Cryptocurrency Terminology: 28 Must Know Cryptocurrency Terms

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In this article, we would be showing you 28 Must Know Cryptocurrency Terms. Without further ado, let’s get started.

Cryptocurrency Terms

ATH (All-Time High)

Bitcoin’s ATH, or all-time high price, is $19,800. (as of writing these lines). On December 26, 2017, the ATH was reached. The inverse of ATH is ATL, which represents a record low.

Alternative Coins (Altcoins)

Apart from Bitcoin, there are thousands of other digital currencies based on blockchain technology.

Each coin is one-of-a-kind and innovative. The great majority of altcoins remain unrecognized, and their daily trading volume and market capitalization are quite low. However, there are other examples of alternative coins with reasonable liquidity and trading against fiat currencies, such as Ethereum and Ripple. Over the years, many of the thousands of altcoins have dwindled in value and simply vanished.

Bitcoin Maximalist

Such a person fervently believes in Bitcoin alone. Typically, the maximalist regards other cryptocurrencies as unworthy and superfluous, or as “shitcoins.”

Block Reward

The reward that miners earn for successfully validating and recording new transactions on the blockchain.

Blockchain

A blockchain can be thought of as a massive information file that has a record of all transactions ever made. The Bitcoin network’s heart is the blockchain, which functions as a decentralized ledger.

Centralized Exchange (CEX)

A cryptocurrency exchange is an online trading platform that facilitates the exchange of cryptocurrencies and fiat currency. Centralized exchanges are those that are controlled by a single firm that retains complete control over them.

The majority of cryptocurrency exchanges currently only support crypto-to-crypto trading. However, the larger ones offer crypto-to-currency trade as well. Binance, Coinbase, Kraken, Bitstamp, and BitFinex are the most popular exchanges.

Decentralized applications (dApps)

Decentralized Applications, or dApps, are applications created on top of blockchain technology that operates independently of a central operating authority.

DEX

A DEX, or decentralized exchange, is an exchange that is not controlled by a central authority – it is not run by a firm. Several of the advantages of DEX over CEX include its higher security level – it is more difficult to penetrate – and compliance with rules.

DeFi

DeFi, or Decentralized Finance, is a revolutionary monetary system based on public blockchains that do not require the intervention of a central bank.

Digital Address

A combination of letters and numbers ranging from 27 to 34. Each address is distinctive. A digital address looks like this: 135sti2R9ZooiGrFFRJxYGeDvF5Uvjj7JK.

Cryptocurrency wallets are represented by digital addresses. We will need to use the recipient’s digital address in order to send bitcoins or dollars.

Digital Wallet

A digital wallet is a program that enables the storage of digital currencies on a local computer (PC), a mobile device, or a remote server. The majority of digital wallets are designed to store Bitcoin. A digital wallet stores funds using both public and private addresses.

Cold storage paper wallets or hardware wallets, such as Trezor and Ledger, are the most secure digital wallets. For additional information about digital wallets.

FIAT

Any form of currency that is backed by a government or country. Essentially, it is any coin that we are familiar with and uses on a regular basis (USD, Euro, CAD, etc.).

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FOMO

FOMO is an acronym for “Fear Of Missing Out,” a term that refers to the fear of missing out on a profitable trading opportunity.

FUD

Fear, Uncertainty, and Doubt are abbreviations for FUD. It spreads negative news about cryptocurrency, which is regularly circulated by the traditional press with the intent of inciting mass fear. FUD can refer to a variety of topics, including Bitcoin regulatory concerns, rumors regarding cryptocurrency prohibition, and more.

HODL

HODL is a play on the word “hold” in the English language. Hodlers believe in Bitcoin and keep it in their possession at all times, regardless of its price, for the long term, if not indefinitely. HODL was first used in December 2013 following the crypto bubble burst.

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Halving

A preset procedure that reduces by half the rewards miners receive for recording and confirming transactions on newly added blocks to the blockchain. Every four years, Bitcoin is halved; the next halving will occur in the summer of 2020.

Initial Coin Offering (ICO)

An Initial Coin Offering (ICO) is a means of acquiring funds from the public for cryptocurrency businesses. In contrast to traditional fundraising, ICO investors are only eligible to get tokens and are not considered equity holders with voting rights.

The ICO Bubble lasted from October 2017 to March 2018, with hundreds of successful initial coin offerings occurring during each of those months. The overwhelming majority of those ICOs were ERC-20-compliant, meaning they were built on the Ethereum network.

Investing in initial coin offerings (ICOs) is regarded as extremely risky. Numerous initial coin offerings (ICOs) have devolved into cryptocurrency frauds, wiping off investors’ assets entirely. The number of ICOs significantly declined in 2018, and Binance was the first exchange to undertake an Initial Exchange Offering (IEO) in January 2019.

IEO

IEO stands for Initial Exchange Offering, which is a type of financing for the creation of a new cryptocurrency token that is handled through a cryptocurrency exchange.

The first initial exchange offering (IEO) was GIFTO, which raised $30 million on Binance Exchange in 2018. IEOs gained popularity in the first half of 2019, following a sharp decline in the number of ICOs.

As with ICOs, IEOs is viewed as a high-risk investment.

KYC

KYC, which stands for “Know Your Customer,” is a process in which consumers are required to disclose personal information in order to comply with regulations. This includes, but is not limited to, scanning a passport, providing evidence of address, and verifying an online webcam.

Market Capitalization

Market capitalization, or capitalization, is calculated by multiplying the current price of a single cryptocurrency by the total number of coins in circulation (the circulation supply). Bitcoin has the largest market capitalization of any cryptocurrency.

What Exactly Is Mining? What kind of people are the Miners?

Mining is the process by which new Bitcoins are created. Mining is carried out by miners,’ who solve complex equations. The miner who solves the transaction the quickest receives the reward (fee) and adds it to the block.

On average, every ten minutes, a new block is added to the blockchain, a massive distributed public database of previously executed transactions.

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Bitcoin mining may be carried out using a personal computer (PC) in the cryptocurrency’s early years. Nowadays, mining activities are concentrated in the hands of megacorporations such as China’s Bitmain.

Mining is not exclusive to Bitcoin, but also to other PoW (Proof-of-Work) cryptocurrencies.

To the Moon

The term “moon” refers to an asset whose value has increased dramatically, as in “Bitcoin to the moon!”

Proof-of-Stake (PoS)

This consensus technique lets users choose who will validate the next block based on their coin holdings. Token holders secure the network by locking their tokens in exchange for benefits.

Proof-of-Work (PoW)

The blockchain network’s original consensus algorithm. The algorithm is used to validate transactions and create new blocks in the blockchain. Miners compete for prizes for confirming transactions.

Private Key & Seed

Each public or digital address is associated with a unique private key that must be used in order to gain access to the cash. Here is an illustration of a private key: 6AkL0TJAuKcucHGqWVfUIa4g1haE0ilcm7eWUDo..fd + PpzdCJf1s4WdsK. 6AkL0TJAuKcucHGqWVfUIa4g1haE0ilcm7eWUDo..fd

A seed phrase is a more compact representation of a private key. The seed is a collection of twelve or twenty-four words.

Pump & Dump system?

P&D artificially inflates the price of an asset (“pump”) for a brief period before rapidly selling it (“dump”), while the value returns to its pre-pump level.

The less trading volume and liquidity there is in a coin, the easier it is to pump and dump it. As a result, smaller-cap cryptocurrencies are typically chosen for P&D.

Shitcoin

Shitcoin is a moniker for an altcoin that has no functional product and no intrinsic value. Shitcoins are primarily used by Bitcoin Maximalists to refer to the majority, if not all, altcoins other than Bitcoin.

Market Capitalization

The total market capitalization, or capitalization, of all cryptocurrencies, is equal to their aggregate market capitalization.

Bitcoin Whale

A person or entity that holds a significant enough quantity of Bitcoin to be able to influence the price of Bitcoin solely by mass buying or selling.

Whitepaper

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A whitepaper (WP) is a comprehensive report or guide intended to educate readers about the technical characteristics of a freshly launched cryptocurrency project. It is comparable to a business strategy in the conventional financial world. The WP is often written by the project’s team and contains chapters that address the problem being solved, the token, the team, and the technical components of the project.

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