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Crypto Things: Cryptocurrency Vocabulary that You Should Know

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Written by   41
1 month ago

How did you engage yourself in cryptocurrency?

What are the first thing that you learn during your explorations?

In my point of view, I never imagined that I will learned and entered the world of crypto. I will not say that its by accident, I think its a fate and thank you to my online friend who teach me and introduced me in the world of cryptocurrencies. Though she teach me with the basics but I learned the complex things in my own explorations and Im proud for that. Today we will talk about the different vocabularies that we commonly encountered in the world of crypto. As with any investment, it’s important to understand exactly what you’re investing in before you start.

Here are some of the terms and phrases that will help beginners better understand the world of crypto investing.

All Time High (ATH)

ATH is an acronym for all time high. It is used to describe a cryptocurrency that has reached the highest price of market capitalization in its history.

Altcoin

A combination of the words alternative and cryptocurrency. This includes any crypto that is not Bitcoin. Since Bitcoin's launch in 2011, thousands of altcoins have emerged with Ethereum being the largest and most popular.

Bitcoin

The first and most valuable cryptocurrency, launched on Jan. 3, 2009. While its value has climbed steadily since then, it has seen wild fluctuations. In the past months alone, the price of Bitcoin has fluctuated from a record high of $60,000 to below $30,000.

Bitcoin Cash

A peer-to-peer electronic cash system that formed from a fork of the original Bitcoin. Where Bitcoin is widely accepted as too volatile to be useful as a currency, Bitcoin Cash is designed to be better optimized for transactions.

Bullish

A term used to describe an asset that has a strong upward trend.

Bearish

A term used to describe an asset that has a strong downward trend.

Blockchain

A network of computers that reach an agreement over a shared ledger. Cryptocurrencies such as Bitcoin or Ethereum utilize blockchain technology as a way of digitally recording all the transactions that take place within their respective networks.

Cryptocurrency

A combination of the words cryptography and currency. Cryptography is the practice of sending encrypted messages between multiple parties, while currency is a system of money that can be used as a medium of exchange for goods and services. Thus cryptocurrency is a new form of digital currency that uses cryptography, to secure transactions on the blockchain

Dip

This refers to the moment of time when a cryptocurrency has dropped in price.

DApps

Short for decentralized applications, Dapps are applications that operate by using smart contracts on a decentralized blockchain network such as Ethereum.

DeFi

DeFi is short for Decentralized Finance. It is an experimental form of finance that relies on smart contracts rather than financial institutions. This allows users to lend/borrow, earn interest, trade cryptocurrencies without requiring a bank or central exchange through the use of secure distributed ledgers.

Digital Currency

Any means of payment that exists in electronic form. This can include virtual currencies, central bank digital currencies, and cryptocurrencies. Digital currency also is represented as an electronic form of fiat currency.

ERC-20

ERC-20 is a smart contract standard for building fungible tokens on Ethereum. These are identical tokens that can be exchanged with one another. Prior to ERC-20, wallets, and exchanges had to write custom codes to support a new token. There are thousands of tokens today that use the ERC-20 standard.

ERC-721

ERC-721 is a smart contract standard for building non-fungible tokens (NFT's). These are unique tokens that can't be exchanged with one another.

Fork

A change in the protocol of a blockchain network that branches or forks into two different paths. One blockchain follows the previous protocol, and the other follows a new protocol. Bitcoin Cash for example is a fork of the Bitcoin protocol.

Fungible

Fungible is a term that refers to assets that can be easily exchanged with other assets of the same type. For example, you can easily exchange 1 Bitcoin for 1 Bitcoin, or ₱1 for ₱1.

HODL

A term originated from a typo on a 2013 Bitcoin forum, HODL stands for Hold On for Dear Life. This acronym refers to the practice of holding crypto for the long term instead of selling in the short term.

Halving

A feature of Bitcoin wherein the reward for mining Bitcoin transactions get halved once a specific number of blocks is mined.

Ledger

A record that tracks the movement of money coming in and out.

Market Capitalization

In cryptocurrency terms, this refers to the total value of all the coins that have been mined. To calculate a crypto's market cap, you simply have to multiply the current number of coins by the current value of coins.

Mining

The process by which new cryptocurrencies are added into circulation by verifying transactions on the blockchain.

Non-Fungible

Non-fungible assets aren't exchangeable, as each asset is completely unique from one another. For example you can't easily exchange the Mona Lisa with a different work of art, as each work of art is valued differently.

Non-Fungible Token (NFT)

A unique non-interchangeable digital asset such as an image, audio, or video file whose ownership is tracked on the blockchain.

Smart Contract

A self-executing programmable contract stored on a blockchain that has its terms of agreement written directly into its lines of code.

Stablecoin

A crypto that pegs its value to other fiat currencies or commodities. An example would be the stablecoin US Dollar Coin (USDC) which is pegged to the value of the US Dollar.

Coin

A representative store of digital value that lives on a given blockchain or cryptocurrency network. Some blockchains have the same name for both the network and the coin, like Bitcoin. Others can have different names for each, like the Stellar blockchain, which has a native coin called Lumen.

Cold Wallet

A secure method of storing your cryptocurrency completely offline. Many cold wallets (also called hardware wallets) are physical devices that look similar to a USB drive. This kind of wallet can help protect your crypto from hacking and theft, though it also comes with its own risks – like losing it, along with your crypto.

Hot Wallet

A software-based cryptocurrency wallet connected to the Internet. While more convenient for quickly accessing your crypto, these wallets are a bit more susceptible to hacking and cybersecurity attacks than offline wallets — just as files you store in the cloud may be more easily hacked than those locked in a safe in your home.

Digital Gold

Experts sometimes compare specific cryptocurrencies to real gold based on the way it can store and increase in value. Bitcoin is commonly referred to as digital gold.

Exchange

A cryptocurrency exchange is a digital marketplace where you can buy and sell cryptocurrency.

Gas

A fee that developers have to pay to the Ethereum network in order to use the system. Gas is paid in ether, the native cryptocurrency of Ethereum.

Genesis Block

The first block of a cryptocurrency ever mined.

Wallet Address

Much like your address is where you live, a wallet address is like the targeted mailing address of your cryptocurrencies. Without a place to "live" or to be stored, the blockchain can't confirm or verify the existence of your cryptocurrency. So without a wallet address, you won’t be able to hold any cryptocurrencies.

Hash

A unique string of numbers and letters that identify blocks and are tied to crypto buyers and sellers.

Initial Coin Offering (ICO)

A way that funds are raised for a new cryptocurrency project. ICOs are similar to Initial Public Offerings (IPOs) of stocks.

Node

A computer that connects to a blockchain network.

Peer-to-peer

Two users interacting directly without a third party or intermediary.

Public Key

Your wallet’s address, which is similar to your bank account number. You can share your public wallet key with people or institutions so they can send you money or take money from your account when you authorize it.

Private Key

The encrypted code that allows direct access to your cryptocurrency. Like your bank account password, you should never share your private key.

Satoshi Nakomoto

The pseudonymous creator of Bitcoin. No one knows the true identity of Nakomoto — or if it’s more than one person.

Well, how are you? Are you familiar with this word and phrases? Even me Im still amazed how words come altogether to teach as with the basics about cryptocurrencies. Just remember this jargon and you can have it as a guide in the world of crypto.

Disclaimer: Images I used is from canva. The words and definitions of each phrases comes from a thorough research. Im not a financial advisor if you want to seek an advice go to an expert and never trust the advice of a random person, scammers are everywhere.

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Written by   41
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Comments

You defined and explained them well. I'm familiar with some of them, but most of them are yet to settle on my head and that's because I've not been practicing it like you

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1 month ago

Hahahaha you got it wrong bro, Im the same with you Im not an expert with those words. Where on the same boat 😂😂😂 those words are just the product of my readings and research.

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1 month ago

I literally didn't know about ERC-20 but here I learn many new terms for me. Thanks brother for sharing beautiful information after couple of days. Welcome back, I hope everything will be fine from your side?.

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1 month ago

Me too, I don't have a wide vocabulary in cryptocurrency but the most important here is that you know the basics. Its not important to know it all as long as you know the basics that's enough. But of course its still necessary to know those words to widen our vocabulary.

With regards to my absence, its my fault. Im trying to find a stable job right now that's why Im busy this past few weeks.

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1 month ago