30 MOST IMPORTANT WORDS CRYPTOCURRENCY ENTHUSIAST'S AND NEWBIE'S NEED TO FAMILIARIZE
Undisposably, Cryptocurrency can be a tragic experience for crypto newbies and enthusiasts who lack a definite knowledge of crypto terminologies thereby finding it difficult to interact, utilize and experience the trueness of the crypto world.
Having been consumed by the subsequent reports of some crypto enthusiast on the difficulty to understand and interact freely on this space without fidgeting, I found it necessary to make a list of the 30 most important words crypto Enthusiasts and newbies needs to familiarize.
These words are frequently been used by crypto investors and traders for smooth communication and transactions. Here are a list of them :
- WALLET- This is an online wallet (more like your bank), where you store all your coins. It is easily accessible and fully under your charge. There are two types of wallets,: a hard wallet and a cold. Example is such wallets includes: Trust wallet, metamask wallet, etc.
- EXCHANGE* - This is an online platform where you can buy, trade and sell coins. An exchange can either be Centralized or Decentralized. A centralized exchange is an exchange where you make transactions but have little or no ownership of your funds, example: Binance, Coinbase, Kucoin. This is because you have no seed phrase to claim ownership of the wallet. Also, just like your bank is notified whenever u want to make a transation, same goes for centralized exchanges. Whenever you want to make a transaction, the exchange is notified, and they run the transactions for you with your funds. However, decentralized exchanges on it’s own part is a whole lot different from centralized exchanges. A Decentralized exchange allows ownership of funds. That is to say, you are in charge of your own funds and no other person can access your wallet except they have your seed phrase, example: Uniswap, Sushiswap, Pancakeswap, etc.
Using a Decentralized exchange, you have the option of connecting and disconnecting your private wallet from a particular exchange and even though you may not find all the coins you want on a Decentralized exchange, it's still a lot more better to store your funds, coins, tokens, in your Private wallet.
- ADDRESS - An address comprises of numbers and alphabets which can be used to receive, send and buy tokens. An address might be: wallet address or Contract address. A wallet address is the address of your private wallet or exchange wallet. Basically, it is where you want to send your funds, more like the address of your house. While the contract address is the address that represent the coins or tokens you want to purchase. Just like the name of goods in the market, the contract address represents the name of a product .
- ALTCOIN* - This is any coin that is not Bitcoin. Example is Etherum, Cardano, XRP etc.
- Coins* - Simply means products
- Tokens - lower versions of coins
- STABLE COIN* - A coin that is tied to the value of a currency like the United States Dollars, which makes it's price not to fluctuate
- GAS* - A fee you pay for transaction, commonly used in Etherum because of it's high gas fee
- REKT* - Simply means wrecked. When you lose all your money or most of your money while trading.
- MOON* - When the price of a coin has a positive movement.
- HODL* - Meaning to buy and hold a coin to make profit (Hold For Dear Life)
- P2P* - Peer to Peer enables transaction between two entities without a middleman
- FOMO* - Fear Of Missing Out is when you are worried if you don't buy a coin when others are, you may regret later.
- BULLISH* - When a coin is moving in a positive direction. Just like moon.
- BEARISH* - Movement in a negative direction. Downward.
- TAKE PROFIT* - Selling, converting or withdrawing part of or all of your money on a particular coin after making profit.
- STOP LOSS* - Applying a point where you want to take out your money to a stable coin after losing part of money.
- TARGET* - Deciding how much profit you want to make on a particular trade.
- FARMING* - Staking your coins for a particular period of time while you receive rewards for doing so.
- AIRDROP* - Is a marketing technique used by crypto companies, which involves free distribution of coins and tokens as a means to gain popularity.
- ALL TIME HIGH* - when a coin gets to a new price for the first time.
- ALL TIME LOW* - New low price for the first time.
- BAG* - To hold a huge amount of a coin, you have a bag of it.
- DIP* - when a coin price is moving downward. Always a good time to buy.
- DApp* - A Fully functioning Web3 browser that can be used to interact with any decentralized application (DApp). It is open source and has its use incentivized by the reward of fees or tokens.
- DUMP* - Selling all you have of a particular coin. Or when the price of a particular coin goes in the negative direction.
- ESCROW* - A middleman in a transaction.
- FIAT* - Government owned currencies that are in cryptocurrency. Example USD, Euro, NGN.
- FUNDAMENTAL ANALYSIS (FA) * - This is simply a method of conducting a research on a particular coin and evaluating it's intrinsic value to determine factors that could influence its price in the future.
- LIQUIDITY* - The liquidity of a cryptocurrency is defined by how easily it can be bought and sold without impacting the overall market price.
- WHALE* - A term used to describe extremely wealthy investors or traders who have enough funds to manipulate the market.
These are a few of the crypto terms necessary for crypto Enthusiasts and newbies to sail smoothly on this space.
To get more informative and educative Cryptocurrency insights, do well to subscribe to our channel and give us a thumbs up for this post.
ABOUT THE AUTHOR
Igwe Ihuoma Patience is a self-taught creative and industry specific content writer, cryptocurrency enthusiast with 2years plus experience and knowledge of the constantly evolving blockchain space.
I am skilled in content creation, copy writing, curating captions, video editing & graphic designing with mobile phones and I teach others how to get started in the cryptocurrency and blockchain space and My goal is to make blockchain learning and updates easy for anyone to understand.