Friends who haven't been in the crypto space for long often ask me one question: Why do I not understand what people in the crypto world are saying? Indeed, the terminology and concepts in this circle are so numerous that they can confuse newcomers. Today, I’ll share what I’ve summarized, including over 50 common terms and the differences among various cryptocurrencies, hoping to help you get started quickly.

First, let's talk about the most basic psychology terms. FOMO is fear of missing out, which is the most common mindset among crypto people. Seeing others making money makes you restless; I think everyone has experienced this feeling. Also, HODL—this word is actually a misspelling that evolved into a term meaning holding long-term. If you see someone say LFG in a community, it stands for "Let's F***ing Go," expressing high community enthusiasm, usually when the price is about to take off. LFG means everyone together charge forward.

Next are descriptions of market conditions. Bear Market means prices are generally falling, and many people get trapped. Bull Market is the opposite, with prices rising across the board, and FOMO is strongest then. ATH is all-time high price, ATL is all-time low price. If a coin rises from a low point to a new high, crypto folks will say it’s "Mooning."

Regarding holdings and operations, Whale refers to large holders of cryptocurrencies whose actions can influence the market. Pump and Dump is a tactic where manipulators push the price up to attract retail investors, then quickly sell off for profit. BTD is short for "Buy The Dip," meaning buying when prices drop—this is a common strategy. Rekt means being trapped or losing a lot of money.

Technical terms are also very important. DeFi is decentralized finance, currently the hottest track. Staking means locking up coins on the network to earn rewards. Mining is the process of earning crypto through computational work. Liquidity Pool is a pool where users deposit tokens to provide liquidity. Smart Contract is an automated contract on the blockchain. Gas Fees are transaction fees paid on the Ethereum network.

Terms related to exchanges and wallets are also essential. CEX is a centralized exchange, like major trading platforms. DEX is a decentralized exchange, trading directly on the chain. Wallet is a tool for storing cryptocurrencies. Private Key is the private key—never disclose it, as it’s your last line of defense. Seed Phrase is a series of words used to recover your wallet.

Token-related concepts are also key. NFT is a non-fungible token, each one unique. ICO is an initial coin offering, a way for new projects to raise funds. Airdrop is free token distribution by projects. Rug Pull is a scam where developers attract investments and then run away with the funds.

Financial indicators include APY, annual percentage yield, often used by DeFi projects to attract users. TVL is total value locked, measuring the scale of a DeFi project. Hash Rate measures the processing power of a blockchain network.

Now, about the classification of cryptocurrencies, which is often confusing for beginners. Altcoins are all cryptocurrencies other than Bitcoin, including Ethereum, Solana, etc. They may use different consensus mechanisms, like Ethereum’s PoS (Proof of Stake). Some altcoins focus on increasing transaction speed and reducing fees, some introduce smart contract functions, and others are designed for specific industry needs.

Shitcoins is a derogatory term for coins lacking real value. They usually have minor modifications of existing coins, with no real innovation. Their prices are driven purely by hype, and the development teams may be opaque or even scams. Investing in shitcoins is very risky and can lead to total loss.

Meme Coins are tokens based on internet culture, mainly for entertainment. The biggest feature is community-driven, with extreme price volatility. Dogecoin (DOGE) is the most famous meme coin, originally just a joke, but later supported by the community and celebrities, turning it into a coin with actual value.

Tough coins (土狗币) are a type of meme coin characterized by no big tech team, no institutional investors, and full of meme spirit. Their logos are often just meme images, looking very grassroots. Dogecoin is the pioneer of tough coins; initially, everyone bought it just for fun.

Golden Coins are those that have skyrocketed from tough coins, with increases of dozens, hundreds, or even thousands of times. Besides Dogecoin, coins like PEPE, Shiba Inu (SHIB), fall into this category because they gained huge popularity and community support.

Air Coins are the most dangerous—they have no real value or backing, purely driven by hype and promotion. These coins lack a solid business model or technological innovation, often just air castles. The development teams are usually opaque, sometimes outright scams. Investing in air coins is extremely risky and can result in zero value in a short time.

There are also some other common terms to know. DYOR means "Do Your Own Research." FUD is "Fear, Uncertainty, Doubt," spreading negative info. Shill refers to promoting a project enthusiastically. GM is a greeting for good morning in community chats, often posted daily.

Regarding blockchain infrastructure, Layer 1 refers to the base blockchain, like Bitcoin and Ethereum. Layer 2 is a second-layer solution to improve performance, such as Arbitrum and Optimism. Cross-chain technology supports interoperability between different blockchains. DAO is a decentralized autonomous organization, governed by smart contracts.

Finally, some tips for beginners: Before entering the space, make sure to understand these basic concepts and avoid blindly following trends. Always do your own research, especially on shitcoins and air coins. Remember, there’s no such thing as a risk-free high return—high yields come with high risks. Start with small amounts to experience the market, and only increase your investment once you truly understand how this circle operates. Lastly, when someone recommends a coin, think carefully—don’t let FOMO cloud your judgment. I hope these insights help you explore the crypto world better.