LIST OF CRYPTO/BLOCKCHAIN TERMINOLOGIES FOR BEGINNERS — PART 1
The blockchain is a digital ledger of all the transactions ever made in a particular cryptocurrency. It’s comprised of individual blocks (see definition above) that are chained to each other through a cryptographic signature. Each time a block’s capacity is reached, a new block is added to the chain. The blockchain is repeatedly copied and saved onto thousands of computers all around the world, and it must always match each copy. As there is no master copy stored in one location, it’s considered decentralized.
This is a short abbreviation for a Crypto key or public address. For an example, if someone wants to send you some Cryptos, he/she can say “Kindly tell me your ADDY”.
On the other way round, it makes it crypto transaction go “Private” as a non-crypto person wouldn’t know what that means should you two were in a public place.
AltCoin stand for Alternative Coin — Any cryptocurrency other than Bitcoin. On the other hand, they are usually known as alternatives” to Bitcoin.
Some of them include Litecoin, Ethereum and more. There are thousands of altcoins. You can see the list of (some) altcoins here.
A LONG POSITION
Purchasing of a specific cryptocurrency with an expectation that it will rise in value.
A SHORT POSITION
Selling of a specific cryptocurrency with an expectation that it will drop in value.
This means Altcoin market.
An event where the investors/participants are able to receive free tokens or coins into their digital wallet.
It was first carried out by Auroracoin in early 2014.
Anti money laundering (AML) refers to the web of laws, regulations, and procedures aimed at uncovering efforts to disguise illicit funds as legitimate income. Money laundering seeks to conceal crimes ranging from small-time tax evasion and drug trafficking to public corruption and the financing of groups designated as terrorist organizations.
AML legislation was a response to the growth of the financial industry, the lifting of international capital controls and the growing ease of conducting complex chains of financial transactions.
A kind of wealthy individual who funds startup businesses with capital in exchange for debt or equity in the business.
An indicator around the price of a crypto that helps indicate when a coin is overbought or oversold.
In another understanding, it means Bands that use historical data in a market to indicate possibly volatility.
A brainwallet refers to the concept of storing mnemonic(seed) phrase/private key in one’s own mind by memorizing a seed phrase. If the seed is not recorded anywhere, the assets can be thought of as being held only in the mind of the owner. If a brainwallet is forgotten or the person dies or is permanently incapacitated, the assets are lost forever. Using memory techniques allow them to be memorized and recalled easily.
A seed phrase, seed recovery phrase or backup seed phrase is a list of words which store all the information needed to recover funds/assets on-chain. Wallet software will typically generate a seed phrase and instruct the user to write it down on paper. If the user’s computer breaks or their hard drive becomes corrupted, they can download the same wallet software again and use the paper backup to get their assets back.
RESISTANCE LINE/LEVEL/ZONE ( eg BTC next resistance line/level)
A Resistance line, sometimes also known as a Speed Line, helps identify assets(crypto) trends. Resistance lines are technical indication tools used by analysts/traders and investors to determine the price trend of a specific asset(crypto).
SUPPORT LINE/LEVEL/ZONE ( eg BTC next support line/level)
Support is a price level where a downtrend can be expected to pause due to a concentration of demand or buying interest. As the price of assets or securities drops, demand for the asset(token) increases, thus forming the support line. Meanwhile, resistance zones arise due to selling interest when prices have increased.
BTC & XBT
Abbreviations for Bitcoin. On certain exchanges XBT stands for Bitcoin.
BitMEX Trading exchange is one of them that lists it as XBT.
Means current Market Price i.e executing a trade at the current market price.
Connoting Buy The Dip.
This translate to Buying a coin when its value has experienced a significant decrease. We experienced BTD — as at 6/13/2018.
This connotes “Buy the Fucking Dip”. This crypto term aims to convince you to buy a coin even when it has been dumped in a grave manner.
A situation when a general downtrend reverses briefly and subsequently continues its downward movement.
Also, Bull Trap signifies a momentary buying period.
An expectation that the value of a specific cryptocurrency is going to increase — buy trend.
These are the crypto enthusiasts who expect the price of a coin to go up. They’re mainly optimistic!.
A market where Cryptocurrencies are going up. The term relates to the direction in which a bull attacks (horns low to the ground, a bull strikes upwards.
A Huge amount of buy orders at the current market price.
The instability of cryptocurrencies in terms of price value.
A bubble occurs when an asset’s price exceeds its intrinsic value.
The process of using codes and ciphers to encrypt and decrypt sensitive information, messages or data.
A decentralized application that exists on a Blockchain. Dapps are known for having proven 100% uptime.
A decentralized autonomous organization (DAO), sometimes called a decentralized autonomous corporation (DAC), is an organization constructed by rules encoded as a computer program that is often transparent, controlled by the organization’s members(by voting) and not influenced by a central government/authority.
DEAF AT BOUNCE
A short-lived price recovery after a huge market crash.
In blockchain, decentralization refers to the transfer of control and decision-making/operations from a centralized entity (individual, organization, or group thereof) to a distributed network.
Is acronym for “Do Your Own Research”.
DYOR stands for Do Your Own Research and is a common phrase used by cryptocurrency enthusiasts. However, the acronym is not a piece of advice exclusive to the cryptocurrency ecosystem. It is commonly used throughout the internet due to how fast and easily misinformation can spread.
DYOR aims to reduce the number of uninformed investors in cryptocurrency. It encourages them to research and understand a cryptocurrency before investing.
Explain to me like I am five.
That is what I AM doing over here. Trying to explain some crypto words to your understanding.
The practice of having a third party act as an intermediary in a transaction. This third party holds the funds on and sends them off when the transaction is completed.
We have escrows in form of crypto exchanges. Am example of escrow service is P2P(Peer to Peer) service offered by some crypto exchanges.
A platform (centralized or decentralized) for exchanging (trading) different forms of assets(cryptocurrencies).
These exchanges makes the cryptocurrency revolution worthwhile as cryptos are easily exchanged to local/fiat currency — paper money.
An abbreviation for Fundamental Analysis.
A crypto faucet lets users earn small crypto rewards by completing simple tasks. It is also fake/paper coins/tokens used to pay transaction fee during development/testing on the blockchain.
Generally known as local currency. Fiat money is a currency that is usually backed by a government or group and whose value is tied to the investing public’s confidence in the government that backs it eg are Rupees, US Dollar, British Pound, Euro, etc.
Scalping is a trading style that specializes in profiting off of small price changes and making a fast profit off reselling.
FOMO means “Fear of Missing Out.”
It can also be seen as an emotion experienced by those who haven’t bought any cryptocurrency and see prices continually rising.
Also, in the opposite direction, it can create a mindset that causes people to purchase an asset based on the premises that they may miss out on a good thing.
The effect is that it can lead to irrational decisions at inflated prices.
“Fear, Uncertainty, Doubt” about a particular asset(project) or asset value. FUD like FOMO can also lead to irrational trading or investment decisions.
However, this news or propaganda as designed can lower the price of a specific asset.
Someone who spreads FUD.
A 50% decrease in block reward after the mining of a pre-specified number of blocks.
Every 4 years, the “reward” for successfully mining a block of bitcoin is reduced by half. This is referred to as “Halving”.
For instance, the initial reward for mining a Bitcoin Block was 50 Bitcoins, which was reduced to 25 in 2012 after the first “halving” and half again to 12.25 bitcoins after the next halving.
A mathematical process that converts inputted data into a fixed length string, usually 32 characters.
A hash has to follow certain rules and formats and is formulated using very specific information, and must contain the previous hash and block information within itself together with some “dummy data” (a nonce) to produce a randomized hash.
Hash Rate measures the speed of how much computing power is being used to mine a token on a network.
Hash rate is all about calculations for a mining process.
The network must make difficult mathematical operations for the purpose of security.
Initially, a misspelled version of “HOLD,”. HODL is acronym for “Hold On for Dear Life”.
This is the act of holding onto your assets or a particular asset disregarding the market sentiments and activities of FUDsters.
The acronym takes its root from a drunken typo on a message board and has become a folksy rallying cry for those who have held onto Bitcoin throughout its extreme volatility.
So the article will not be too long i will have to publish it in parts, see PART TWO HERE. Please follow this blog(Jx) and follow me on twitter and watch out for my threads. If you have any topic you want me to write about, drop it in the comment section below.
Thank you for reading.