CRYPTOCURRENCY TERMS YOU NEED TO KNOW

CRYPTOCURRENCY TERMS YOU NEED TO KNOW

As you continue your Crypto journey, it’s important for you to get familiar with some of the crypto terms, slangs & phrases used as you’ll be seeing them often.Here is a list of Crypto Terms and their meanings.

1. Fiat – Government-issued currencies i.e Naira, Dollar

2. Blockchain – the technology of cryptocurrency that keeps the system secure and decentralized.

3. DEFI – (Decentralized Finance) is an ecosystem that operates independently, free of third parties or exchanges. Defi involves the use of decentralized exchanges and wallets to trade tokens.

4. CEFI – (Centralized Finance) had always been the standard for trading Crypto before DEFI.

CEFI involves the use of companies operating exchange platforms like Binance, FTX etc

5. White paper – A white paper is a document that outlines what a cryptocurrency is created to do and how it will achieve it.

6. Tokenomics – This is a combination of Token & Economics. It helps understand the supply and demand characteristics of a cryptocurrency

7. ICO- Stands for ‘Initial Coin Offering’, which is where a new cryptocurrency gives away some coins at a discounted rate usually to finance the project.

8. IDO – Stands for ‘Initial DEX Offering’ refers to the launching of a cryptocurrency on a decentralized exchange (DEX) usually at a price lower than the listing price in other to raise funds.

9.Tokens-there is a difference between coins and token, a coin is an asset that is tied to its own blockchain E.g Bitcoin, ethereum, solana e.t.c. Whereas tokens are created on already existing blockchain that is every crypto created under BSC(binance smartchain), ETH(ethereum chain) e.g $FEG, $Shiba, $Akita e.t.c

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P. S- tokens are the backbones of DEFI and exist to be under DEX.

10. Market cap – The total trading value of a cryptocurrency. Calculated by (Current Price x Circulating Supply= Mcap) For example, a coin with 1 million coins in circulation selling at $1 would have a market cap of $1million.

11. Stablecoin – A cryptocurrency that is tied to the value of the US dollar to make it more stable and less volatile. E.g USDt, Busd

12. Pump and dump – This is kind of like a scam where people who own a large share of a Coin encourage others to buy to artificially pump the price. Once price reaches a high value, they sell off all that they own and price drops drastically.

13. Bag holder-this term is for someone who is left with a crypto currency after a pump and dump. Usually a bag of shit😅

14. Gas – A fee for validating a transaction on the blockchain.

15. Rekt- Slang for ‘wrecked’. It implies that the user lost a lot of money on cryptocurrency.

16. Moon – A belief that a Cryptocurrency will rise exponentially in price.

17. HODL – A drunken misspelling of the word ‘hold’ which is now a slang people use when they say they are going to wait and hold onto a cryptocurrency.

18. NFT – (Non Fungible Tokens) NFTs enable people to buy and sell collectibles like art,music and trading cards using smart contracts. NFTs can work like any other speculative asset, where you buy it and hope that the value of it goes up one day, so you can sell it for a profit.

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19. DYOR – (Do Your Own Research) often aims to reduce the number of uninformed investors in cryptocurrency. It encourages them to research and understand a cryptocurrency before investing.

20. NFA – (Not a Financial Advise) The term is also often used as a disclaimer whencryptocurrency traders and enthusiasts make public posts or share their market analyses on social media platforms. The market cannot be 100% predictable and even a “Correct” analysis can fail so it’s important that users apply discretion while investing.

21. Whale – A crypto whale is wealthy individual or a company that can move large amounts of cryptocurrency in one go. This can have a big impact on the market.

—Learning these cryptocurrency terms will make it easier to understand how cryptocurrency works.

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