Crypto Terminology
Altcoins
All other cryptocurrencies except Bitcoin
Exchange
Businesses that allow customers to exchange cryptocurrencies for fiat or other cryptocurrencies. The main centralized exchanges is Binance, ByBit and OKX
Decentralized Exchange
A peer-to-peer exchange that allows users to trade cryptocurrency without the need for an intermediary. The main decentralized exchanges PancakeSwap, 1inch and DYDX
Stablecoin
A coin whose exchange rate is linked to and corresponds to any fiat currency, most often it is a dollar (USDT / BUSD / USDC).
Seed phrase
12 words in a certain order, which are the login and password of crypto wallets, no one can know it, except the owner of the wallet
Blockchain
The system of distributed registries. A sequence of blocks or units of digital information stored sequentially in a publicly accessible database. The basis for cryptocurrencies. With the help of blockchain, you can transfer money anywhere in the world without much effort.
Bull Market
The state of the market where prices are rising.
Bear Market
The state of the market where prices are falling.
Dump
A sudden sale of digital assets, leading to a sharp decline in prices.
Steaking
This is the process of storing funds to support all operations on the blockchain, the reward for staking is usually the coin itself, which was thrown into the staking.
It's like a bank deposit. You also “freeze” the cryptocurrency, and for its retention you are paid a percentage of your amount.
The easiest way to throw money into the betting is to go to the earn section on Binance, choose the best one from the options provided, buy the necessary crypto and throw it into the betting.
But there is one thing! The coin that you threw into the staking can drop a lot, which is why you can even go into the negative. Hedging comes to the rescue. We go to futures, short the same crypt in the same size as in staking. The risks are minimized.
Token
A digital unit designed with utility in mind, providing access and use of a larger crypto-economic system.
Tokenomics
The science of token economics, which consists of a set of rules governing the launch and delivery of cryptocurrencies.
BTC.D (Bitcoin dominance)
This is the % capitalization of bitcoin in relation to the entire crypto market
If the market capitalization of BTC is 200 million, and the market capitalization of the entire crypto market is 400 million, then the dominance of BTC is 50%.
If the dominance grows, it means that funds are transferred from altcoins to btc, and if it falls, then vice versa.
Arbitration
Cryptocurrency arbitrage is the purchase and sale of a digital coin in order to make a profit due to the difference in the exchange rate.
The main types of arbitration:
P2P
Stock Exchange
Inter - exchange
P2P
It will be very difficult for a beginner in the field of p2p, but I will try to explain it in simple language. The whole difficulty lies in the number of bank cards (not only your own, but also drop cards), as well as their warming up. Why do you need a lot of cards, and why warm them up at all? Yes, in order not to have your account blocked.
Exchange
We don't need any cards here, but we need to have any exchange with passport verification (I advise Binance or ByBit). All we need is to find 2 pairs, between which there will be some difference.
Inter-exchange
It is necessary to have at least 2 exchanges, and care when transferring via different networks. As for me, this is the easiest way of arbitration. Its essence is to buy a crypto on the exchange 1 and sell it more expensive on the exchange 2. The main thing is to have a big gap in the course and quickly transfer the crypt. The different rate appears due to the difference in glasses on different exchanges. The conceived rate differs on unpopular exchanges, where fewer people trade. An example of one of the transactions is the purchase of bitcoin for $ 22,400 on exchange 1, a quick transfer of our bitcoin and sale on exchange 2 for $ 22,700
Burning
Cryptocurrency tokens or coins are considered “burned” when they have been intentionally and permanently withdrawn from circulation and destroyed.
Interchangeability
In cryptocurrency, interchangeability is when a coin or token can be replaced by any other identical coin or token.
Slpippage
Slpippage (slippage) most often, slippage occurs in volatile markets, especially during the growth of instability. The more participants make transactions in 1 second, the more it should be. The greater the slippage, the more likely it is that you will have a transaction, but the commission will be higher. It is often used for pumps, for listing, or when the chart just flies up.
Gas
A term used on the Ethereum platform, but used by all blockchains, which refers to a unit of measurement of computational effort when conducting transactions or smart contracts or launching dApps on any network. This is the "fuel" of the network.
Annual Percentage Return (APY)
The rate of return received during the year from a specific investment. Accrued interest, which is calculated on a regular basis and applied to the amount.
Allocation
It means, first of all, an opportunity for an investor to buy tokens issued for circulation (on IEO, IDO or ICO) at minimum prices.
Liquidity
The amount of money inside the coin/project. The property of an asset is to be quickly sold close to the market price without significant change.
Liquidity pool
Liquidity pools are crypto assets that are stored to facilitate trading of trading pairs on decentralized exchanges. People who invest their coins in such pools earn from commissions paid by buyers and sellers on decentralized exchanges.
Memecoin
Memecoins are crypto tokens created as a joke or meme and claiming that they bring huge profits to the owners.
Shitcoin
A coin with no obvious potential value or use.
Miners
Blockchain participants taking part in the mining process. These can be professional miners or organizations with large-scale operations, as well as amateurs who install mining rigs at home or in the office.
Mining
The process by which blocks are added to the blockchain, verifying transactions. It is also the process by which new bitcoins or some altcoins are created.
FUD
Negative propaganda
FOMO
Fear of lost profits
HOLD
Slang, the meaning of which is the retention of an asset in your portfolio
Fork
The process in which one blockchain is divided into two
Proof of Stake and Proof of Work
An example of PoW is Bitcoin, and PoS is Ethereum
Market Cap
The market capitalization of a coin based on its price
Satoshi
The name of the creator of bitcoin, as well as one hundred millionth share of bts, which is the smallest part of bitcoin
Whale
A person or group of people with a huge amount of money that can influence the market
ROI (Return On Investment)
return on investment ratio
Hot and Cold Wallets
To begin with, let's find out their differences. Hot wallet is a wallet that is installed as an application\extension. An example of such wallets is MetaMask ,Phantom ,1inch and others. A cold wallet is a physical wallet in which you can also store cryptocurrency as in a hot one. The most popular cold wallet is Ledger. A cold wallet is more secure, because it does not come into contact with places where hackers can be.
Crypto Exchanges
These are services that exchange a huge amount of cryptocurrencies for fiat.
IDO
IDO is the sale of tokens to the public. Almost every project before listing on the exchange collects money for its development, and for this they conduct IDO.
What are the advantages of IDO:
Good x's
Almost always safe
What are the disadvantages:
IDOS are held on Launchpad. In order to get the opportunity to buy. It is necessary to stake a certain number of exchange tokens and pass KYC. On average, the minimum staking is from $ 2k and the chance to get an allocation is quite small and there will be a small amount for which you can buy.
The more money you have stuck. the higher the level and the greater the chance of getting an allocation and the greater it is.
There is a wallet level on the launchpads, it is determined by the number of coins stuck.
Most often something like this:
2k$(allocation chance 10% pool weight 1x)
4k$(allocation chance 25%, pool weight 2.5x)
8k$(allocation chance ~40%, pool weight 6x)
12k$(guaranteed allocation, pool weight 20x)
Etc. up to $ 35k, I no longer saw the difference between the 4th level and higher, in the weight of the pool.
The weight of the pool is what amount you can buy. I.e. if the allocation is $ 100 and you have 1 level. You can buy for $ 100, if you have a 2nd, then for $ 250, etc.
Last updated
