Cryptocurrencies are a type of currency that is available in digital form, does not have a physical presence and does not have similar characteristics to physical currencies, but allows instant transactions and unlimited transfer of ownership.
Listelist published an article explaining the simplest terms used in the field of bitcoin and cryptocurrency, where the site emphasized that “no matter how much you know about bitcoin and the blockchain technology that supports it, the terms used can be That's why we've compiled the most commonly used terms about cryptocurrencies and bitcoin for you.
Cryptocurrency and financial market terms
FOMO
is an acronym for Fear of Missing Out.
FUD
is an acronym for Fear, Uncertainty and Doubt.
HODL:
It refers to a type of passive investment strategy in which you hold an investment for a long period regardless of any changes in price or markets.
KYC:
An abbreviation for Know Your Customer.
It is the first stage that cryptocurrency exchanges must complete in order to verify the identity of their customers.
Bull market: This
refers to a market in which cryptocurrency prices generally move upwards for a certain period of time.
“Bear market”
refers to a market in which cryptocurrency prices are generally in a downtrend.
“Altcoin”:
Any cryptocurrency other than Bitcoin.
ATH:
The highest price level reached by the cryptocurrency.
ATL
means the lowest price level reached by the cryptocurrency.
LAMB or LAMBO:
The term used is an abbreviation of the word Lamborghini, indicating the speed with which one expects to become rich, given the current market conditions.
It is also often used, to indicate the opposite: that someone loses a lot of money during downturns.
Whale:
A term used to describe very wealthy investors or traders who have enough money to manipulate the market.
“Pull the rug” or “Rugpull”:
Refers to a fictitious cryptocurrency strategy, in which crypto developers abandon the project and run away with investors' money.
“Arbitrage”:
It refers to buying from one exchange and then selling to another if the margin between them is profitable, as multiple exchanges trade the same cryptocurrency on any link, and they can do so at different prices.
To the Moon:
Investors use the term or rocket emoji when they think the cryptocurrency is going to boom.
Buy the dip:
Refers to the idea of buying cryptocurrencies when prices fall to reap benefits when they rise again.
DeFi stands for Decentralized Finance:
Refers to the growing ecosystem of applications and services that leverage blockchain technology and cryptocurrencies to provide decentralized financial services to users.
CeFi Central Finance:
Offers new crypto-focused loan and savings products, but within a traditional centralized framework, where users create accounts, provide credentials, and access customer service.
TA Fundamental analysis:
A method for evaluating an asset as well as predicting its future performance.
Memecoin:
An alternative currency based on mockery, a kind of prank in the form of an image that has been frequently modified and shared online.
An example is Dogecoin.
P2P Peer-to-Peer:
Refers to a transaction between two people without the intervention of an intermediary or a central authority.
Proof of Stake (PoS):
Another alternative to Proof of Work involves rewarding these “crypto” miners for providing their computing power to the network in exchange for that miner investing in cryptocurrency.
So if a miner has 3 tokens, he can only earn 3 tokens.
"51% attack" (51% attack):
A majority attack that occurs when more than half of the computing power in a network is powered by one person or group of people.
The organization has complete control over the network and can negatively affect the cryptocurrency by stopping mining (crypto) or modifying operations and reusing cryptocurrencies.
Bear Trap:
Created by people who aim to manipulate the price of any cryptocurrency;
Everyone is selling the cryptocurrency at the same time, which indicates that the market trend is down.
Burn:
The act of sending cryptocurrency to a wallet address that cannot be accessed again.
Hard Fork:
A fork in the shared database (Blockchain) that validates transactions that were previously classified as invalid and vice versa.
All nodes in the network must be upgraded to the latest protocol for this fork to work.
'Pump':
This term is often used to refer to an upward price movement led by whales who have invested large amounts of money in cryptocurrency.
Pump and Dump: The
abhorrent practice of buying a lot of cryptocurrency and then selling it at a high price to increase its price and encourage others to invest.
Sharding:
A method for shredding the entire shared database record, so that every full node does not need an exact copy.
A “stablecoin”
is a type of cryptocurrency that seeks to maintain price stability and is backed by a reserve asset such as the dollar or gold.
Airdrop:
An event where a blockchain project distributes free tokens or cryptocurrencies to the community.
Dumping:
The dumping of large amounts of cryptocurrency simultaneously on exchanges, which results in lower prices due to greater supply than demand for cryptocurrency.
ICO: Initial Coin Offering:
The first proposal for the public purchase and sale of tokens or digital assets for the emerging blockchain project.
IDO First Decentralized Offering:
Similar to ICO but allows users to interact with the project before it is released.
IEO Initial Exchange Offering:
This is the first time a cryptocurrency has been sold through a cryptocurrency exchange.
Proof of Burn (PoB):
A type of consensus algorithm that requires users to "copy" or exchange some tokens by sending them to a non-spendable address, thus proving that they are real and active participants in the network.
BTFD Buy from the bottom:
Often used by Bitcoin investors who see a price drop as temporary, and a good opportunity to increase their profits in the long run.
Halving:
The process of halving the Bitcoin mining reward after approximately 210,000 blocks have been mined;
This process takes about 4 years.
“Satoshi”:
One of the more curious terms for Bitcoin is Satoshi, a numerical equation equal to 0.0001 Bitcoin, named after Satoshi Nakamoto, the founder of Bitcoin.
Hash RATE:
A unit of processing power, it tells you how many network-specific calculations are performed per second by the Bitcoin network. A hash rate of 1 tera means the network can perform a trillion calculations in one second.
Mining:
One of the first concepts that comes to mind when mentioning Bitcoin terminology is mining, which is the process of creating new digital currencies by solving complex mathematical problems that are then validated and added to a shared database network.
Pizza:
One of the first bitcoin transactions that ever happened, in 2010 a programmer paid one bitcoin (worth about $40 at the time) for two pizzas.