Cryptocurrency terms that are important to the beginners [Part 3]

Understanding the cryptocurrency terms will help newcomers investing in the crypto sector easily research project information and quickly understand what the market is talking about. In this article will list out a list of the most common terms in the market for your reference.

cryptocurrency terms

List of popular cryptocurrency terms in the market

1 – What is BlockChain?

Blockchain is a digital ledger technology for decentralized data storage. All information related to crypto transactions will be stored on the ledger.

2 – What is Crypto?

Crypto is the common name of cryptocurrencies such as Bitcoin, Etherum, Binance coin, …

See also: What is crypto? Complete knowledge for newcomers to investing (Part 1)

3 – What is Bitcoin?

Bitcoin is a decentralized cryptocurrency invented in 2009 with a maximum supply of 21 million bitcoins, the father of bitcoin is an anonymous programmer with the alias Satoshi Nakamoto.

cryptocurrency terms

4 – What is Altcoin?

Altcoins are generic cryptocurrency terms that are different from bitcoin. For example, coins like ETH, DOGE, … are collectively referred to as altcoins.

5 – What is stablecoin?

Stablecoins are cryptocurrencies that are priced with a fixed asset to stabilize price fluctuations in the market.

For example, USDT is priced in US dollars, investors often convert their deposit on the exchange into USDT to stabilize the price and use it to buy and sell other cryptocurrencies.

6 – What is Token?

Token is also almost a cryptocurrency, but token is developed on the blockchain platform of another cryptocurrency. Usually during the development phase of a crypto project, it will be called a token, after being officially listed on the exchange, that token is converted to the equivalent crypto.

7 – What is Long?

“Long” is a term commonly used in highly leveraged perpetual futures trading platforms. The term “Long” means that you will short buy a certain cryptocurrency to make a profit when that cryptocurrency increases in price.

8 – What is Short?

Like “long”, “short” is a commonly used term in highly leveraged perpetual futures trading. The term “short” means shorting a particular cryptocurrency to control its profit when it falls in price.

9 – What is an airdrop?

Airdrop is a term commonly used in the introduction and promotion strategies of a project to attract community participation. With this form of Airdrop, users who participate in tasks such as like, share, … will be given a free token, when the token is on the exchange and has value, the user can sell it to get money.

10 – What is Bounty?

Bounty is like airdrops, but it is more difficult to receive free tokens and more rules than airdrops.

11 – What is ATH?

ATH stands for All time high, which means the highest point in the capitalization of a given cryptocurrency has ever reached in history.

12 – What is Bagholder?

Bagholder meaning refers to those who are holding a large amount of crypto waiting to price in the future and sell.

13 – What is Go to the Moon?

The term “go to the moon” implies that crypto will increase in value in the near future.

cryptocurrency terms

14 – What is bottom fishing?

Bottom fishing means that when the prices of cryptocurrencies fall low, investors will buy to wait for the price to rise again and sell to make a profit.

15 – What is Swing Peak?

Swing Peak is the term used by investors to refer to when buying cryptocurrency with the highest price in the market, then the price falls too quickly so sell to cut loss.

16 – What is Bull Market?

Bull market is a bull market, meaning the market is in a bull market.

17 – What is Bear market?

Bear market is a bear market, meaning that the market is in a downtrend.

18 – What is Bullish?

Bullish means that the market is in a strong uptrend.

19 – What is Bearish?

Bearish means that the market is in a strong downtrend.

20 – What is Circulating Supply?

Circulating supply means the total amount of cryptocurrencies and coins circulating in the market.

21 – What is Dapp?

Dapp stands for decentralized applications, which means decentralized applications.

22 – What is Defi?

Defi stands for decentralized finance, which means decentralized financial applications developed on the blockchain technology platform.

23 – What is an ETF?

An ETF stands for the word Exchange traded fund, which is a form of passive investment fund simulated by crypto, stocks, bonds, …

24 – What is ERC-20?

ERC-20 stands for Ethereum requetst for coment, which is the technology in the ethereum network. This technology is a popular standard used for smart contracts when issuing tokens on the ethereum blockchain.

25 – What is Fomo?

Fomo stands for fear of missing out, meaning fear of missing opportunities. This is a common psychological syndrome of investors in the crypto, stock market, …

26 – What is Fud?

Fud stands for fear, uncertainty and doubt means a state of fear, skepticism about the market when bad news occurs, causing investors to sell off.

27 – What is Hard Cap?

Hard cap is the maximum amount of capital mobilized by the project through the form of IEO, ICO, …

28 – What is a Hard Fork?

Hard Fork is blockchain update, but because the system has been operating blockchain when it can not be changed so the updates will conflict with the old version leads to a system divided into 2 systems blockchain.

Typically, bitcoin cash and bitcoin cash hardfork are versions born from bitcoin.

29 – What is hold coin?

Hold coin is a cryptocurrency terms that refers to investors holding crypto for a long period of a few months or a few years waiting to increase prices and then sell to make a profit.

30 – What is HYIP?

HYIP stands for high yield investment program, which means super profitable investment program, but most of these super profitable investment projects are scams.

31 – What is an ICO?

ICO stands for initial coin offering, this is a fundraising form of projects issuing tokens for the first time in the crypto market.

32 – What is IEO?

IEO stands for initial exchange offering, this is a fundraising method like ICO, but this form of IEO offers tokens on exchanges.

33 – What is an IPO?

IPO stands for initial public offering, meaning initial public offering. This is also a form of capital mobilization from a company through the initial issuance of shares and listing on the stock exchange.

34 – What is KYC?

KYC stands for Know Your Customer, which is mandatory for companies in the crypto market, forcing them to know information about who their customers are. This provision is intended to avoid illegal money laundering activities.

So when you register for an account on a crypto exchange, the exchange will ask you to verify your identity by either your passport or driver’s license. This is the KYC form.

35 – What is Pump coin?

Pum coin is a form of manipulation to blow prices up in the market.

36 – What is Dump Coin?

Dump coin is a form of lowering prices in the market by selling large amounts of crypto on an exchange.

37 – What is Margin?

Margin is a form that allows investors to use higher leverage than capital to invest.

38 – What is market cap?

Market cap is the market cap. The formula is as follows:

Capitalization = crypto price x amount of cryptocurrencies in circulation.

39 – What is Mining?

Mining is a mining activity, miners are called miners.

40 – What is Rekt?

Rekt is a term that refers to heavy losses in trading

41 – What is ROI?

ROI stands for Return On Investment which means the% return on the invested amount.

42 – What is Satoshi?

Satoshi (SAT) is the smallest unit of bitcoin, 1BTC = 100,000,000 sat

This Satoshi unit is taken from the alias of bitcoin creator Satoshi Nakamoto.

43 – What is Shilling?

Shilling is a cryptocurrency term that refers to the act of pumping news about a project in order to increase the price of its cryptocurrency.

44 – What is Smartcontract?

Smartcontract means smart contracts using blockchain technology are executed automatically without outside interference.

45 – What is a Trader?

Trader refers to the people involved in trading in the crypto market.

46 – What is volatility?

Volatility is an index used to measure how much price volatility a cryptocurrency is.

47 – What is Cold Wallet?

Cold wallet is a cold wallet that stores crypto offline completely disconnected from the internet.

48 – What is Volume?

Volume is the volume of transactions for a given hour / day / month period.

49 – What is Yield farming?

Yield farming is a form of borrowing or lending assets on the Defi protocol.

Conclusion about cryptocurrency terms

Once you have understood the basics of the terms in cryptocurrencies, you can easily access and grasp information during the process of participating in electronic money investment. Newbies especially need to know these important cryptocurrency terms.

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