LIST OF CRYPTO/BLOCKCHAIN TERMINOLOGIES FOR BEGINNERS — PART 2
This acronym stand for “Joy Of Missing Out”. Perhaps you missed out buying some coins in a Deep, so you are excited.
This stand for “Know Your Customer”.
Used to describe a series of laws and regulations which require businesses to know the identity of their customers.
This is important when considering the verification and authentication of a user.
Again this is mostly necessary if you want to use a credit card to purchase a coin or buy in large figures.
This defines both the Limit Buy and Limit Sell wherefore an order placed by the traders to purchase or sell a cryptocurrency at a predefined price.
A limit buy order will only be executed at the limit price if not lower while a limit sell order will only be executed at the limit price if not higher.
The availability of an asset to be bought and sold easily, without affecting its market price.
A liquidity pool is a collection or a digital pile of cryptocurrency tokens locked into a smart contract. Liquidity pools power most of Decentralized Finance (DeFi) washout for my article on defi.
A situation where investors offer loans to others to trade within exchange for a set return.
As a financial instrument on cryptocurrency exchanges, liquidity swaps are contracts
Decentralized finance (DeFi) offers financial instruments without relying on intermediaries such as brokerages, exchanges, or banks by using smart contracts on a blockchain. DeFi platforms allow people to lend or borrow funds from others, speculate on price movements on assets using derivatives, trade cryptocurrencies, insure against risks, and earn interest in savings-like accounts. washout for my article on defi.
This stand for “Moving Average Convergence Divergence”.
It is a typical trend indicator that shows the relationship between two moving averages of prices.
A short-term for Market Capitalization.
Market Capitalization refers to the market value of a particular cryptocurrency.
It is computed by multiplying the Price of an individual unit of coins/tokens by the total circulating supply of the coins/tokens.
How to determine each currency on the Market Cap: (Price of Individual Unit of Coin) X (Circulating Supply). As of the time of writing this article btc had $412,078,955,364 market cap. See live market cap data here.
The trading of assets or securities bought with borrowed money.
When a margin order is placed, the money that you are using is essentially borrowed from other users in the exchange that offers their funds as loans.
Here, a trader usually contributes an initial amount which is then used as collateral for their debt.
This form of trading is no-go-area for beginners as it is highly risky.
A crypto exchange that offers this is CEX.
Market Order defines both Market buy and or Market Sell.
In a plain term, it is an order placed by the traders to be executed on the spot at the best price that the market currently offers.
Market Orders are filled as long as there are sellers and buyers willing to perform the trade.
A situation where the price of an asset rapidly increases in value.
So, it’s “shooting up to the moon” or “mooning” signify a great appreciation or a pump.
OBSERVE THE CANDLE
A crypto trading term meaning to watch or observe(analyze on a lighter note) the trading chart.
This stands for Peer to Peer or a person-to-person.
Peer-to-peer has become a very large focus of Blockchain as it is part of the beauty of decentralization.
The Blockchain is all about p2p, so, nearly every interaction on the Blockchain is P2P fulfilled.
This P2P cancels out all centralized variable like a store, bank or notary.
A bitcoin payment address containing a hashed public key thereby allowing the spender to create a standard Pubkey script that pays to public key hash.
P2PKH stand for Pay to Public Key Hash.
Price Bubble is used to define both Pump and Dump. Ordinarily, it is an economic cycle in which the price of a security or asset will surge unsustainably, and then crash as a selloff occurs.
This is usually caused by speculation and has been observable in bitcoin’s past prices. When done deliberately, this is known as a “Pump and Dump”.
A private portion of a key pair which can create signatures that other people can verify using the public key.
Another definition, a Private Key is a string of secret alpha-numeric characters which allows you to access your tokens in a specific wallet.
This alphanumeric codes should be kept secret at all times as it is instrumental in accessing your crypto wallet. It should never be disclosed to anyone other than the owner of the address.
Also, if you call it password or passcode, you won’t be wrong.
PUMP & DUMP
Massive buying and selling activity of cryptocurrencies (sometimes organized and to one’s benefit ) which essentially result in a phenomenon where the significant surge in the value of coin followed by a huge crash take place in a short time frame.
This occurs when traders artificially inflate the assets price and then exit their positions, causing a price collapse.
Pump & Dump can be caused by FUDsters, pump groups and Whales.
PUMP AND DUMP GROUPS
Self-organized groups of people who promote unknown or known coins on the Discord server or Telegram are called crypto pump-and-dump groups, be careful if you must participate in this.
Acronym for Relative Strength Index, RSI, is a trading indicator which is frequently employed in a technical analysis.
The smallest unit of a bitcoin currently available (0.00000001BTC).
Satoshi can be earned and sold in tiny amounts.
This was the pseudonym for the mysterious creator of Bitcoin.
Always had been known as the mysterious creator of Bitcoin.
Coins created as get rich quick schemes by their developers. These coins usually have certain proper ties, such as being clones of an existing coin and being pre-mined.
Usually, investors are advised to know the coins they get involved with thats why its always important to DYOR.
Smart contracts are simply programs stored on a blockchain that run when predetermined conditions are met. They typically are used to automate the execution of an agreement so that all participants can be immediately certain of the outcome, without any intermediary’s involvement or time loss.
Spreading buzz by heavily promoting a particular coin in the community to create awareness.
Coin with little potential or future prospects.
A crypto coin with an extremely low volatility that can be used to trade against the overall market.
This always gives an impression that the coin would go up significantly in terms of its value, most of the time with the pretence of sincerity.
A process where a cryptocurrency appreciates or goes up in price.
This defines a Zig Zag price movement of crypto. The swing just explains the Upward and downward movement of coins — the volatility effect.
An abbreviation for Technical Analysis or Trend Analysis. TA defines a financial analysis that takes advantage of the patterns in market movement in order to identify trends and perform relevant predictions.
An alternative Blockchain on which developers can test and experiment with changes to a cryptocurrency without the risk of damaging or interfering with the real Blockchain.
ATH is the acronym for “All Time High”.
The cryptocurrency is trading at the highest price it has ever achieved.
Example: “OMG! It hit its ATH and going to the moon!”.
So the article will not be too long i will have to publish it in parts, see PART THREE 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.