独家优惠奖金 100% 高达 1 BTC + 180 免费旋转

Did we miss something?

Are you new to cryptocurrency trading? You’ve probably encountered all kinds of terms, abbreviations, and acronyms during the research process that mean very little. But you’ll be pleased to know that almost all of them are pretty simple to understand.

To prove it, we’ve put together a glossary for cryptocurrency newcomers that explains some of the most common industry terms in a way that’s easy for anyone to digest — even if you just started learning about cryptocurrency today.

Airdrop: A promotional tool used by some cryptocurrency projects to distribute tokens or other digital assets.

All-time high (ATH): The highest value reached by an asset in its history.

All-time low (ATL): The lowest value reached by an asset in its history.

Altcoin: A combination of the words “alternative” and “coin.” The term is generally used to describe all cryptocurrency tokens that aren’t Bitcoin.

Arbitrage: A trading strategy that aims to take advantage of the price imbalances between multiple markets.

Audit: A process in which an independent body inspects the underlying code and/or algorithm of a system or application to verify it acts as is claimed.

Bear market: A negative trend in market prices. The term is usually used to describe a period of prolonged price decreases.

BEP-2: A technical standard of cryptocurrency on the Binance Chain.

BEP-20: A technical standard of cryptocurrency on the Binance Smart Chain.

Bitcoin: The original, most recognizable, and by far the biggest cryptocurrency.

Block: A data structure within a blockchain database in which transaction data is permanently stored. A block records some or all of the most recent transactions, and once they are validated, the block is closed and cannot be altered in any way.

Blockchain: A distributed database or ledger shared among a peer-to-peer computer network. Blockchains, unlike traditional databases, store data in blocks that are linked together. There are many ways in which a blockchain may be used, but the most popular is as a ledger for cryptocurrency transactions.

Bull market: A positive trend in market prices. The term is usually used to describe a period of prolonged price increases.

Centralized: A term used to describe apps, organizations, and services that are controlled by a single entity, such as a bank or a company. Those entities are in full control and can make decisions independently.

Cold wallet: A type of physical cryptocurrency wallet, such as a flash drive, that can be disconnected from the internet. This functionality increases security by ensuring a user’s wallet cannot be accessed when it’s not in use, but it can be lost.

Cryptocurrency: A digital currency that can be traded for goods, services, and other currencies.

Cryptocurrency wallet: A container on the blockchain where a user’s digital assets are stored.

Cryptocurrency wallet manager: An app used to access a user’s cryptocurrency wallet container on the blockchain.

DApp: An abbreviation of “decentralized application.” The term is used to describe apps that use decentralized components for some or all aspects of their operation.

Decentralized: The term used to describe apps, organizations, and services that are not controlled by a single entity or small team. They are instead governed by the community or investors who vote on proposals to make decisions.

DeFi: An abbreviation of “decentralized finance.” The term is used to describe peer-to-peer financial services that allow borrowers to access finance directly from lenders, rather than having to go through a centralized system, like a bank or loan provider.

DAO: Stands for “decentralized autonomous organization.” This is the name given to organizations that are not controlled by a single entity, such as a company or a small team of people. DAOs run on peer-to-peer networks completely autonomously.

Dip: The term used to describe a prolonged period of price decreases.

Dump: The term used to describe a sudden and usually significant sell off of assets.

DYOR: Stands for “do your own research.” An acronym often used in social settings when talking about cryptocurrency tokens, encouraging investors to carry out their own due diligence on a token before investing — rather than just following someone else’s advice.

Encryption: The process of protecting digital information with a unique key that prevents unauthorized access. Encrypted data can only be decrypted, or unlocked, by the user who holds the key, so even if it falls into the wrong hands, it cannot be accessed.

ERC-20: A technical standard of cryptocurrency on the Ethereum blockchain.

Ethereum: The second-largest cryptocurrency by market capitalization, after Bitcoin.

Exchange: A service that allows you to buy and exchange cryptocurrency tokens. These can be centralized, like Binance, or decentralized, like PancakeSwap.

Fiat: The word used to describe traditional currencies, such as the U.S. dollar ($) or pound sterling (£).

Gas: The term used to describe the fee that traders pay when making transactions. Every time you send or exchange cryptocurrency, a small cut (gas) is taken.

GameFi: Another term used for “play-to-earn” games (see below).

Hacker: A bad actor who uses scams and other tricks to gain access to a user’s digital assets. These can include phishing and social engineering scams designed to trick people into handing over sensitive data, as well as phony DApps and exchanges.

HODL: An abbreviation of “hold on for dear life.” A term used by some cryptocurrency traders — usually as a meme — to express their support for a cryptocurrency project. “HODLers” tend to sit on their cryptocurrency assets until they see a significant return on their investment.

Hot wallet: A type of cryptocurrency wallet, by far the most popular today, that accesses an online cryptocurrency container where a user’s digital assets are stored. Unlike a cold wallet, this type cannot be disconnected from the internet, which makes it a target for hackers.

ICO: Stands for “initial coin offering” — the cryptocurrency equivalent of an initial public offering (IPO). An ICO gives investors an opportunity to pledge their support for a new cryptocurrency project by acquiring tokens early, before they hit an exchange.

IDO: Stands for “initial DEX offering.” Much like an ICO, except tokens are immediately listed on a decentralized exchange, allowing anyone to acquire them.

IEO: Stands for “initial exchange offering.” Very similar to an IDO, expect tokens are listed on a centralized exchange, rather than a decentralized exchange.

Learn-to-earn: The term used to describe a category of educational games and applications that give the user an opportunity to earn digital assets, such as cryptocurrency and NFTs, for completing objectives and making progress.

Ledger: A record of transactions that includes dates, times, and wallet addresses.

Litepaper: Similar to a whitepaper (see below) that explains the objectives of a cryptocurrency project, but usually shorter and more concise.

Liquidity: A measure of how easily a cryptocurrency token can be exchanged for another token or for fiat currency. Good liquidity means that a token can quickly and easily be bought and sold with little impact on its price. Poor liquidity can mean the token is difficult to buy and sell, or that any activity could have a significant impact on its price.

Market capitalization (cap): The market capitalization or market cap of a cryptocurrency project or organization is its total value. It is calculated by multiplying the number of available shares or tokens by the current share or token price.

Metaverse: A virtual world in which users can interact, play games, attend events, buy real estate, learn new things, and lots more. The Metaverse is essentially a version of the internet that is more interactive and a lot more immersive.

Memecoin: The name given to an altcoin based on a meme. Dogecoin is one of the biggest and most successful memecoins to date.

Mining: The name given to the process of verifying cryptocurrency transactions using a computer. Miners make up a blockchain and can collect gas fees for successfully verifying transactions, however, powerful computer hardware is now required for any real gains.

Minting: The process of generating new cryptocurrency coins using the proof-of-stake (see below) mechanism and then adding them to the circulation to be traded.

Move-to-earn: The term used to describe a category of applications that give the user the opportunity to earn cryptocurrency and other digital assets by being physically active.

NFT: Stands for “non-fungible token.” An NFT is a unique digital asset that cannot be cloned or replaced. It can contain various things, including images, music, and even tweets.

Node: A device that plays a part in a larger network of devices. A node on the blockchain is a single computer that runs the blockchain’s software to validate and store a complete history of transactions.

P2P: An abbreviation of “peer-to-peer,” the term used to describe a connection between two or more people.

Phishing: The process of tricking users into giving up confidential information, such as their wallet manager seed phrase. Phishers pretend to be someone else, such as a support representative, in an effort to make unsuspecting users feel like they can be trusted.

Play-to-earn: The term used to describe a category of games that give the player an opportunity to earn digital assets, such as cryptocurrency and NFTs, as they progress or complete certain objectives.

Portfolio: A collection of assets owned by a company, hedge fund, or individual.

Private key: A long string of randomly generated digits used to sign transactions and prove ownership of digital assets. Only the holder of a private key can approve a transaction.

Proof-of-stake: A consensus mechanism for processing transactions and creating new blocks on the blockchain.

Public key: Works alongside a private key and provides an address for your cryptocurrency wallet. Anyone can send assets to you using your public key.

Pump and dump: A term used to describe the process of purposely driving up the value of a cryptocurrency token just so that certain investors, usually those encouraging unsuspecting investors to buy tokens, can sell their assets at the best possible price.

Regulation: The term used to describe the laws and rules that most centralized organizations have to abide by. These regulations are typically laid out by the government or state regulation bodies.

Rug pull: A term used to describe a scam project that is set up solely for the purposes of stealing investor assets. People associated with the project encourage others to invest, then the project creators disappear with the cash.

Scam: A term used to describe phony cryptocurrency projects and other tactics that are designed to trick users into handing over digital assets.

Seed phrase: A random collection of 12–24 words generated by many popular cryptocurrency wallet managers as a means of security. Only the person with the correct seed phrase can gain access to the wallet manager.

Shitcoin: A cryptocurrency token with no usage and no potential value.

Smart contract: A piece of software that runs on the blockchain and carries out automated processes when certain conditions are met, negating the need for user interaction.

Stablecoin: A cryptocurrency token that is pegged to a traditional currency or asset, like the U.S. dollar or the price of gold.

Tokenomics: The term used to describe a set of rules that governs a cryptocurrency project.

Transaction ID (TxID): A unique identifier given to a cryptocurrency transaction.

Unregulated: An organization or entity, usually decentralized, that does not have to abide by laws and regulation.

Volume: The total amount of cryptocurrency traded during a certain period, such as 24 hours.

Web3: The next generation of the internet, which includes the Metaverse.

Whitepaper: A document published by a cryptocurrency project that explains how it works and lays out its plans for the future.

Volatility: How quickly and by how much the price of an asset can change.

Yield: A return on an investment, usually measured as a percentage.

Join our Telegram and community conversations or say hi to us at any of the channels below:

Add a comment

What is your view?

Send

Related posts:

Microservices Introduction

As you see in the above image, Microservices are an architectural approach to building applications where each core function, or service, is built and deployed independently. It is essential to…

How Passing a Knife Can Teach You How to Handle the Truth

Here comes our old friend fear again. Have you noticed that sometimes when you want to say something, you try to wrap it up inside a long introduction as if it was a fragile antique book or vase that…

Beyond the Stereotypes

Growing up in a group of four active siblings, three girls and one boy, is an interesting experience. My nineteen-year-old brother cooks with more passion than I can ever conjure up for any house…