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Important Cryptocurrency Lingo and Terms

Created By : Admin

       Important Cryptocurrency Terms or Concepts 

 

  • What is Eth Gas?: This is the fee used for transactions to get processed on the Ethereum network. The price of gas is dependent on miners. Miners can decide whether to accept or decline a transaction depending on how much they are compensated. Gas was set up as a means of compensation for the energy miners use to execute smart contracts. 

 

  • What is a Coin Fork?: Sometimes there are disagreements with the direction a coin is going or updates that need to occur for the next stage of the development of a coin. This is where a coin fork comes in. This is a fundamental change in the code of the coin that either makes one version obsolete or results in the co-existence of two different coins. Outcome no.1 can be observed in Ethereum Classic which became obsolete when the current version of Ethereum came to life. Outcome no.2 is observable with Bitcoin Cash which exists on its own as what many see as a rival to the original. Some systems have a voting system in place among community holders to decide the direction a coin will take.

  

  • What is Token Burning?: The process of token burning involves permanently erasing tokens from the available supply to increase value or decongestion networks. Teams plan this by design as a feature when developing roadmaps for their asset. BNB or Binance coin is a token that uses the feature regularly

 

  • What is a Node?: Nodes are the backbone of blockchain technology, they keep a full copy of all blockchain transactions and connect you to that currency’s network.

 

  • What is a Whale?: An individual that holds a large share of a certain currency. Transactions from whales can directly impact a currency’s value due to the sheer amount they are trading.

 

  • What is Vesting?: Tokens purchased by an investor that are held via a smart contract that releases these tokens on an agreed-upon schedule. This process holds both an investor and a team accountable. An investor cannot just dump all their tokens and the team cannot access all funds until all tokens are released. So they cannot just take the funds and run away with the investor’s money.

 

What is Annual Percentage Yield(APY)?: This is the percentage of interest that you yield every year for a particular cryptocurrency. FOR EX: BTC, LITECOIN, and ETH are all around 4 percent. 

 

  • What is Marketcap Dominance?: How much a particular market is dominated by a coin. Right now the market is dominated by Bitcoin and has been for the past several years. That means bitcoin holds an enormous share of the market cap. This is a trillion-dollar market and BTC holds more than 60 percent of its shares at this current moment.

 

  • What is ATH/ATL?: These are the terms for an all-time high and an all-time low. For the best coins, the difference is remarkable when you look at the current ETH. There is more than a 300000 percentage difference at this time compared to how it started off.

 

  • What is Network Congestion ?: When too many transactions occur at the same time, miners can take longer to verify the transaction, and transactions with higher gas fees are prioritized.

 

 

  • What is a Small Market Cap Coin: These are coins in the early stages of development with no mainstream adoption, and plenty of potential to grow. IOTA, EOS.

 

  • What is a Big Market Cap Coin?: These coins are projects that have already taken advantage of potential and have grown exponentially to take a sizable piece of the share of the market. Ex: BTC, ETH

 

  • What is Slippage?: These coins are projects that have already taken advantage of potential and have grown exponentially to take a sizable piece of the share of the market. Ex: BTC, ETH

 

Crypto Lingo

  • HODL: Hold onto your currency. Don't sell. 
  • FOMO: Fear Of Missing Out.
  • FUD: Fear, Uncertainty, Doubt. 
  • SHIT COIN: Bad project, or crypto with no potential for growth.
  • PUMP AND DUMP: Project used for short term gain. No benefits long term.
  • REKT: Losing a massive amount of value.
  • LAMBO: Massive gains which can lead to someone getting a nice car.
  • MOON: The project will grow exponentially.