Crypto Glossary: 36 CRYPTOCURRENCY WORLD TERMINOLOGIES YOU SHOULD KNOW (PART 1)

Introduction

Cryptocurrency has taken the world by storm, and with it, a new language has emerged.

The crypto world is filled with terms that can be confusing to those new to the space. This article serves as a reference guide, breaking down the key terms and concepts in simple, easy-to-understand language.

1.FIAT

Government-issued currencies i.e Naira, Dollar

2.BLOCKCHAIN

The technology of cryptocurrency keeps the system secure and decentralized.

3.DEFI

(Decentralized Finance) is an ecosystem that operates independently, free of third parties or exchanges.

4CEFI

(Centralized Finance) had always been the standard for trading Crypto before DEFI. CEFI involves the use of companies operating exchange platforms like Binance, FTX etc

5.WHITE PAPER

A white paper is a document that outlines what a cryptocurrency is created to do and how it will achieve it.

6.TOKENOMICS

This is a combination of Token & Economics. It helps understand the supply and demand characteristics of a cryptocurrency

7.ICO

Stands for ‘Initial Coin Offering’ which is where a new cryptocurrency gives away some coins at a discounted rate usually to finance the project.

8.IDO

Stands for ‘Initial DEX Offering’ refers to the launching of a cryptocurrency on a decentralized exchange (DEX) usually at a price lower than the listing price to raise funds.

9. COIN

There is a difference between Coins and Tokens. A coin is an asset that is native to its blockchain. E.g Bitcoin, Ethereum, Solana

10. TOKENS

Tokens are created on existing blockchains. I.e Every cryptocurrency created under BSC, SOL, ETH or any other blockchain is not a coin but a Token. E.g $cake (Bsc), $rope (Sol), $UNI (Eth). Tokens are the backbones of DEFI & exist to be used with DEX.

11.MARKET CAPITAL

The total trading value of a cryptocurrency. Calculated by (Current Price x Circulating Supply= Mcap)

12.STABLECOIN

A cryptocurrency that is tied to the value of the US dollar to make it more stable and less volatile. E.g USDt, Busd.

13.PUMP AND DUMP

This kind is like a scam where people who own a large share of a Coin encourage others to buy to artificially pump the price. Once the price reaches a high point, they sell off all that they own and the price falls drastically.

14.Non-Fungible Token (NFT)

Non-fungible token

15.BAGHOLDER

This term is for someone left with a cryptocurrency after a pump and dump. E.g Everyone holding Shitcoins after they fall

16.WHALE

A crypto whale is a wealthy individual or a company that can move large amounts of cryptocurrency in one go. This can have a big impact on the market.

17.FUD

(Fear, Uncertainty and Doubt) Events and news that create a negative effect on the market

18.BULLISH

The upward movement of a market.

19.BEARISH

The downward movement of a market.

20.ATH

All-time high

21.ATL

All-time low

22.STAKING

The act of locking up your cryptocurrency to help secure the network and validate transactions

23.FARMING

Mostly the same as staking

24.LP( liquidity pool)

A pool of funds for a certain crypto purpose

25.LP(liquidity provider)

A person providing liquidity to a pool.

26.CONTRACT ADDRESS

It is an address that provides the location of a particular token or coin in an exchange

27.BTFD

Buy The Fucking Dip

28.TA

Technical Analysis

29.FA

Fundamental Analysis

30.POS

Proof of Stake

31.POW

Proof of Work

32.OTC

Over the Counter

33.WEAK HAND

A coin holder is prone to selling at the first sign of a dip in price

34.POH

Proof of History

35.POSA

Proof of Stake Authority

36.NFA

(Not a Financial Advise) The term is also often used as a disclaimer when cryptocurrency traders and enthusiasts make public posts or share their market analyses on social media platforms.
The market cannot be 100% predictable and even a “Correct” analysis can fail so users must apply discretion while investing.