AURORA COMMUNITY EDUCATIONAL SERIES:
UNDERSTANDING SOME POPULAR CRYPTO TERMINOLOGIES/ACRONYMS AND THEIR FINANCIAL IMPLICATIONS: PART 2
In our last educational series we extensively discussed some crypto terminologies and acronyms and their financial underpinning, therefore in this series we’ll go further to look at more of those common terminologies that you’ll likely come across regularly in your crypto interactions.
AIRDROP.
An airdrop is a process of distributing free tokens to some specific set of eligible individuals. Airdrop is a mechanism usually employed by a project to reward its earliest members and users and further spread awareness and adoption of the project.
Basically when a new project launches there are always early participants who volunteer to either test the project and give feedback to the admins, interact in the social groups of the projects or spread awareness about the project. The team behind the project can then decide to reward those set of individuals with an airdrop of their token I.e. send them free tokens after shortlisting their wallet addresses.
There are lots of airdrop opportunities within the crypto space, some projects have rewarded their active and valuable community members with airdrops worth over 4 to 5 figures in USD!
earning Airdrops is one of the ways to potentially build a crypto portfolio with zero $ capital.
However, to be eligible for valuable Airdrops, you have to know how to research and scout for projects before they become mainstream and also be willing to add value to such projects in any way you can!
PRO TIP: want to learn how to earn airdrops! Subscribe to our medium and watch out for our next Educational Series on how to build a crypto portfolio with zero capital!
ALPHA.
Alpha simply means valuable information that can potentially increase your earnings or earning capacity within the crypto space.
As an active crypto participant, you must know how to research for valuable Alpha, simply because, information is powerful in the crypto space and a particular piece of valuable information might be your catalyst to financial freedom.
How can you potentially get alpha?
The major way to get alpha is by leveraging social media. You should have the major social media networks installed and functional on your device, on Twitter there are numerous accounts dedicated to sharing Alpha that you can follow. You can also join specific crypto communities on Telegram, Reddit and Discord and follow the information that is dropped there.
PRO TIP: joining the Aurora telegram Community opens you to so much valuable alpha about the Aurora network. Our weekly spotlight Article covers projects that have massive upside potentials, utilizing the information we publish can potentially EARN you real cash!
BLUE CHIP.
A blue chip is one of those terminologies that was borrowed and isn’t exclusive to the crypto market, it is also used in other financial markets like the stock market.
Blue chip as it relates to crypto, simply refers to crypto assets that are considered to be a safer investment than others, this can be due to how long they’ve lasted and dominated the market in terms of value and utility. For example, in the token category, Bitcoin and Ethereum are considered to be blue chip cryptocurrencies, because they have dominated the crypto markets and have witnessed many market circles without crashing into oblivion.
As a crypto investor, you should ideally have a significant portion of your portfolio allocated to Blue chip cryptocurrencies.
some experienced crypto investors even go further to advise that you convert your profits from other tokens, into blue-chip crypto assets.
WHALE.
A whale in crypto refers to an individual or institutional investor that has accumulated a significant portion of the available supply of a token. These whales hold very large amounts of a token and can potentially move the price of the token when they sell or buy it. Most crypto assets have very wealthy whales that have accumulated a significant share of it. The activities of these whales may significantly affect the investment of a smaller crypto investor.
As a general rule, a small retail investor should research, discover and invest in good potential crypto assets before any whale comes in to accumulate the token, you’re also advised to sell or take profit from a crypto asset before the whales begin to sell.
To explain this further, if you discover a potential crypto asset and invest in it before whales discover it, you’ll be able to benefit from the bullish price movement that occurs when whales find the asset and start to accumulate it. Also, just as you intend to profit off an investment the crypto whales have the same intention, therefore if you’re invested in a crypto asset that has larger investors you may want to start realizing your profit from such assets before the whales start selling, because once they begin to sell from their Holdings the price if that asset may start to crash.
It is also advisable for crypto investors to be wary of investing in assets that have a significant number of whales, this is because the coordinated activities of these larger investors may significantly manipulate the price of the asset.
Pro tip: to understand and monitor the activities of crypto whales you need to learn how to conduct on-chain analysis.
REKT.
rekt, as a crypto terminology originates from the English word “wreck”.
REKT is used to describe when a person has lost all their investment capital, due to a wrong investment decision or falling victim to a scam.
There are lots of activities that can end up making you Rekt. They include: Leverage trading without any experience in technical analysis, investing in crypto assets without conducting adequate research, and Investing more than what you can afford to lose at the beginning of your crypto investment journey.
As a crypto investor, you do not need to get rekt to become a more careful investor, all you need to do is make sure you do not get involved in any crypto activity without having first sought substantial knowledge on that activity. Investing in the crypto asset is very risky and only investors that have good financial discipline end up profitable eventually.
Do not attempt to multiply your capital quickly in order not to fall victim to an action that will get your Rekt.
CONCLUSION.
This Brings us to the end of this educational series and our conclusion of crypto terminologies and acronyms. There are still some terminologies, however, we have covered the major ones that have very significant meanings and financial implications, we hope you learnt something new from this series. If you did, please leave a clap and comment. also do not forget to follow us on our socials : TELEGRAM TWITTER
DISCLAIMER: PLEASE NOTE THAT NOTHING WRITTEN ABOVE CONSTITUTES FINANCIAL ADVICE AND IS MERELY FOR EDUCATIONAL PURPOSES ONLY
