Top Crypto Terms for Beginners

It is important to go with the trend and going with the trend puts you in the position of acquainting your self with the basic terms of the trend.

There are lots of crypto terminologies in the crypto world but we are looking at ALT and ATH.

What is ATH?

This is an acronym for ALL TIME HIGH, it tells you the highest trading price a particular coin has reached.

For example, the ATH of Bitcoin is $69,020 as at the time of making this post.

What are ALT COINS?

ALT coins
ALT coins

These are cryptocurrencies that are not Bitcoin. Any coin aside from Bitcoin is an ALT coin.

Currently, the most popular ALT coin is Ethereum and it is currently trading at $3147 as at the time of this post.

Some ATH coins are given below;

  • ETHEREUM
  • BNB
  • ADA
  • SOLANA
  • XRP
  • LUNA
  • DOT
  • DOGE

Lets quickly look at some terminologies in the crypto space.

Crypto terminologies

Crypto terms
  • WALLET – You can call it a crypto store or bank where you store your purchased coins.
  • EXCHANGE – Exchanges are crypto platforms where coins are bought, sold and traded e.g Binance.
  • ADDRESS – This is your crypto account number where people can send you amount of a coin. Each crypto has its own address. Its a combination of numbers and alphabet for receiving and sending tokens.
  • TOKEN – A token its also a coin
  • STABLE COIN – This type of coin  is linked to the value the dollar which makes (1;1) and thus making it’s price not to fluctuate. e.g USDT is a non-volatile coin.
  • GAS FEE- The transaction fee you pay for Crypto transactions(i.e when buying or selling).
  • REKT – Someone REKT has gone bankrupt by losing all money on trading.
  •  MOON – when the price of a coin is massively increasing
  • HODL – Simply means HOLD or RETAIN. It means retaining a particular coin for profit making in the nearest future.
  • P2P – Peer to Peer enables transaction between two persons without a third party. maybe online or offline.
  • FOMO – An Acronym for Fear Of Missing Out . it happens when you are tensed thinking that if you dont buy a coin when others, you will regret later.
  • BULLISH – when a coin is moving in an upward direction or having an upward affinity
  • BEARISH – movement in a downward direction.
  • TAKE PROFIT – selling or swapping your coins to collect your profits after making profits.
  • STOP LOSS – keeping a price point where you want to take out your money, in case a trade goes against you
  • TARGET – its like take profit point. it determines how much profit you want to make on a particular trade.
  • FARMING – donating your coins for a particular period of time while you receive considerable profits for doing so.
  • AIRDROP – A valid campaign strategy on a new project(coin) to attain massive adoption of the coin.
  • BAG – Having a reasonable amount of a coin means that you have bagged it.
  • DIP – A fierce reduction in a coin price. Traders always advices us to buy during a dip.
  • DApp – A computer program that utilizes a blockchain for data storage, runs autonomously, is not controlled or operated from a single entity, its open source and has its use incentivized by the reward of fees or tokens.
  • DUMP – Selling all your bag of a particular coin.
  • ESCROW – a middleman or third party in a transaction.
  • FIAT – These are government owned and controlled currencies. E.G  USD, Euro, NGN.
  • FUNDAMENTAL ANALYSIS – Analysis made on coins by News, network etc.
  • LIQUIDITY – This depicts the ease of how a coin can be bought and sold without impacting the overall market price.
  • WHALE –This is name given to traders who have a massive possession of a coin and thus can influence the market by dumping or buying.
  • DO YOUR OWN RESEARCH(DYOR) – It means you have do your personal research of a coin either by fundamental or technical analysis.
  • DCA(dollar cost averaging)- This is crypto investment strategy where you purchase a coin in bits(not with your total capital)in other to reduce the effect of liquidity on the entire purchase.
  • NODE- Computers Linked to a crypto network for validating  blocks.
  • BLOCK-Group of crypto record(bundle)
  • PARAMETER-Binding rule for nodes
  • GENESIS BLOCK- The first ever mined crypto block
  • HALVING- A coded feature in bitcoin, so that when specified amounts of blocks are mined (sometimes its four years) the number of new Bitcoin entering circulation will become half.
  • HASH- Series of numbers and alphabets that detects blocks and are tied to a crypto transaction executed.
  • HOT WALLET – An online software based cryptocurrency wallet which is easier and more convenient for quickly accessing your cryptocurrencies. They are prone to hacking online cold wallets.
  • Cold Wallet/Cold Storage- An offline secured method of storing your cryptocurrencies. Almost all cold wallets are like  USB drive that stores cryptocurrencies. It is more secured than hot wallets just that it comes with its own risk, where you can misplace it.
  • CENTRALIZATION- The principle that involves power distribution from a central authority
  • Decentralization- The principle of power distribution without a central authority
  • Centralized Finance- These are financial activities conducted with a central force or third party
  • Decentralized Finance(Defi)- In this wise, financial activities are conducted without a centralized force or intermediary.
  • Centralized exchange (CEX)- This is any crypto exchange platform with a central authority supervising or transaction been carried out.
  • Decentralized Exchange(DEX)- This is a crypto exchange platform without a central controller or force. This exchange platform allows p2p transactions to be done securely without any intermediary.
  • FORK- The changing of a blockchain rule or Guide, this will result to a new blockchain from the formal ora  new blockchain with same old rules. Bitcoin was forked to produce Bitcoin Cash.
  • Satoshi Nakomoto- The anonymous creator of Bitcoin, maybe a person or group of persons.
  • SMART CONTRACT-a blockchain technology that executes transactions automatically when few conditions are met in the blockchain.
  • Vitalik Buterin- Ethereum’s inventor, 2015.
https://www.shutterstock.com/image-vector/bitcoin-value-measurement-fiat-money-on-1888682953
Crypto

Conclusion

Understanding the above terminologies will not only make you crypto inclined but will also put you in the right crypto track. Cryptocurrencies is the talk of town so the need for crypto knowledge is on the high side. Get acquainted and don’t forget to share!!!