Wednesday, May 29, 2024

Get Familiar with the Terms, Lingua and Terminologies of Crypto

Hi crypto friend, welcome to the amazing world of HODLers Lab, a hub of amazing content, focused on bringing you the latest in digital currency space, blockchain technology, NFTs, tokens, Metaverse, and the hottest trends and buzz in the industry,

This article seeks to bring an introductory beginner-friendly guild to the new world of crypto tech

Let’s dive in

Cryptocurrency

A cryptocurrency or crypto is a virtual or digital currency designed with cryptographic security, to work as a medium of exchange or for financial transactions.

Block Explorer

An application enabling a user to view details of blocks on a given blockchain. Also known as a blockchain browser.

Central Bank Digital Currency

CBDCs are digital currencies issued by a central bank whose status as legal tender depends on government regulation or law.

Bitcoin

Bitcoin is a decentralized digital currency, without a central bank or single administrator, that can be sent from user to user on the peer-to-peer bitcoin network without the need for intermediaries.

What is a Crypto Address

An address is a string of characters that function as a place where individuals can receive, store, or send cryptocurrency. Like a telephone number or zip code, every crypto address is unique

Altcoin

An Altcoin is any cryptocurrency that isn’t Bitcoin. Alternate(ive) coins or alt coins are secondary coins such as ether, dogecoin, (and in some contexts, Ether). The phrase is used matter-of-factly to describe various other cryptocurrencies.

DeFi

DeFi is short for Decentralized Finance. DeFi is the movement within crypto to not just trade decentralized currencies but do so in a way that is itself decentralized.

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The most popular DeFi projects are decentralized exchange protocols, which automate the exchange of cryptocurrencies among buyers and sellers, eliminating the need for a middleman.

DeFi seeks to imitate real world financial usage but in a decentralized format governed by code, example of DeFi include borrowing and lending, insurance, smart contracts etc etc

Fiat

Fiat is a term for any government-issued currencies, examples of fiat include the U.S dollar, GHS, or Japanese yen. In a broader sense, fiat is used to describe any currency controlled by a central authority. Bitcoin, in its decentralized design, serves as a counterpoint to traditional fiat currencies.

Stablecoin

A stablecoin is any cryptocurrency or blockchain-based token whose value is pegged to another source of value – typically a fiat currency. For instance, one dollar-pegged stablecoin is equivalent to $1. Stablecoins are commonly used to facilitate cryptocurrency trading and cross-border finance. some popular examples of stablecoins include USDT, BUSD, USDC etc

Wallet

A crypto wallet is similar in function to a physical wallet: it’s a place to store coins/token. There are various types of wallets and not all crypto wallets are made equal. We have Hot and cold wallets with their varying degrees of pros and cons

Exchange

A website that enables you to exchange cryptocurrency for fiat currencies like dollars or euros, exchange fiat currency for cryptocurrency, or trade one cryptocurrency for another

Market cap

This is the total value of a cryptocurrency which is calculated by multiplying the number of coins in circulation by the current market price of a single coin. This number can run into hundreds of billions or trillions of dollars.

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What Is an Airdrop?

An “airdrop” refers to a method of distributing cryptocurrency to the public. This is usually done for marketing purposes to incentivize the holding of other tokens or induce them to become a participant in the blockchain network

ATH – All-Time High

The highest point (in price, in market capitalization) that a cryptocurrency has seen since its inception or listing, Eg, the current ATH of Bitcoin is $69,045

All-Time-Low (ATL)

The lowest point (in price, in market capitalization) that a cryptocurrency has been in history or inception

Memecoin

Memes are all fun and jokes until they turn into a cryptocurrency. Memecoins have no real-world utility and have value only because they are considered funny by many who buy them for this reason. Their value is only derived from hype and community buzz with no real-world utility, The best-known examples are Dogecoin and Shiba Inu

Bull Market/ Bull run

An extended period during which the price of a cryptocurrency is rising and constantly in the greens

Bear Market

An extended period during which the price of a cryptocurrency is falling and constantly seeing red

Decentralization

In blockchain technology, decentralization refers to the transfer of control and decision-making from a centralized entity (individual, organization, or group thereof) to a distributed network.

HODL

Is a term derived from a misspelling of “hold,” in the context of buying and holding Bitcoin and other cryptocurrencies? It is also commonly come to stand for “hold on for dear life” among crypto investors to stay strong and not be emotionally swerved within the market is going down or correcting.

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CONCLUSION

This list is by no means an all-inclusive one as we will constantly keep updating this page with more terms and lingua, so be sure to constantly keep up with us

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