Basics

Know The Common Terms Related To Cryptocurrency!

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Even though we read and discuss different crypto topics daily, few of us never understand what some crypto terms mean. The industrial terminology has great importance for the existence in the market and to gain huge benefits. 

Common Terms Related To Cryptocurrency

In this article, we introduce some common crypto-related terms that are generally used. Read on till the end to know more. 

Cryptocurrency terms and meaning

Altcoin 

The altcoin is derived from the word ‘alternative coins’. All cryptocurrencies in the market except Bitcoin is known as an altcoin. For example, Ripple, Litecoin, and Ethereum are all technically “altcoins”. Most altcoins are much less popular than Bitcoin. 

dApp

A decentralized application(dApp) is a computer application that runs on a distributed computer system. It has been popularized by distributed ledger technologies(DLT) such as the Ethereum blockchain, where dApps are often referred to as smart contracts. 

Bear market

Bear markets are markets in which the prices of security falls by more than 20%. It occurs when the major indices continue to go lower over time. Their highs will be lower than before as well. The average length of a bear market is 367 days. 

Consensus Algorithm

A consensus algorithm is defined as the algorithm through which a blockchain network reaches consensus. These algorithms ensure that the protocol rules are being followed and guarantee that all transactions occur in a trustless way. 

HODL 

HODL is “Hold on for dear life”. This misspelled term became very popular in the Bitcoin and cryptocurrency world. It is slang in cryptocurrency for holding coins rather than selling it.

FOMO

Fear of missing out. It means that fear of missing out on the profit which might result from an investment or a decision. 

Whale 

In cryptocurrency, the whale is a term used to refer individuals or entities that hold a large number of digital currencies. 

REKT

In the crypto community, REKT is referred to as total financial loss. It is a misspelling of “wrecked”. This term is typically used when a person loses a lot of money from the current downfall of a price. 

FUD 

FUD means “fear, uncertainty, and doubt”. It is a marketing term often that is often used to cast a shadow over a competitor’s product when your product is unable to compete.

PUMP and DUMP

Pump and dump are referred to a situation in which an asset is talked up to drive the price higher before traders dump it for profits. The word dump is used in crypto to show the selling of coins. “Pump and dump” is an investment scheme in which participants work together to inflate the price of a digital asset. 

Satoshi Nakamoto

Satoshi Nakamoto is the pseudo name for the creator of Bitcoin. He claims to be Japanese, born on April 5, 1975. He was the first to solve the double-spending problem for a decentralized digital currency. 

Above given are some of the technical and common terms that you will ever live to remember. This article will clear all your doubts that you might face in your crypto life.                 

Gerald Rene is a journalist based in the US and the former managing editor of a cryptocurrency news outlet. He has been involved in the cryptocurrency industry for over three years. He has written for many outlets and contributed to cybersecurity and technology publications. And his passion currently lies within scalable securities and stability protocols to help grow cryptocurrency investment and bring mass adoption.

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