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Cryptocurrency Terms You Need to Know (Part 1)

lnhngn 09/11/2021 22:10 704 views

For those who are new to the crypto market, you will doubtlessly be overwhelmed by a wide range of specialized terms that are confusing.

For that reason, we have collected a list of significant Cryptocurrency Terms to make it simpler for you to comprehend the phrases as well as explore project information in the crypto world. For your reference, below are some significant and often used terms in the crypto industry.

You may use the keyboard shortcut Ctrl + F and input keywords to search for a phrase faster and more correctly.

Altcoins

Altcoin is the collective name for cryptocurrencies other than Bitcoin. Most of the previous Altcoins were improved versions of Bitcoin. Currently, Altcoins are Utility Tokens (multi-use tokens) representing a project and have value for use in the project’s ecosystem.

AMA – Ask me anything

AMA stands for Ask Me Anything – Ask Me Anything, is an online event to answer questions from the community. AMA can be Livestream, or live answering on Facebook, Telegram… answering questions.

Airdrop

Airdrop is a form of giving away free tokens to users. Some common Airdrop images are: Retroactive, Hold & Stake master tokens, Perform tasks required by the project, etc.

Airdrop is often used in advertising strategies, introducing ICO projects to attract users to participate in the coin project community.

ASIC

An ASIC (Application-Specific Integrated Circuit) is a specialized integrated circuit manufactured specifically for a specific purpose.

For example, Bitcoin ASIC miner, this is the miner that works with the most optimal mining performance because all of their resources will be concentrated to fulfill one need, which is Bitcoin mining.

ATH – All time high

ATH (All Time High) is the highest point (be it price or capitalization) that a coin, a stock, etc. has reached in its price history.

For example, Bitcoin’s ATH is $66,000.

Aggregator

Aggregator is a platform that aggregates many different features. For example, you can swap, lend, etc.

Algorithmic Stablecoin 

Algorithmic Stablecoin (Algorithmic Stablecoin) is a new model of Stablecoin, with the mechanism of keeping the price at $1 based on the algorithm, not the underlying asset.

An example of an Algorithmic Stablecoin is UST with LUNA increasing and decreasing the supply and demand to keep the UST price.

BAGHOLDER

BAGHOLDERs are people who hold coins in bulk to wait for the price to rise and sell in the future.

Bottom Fishing

Bottom fishing is the act of buying at low prices by investors. With the mindset that that point is the lowest possible price and hope the price will rise again to make a big profit.

Blockchain

Blockchain is a decentralized database that stores information in blocks that are linked together by encryption and expand over time.

Simply put, Blockchain is an electronic ledger distributed on many different computers, storing all transaction information, and ensuring that information cannot be changed in any way. All information stored on that ledger will be verified by a series of computers connected in a common network. No machine will be able to change, overwrite or delete the data in that ledger.

Bull Market (Bullish) 

Bull market (or Bullish) is a term for a market that is in an uptrend, with a rapid increase in the price of coins/tokens more than the historical average. In particular, they increase for a long time in large volumes.

In the Bull Market, the demand to buy will be greater than the demand to sell.

Bear market (Bearish) 

In contrast to Bull market, Bear market (or Bearish) is a term indicating that the market is in a downtrend, at this time the price of coins/tokens will drop suddenly, continuously and for a long time.

In the Bear Market, the demand to sell will be greater than the demand to buy.

Binary Option 

Binary Option is the term for the game “binary options”, in which the user predicts the candlestick price in a short period of time, wins money, loses money.

Breakout 

Breakout is a term in Technical Analysis that describes the phenomenon of price breaking through a support or resistance level.

The technical tools used to identify price breakouts can be moving averages, trend lines, price patterns (like head and shoulders patterns, candlestick patterns etc.) other specifications.

Bridge 

Literally, Bridge is a bridge between blockchains. The reason for this is that the assets on the blockchains will be in different standards, so they cannot be traded back and forth, which requires a bridge.

Circulating Supply 

Circulating Supply is the total amount of Coins/Tokens in circulation in the market.

CEX – Centralized Exchange

CEX stands for Centralized Exchange – a centralized exchange, managed by a 3rd party (the company or organization of the exchange), all electronic assets you deposit into your account on the exchange are managed and controlled. controlled by that company or organization. For example, Binance, Okex, Huobi, etc.

Child node

Child node is a type of node in Blockchain, extended from another node called Parent node.

Collateral asset 

Collateral asset means collateral. Collateral is the assets of users deposited in the above projects to borrow money. If you want to get collateral, you need to pay back the loan with a part of the fee (depending on the project). Collateral assets are often seen with Lending projects like MakerDAO, Venus, Unit Protocol, etc.

Cross-chain 

Cross-chain is a solution to help transfer assets from one chain to another, to optimize the ability to combine between chains and is often used for projects present on multiple blockchains.

For example, users can use Sushiswap’s services on Polygon, Ethereum, etc.

Cliff

This word is often found in the token release schedule section of projects. Cliff is understood as a token-locked period, people in this category will not receive any tokens. Usually applies to tokens held by the team, advisors or investors

For example: Team Allocation: Cliff 12 months, vesting 12 months, which means that the first 12 months there is no token for the team, from month 13 to 24 will gradually pay 1/24 tokens.

Dapp – Decentralized Application

Dapp (Decentralized Applications) is a decentralized application, these applications are built on existing platforms & protocols. The Dapps will focus on solving the problem in a certain area and the tokens will be used inside the Dapp.

Since Dapps are built directly on the platforms, the nature of these decentralized applications will depend on those platforms. For example transaction speed, tps, scalability, stability.

Derivatives 

Derivatives (or derivatives) are the names of financial instruments. It allows investors to trade multiple products based on price without owning the product. Using derivatives allows investors to buy in a much larger amount (leverage) of the assets they own.

For example: Oil derivatives trading, Bitcoin, weather,…

DeFi – Decentralized Finance

DeFi (Decentralized Finance) means decentralized finance. These are simply financial applications developed on the blockchain platform. You are free to use any application, anywhere without depending on a trusted 3rd party like a bank because you are the one who holds your assets.

DYOR – Do your own research

DYOR stands for Do Your Own Research – which means do your own research and find out. It can be finding information about a project, researching whether to invest in that project or not.

DEX – Decentralized Exchange

DEX (Decentralized Exchange) is a decentralized exchange, that is, when trading cryptocurrencies on DEXs, there will be no person or organization behind the operation, but only the buyer and seller are linked together. without going through any intermediaries, such as Uniswap, Sushiswap, PancakeSwap, etc. Opposite of DEX is CEX.

DAO – Decentralized Autonomous Organization

DAO stands for Decentralized Autonomous Organization – an organization operated by members based on a set of rules coded in code (this set of rules can be consensus or smart contract).

All members have the right to vote on important decisions of the DAOs. In return, members participating in DAOs must have a reward for participating in the operation of DAOs.

You simply understand that these are many groups of people working together according to a set of rules to reach a common goal and there will be rewards for each person involved in that process.

On-chain data

On-chain data is the data of an asset on the blockchain, this metric can be the number of wallets holding tokens, the number of transactions in a certain period of time, the status of deposits and withdrawals on the exchange, etc. On-chain is used to predict the current situation of an asset and from there make future hypotheses, whether the price will increase or decrease, how supply and demand will be, etc.

Discord

Discord is an application for exchange similar to Telegram, users can participate in exchange with the community, projects, etc. Discord’s special feature is that, divided into each project, there will be smaller groups depending on the topic of discussion. For example, general discussion, entertainment discussion, project code discussion, etc.

Ecosystem – Blockchain’s Ecosystem

Ecosystem is the ecosystem of blockchain. The ecosystem in Crypto is a system of many products that connect and support each other inside a Blockchain, each Blockchain is like an infrastructure company, they will also want to develop a system. full ecology of self.

There is not exactly an exact definition of how many projects an ecosystem will have, but it is not too difficult to realize an ecosystem.

Some popular ecosystems today are Ethereum, Binance Smart Chain, Solana, Terra, Near, etc.

Ethereum 2.0

Ethereum 2.0 is an upgrade of Ethereum with the move from POW (Proof-of-Work) to POS (Proof-of-Stake), to improve transaction speed and scalability on Ethereum.

Etherscan

Etherscan is a tool to track, search, and look up transactions that have taken place on the Ethereum Blockchain network. Users can find information about all tokens, ERC-20 wallet addresses, transactions made, etc. on Ethereum through Etherscan.

ERC-20

ERC-20 (Ethereum Request For Comment) is one of the technologies in the Ethereum Network system. This is the most common standard used for Smartcontracts on the Ethereum Blockchain when issuing Tokens.

In addition to ERC-20, there are other token standards on the Ethereum network such as ERC-721, ERC223…

EMA

EMA (Exponential Moving Average) is an exponential moving average, used in technical analysis. The EMAs can be viewed as resistance, support of the candle.

Fiat

Fiat money, also known as fiat money, is a currency issued by the government. Fiat has no intrinsic value, Fiat’s value is based on the country’s ability to use and financial strength.

The most powerful fiat currency today is the USD issued by the US Federal Reserve (FED) under the guarantee of the US federal government.

Fibonacci

Fibonacci is an indicator in technical analysis that is derived from a mathematical theory of Leonardo Fibonacci living in the 12th century. Traders often use fibonacci to draw support-resistance lines, find entry and exit points as well as trades. take profit and stop loss positions.

FOMO – Fear of missing out

FOMO stands for Fear of Missing Out. This is a very common psychology of investors, present in most forms of trading from stocks, Forex, to cryptocurrencies,…

Full lock duration

Including the Cliff stage (if applicable). In most cases, without Cliff, full lock duration = vesting period.

For example, a team/seed token, after TGE usually does not start vesting immediately, but usually has a cliff for a while. If cliff 12 months, vesting linear 24 months ie the first 12 months there is no coin distribution, then from month 13 to month 36 receive 1/24 of the coins every month

Full node

Full node has the ability to download a complete copy of a certain Blockchain network and check which new transactions are based on the consensus principle – Consensus.

Flash Loan 

Flash Loan is an uncollateralized loan with the condition that the loan amount must be returned to the lending platform in the same transaction. Think simply, you borrow then do ABC with that loan, finally pay back the borrowed money all those activities are done in 1 transaction.

FUD – Fear, uncertainty, doubt

FUD stands for Fear, Uncertainty & Doubt, this is a state of anxiety, skepticism, uncertainty about the market of investors. This state often occurs when bad news of the market appears, which will cause investors to sell off.

FDV

FDV stands for Fully Diluted Cap, the calculation is to take the maximum total number of tokens of the project * the value of 1 token at that time. Usually, CoinGecko and CoinMarketCap both have FDV in each token.

Gas fee – Gas fee

When a user performs any transaction on the blockchain (buying, selling, approving, …) and needs to put the transaction into the block, it needs to pay a fee, called Gas Fee. Gas fee is calculated based on Gwei, the bigger Gwei, the more gas fee will cost, but in return the transaction will be done faster.

Gas War

Gas war is a term that refers to the act of many users intentionally increasing gwei, paying more to complete the transaction. This affects the blockchain network, because other users will have to pay much more expensive fees for the transaction to take place. Gas war action is usually done by bots.

(More Cryptocurrency Terms will be uploaded in the next part)


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lnhngn

"Don't invest in what you don't know. Learn first then invest"