Cryptocurrency Terms You Need To Know

Just as already known, cryptocurrency is now a part of this generation, as it is now a means of transaction and source for people.

it is important to know the common associated with it so as not to be lost whenever it is been discussed.

Below is a list of over 40 cryptocurrency terms you might need to know:

1. ALTCOIN

Any cryptocurrency other than Bitcoin. On the other hand, they are usually known as alternatives” to Bitcoin.

 

2. AIRDROP

An event where the investors/participants are able to receive free tokens or coins into their digital wallet.

 

3. ATH

All-time high. The A — all, T –Time & H — high. This describes a situation when a cryptocurrency reaches its highest value point.

 

4. ATL

All-time low.

 

5. BEARS

The crypto community — people who expect the price of a coin to go down. They’re usually pessimistic!

 

6. BTD

Connoting Buy The Dip.

This translate to Buying a coin when its value has experienced a significant decrease. Currently, we are facing BTD

 

7. BULLISH

An expectation that the value of a specific cryptocurrency is going to increase.

 

8. BUY AREA

The range you’ve got to buy and stop. For an example “#EPS 6063 — 6090 Satoshis”. This means buy NXT Coin between 6063–6090. Note, any negligence to this may result in loss of your bitcoin or Cryptocoins — based on your source of trading signal.

 

9. BUY BELOW

Buy below a certain threshold.

For an example, buy below 490 Satoshis. This means “buy 400 fractions of Bitcoin”.

 

10. CANDLE

Cryptocurrency Trading chart.

 

11. DECENTRALIZED

A copy of the Blockchain or digital ledger on every device connected to the network. It is an exact copy of the information that is open for everyone to see.

 

12. DYOR

This connotes Do Your Own Research.

Due to the volatility and the speculative nature of Cryptocurrencies, buyers and investors are always admonished to do their own research before committing resources to any crypto investment.

This way, they won’t need a therapist to regain their right mind or health imbalance.

 

13. ETHER

Cryptocurrency or digital tokens of Ethereum Blockchain network.

 

14. ESCROW

The practice of having a third party act as an intermediary in a transaction. This third party holds the funds on and sends them off when the transaction is completed.

We have escrows in form of crypto exchanges. The best common examples are Remitano, LocalBitcoins.

 

15. EXCHANGE

A platform (centralized or decentralized) for exchanging (trading) different forms of cryptocurrencies.

These exchanges makes the cryptocurrency revolution worthwhile as cryptos are easily exchanged to local currency — paper money.

Some popular exchanges are almighty ‘BINANCE’, BitMEX, Coinbase, Bittrex, and more.

 

16. FA

An abbreviation for Fundamental Analysis.

 

17. FIAT MONEY

Generally known as local currency. Fiat money is a currency that is usually backed by a government or group and whose value is tied to the investing public’s confidence in the government that backs it.

Meaning, it has been declared legal tender by fiat (order or decree). Some examples are Rupees, US Dollar, British Pound, Euro, Naira etc.

 

18. FOMO

FOMO Line means “Fear of Missing Out.”

It can also be seen as an emotion experienced by those who haven’t bought any cryptocurrency and see prices continually rising.

Also, in the opposite direction, it can create a mindset that causes people to purchase a stock based on the premise that they may miss out on a good thing.

The effect is that it can lead to irrational decisions at inflated prices.

 

19. FUD

“Fear, Uncertainty, Doubt” about a particular coin value. FUD like FOMO can also lead to irrational trading or investment decisions.

However, this news or propaganda as designed can lower the price of a specific coin.

 

20. HARD CAP

The maximum amount a crowd sale will receive. Usually, we see this often with ICOs. It just defines the threshold amount of money they will get at the end of their sale. Maybe $50 Mln.

 

21. HASH

A mathematical process that converts inputted data into a fixed length string, usually 32 characters.

A hash has to follow certain rules and formats and is formulated using very specific information, and must contain the previous hash and block information within itself together with some “dummy data” (a nonce) to produce a randomized hash.

 

23. HOD

Initially, a misspelled version of “HOLD,”. HODL connotes “Hold On for Dear Life.”

This is a common acronym act of holding onto your coin disregarding the market sentiments and FUDster agents.

 

24. ICO

Similar to Initial Public Offering, ICO connotes “Initial Coin Offering”.

Startups issue their own token in exchange for ether. This is a typical crowdfunding on the ethereum platform whereby tokens or coin are offered to the investors normally in exchange against other stable cryptocurrencies like Bitcoin as well as Ethereum.

 

25. JOMO

This connotes the “Joy Of Missing Out”. Perhaps you missed out buying some coins in a Deep, so you are excited.

 

26. KYC

This connotes “Know Your Customer”.

Used to describe a series of laws and regulations which require businesses to know the identity of their customers.

This is important when considering the verification and authentication of a user.

 

27. LEVERAGE

Trading with borrowed capital (margin) in order to increase the potential return of an investment.

Another version is trading with “borrowed” bitcoins/money.

 

28. LIMIT ORDER

This defines both the Limit Buy and Limit Sell wherefore an order placed by the traders to purchase or sell a cryptocurrency at a predefined price.

 

29. MARKET ORDER

Market Order defines both Market buy/Market Sell.

On a plain term, it is an order placed by the traders to be executed on the spot at the best price that the market currently offers.

Market Orders are filled as long as there are sellers and buyers willing to perform the trade.

 

30. MOONING

A situation the price of a coin rapidly increases in value.

So, it’s “shooting up to the moon” or “mooning” signify a great appreciation.

 

31. P2P

This connotes Peer to Peer Network or a person-to-person.

Peer-to-peer has become a very large focus of Blockchain as it decorates the beauty of decentralization.

The Blockchain is all about p2p, so, nearly every interaction on the Blockchain is P2P fulfilled.

This P2P cancels out all centralized variable like a store, bank or notary.

 

32. PUMP & DUMP

Massive buying and selling activity of cryptocurrencies (sometimes organized and to one’s benefit ) which essentially result in a phenomenon where the significant surge in the value of coin followed by a huge crash take place in a short time frame.

This occurs when traders artificially inflate the assets price and then exit their positions, causing a price collapse.

 

33. REKT

A slang referring to the word “wrecked”. It defines a situation whereby an investor or trader who has been ruined utterly following the massive losses suffered in crypto industry.

 

34. ROI

ROI connotes Return on Investment.

It defines the percentage of how much money has been made compared to an initial investment.

A popular metric to measure the profitability of an investment, calculated via dividing the net profit by the net investment amount X 100%.

For an example, a 100% ROI indicates that you have doubled your money.

 

35. SATOSHI

The smallest unit of a bitcoin currently available (0.00000001BTC).

Satoshi can be earned and sold in tiny amounts!

 

36. SHITCOIN

Coin with little potential or future prospects.

 

37. SOFT CAP

An amount received at which a crowd sale will be quantified as a success.

 

38. STABLE COIN

A cryptocoin with an extremely low volatility that can be used to trade against the overall market.

This always gives an impression that the coin would go up significantly in terms of its value, most of the time with the pretense of sincerity.

 

39. TA

An abbreviation for Technical Analysis or Trend Analysis. TA defines a financial analysis that takes advantage of the patterns in market movement in order to identify trends and perform relevant predictions.

An example of a Technical analyzer can be found at CoinTracking.

 

40. TESTNET

An alternative Blockchain on which developers can test and experiment with changes to a cryptocurrency without the risk of damaging or interfering with the real Blockchain.

 

41. TOKENS(S)

A unit of value that is created on a Blockchain that acts as a host for it. Ordinarily, Tokens do not have their own Blockchain (house).

Also, Tokens are projects built on the Ethereum network (house). The Ethereum Tokens are known as ERC-20 Tokens. Some of the examples are EOS, ICON, BNB, and Golem and more.

 

42. WALLET

A storage facility to securely lock away your cryptocurrency private keys.

There are a number of different wallets; web wallets, desktop wallets, hardware wallets, mobile wallets, paper wallets and brain wallets.

 

43. WHALE

Someone that is in possession of a tremendous amount of cryptocurrency or fiat money.

Also, a whale has the power to influence prices easily.

Before now, an example was Mr.Elon musk.

 

Having said all this, we hope these terms will not sound strange to you whenever you encounter them in your day-to-day activities.

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