Almost everyone wants to earn passive income, you know that situation whereby you could go to your normal 8am-5pm daily job hoping for payday at the end of the month while you have multiple source of income. Correct me if I'm wrong but I've observed that the wealthy people rarely have one source of income. The implications of having one source of income is that before the money comes in you practically spent everything in your monthly budget.
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Passive income is what the crypto world is offering at the moment (I do not know what it'd be like in the near future) but I'd like to think that this has become some people's full time job. Well this might just be something I'd like to look into soon.
Now that we have established the fact that crypto can be so rewarding, the entrance needs scrutiny. One look at the system and one's heart is already beating very fast. All coins coming down with heavy potentials and we barely know which analysis is the right guide. If one isn't careful, you might have spent everything you have and who knows wait for returns that might be taking forever.
So as a newbie, My telegram has been successfully hijacked by diverse Airdrops, exchanges groups and channels. I think I have registered for far too many airdrops than I can even remember, just recently I realized I had missed an airdrop scheduled for 1st September... I ended up smiling to myself. Mostly in these channels we are bamboozled with terms I can barely understand and worse I cannot ask what this or that is. Doing this would just be me waving a huge board with an L sign boldly written on it.
I'd like to look into the most common terminologies frequently used in the crypto world. Inability to understand this terms in a discussion limits the fundamental understanding of a newbie as most of these words are lacking in the dictionaries.
It is like being at the bank of a river yet lack knowledge of how to scoop the liquid.
So too much talk... Let's deal!!!
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CRYPTO TERMINOLOGIES AND THEIR MEANINGS
In doing this I'll try to arrange them in an alphabetical order.
- ALTCOIN(Alternative Coin): Any other cryptocurrency after Bitcoin. Other currencies after Bitcoin is called and Altcoin. Examples of Altcoins are; Ethereum, Litecoin, Hive, Tron and EOS.
- ASHDRAKED: Refers to a situation whereby you have lost all your money. So you can say, The bearish market has me Ashdraked. If not for anything I can relate to the word Ash which is the biproduct of a burnt item.
- ATH: means the All-Time-High price of a cryptocurrency. Recently, Bitcoin hit an ATH of $12000 i.e the Highest price margin ever touched by the coin.
- BAGHOLDER: Someone who buys and holds a particular coin in large quantity with hopes to make good products in the future.
- BEAR: This is a negative or downward price movement of a crytpo coin.
- BEARISH: this is a term used by crypto forecasters that based on some factors, the price of a coin would decrease.
- BIT: This is a sub-unit of bitcoin. One of the properties that qualifies cryptocurrencies to be called digital Money is it's divisibility into smaller units. 1 bitcoin (BTC)=1,000,000 bits. These sub units makes it possible to buy or sell the coin for those not financially buoyant to purchase one whole BTC.
- BITCOIN: This was the first digital (crypto) currency created by Satoshi Nakamoto. I didn't realize this earlier but now I found out that maximalists consider 'Bitcoin' with the capital B to represent the total concept of Bitcoin; the protocol, the software and the technology. And 'bitcoin' with small letter to describe the unit of currency.
- BLOCKS: A group of ledgers that contains and keeps track of all transactions that happen in the network. These ledgers cannot be tampered with, deleted or edited.
- BLOCKCHAIN: stringed up blocks (transactions ledgers) in a network.
- BLOCK HEIGHT: The number of blocks mined after the first block. Let's just say the length of the chain.
- BLOCK REWARDS: This is an earning given to miners for solving a computationally difficult problem. Usually in the native currency, a bitcoin miner gets BTC for solving a problem and adding more blocks to the blockchain.
- BTFD(Buy The Fucking Dip): and urge to buy a coin falling low in price. An indication to increase Bag holding.
- BULLISH: The feeling based on some factors that the price of a coin would increase.
- CRYPTO EXCHANGE: This is a website that supports the buying and selling of cryptocurrencies
- DILDO: Try not to have a dirty mind... So this refers to the Long candles on the chart in red or green colors.
- DIP: a Dip has similarities with a Bear in the sense that they both fall negatively. The difference is while a Bear movement floats when falling in price, a Dip just drops sharply
- DUMP: Like the word itself it means to abandon/throw away/dispose a coin as soon as it drops suddenly in price.
- DYOR: This is an acronym for Do Your Own Research. This is actually an advice the newbies, do not allow theories to be heaped on you by others. Make an effort to grow yourself in the understanding of the network.
- ESCROW: These is a third party that holds financial resources both fist and cryptocurrencies on behalf of other parties during a transaction. Kinda like what banks do...I think.
- FA(Fundamental Analysis): This refers to the press release and news that talks about or determineds the direction of a specific coin. So you hear statements like '...the FA of whive for this week'.
- FAUCET: This is a website or service that pays in the cryptocurrencies when games are played on the website or tasks are done.
- FIAT: This still is my commonly used term maybe because it was the first I fully understood on my own. Fiat money refers to currency issues by the Government. This basically is the opposite of cryptocurrencies. Examples are; ($)Dollars, (₦)Naira, (€)Euros and (£)Pounds or whatever currency you spend in your country.
- FILLED ORDER: This is often referred to a buy or sell order on an exchange to be executed.
- FOMO(Fear Of Missing Out): This is an action of buying a coin when it's price was going up thinking the upward movement would continue to surge. In simple terms it means buying to earn in short term.
- FORK: So recently there's been a fork of hive from steem, this means a blockchain splitting to form another coin/currency. It is like when a new group is formed from a previous Band because members of the band disagree on an issue. Like Hive and Steem, Bitcash is a fork of Bitcoin.
- HARDFORK: Like Hive all currencies of the present Hive owners that weren't claimed were burned because the fork wouldn't allow a backward transactions after the update. So a hardfork is referred to an update (blockchain split) that isn't backward compatible.
- HODL: I hear this was a misspelling of 'hold' by a bitcoin maximalist that stuck around for a while. This could have happened for real or could just be a myth however be the case it is presently being used and it refers to Hold a coin and not sell.
- INITIAL COIN OFFERING(ICO): These are tokens offered to the public in retirement for their fixed priced investments. A new decentralized crowdfunding.
- MINING: Refers to the process of creating new units of s digital currency by a computer hardware doing mathematical calculations for a crypto network to confirm transactions and increase security. Anyone who uses his computer for mining is called a MINER.
- P2P: Short form for peer to peer meaning person to person
- PUMP: This is the upward surge or increase of price of a coin.
- PUMP & DUMP(P&D): In order to sell highly a coin purchased at a low price, this is a form of manipulation of artificially inflating the price of a coinostly by the owners through false and misleading positive statements.
- PRIVATE KEY: This is usually very long password consisting of both alphabets and numbers requested before sending or spending your currency.
- PROOF OF STAKE(POS): A decentralized consensus mechanism in which your existing state in currency is used to mine or forget blocks to reach the consensus.
- PROOF OF WORK: A decentralized consensus mechanism that is done by mining algorithms by spending computational power. (OK this seems like another chunk of gibberish to me... I can honestly make no meanings to this).
- WHALE: This are the big Bag Holders of a particular currency. Like major stakeholders, they hold a huge amount that they use to manipulate and chart the course of the market.
There's quite a lot more out there but these seem to be the most common used terms presently. Two crypto holders cannot keep a conversation going without the temptation to use any of these terms to further buttress their points.
Interesting....I got to know about these terms by spending so much time around here, they just stuck in my head alongside the meanings....nice to see youre catching up
Its such an addiction for long time traders and crypto enthusiasts. Simple English without these jargons is now alien to them. Most times for me to keep I'd have to google some words because I don't want to put myself out there as a newbie.
I believe many others are like me out there, learning on the low. And this was just another article to fast track that process.
Let’s keep on learning
That's right... We learn everyday and I suppose this is why the Hive blockchain is about rewarding quality contents for education and proper learning.
We're practically learning from each other.
Thank you for dropping by.
Great posts for people learning. You are catching on fast! Once you learn the basics of bitcoin and Eth, you can go down the top 100 coins and figure out what makes them special. That’s how I learned. But the top 100 will change. I learned 100 coins and now only half of them are still up there, but I learned a whole lot and some of them come back from the dead if they have a good idea and a serious team developing. I think the serious team and community are what some of the others were missing, or they were aiming too high for a technology in its infancy.