Are you new to crypto investing? Learn these 48 crypto investment terms.
Apple and blackberry were no longer just fruits when the smartphones came. Chip was no longer just potatoes sliced and roasted when microchips came to the market. With every new technology comes new glossary. Here are A-Z terms you need to know if you are entering into the crypto market.
About the technology
Attack: Cryptocurrencies are decentralized i.e it is run by anyone joining the group which makes it democratic and not under any single entity’s control. If it happens that more than 51% of the total chain is controlled by a single user then it is known as an attack. It means that having such a large share makes the whole network under a single person’s control.
Blockchain: It is a technology that helps the whole crypto world to run in a decentralized form. Your investments and money transfers are not managed by any central entity but will be handled by a series of blocks that are a part of this blockchain. To learn in detail you can refer https://en.wikipedia.org/wiki/Blockchain .
Node: Nodes are points that are a part of this blockchain technology and help in the smooth functioning of it. They have all the data of the network which makes the network decentralized.
Mining: A verification process of a transaction to add blocks to the blockchain.
Mining rewards: It is a reward for sharing computer resources for verifying any transaction or other ming processes. It is mostly in the form of cryptocurrency.
Mining pool: Just like a carpool but this time the people are replaced by miners and the car is replaced by computer resources and mining rewards.
Mining Rig: Computers designed for mining work.
Fork: Fork is when a cryptocurrency splits. It can split into two or more parts and may change the present currency to something new. You should be aware of the fork and should always look out for the changes and how will they benefit you. It happens if there is some change in technology or rules.
Wallet: A wallet is a place to store all your currencies. The name comes from a real-life wallet that we use to store our money. For cryptocurrencies, the wallet may be a hardware wallet or software wallet.
Software wallet: Storing your cryptocurrency entirely on software is known as a software wallet. They may sometimes have the risk of hackers but you can always have a strong password to save yourself.
Hardware wallet: Hardware wallets as the name suggests are devices that store your cryptocurrency. You can have full control of your money, therefore, they are regarded as the safest form of wallets.
Smart Contract: Smart contract is used to digitally enforce, verify and automate the unstoppable transfer of crypto tokens among users according to agreed upon conditions.
Dapp: Decentralised application:
Gas: Amount of processing in ethereum network.
Gas price: Amount assigned to each Gas transaction.
POW (Proof of work): It is the current algorithm of how ethereum and bitcoin works. It shows how money is being transferred and is ensuring the smooth functioning and safety.
POS(Proof of stake): The proposed future algorithms of working of Bitcoin, Ethereum and some other blockchains to improve efficiency. It aims to run blockchain without huge computer resources.
Solidity: Language that the smart contracts are written in.
Sharding: Dividing the whole data of the blockchain into smaller units to improve the network performances.
About the market
Volatility: Extreme fluctuation in the price of an asset.
Bullish: If a market is going up it is known as a bull market.
To the moon: Metaphorically using the term moon to show the prices of a currency reaching astronomical heights.
ATH: The prices of any currency to be All time high.
Bear market: If a market is going low it is known as a bear market.
Whale: An individual or a group of people who own a huge amount of currency often causing a potential threat to the whole idea of decentralization.
HODL: It originally means HOLD but has taken the popular meme form of HODL. It means owning a currency for a long period of time like a lifetime with no intention of selling it early.
FOMO: Fear of missing out. This term is often used when investors go on to invest in a coin that is getting very popular at the time without doing any research.
FUD: Abbreviation for Fear, uncertainty, doubt.
FUDster: Someone who spreads FUD mostly without proper research.
Dead cat bounce: When the falling price of a currency experiences a slight improvement.
Dump: Selling away coins when the prices fall steeply.
Bag holder: Someone who owns coins until the value equals to null.
BTD: It stands for “Buy the Dip”. Buying of coins when the prices fall down substantially.
Market Cap: Value of coin * number of coins.
RSI: Relative strength index
Market long: Profit if the value of the coin increases.
Market short: Profit if the value of the coin decreases.
Limit order: Order of investors to buy a coin at a particular price.
Buy/Sell wall: Display of current selling and buying points.
ICO: Abbreviation for Initial coin offering. It is the crowdfunding of the startups in the ethereal platform.
ROI: Abbreviation of “Return on investment”. It is the value of profit at the end of the year divided by initial investment.
About coins
bitcoin: bitcoin with a small b is the unit of currency
Bitcoin: Bitcoin with a capital B is the concept of the successful bitcoin.
Satoshi: It is the smallest unit of bitcoin. 0.00000001bitcoin make 1 Satoshi.
Wei: 1000000000000000000 Wei make 1 Ether.
Altcoin: Alternate coins in the market than bitcoin are named as Altcoins.
BTC/XBT: Abbreviations for bitcoin.
Shitcoin: As the name suggests, coins with no value in the market is known as Shitcoin.
Hope this article helps you to learn more crypto investment terms.
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