Terminologies Frequently Used in Cryptocurrency Business
For those that are new in the Cryptocurrency Business, this is a valuable information that will be of great help to you. In order to be successful in Crupto Trading, you should learn and be familiar with the terms used in the trading. If you want to become a reputable stakeholder in the cryptocurrency universe, you must learn the market-related language. This doesn’t only include standard terms and expressions but also the slang commonly used by digital currency traders.
Blockchain, what does it mean?
A blockchain is a decentralized, distributed and public digital ledger that is used to record transactions across many computers so that the record cannot be altered retroactively without the alteration of all subsequent blocks and the consensus of the network.Mining
Mining is the essence of cryptocurrency business. It means using software to solve cryptographic problems and earn new digital coins.Satoshi
Satoshi is the smallest element in Bitcoin structure. It’s worth one hundred millionths of a Bitcoin. Satoshi got its name by Satoshi Nakamoto, a legendary cryptocurrency character who allegedly invented Bitcoin.All-Time High (ATH)
All-Time High is the phrase used to describe the highest price any given digital currency has reached so far. This is when digital coins become very interesting for the wider audience, but it’s definitely not the right time to buy them.Correction
Correction is the next logical step in the cryptocurrency evolution. When a given coin reaches the All-Time high, it gradually stabilizes at a slightly lower price. In the dynamic cryptocurrency market, corrections and stabilization usually don’t last for too long.Whales
Whales are the richest of all cryptocurrency traders. They own a bunch of Bitcoins or other digital currencies, which makes them powerful enough to influence the entire market. They can buy or sell dozens of coins in one transaction, thus making a big confusion and forcing the coin price to go drastically up or down.Altcoins
With the market price of over $6 thousand, Bitcoin is by far the strongest cryptocurrency. However, there are many other coins such as Ethereum, Stellar, or Litecoin. All those non-Bitcoins are called Altcoins in cryptocurrency slang.Lambo
Lambo is the status symbol that becomes an elusive goal for most investors. It’s a car industry reference that makes people believe everyone who has entered the cryptocurrency business will buy a Lamborghini very soon.To the Moon
To the Moon resembles the All-Time high. It’s a statement that explains a cryptocurrency is reaching the peak value. Some investors even ask “when Moon?” to find out when to sell their coins.HODL
HODL is another acronym that tells people to Hold On for Dear Life. You will hear this expression a lot when coins start entering the usual corrections after their “To the Moon” phases.Pump and Dump
A group of investors may sometimes work together to create online hype and boost the value of a coin. This way, they increase the price artificially and sell it upon reaching the All-Time high. It’s not an ethical tactic, but it’s there and you should try to avoid the FOMO effect.Bag Holder
Bag Holder is a person who is holding onto a currency that drops in price to the point of being worthless. These people are essentially optimists without a cause.Shitcoin
A Shitcoin is a weak token with no real strength or utility. This kind of coin is usually promoted by fake authorities who just want to do the pump and dump trick.Rekt
When investors make a terrible move – such as selling coins right before their prices skyrocket – we say they got rekt. The term derived from the good old expression “wrecked”.FUD
FUD is another cryptocurrency acronym that stands for Fear, Uncertainty, and Doubt. Some traders use it as the tactic to cause mass panic and bring down the price of a given coin.DYOR
DYOR is one of the most popular cryptocurrency acronyms. It’s an abbreviation formed from the initial letters of Do Your Own Research. It’s always good to hear someone talking wisely about the market, but as an investor you need to Do Your Own Research (DYOR) before making concrete moves.FOMO
FOMO is the famous Fear of Missing Out. It happens when people buy coins at their highest prices just because they are too afraid of missing out the next big thing in the cryptocurrency universe.Airdrop
Airdrop represents a distribution of tokens in the initial stage of the coin offering.Buying the Dip
Buying the dip essentially means taking coins when their price is down. Although you must sometimes invest in All-Time Highs, buying the dip is much more lucrative in the long run.Note: Whales, shitcoin and Fud is a vital danger in Crypto currency community.
The whales are so rich that they can control the market flow up or down. Fear makes things even worst (FUD) ...Rumors lead to FUd
Cryptocurrency exchange
Crypto exchange or digital currency exchange (DCE) is a business that allows customers to trade cryptocurrencies or digital currencies for other assets, such as conventional fiat money, or different digital currencies. They can be market makers that typically take the bid-ask spreads as transaction commissions for their services or simply charge fees as a matching platform.Types of exchanges
- Pure exchanges
- Fiat exchanges(local currency)
Fiat Exchanges vs Pure Cryptocurrency Exchanges
Fiat exchanges allow credit card, cash deposit and bank account e.g Luno,coinbase and local bitcoin. Coinbase is for Americans they can just deposit in dollar and exchange for coins. Luno is for Nigerians and some other parts of the world. With Luno we can deposit Naira and exchange to bitcoin there verse-versa. Local bitcoin also work well for us as a fiat exchangePure exchanges
Here you can only send coins like bitcoin or any available Alt Coin to such exchanges. For example, you can send Bitcoin to pure exchange and trade it for any other alt coins. Binance,bittrex and poloniex are top exchanges.Now let see the reason we need both types of exchanges. So, to explain the difference and why you need both, let’s look at a coin called Ripple (XRP).
Ripple is currently the third largest cryptocurrency by market cap. Most Americans use a platform called Coinbase to buy cryptocurrency, but Coinbase doesn’t sell Ripple. So if you are in America how do you get Ripple then?
You must first use Coinbase–your fiat exchange–to buy bitcoin with your bank or credit card. Once you’ve purchased bitcoin, you need to send to a pure cryptocurrency exchange, like Binance. That's how you get any alternative coin genuinely, but this days we have black market
Remember that exchanges is not too safe to store your bitcoin for long term, it's only for trade. If you want to store Btc use blockchain. This is because some exchanges can be hacked, but blockchain is a no go area for hacking at this time.
Some big exchanges like bittrex, coinbase, binance etc can't be hacked easily they are strong
Initial Coin Offering (ICO)
An unregulated means by which funds are raised for a new cryptocurrency venture. In an ICO campaign, a percentage of the cryptocurrency is sold to early backers of the project in exchange for legal tender or other cryptocurrencies, but usually for Bitcoin.3 Things to Consider before Picking an ICO
1. Know the people behind them: It is critical to know the nature of the company and the teams behind the ICOs. Most of the companies are newly incorporated, but many founders have been around in their respective industries. It is possible to review profiles and search for news and mentions in their prior projects and efforts.2. Evualate the technology: One can also evaluate the viability of a venture through its proof of concept. Ventures with proofs of concept and pilot case studies are often safer bets. ICOs that offer nothing more than an idea bear significant risk compared to ventures that have proofs of concept already available for evaluation and testing.
3. Know what the coins are for: Integral to ICOs are the coins or tokens themselves. Aside from functioning as the form of security (similar to stocks in traditional investments or initial public offerings), these coins often have other functions with the platform or ecosystem.
Details of Airdrop and How to Participate
Airdrop (cryptocurrency) ... Many websites now exist which promote cryptocurrency Airdrops, and social media is a great place to read about upcoming Airdrops. Cryptocurrency enthusiasts can gain free cryptocurrency by supporting projects who release coins through an Airdrop.Most coins in the market place now always come in airdrop, this gives community members free coins and help create awareness for the coin using social media. Examples of such coin eletronuim,nobs,digitex etc
Airdrop Wallet
99% airdrop uses ERC-20 etherium wallet to store their token.Token
This is a coin that is not yet listed on exchanges. So it's not possible to transfer such coin, it's only transferable to a token wallet till when it's listed in any exchange, then you can transfer to the exchange and trade it for bitcoin.Examples of Token Wallets
- MYETHERWALLET(MEW)
- IMTOKEN
- COINOMI ETC
How to Participate in Airdrop
Now when a coin with good team and project is airdroping some portion with the public all you need is a link to the airdrop website, register and complete the given task to earn your coin.
Examples of tasks to perform are as follows:
- Share on Facebook
- Share on twitter (drop your twitter username)
- Join telegram group(drop telegram username)
- Share on medium(drop medium username)
- Drop valid email address
- Drop Ethereum wallet (your token wallet, not an exchange address)
Once you perform the above tasks your bonus coin is set and will be sent to your ERC-20 ethereum wallet when airdrop is over.
How Can You Sell Your Free Coins?
1. You can wait till when they are listed on exchange, at first when listed coin price can moon and you exchange it to bitcoin, then send to your blockchain, luno or any other reliable bitcoin wallet.Conclusively, join all those recommended social media and probably install their apps on your device now. You can get ERC-20 ethereum wallet address either by getting the imtoken app from play store and register to have an address or learn other ways of creating ERC-20 ethereum wallet here.
I have been publishing on airdrops lately, and most of them are giving high amount of coins, you shouldn't miss that kind of opportunity. Check the airdrop category to participate in all of them.
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