cryptocurrency terms you should know

Cryptocurrency can sometimes feel like a foreign language.😂

To help you get started, I’ve put together a concise list of 50+ essential crypto terms. Hopefully you read to the end!

➲ Airdrop: Free distribution of tokens to promote awareness.

➲ Altcoin: Any cryptocurrency other than Bitcoin.

➲ Bear Flag: A chart pattern that signals potential price decline.

➲ BIP (Bitcoin Improvement Proposal): Suggested change to the Bitcoin protocol.

➲ Blockchain Explorer: Tool for viewing blockchain transactions.

➲ Burn: Permanently removing coins from circulation.

➲ Centralized Exchange (CEX): Exchange run by a central authority.

➲ Decentralized Exchange (DEX): Peer-to-peer exchange without central control.

➲ Escrow: Neutral party holding funds until conditions are met.

➲ Fiat Gateway: Service for converting crypto to traditional money and vice versa.

➲ Total 1 (TOTAL): Market cap of all cryptocurrencies combined.

➲ Total 2 (TOTAL2): Market cap of all cryptocurrencies excluding Bitcoin.

➲ Total 3 (TOTAL3): Market cap of all cryptocurrencies excluding Bitcoin and Ethereum.

➲ Fork: Blockchain split creating a new version.

➲ Hash Function: Converts data into a unique digital string.

➲ Hard Cap: Maximum fundraising goal of a crypto project.

➲ IEO (Initial Exchange Offering): Token sale hosted on an exchange.

➲ Whitelist: Pre-approved participants for token sales or events.

➲ Margin Trading: Borrowing funds to trade crypto with higher risk and reward.

➲ Merkle Tree: Cryptographic structure for efficient blockchain verification.

➲ Multi-Signature Wallet: Wallet requiring multiple approvals for transactions.

➲ Proof of Stake (PoS): Validators secure the network by staking coins.

➲ Proof of Work (PoW): Validators mine using computing power.

➲ Slippage: Difference between expected and executed trade price.

➲ ICO (Initial Coin Offering): Fundraising by selling new tokens.

➲ KYC (Know Your Customer): Identity verification on exchanges.

➲ Liquidity: Ease of buying or selling a cryptocurrency.

➲ Market Cap: Total value of a crypto = price × supply.

➲ Mining Pool: Group of miners sharing resources and rewards.

➲ NFT (Non-Fungible Token): Unique digital asset on the blockchain.

➲ Node: Computer that stores and validates blockchain data.

➲ Order Book: List of buy/sell orders on an exchange.

➲ Private Key: Secret code to access your crypto.

➲ Public Key: Address used to receive crypto.

➲ Pump & Dump: Scheme where price is inflated then quickly sold off.

➲ ROI (Return on Investment): Profit or loss from an investment.

➲ Rug Pull: Scam where developers abandon a project after raising funds.

➲ Sat (Satoshi): Smallest unit of Bitcoin (0.00000001 BTC).

➲ Seed Phrase: Recovery phrase to restore your wallet.

➲ Smart Contract: Self-executing code that automates blockchain agreements.

➲ Stablecoin: Cryptocurrency pegged to stable assets like USD.

➲ Staking: Locking crypto to earn rewards and secure the network.

➲ Supply Chain Management: Using blockchain to track goods.

➲ Whale: Investor holding large amounts of crypto.

➲ ATH (All-Time High): The highest price a cryptocurrency has ever reached.

➲ Bear Market: Period of falling crypto prices.

➲ Bull Market: Period of rising crypto prices.

➲ DAO (Decentralized Autonomous Organization): Community-run organization on a blockchain.

➲ DApp (Decentralized Application): Application built on a blockchain.

➲ Fiat: Traditional government-issued currency (USD, EUR, NGN, etc.).

➲ FOMO (Fear of Missing Out): Anxiety of missing an opportunity.

➲ FUD (Fear, Uncertainty, Doubt): Negative news used to influence prices.

➲ Gas Fee: Transaction fee for using a blockchain.

➲ Hard Fork: Permanent protocol change creating a new chain.

There are so many out there.

Crypto knowledge is power, Don’t keep it to yourself.

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