As the days goes by, there are more and more people turning their heads towards the crypto world. If you compare the number of people using the cryptocurrency now to the number of people who were using the cryptocurrency at the beginning stages, you will see there’s a drastic change.
More people have come to realize the good in the cryptocurrencies; even though there are few disadvantages and insecurities about it. But the government in few countries as well as laws are allowing the usage of cryptocurrencies; thus making it more approachable to many new users.
Now that they have made the first step by approaching towards the crypto universe, the next important step is to understand the various terms or terminologies with respect to the crypto world.
The reason that you are visiting this page is because few terms are indeed very confusing to grasp. There’s no need to worry, as it will take some time to understand all the terms. At first, all the information would be very overwhelming but you will soon get used to it and make a lot of profit with your funds henceforth.
Glossary containing all that you need to know about cryptocurrency or crypto –
Here are the terms or terminologies that you need to know in order to make a fortune out of your simple funds through the crypto universe and its perks.
- Altcoins – Altcoins are basically those categories of cryptocurrencies which are represented as alternatives to the Bitcoin. Some examples are Litecoin, Ethereum, etc. Few of them tend to be better than Bitcoin as well, i.e. less expensive, more efficient, etc.
- ASIC Miner – It is an abbreviation for Application Specific Integrated Circuit machine designed specifically for mining cryptocurrencies.
- ATH – ATH is an abbreviation for ‘All Time High’. It basically tells us a particular All Time High price of a specific cryptocurrency.
- Bag Holder – This is a term used to describe a person who is holding onto their currencies (particularly altcoin), even after a pump & dump crash.
- Bearish – Bearish is a term used to describe a person’s feeling; which is based on few factors that tend to say if the price details of a cryptocurrency would decrease.
- Bit – Bit is basically the sub unit of a bitcoin, i.e. 1 bitcoin (BTC) = 1,000,000 bits. A person would be able to buy as well as sell less than 1 BTC.
- Bitcoin – Bitcoin is the most common type of cryptocurrency; and among the first currencies that includes instant payments; which was created in the year 2009, by Satoshi Nakamoto. It’s sometimes represented as BTC or XBT. Also, remember that this is the meaning for the word Bitcoin with a capital “B”.
- bitcoin – If the word bitcoin starts with a non-capitalized “b”, then it represents the unit of the currency.
- Block – A block represents a collection of transaction related data; which are bundled up together for the process of transaction verification by miners. It eventually becomes a part of the Blockchain.
- Blockchain – A decentralized and digital ledger wherein the transaction made in the Bitcoin or other cryptocurrencies are recorded chronologically as well as publicly.
- Block Reward – It is a reward in the form of native cryptocurrency; given to miners for solving a computationally difficult problem. Bitcoin miners now get 12.5 BTC for solving each problem for adding blocks to the blockchain.
- Bullish – Bullshit is the exact opposite of Bearish, i.e. Bullish basically is a term used to describe a person’s feeling; which is based on few factors that tend to say if the price details of a cryptocurrency would increase.
More Insight –
- Confirmations – Once a transaction has taken place, then the blockchain confirms its validity; the miners do it every ten minutes a block’s mined.
Note – It is advisable for a person to wait for a minimum of six confirmations; in order to avoid spending double the money.
- Crypto Exchange – It describes a website which helps a person to purchase or sell the cryptocurrencies.
- Cryptography – Cryptography is basically a branch of studies that involves math as well as computer science. It is the study behind the invention of the cryptocurrencies.
- Decentralized – A state where there is no central control, power or function, or in reference to infrastructure, no central point of failure.
- Decentralized applications (DApps) – A type of software program that runs on a decentralized P2P network rather than on a single computer.
- Distributed consensus – Collective agreement by various computers in a network and allows it to work in a decentralized; P2P manner without the need of central authority to deter dishonest network participants.
- Faucet – It is a particular website or service which pays you in cryptocurrencies; in exchange of doing a certain task such as playing a game.
- Fiat – It represents a centralised as well as a regulated paper currency of a particular nation.
- FOMO – It is an abbreviation for Fear Of Missing Out. It refers to the feeling of apprehension for missing out on a potentially profitable investment opportunity and regretting it later.
- FUD – It is an abbreviation for Fear, Uncertainty and Doubt, all with respect to the market. A person spreading FUD based on mere gut feelings or facts -known as a FUDster.