Scrolling Cryptocurrency related forums on the Internet, you see a lot of misconceptions on cryptocurrency and crypto-related terms. The purpose of this post is to educate more on this crypto-related terms and how they are used in the world of crypto.
General Cryptocurrency Terms
Blockchain
It is a technology that allows distributed ledgers secured by cryptography, i.e. everyone can access and read but the blockchain data can only be seen and updated by the data owners.
Node
A Node can be seen as a computer that holds a copy of the blockchain. Its primary responsibility is to maintain this blockchain.
Fork
A process where a blockchain splits into two separate chains. This usually happens when new rules are built into the blockchain’s code.
Software Wallet
This is the storage point for cryptocurrencies that exist purely as software related files on the computer system. This wallet can be generated from a variety of sources. Some examples include MyEtherWallet (MEW), IM Token Wallet and much more.
Hardware Wallet
Hardware wallets are regarded as the most secure way to hold crypto-currency.
Cold Storage
The process of moving crypto offline, as a way of safeguarding your crypto-currency from hacking. This can be done either by printing out the QR code of the wallet and storing it somewhere safe or Moving the files of the wallet into a USB drive.
Trading Related Terms
Exchange
These are websites where you can buy and sell crypto-currencies. Some exchange websites include Coinbase.com, Bianance.com, and several others.
Whale
This refers to someone that owns extremely huge amounts of crypto-currency.
FIAT
Government-issued currency used to perform transactions. They include the US dollar, European Euro, Japenese YEN, etc.
Market Order
This refers to a simple sale on the exchange at the current market price.
Margin Trade
This is the act of increasing your trades by risking your existing coins. P.S. This is usually very risky and it’s only meant for experienced Traders to Perform. It is a situation whereby traders stake cryptocurrency /fiat on a coin either to Increase or Decrease in the long run.
Bullish
An expectation that the price of a particular coin is going to increase.
Bearish
An expectation that the price of a coin is going to decrease.
Altcoins
Generally, any crypto-currency other than Bitcoin or Ethereum is referred to as an Altcoin.
Tokens
The token is a currency programmatically implemented on such a blockchain technology as Ethereum.
ICO
Initial Coin Offering, issued by startups in exchange for Ethereum or other means.
Stable coin
This is a crypto-currency with extremely low volatility. It can be used to trade against the General market.
Pump And Dump
This usually happens when an Altcoin gets a lot of attention from crypto users, and then of course followed by a huge crash.
Market Cap
The total value of a particular coin in cryptocurrency, usually calculated by multiplying the total supply of this coin in the Market by the current price of an Individual unit.
Ethereum Specific Terms
Smart Contract
These are specific program codes deployed onto the Ethereum blockchain. These codes directly interact with how the money flows.
Decentralized Application
This refers to an Application that uses an Ethereum smart contract as it’s program code.
Gas price
The amount of Ethereum to be spent on each unit of a Transaction.
Gas
A general measure of how much processing power is required by the network (Ethereum) to process a transaction.