13 Cryptocurrency Terms To Know By Heart

13 Cryptocurrency Terms To Know By Heart

To new crypto enthusiasts, the fledgeling world of cryptocurrency is one that can be exciting, yet intimidating. Various phrases and jargon get thrown around, leaving scores of confused faces in its wake. The world of cryptocurrency has similar potential to disrupt and change the way the world functions, so it is no surprise that it has gained serious momentum over the past year. At the end of this article, you will find yourself feel more comfortable to explore this fast-evolving world of cryptocurrency. So, let’s get you started!

  1. 1. Airdrop

Airdrop is a jargon used in the blockchain industry that shares the same meaning as “giveaway”. Tokens are distributed by the operators of a cryptocurrency network to users for free or as a reward for completing tasks, typically for the purpose of promoting.

2. Altcoins

Altcoin originates from the word “Bitcoin alternative”. Altcoins are forks of Bitcoin with usually minor changes to the proof of work (POW) algorithm of the Bitcoin blockchain.

Example of Altcoins: Litecoin, Ethereum, EVR token etc.

3. Initial Coin Offering (ICO)

ICOs are types of crowdfunding mechanisms conducted on the blockchain. Originally, the main idea of an ICO was to fund new projects by pre-selling coins/tokens to investors interested in the project.

4. Blockchain

A blockchain is a shared ledger where transactions are permanently recorded by appending blocks. The blockchain serves as a historical record of all transactions that ever occurred, from the genesis block to the latest block, hence the name blockchain.

5. Exchange

The platform through which cryptocurrencies are exchanged with each other, with Fiat currencies and between entities. Exchanges can vary widely on the currency conversions they enable, and their fee structures.

6. Bull/Bullish

If the price of a cryptocurrency has a positive price movement.

7. Fiat

Refers to money recognised as legal tender by governments, such as the US dollar, pound, Euro and Indonesian rupiah.

8. Moon

A term used to describe a major price movement upwards. For example, Ripple is mooning.

9. Decentralized

Decentralization refers to the property of a system in which nodes or actors work in concert in a distributed fashion to achieve a global goal.

10. Liquidity

The ease with which a certain cryptocurrency can be converted into cash. Liquidity is dependent on many factors, including supply and demand and transaction processing times.

11. Smart Contracts

Smart contracts encode business rules in a programmable language onto the blockchain and are enforced by the participants of the network.

12. Mining

Mining is the act of validating blockchain transactions. The necessity of validation warrants an incentive for the miners, usually in the form of coins. In this cryptocurrency boom, mining can be a lucrative business when done properly. By choosing the most efficient and suitable hardware and mining target, mining can produce a stable form of passive income.

13. No-coiner

A no-coiner is someone who has no cryptocurrency in his or her investment portfolio and firmly believes that cryptocurrency, in general, will fail.

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