in. The explosion of Dogecoin prices would have left many investors with a ‘FOMO’ feeling.
Have you heard of a ‘WHALE?’ Of course, you have, but have you heard of it in the context of crypto? Maybe not. A ‘WHALE’ is a term used for an investor with a large holding in a cryptocurrency. For instance, Musk is rumored to be a Dogecoin ‘WHALE.’
What is Blockchain?
Blockchain is a secure virtual ledger that records transactions securely. It is ‘decentralized,’ meaning there is no central authority to manage it. Each new record must first be verified by a computer connected to the network, called a “node”, before it can be registered.
Blockchain is a network structure where each set of data is considered to be a ‘block.’ A ‘chain’ is formed by new blocks that are added in a progressive order.
A blockchain can’t be altered or deleted. To correct errors or mistakes in transactions before, a new transaction must instead be created. They are thus protected from being altered.
What is Crypto Mining Pow? (proof that work is done)
Proof-of-work (PoW) is the protocol that powers Bitcoin’s network. It is a consensus mechanism that validates new transactions for inclusion in the blockchain. While anyone can theoretically become a “miner”, in practice, this process requires significant computational power, special equipment, and storage space for high-speed servers.
A node, or miner, that is made up of many powerful computers, must solve a random mathematical puzzle in order to generate the “hash” that will identify the new record. This allows a transaction to be validated. Each record will receive a SHA256 hash. A hash is a unique number that uniquely identifies the data set. So that anyone can verify the integrity and authenticity of newly created records, the distributed ledger is updated.
Miners in a proof of work ecosystem are paid by receiving tokens to validate transactions on the blockchain.
A wallet is an application that allows crypto tokens to be safely stored. A wallet is essentially a code piece that stores crypto tokens. The owner can only access the codes through the wallet.
There are two types of wallets: cold (not connected to the internet) or hot storage (accessed the internet). Hardware wallets are physical devices that look like hard drives. Access to mobile and desktop wallets is limited to smartphones or personal computers.
What is Altcoin?
Altcoin is shorthand for alternative coin. It refers to any token other than bitcoin. All tokens that were launched after Bitcoin are considered alternatives because they were pioneers in the cryptocurrency ecosystem.
Not all tokens are the same. The Ethereum token (ETH) is a utility token because it powers hundreds of decentralized applications. Uniswap is a decentralized trading protocol that allows automated trading of Decentralized Finance (DeFi) tokens. According to CoinMarketCap, the top five altcoins in market capitalization as of July 2021 were: Ethereum (ETH), Tether(USDT), Binance Coin/BNB), Cardano/ADA, Ripple (XRP)