Important Crypto Terms You Need
One of the most challenging aspects of cryptocurrency is finding your way around its many jargons, acronyms, memes, and terminologies. If you can't differentiate a public key from a private key or call every crypto coin or a Bitcoin, it's time to brush up on your crypto vocabulary.
As you might have read from every explainer piece about crypto, its market is extremely volatile and can change within mere minutes. It is highly speculative, still evolving, and can be influenced by multiple variables such as emerging technology, the world economy, or a tweet from Elon Musk.
If you’re looking to invest in crypto and don't have the faintest idea what crypto bros are talking about on Reddit and why they keep spamming HODL and FOMO, this basic A to Z guide on important terms is for you. Put on your crypto hat and hold on for dear life because we’re going to the moon and beyond, so you never have to fear missing out!
A cryptocurrency address is where you keep, receive, and send crypto coins. Without a valid wallet address, you cannot own a cryptocoin, because the blockchain cannot authenticate its existence. A crypto address, which is typically a combination of a bunch of lower and upper case letters and numbers, looks like this: muQLvohMUVXx86GC5vwVRKwU58tMvBMJDj
The term altcoin, derived from the words alternative and coin, broadly refers to any cryptocurrency that is not Bitcoin and Ethereum.
Launched in January 2009, BTC is seen as the coin that heralded the cryptocurrency epoch as it is the first, most widely-known, and perhaps the most valuable among all cryptocurrencies.
A blockchain is a system wherein records of cryptocurrency transactions, or NFT ownerships are kept across many computers, interconnected in a peer-to-peer, decentralized network. Think of it as a digital record book that can be viewed by anyone with an internet connection. This amazing technological advancement is the core, front, and center of cryptocurrencies.
Buy The Dip (or BTFD!)
Buy the dip! When the value of a cryptocurrency or the market is falling or is in a “dip,” this phrase is often shouted and spammed on Twitter, Discord channels, and other forums. While typical investors frequently jump ship during these hard times because they’re afraid of suffering losses, seasoned crypto bros see the dip as an opportunity to purchase a coin or token at a discount before it bounces back and increases in value again.
This is a method of keeping cryptocurrency tokens offline. Cold storage is often employed by Investors who want to make sure that hackers can't access their assets through conventional channels. Meanwhile, a “hot wallet” is software-based crypto storage that is connected to the internet.
Decentralized applications are open-source software programs that operate across a peer-to-peer blockchain network as opposed to a single computer. This means that these applications are not controlled by a single authority.
ETH, tied to the currency called ether, is the second-largest cryptocurrency by transaction volume.
When the value of a certain cryptocurrency rises so quickly, it triggers FOMO, or fear of missing out, which drives up the cost of the coin even further.
The phrase "Fear, Uncertainty, and Doubt" is often used when a person posts about cryptocurrencies online in a negative light. The expression is also commonly used to describe the market's extreme volatility.
Going To The Moon!
Also referred to as “mooning,” Crypto bros say this to manifest or indicate, sometimes jokingly, that their coins are on a meteoric rise that will send their value off the market charts beyond the stratosphere, and to the moon!
Originally derived from “hold” and meme’d into existence, HODL or “hold on for dear life” simply alludes to a passive investment gameplan in which individuals purchase and committedly hold onto cryptocurrencies rather than trading them in the expectation that their value will eventually rise.
Mining refers to the verification of new transactions on a blockchain. It is the procedure by which new cryptocurrency coins are made available, and a record of user transactions is kept.
Non-Fungible Tokens (NFTs)
NFTs enable digital, contract-based transactions between virtual novelty pieces like art, music, videos, and even memes. They are one-of-a-kind and cannot be exchanged. They are also stored on the blockchain.
Private Key and Public Key
A private key is a sequence of letters and numbers the user keeps private. It is created specifically to use a public key to sign a digital transfer. In contrast, a public key, which is also a sequence of letters and numbers, is public and can be viewed by anyone. The two keys are used in conjunction to sign a digital transaction.
A scamcoin is a fictitious cryptocurrency created to profit the creator while extorting money from poor souls who supported and invested in it. It is usually introduced through various pump and dump, pyramid, and "get rich quick" schemes.
A "whale" or a cryptocurrency whale is a colloquial term for major players in the crypto world. Cryptocurrency whales, many of whom are early investors, own a large enough amount and a portion of the currency to profoundly impact its price and in crypto markets.