Crypto et Blockchain Terminologies for Newbies!

One thing that is for sure is that the crypto world experienced a welcome embrace around the world this year more than ever before. This could be because the world is experiencing a paradigm shift much more into the digital space, as almost all transactions in our now global village (Earth) is being done virtually. Considering these recent developments, many investors have delved into the crypto and blockchain space as new inventions pop up at the speed of thought.

Because, of course, I overshare and I will like to help my newbies onboard and ride the wave, as you may have probably heard your high-sounding friends throw crypto and blockchain buzz words around over the course of this pandemic ridden year. If you are new, welcome to the party! Congratulations that you are going into 2021 with good knowledge. Trust me, it is an enthralling although emerging sector, you will need to learn a number of technical jargons to be able to decode many information you come across.

Let us go right in, I will spill the tea! Where are my newbies at? Let’s go!

Cryptocurrency:

This is a major keyword you should already know; this is the coinage for a digital and encrypted asset that runs as a means of value exchange, you know the way you use your country’s legal tender- Naira, Dollars, Euros, Pounds, Yen, name it. This is a digital currency that exists in a form of computerized and encrypted database. This kind of currency is backed by blockchain, a distributed ledger technology in which a node’s personal coin holding history is registered in a permanent ledger. It is digitally used, usually decentralized, in the sense that no government authority issues or controls it. Mind you, a crypto may also be centralized, especially if issued by a central authority.

Altcoin:

An altcoin is whatever cryptocurrency that is not bitcoin.

ICO

An ICO is the crypto version of an Initial Public Offering- an IPO. It really means an Initial Coin Offering. It is a medium used to crowdfund. This way a company issues tokens or cryptos in exchange for more stable Cryptos.

Bull Run

A bull market is an economic turn of events where an asset scales in value continuously. This happens when the value of shares scale by 20% after two dips of 20% each, I mean after going rock bottom. Now, a bull run occurs when traders suspect that the prices of assets, e.g. a crypto will rise over time, they then employ plans and strategies to purchase, hold, and retrace, whatever makes then gain from a bull market as described above.

Bear Market

Financial world gurus use the term bear market to explain a decline in price of assets up to 20% of what it use to be immediately before the decline in prices.

Node

This is a computer interface that makes communication possible. It also runs private keys between digital wallets on the Bitcoin blockchain.

QR Code

This is really an acronym for ‘quick response’ barcodes.

Blockchain

A blockchain is really an overhyped database. It is a digital data management network which stores information on all cryptocurrency on-chain actions.

FUD

Lol, do not be confused, this is just an acronym for ‘fear, uncertainty and doubt’. You know, it could be FUD about a new crypto.

SHILL

This is a tactic used to endorse a coin in public. So, when investors shill a token, they are trying to incite the general public to cash in on the crypto.

KYC

KYC requirements are ‘know your customer’ requirements given by governments usually to exchanges and financial institutions to know who their customers are.

Token

A token is a cryptocurrency that is built on a blockchain which it’s not the native cryptocurrency.

Coin

That will be all for today, you can watch for more in our future posts.

Enjoy the holidays Cryptovians!