When it comes to cryptocurrencies, one of the biggest challenges for newbies is the confusion that comes with different terminologies used by crypto gurus. Investing in this venture means broadening your vocabulary and getting familiar with them to understand expert picks if you’re planning to ride on their positions.
If you’ve decided to invest in cryptocurrency, it’s vital, as with any other investment, to do your investigation and get yourself familiar with the terms used. Below, we’ll list and explain the major terminologies you should know before starting your crypto journey.
This address identifies the location of a crypto transaction on the blockchain. Any changes made are recorded and stored here. Addresses vary among cryptocurrencies but are not limited. It is usually a thread of more than thirty characters. Think of it as a telephone number; every address can be traced.
This marketing strategy pertains to the allotment of a cryptocurrency through various people. This happens when the owner of a cryptocurrency donates coins to low-ranked traders or a group of known members to build its use and popularity. The coins can be given away for free or in trade for simple assignments like sharing news of the new coin with friends.
All-Time High (ATH) and All-Time Low (ATL)
All-Time-High abbreviated as ATH simply means the highest price ever attained by a cryptocurrency. While, All-Time-Low abbreviated as ATL, simply means the lowest price ever attained by a cryptocurrency.
Altcoins and Stable Coins
An Altcoin means any coin that is not as popular as Bitcoin.
Stable coins are cryptocurrencies whose price is pegged to an established asset, often the U.S. dollar. These coins are commonly used to promote cryptocurrency trading.
A shit coin is a term used to define a cryptocurrency not believed to have a positive prospect.
Bull and Bear Trends
Bull simply means the positive price of the cryptocurrency. The coin is bullish if a cryptocurrency’s price has a favorable price consistency.
On the other hand, Bear means that the price of a certain coin is moving towards the negative side of the charts. The coin is said to have a bear trend if a cryptocurrency’s price has an unfavorable price tendency.
Market Capitalization means the total value of all the coins that are yet to be mined. This can be calculated by multiplying the current number of coins by the current number of values of the coins.
Any cryptocurrency is known and referred to as a token. A token is a virtual code specifying each fraction, which can be acquired, purchased, and retailed.
A whitelist is the list signed by an interested group of people when they want to purchase or register crypto under presale conditions. These interested groups of people are given undivided access to subscribe to a preliminary coin presale.
This is a comprehensive description of a cryptocurrency, planned to offer favorable technological knowledge on the advantage of a coin and set out a detailed strategy for how it aspires to achieve its intended goal. The white paper is developed to persuade investors that it’s a good option for investment.
A smart contract is written in computer code. This programmed contract is set to automatically implement and bring itself out under specified settings.
A smart contract on the blockchain enables both parties to check its programming before approving it and then let it do its job. A smart contract lets two parties agree to detailed terms without trusting each other.
Faucet simply means scam in crypto terminology. For instance, if you discover a website that asks you to connect with them to get gifted crypto coins, it is known and referred to as Faucet as this is purely a scam. Beginners who are not aware of this act might fall victim, as they are still finding their way into the swampy pool of the crypto world.
FOMO is an acronym for “Fear of Missing Out.”
This term is mostly used when one is skeptical of buying a certain coin. Sometimes, FOMO might make you buy coins that are high risk. And the volatility of cryptocurrency does not permit this at all because this can make you lose all your earnings.
A wallet is a digital store where all your cryptocurrencies are stored. You should keep in mind that you must never forget your password because all your crypto investments are gone forever if you do.
We have provided in this article the most common terminologies used by crypto enthusiasts for beginners looking to venture into the world of cryptocurrency.
Reading through these will help you as a newbie to learn and get yourself accustomed to these terms so that when it’s mentioned, they wouldn’t sound alien to you.