Hello crypto newbie,
Good to see you here!
We, at xCrypt Ecosystem, decided that you ought to be on the same page with crypto terminologies. So, basically remember that “crypto” is all about cryptography, so you better learn to spell and pronounce the term “cryptocurrency” since it is the mother of all terminologies in the crypto world.
Secondly, there are some particular vocabulary we use and individuals who are not familiar with blockchain technology, bitcoin, and other stuff may think that we are a little bit crazy dreaming about the Moon and Lambo, being afraid of an ICO scam (wtf is that?), and always whispering about bears and bulls (how come? They don’t even stay together). Well, relax as we take you through a short but precise trip around the crypto and blockchain world.
It’s nice to start the list with something pleasant like an airdrop. One day, you wake up and see some unknown altcoins on your wallet — that was an airdrop! This marketing technique was quite popular in 2017 as airdrop motivated people to research further.
Altcoin (alternative coin) is any cryptocurrency other than bitcoin (BTC). There are currently several thousands of altcoins in existence. Some even possess a separate blockchain.
AMA is the abbreviation for ‘Ask Me Anything.’ This refers to a set of questions a company member is asked. The answers are usually given via a YouTube live stream, or in a blog post, or on Reddit.
AML stands for policy and legislation on Anti-Money Laundering. This prevents illegally obtained money from being converted into a legal modification. Unfortunately, the noble aims of blockchain to be decentralized have this side effect used by some exchanges and wallets.
You know the animal. When the bear attacks, it hits the victim with its paw on the top, nailing the victim to the ground. Now imagine that cryptocurrency market is the victim, and when the players are bearish, all prices decrease. A bearish market is a red market.
A continuously growing list of records called blocks, which are linked and secured using cryptography.
It doesn’t have anything in common with the chocolate bar. Bounty programs are some tasks assigned by the team behind a project. This can be anything from joining a Telegram channel to a translation job. For completion of the task, the assignee receives rewards (bounties); and then he or she can buy some decent Bounty.
Let’s get back to the animal world. A bull, my dear, is the animal that attacks with horns lifting a victim from the ground into the air. Again, the victim in this context is the cryptocurrency market; but we love bulls as with them, we expect the price to increase.
A ‘candlestick chart’ is a way of representing the trades. One candlestick stands for a specified period (a day, an hour, a quarter of an hour, etc.). The ‘body’ of the candle stick represents the opening and closing price. The peaks indicate the highest and lowest price in the period.
The total number of freely tradable coins or tokens.
CMC is the abbreviation of Coinmarketcap, a website that lists exchanges and cryptocurrency. This should be your homepage!
A digital marketplace where you can buy and sell cryptocurrency, like the xCrypt exchange. It should be safe and not scammy.
ERC-20 tokens are created on the Ethereum (ETH) network using the Ethereum smart contracts to be precise. ERC-20 is a token standard describing the functions and events that such a token contract has to implement.
Ether (ETH) is the main cryptocurrency of the Ethereum network; the second largest one after bitcoin (BTC). It is also known as the ‘crypto-fuel’ for the Ethereum network as it helps to execute smart contracts.
THAT IS NOT A CAR MANUFACTURER! Fiat money is a currency that the government has declared to be legal tender: like $ or €.
Acronym for ‘Fear of Missing Out.’
A fork is the splitting of a blockchain into an alternate version.
Acronym for ‘Fear, Uncertainty, and Doubt.’ Propaganda to lower prices.
Gas is used to execute a transaction on the Ethereum blockchain. This is something like a fee you pay to the miners. The more gas you set, the faster your transaction will be completed because of the higher reward, more miners will be incentivized to process the transaction earlier.
The first block ever mined and the beginning of a blockchain.
Investopedia got it the best: a hash is an essential blockchain function that converts an input of letters and numbers into an encrypted output of a fixed length.
Originated from this post where ‘hold’ was misspelled. Now, it’s an acronym for ‘Hold on for Dear Life.’ It’s a strategy of storing cryptocurrency until it goes to the Moon.
Acronym for ‘Initial Coin Offering’ also referred to as Initial Token Offering/Token Sale/Crowd Sale. Initial coin offering (ICO) is a controversial means of crowdfunding as a lot of projects exit scammed. In an ICO, investors receive a percentage of the newly issued cryptocurrency in exchange for cryptocurrencies. Don’t mix with airdrop when you get tokens and coins for free.
Acronym for ‘Initial Exchange Offering.’ An IEO is a type of ICO that is hosted and managed by a crypto exchange.
Acronym for ‘Know Your Customer’ — a series of laws and regulations which require businesses to know the identity of their customers (asking for ID scan or other identity documents).
It’s a Lamborghini. Mentioned when the price is going to rise sharply so that a trader can buy such a car.
With a limit order, you give a request to an exchange to buy an X number of coins for price X. When ‘filling’ the order, the price can’t differ, but the number of coins can but never exceed the amount of order.
Keep an eye on our next article. It shall be a continuation of this one. Thanks for being with us from the beginning to this point. See you in the next article!