Coinmonks
Published in

Coinmonks

USEFUL CRYPTO TERMINOLOGIES YOU NEVER REALLY UNDERSTOOD

  • TA- TA stands for Technical Analysis. This is simply a mathematical indicator used to predict future price action. The basic idea is that markets behave according to certain patterns and that once established, trends heading in a certain direction often continue along the same course for some time before a switch. However, for good investment analysis, there is a need for both Fundamental and Technical analysis.
  • POW- means Proof of Work. It is a consensus mechanism employed by bitcoin, which requires members of a network to expend effort in solving a mathematical puzzle to prevent anybody from gaming the system. Proof of work is widely used for validating transactions and mining new tokens however, it consumes a large amount of energy.
  • POS- means Proof of Stake, a consensus mechanism used to validate cryptocurrency transactions. In this protocol, miners are supposed to have ownership of a currency, and the miner with the highest number of currencies (Stakings) would be given a chance for adding/validating the next block to the chains.
  • WEAK HAND- This is a person who does not hold a coin for long. He is always eager to sell whenever there is a price dip.
  • WHITE PAPER — A white paper is a document that outlines what a cryptocurrency is created to do, the problem it aims to solve, and how it aims to achieve it within a specific period.
  • ROARMAP- this is a timely calendar or schedule of events or achievements a project aims to achieve within a stipulated period of time. You can also identify a good project if its roadmap is up to date.
  • TOKENOMICS — This is a combination of Token & Economics. It helps understand the supply and demand characteristics of a cryptocurrency. Understanding a project tokenomics will help you know when to enter and exit the project as well as the duration of time you should be in a project either for the long term or the short term. Understanding a project tokenomics is a must if you must be a successful trader or investor.
  • ICO — Stands for ‘Initial Coin Offering’, it is mostly used when a new cryptocurrency project gives away some of its coins at a discounted rate usually to finance the project.
  • IDO- Stands for ‘Initial DEX Offering’ and it refers to the launching of a cryptocurrency on a decentralized exchange (DEX) usually at a price lower than the listing price in order to raise funds.
  • STABLECOIN — This is a cryptocurrency that is tied to the value of the US dollar to make it more stable and less volatile. E.g USDt, Usdc, Busd, Ust, etc. Now, I know the question on your mind concerning the terra USD collapse but that will be a story for another day so, you need to stay glued to this page for that update.
  • PUMP AND DUMP- This is more like a scam technique mostly used by whales to rob people of their earnings. Here, they can decide to buy or own a large amount of a coin just to encourage others to buy, and like you know the laws of demand and supply, “the scarcer it becomes, the higher the price”. So, when this happens, they sell off all that they own and the price falls drastically.
  • WHEN LAMBO — This is a term or slang often used by investors to inquire when there would be an excessive increase in the price of a particular coin/token they hold.
  • NFTs — this simply means Non Fungible Tokens. Do you know that you can easily buy and sell collectibles like art, music, trading cards, fashion item, and even landed properties using smart contracts? Yes . that is achievable using NFTs. you can learn more about NFTs here
  • DYOR -Means “Do Your Own Research”. Truth is that the blockchain is very vast and one always needs to do his own research irrespective of where you get your information. The purpose is to reduce the number of uninformed investors in cryptocurrency and encourages them to research and understand a cryptocurrency before investing.
  • FUD means Fear, Uncertainty, and Doubt. For instance, Events and news that create a negative effect on the market just like the recently crashed terra luna, news and events have a way of causing negative effects thereby making people sell massively.
  • NFA — (Not a Financial Advise) The term is also often used as a disclaimer when cryptocurrency traders and enthusiasts make public posts or share their market analyses on social media platforms. For instance, If you are not a financial advisor and you made a trade analysis and encouraged people to go for it, if the trade eventually goes wrong, you can be sued for it or even arrested. that is why when crypto analysts or trade enthusiasts make such posts, it is always advised to add that disclaimer so that anyone who wishes to follow the analysis, is doing it at his own risk.

About the Author

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Patience Igwe

A talented and result-oriented web3 content writer/community manager, a cryptocurrency thought leader with 2years plus experience in blockchain technology.