A glossary of terms used in Cryptocurrency trading, blogs, forums, news articles etc..

 

DYOR

Do Your Own Research (Never invest/speculate with more money than you are prepared to lose).

 

Market Cap

The total market capitalisation (total value) of all the crypto coins and tokens.

 

Pump & Dump

The recurring cycle of a certain coins or tokens being bought by lots of people in a short space of time or a ‘Whale’ buying large amounts. This generally increases the price to higher than normal levels – The Pump, at which point everyone sells at a huge profit – The Dump, this is where those late to the party are left holding over priced coins or tokens or forced to sell at a loss – Bagholder.

 

Whale

Someone that owns vast amounts of cryptocurrency and is therefore able to manipulate the market.

 

Bagholder

The people left holding crypto after it has been pumped but they weren’t able to get out at a profit.

 

Altcoin

This term generally refers to coins or tokens that are not Bitcoin

 

ATH

All Time High

 

Bull or Bullish

Someone who expects the price or market to rise.

 

Bear or Bearish

Someone who expect the price or market to fall.

 

Exchange

Website or mobile apps where you can buy and sell crypto.

 

Tokens

Generally crypto that is built on top of another cryptocurrency is a token, for example many tokens raise money through an ICO and are built on the Ethereum network and recently some are being built on EOS.

 

ICO

Initial Coin Offering, think IPO Initial Public Offering where companies raise money selling shares, in the crypto world companies raise money through and ICO Initial Coin Offering where people buy their coins.

 

ITO

Initial Token Offering, think IPO Initial Public Offering where companies raise money selling shares, in the crypto world companies raise money through and ITO Initial Token Offering where people buy their tokens.

 

STO

Security Token Offering, A method of raising money that may resolve the compliance and licensing requirement concerning securities laws in the US.

 

FOMO

Fear Of Missing Out – Usually occurs during a pump and dump where people worry about missing out on huge profits so buy in to a coin or token without proper research.

 

FUD

Fear Uncertainty and Doubt – Disinformation spread in an attempt to control peoples actions.

 

ROI

Return On Investment

 

Mining

The process of using vast amount of computing hardware to solve algorithms to gain a reward in a specific currency for verifying the blockchain transactions.

 

Node

A computer that downloads maintains a copy of the entire blockchain.

 

Fork

This is where a blockchain is split to generate an updated and improved codebase, for example Bitcoin split and the older remaining chain was taken and continued as Bitcoin Cash but people chose to follow the main Bitcoin chain therefore Bitcoin price continued and Bitcoin Cash is not worth as much as less people chose to support it.

 

Wallets

Software, Hardware, Online, Paper, cold storage etc… See https://whatscrypto.com/crypto-wallets/

 

Dapps

Distributed or Decentralised Applications – Software similar to apps you would use on your smartphone, however these are typically decentralised and run on multiple systems not controlled by a single entity.

 

Proof of Work

A mining process where the miner is rewarded depending on the amount of computing power used to verify the transactions and update the blockchain.

 

Proof of Stake

A mining process where the miner can prove ownership of a number of cryptocurrency units to validate block transactions and gain rewards, based on the amount they own.

 

Airdrops

Free tokens or coins distributed to the community by a new blockchain project to help spread interest, a type of advertising while giving the recipient a stake. The  amount received is usually relative to the amount of Ether or EOS the holder has in their wallet. New projects build on Ethereum will airdrop to your Ether wallet and those build on EOS will airdrop to your EOS wallet.

 

Smart Contracts

A smart contract is a self-executing contract where the terms of the contract are written into the code and it is executed when all the criteria required is carried out. The contract is irreversible and is generally thought to be something that will remove many of the so called ‘middle-men’ in various fields. As a simple example, a smart contract could replace an estate agent where a contract is written to transfer the deeds of a property to the new owner once funds have been received by the seller.

 

Stable Coin

Stable coins are coins pegged to the price of stable assets such as Gold, Silver and other precious metals and diamonds. They are also pegged to so-called stable Fiat currencies such as the Dollar and UK Sterling, this is thought to prevent the volatile price fluctuations found in other cryptocurrencies.

 

Fiat Currency

Fiat currencies are a means of payment used by almost all countries but which have no intrinsic value as they are no longer backed by any real asset, such as Gold or Silver. They are printed in their trillions raising the monetary supply which devalues them and all the existing currency in circulation, this is the cause of massive inflation due to the reduced purchasing power of the devalued currency. The population is forced by the Government (Policing) to use this ‘worthless’ means of payment through fear of various punishments, See Legal Tender Laws. The so called Stable Coin above, backed by a Fiat currency appears to be an oxymoron.

Gresham’s law – “Bad money drives out good”

 

HODL

A play on the word HOLD – Use by the crypto community when referring to holding a coin or token rather than selling it. You’ll probably hear this term a lot, especially with Bitcoin, which is probably a good example of Gresham’s Law as above.

Coinbase

Probably the easiest route in to cryptocurrency. Sign up for an account here and you'll receive $10 of FREE Bitcoin with your first $100 purchase (or your equivalent currency value).

 

Connect your bank account, credit/debit card so you can exchange into and out of your local currency. Download the app on your mobile device to keep track of your Bitcoin, Ethereum & Litecoin on the move. Any digital currency stored on coinbase servers (in your coinbase wallet) is covered by insurance. Set up recurring buys to invest slowly over time, every day, week, month etc. or buy and sell at anytime.

 

Whether you’re a professional trader or just starting out with cryptocurrencies, Binance offers a wide variety of tools for engaging with digital asset markets. It’s straightforward to buy and sell cryptocurrencies through the Binance exchange, while additional features make the platform capable of handling complex trading operations as well.

Register on Binance to start trading the easy way.

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