With the rise of popularity of both the blockchain and cryptocurrency, there have been a number of new and unique terminologies that have appeared in the crypto communities, confusing many everyday individuals who are new to the technology and usage. With this blog post, we plan to touch upon many of the popular terms for our readers so you are able to fully understand the messages on cryptocurrency/blockchain based message boards, discord/slack servers and social media platforms.
• Blockchain: A secure public ledger that is unable to be hacked or changed by any individual which shows pseudo-anonymous transactions between two parties. There is no need for any central server or trusted authority to confirm transactions.
• Block: A continuous growing list of records which are then linked together on the blockchain.
• Decentralization: The process where authority or decision-making is taken away from one single centralized source and are instead distributed between a group of agents.
• Address: The location to which users will either send or receive their cryptocurrency. Each coin will have its own unique address.
• Altcoin: Any digital asset/cryptocurrency which does not refer to Bitcoin.
• Wallet: The location where your cryptocurrencies will be held. Many coins have their own specific wallet which can store your assets.
• Smartcontract: Trustless, Self-executed agreement between two separate parties which are noted on the blockchain. Each party will set the terms of the agreement, which will then automatically go into effect.
• Fork: When a user group of one particular blockchain decides to split the coin in a different direction to have the coin function as they see fit. One example here is when the Bitcoin blockchain was forked to then become Bitcoin Cash.
• Mining: Using your computing power and electricity to add transactions onto the blockchain you are mining. As a result, miners will generate a small amount of that cryptocurrency for the work completed.
The terms above can be used in general conversation when discussing both digital assets as well as the blockchain and how it operates.
• Exchange: An online marketplace where digital assets can be purchased, sold, and stored within the company’s servers.
• Fiat Currency: Physical money such as dollars and euros.
• Bullish: A positive sentiment for the global market or for a specific coin/token.
• Bearish: A negative sentiment for the global market or for a specific coin/token.
• ATH: All-time high. When a coin (or portfolio) hits its highest recorded point
• Marketcap: The total supply of a cryptocurrency multiplied by its price. This can be used to observe and predict potential growth possibilities.
• ICO: Initial Coin Offering. A token sale offered by a company that is releasing a new cryptocurrency. This can be compared to an IPO in traditional financial markets.
• FOMO: Fear of Missing Out. This term is often used when the sentiment on a coin/token is extremely high at a particular moment and investors don’t want to miss out on the opportunity to increase their portfolio gains.
• FUD: Fear Uncertainty Doubt. This is a disinformation strategy used by a competing product or investors who wish to persuade others to invest elsewhere.
• Moon: When an investment made undergoes tremendous gains.
• Pump & Dump: A scheme where a group attempts to artificially raise the price of a coin and then sell that same coin when other investors buy the coin at the heightened price. It is advised to stay away from groups of this nature.
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