As things are starting to expand in the crypto world, I think we all need to understand better some terminology used in cryptocurrency & blockchain. I've made this series blogs where I explain in short different crypto words. If you would like you can take a look also at Part 1 and Part 2. Here is the list with some new words:
1. PAPER WALLET = a peace of paper where some people prefer to keep their secret phrases, it's an offline method and considered more secure then keeping them in your computer or online;
2. WHALE = it describes a trader who can influenced the market based on it's trade, because he is trading big amounts and cad manipulate the market - he can make waves in the ocean;
3. AIRDROP = way of distributing tokens, usually these token can be obtained for free or for a small task (eg. Uniswap offered a airdrop of 500 $UNI for each user that did an exchange on their platform, it's a DEX - Decentralized Exchanged);
4. CANDLESTICK CHART = graphic that represents the fluctuation of a crypto asset; usually green (when price goes up) and read (when price goes down);
5. CIRCULATION SUPPLY = the amount of total coins that exists on the market (tradeable coins);
6. DYOR = do your own research - to understand better a project or in order to invest into a project, it would be beneficial to do a research, also it is better to verify every information twice or even more times;
7. SHITCOIN = crypto coin that is badly rated, someone can use this word in a context where the specific crypto asset is not an innovation, poor development and communication or other cryptos are better;
8. DIP = it's a rapid decrease in value of a crypto asset, but with probability that it will recover very fast to the initial price or even higher;
9. ARBITRAGE = it can take place when the price of the same currency asset is different on exchange A and exchange B; users will try to buy on the exchange with lower price and sell on the other exchange with higher price;
10. BITCOIN PIZZA = this is know as being the first purchase using cryptocurrency, when someone bought a pizza with 10,000 Bitcoins, just imagine the price now;
11. CONSENSUS = agreement based on majority, at least 51%, for example a transaction it's considered successful when the majority confirms it;
12. JOMO = Joy of Missing Out - when the price drops and a person didn't take a certain position, so he did not lose money; it happens when market goes down;
13. LURKER = person who makes part of a chat for example, but do not participate in it; he is there just to make an overview of the market sentiment;
14. MAXIMUM SUPPLY = total number of coins that can exists for a specific crypto asset (eg. Bitcoin has a total supply of 21,000,000 coins); having set a max supply, it is not possible for the blockchain network to create new coins;
15. PHISHING = when someone (with bad intentions) tries to get someone's else credentials or secret phrase in order to stole money; this can be done by creating a clone of a website and the user may not know that he's not on the official website and he introduce different personal information so in this way the person with bad intentions can have access to them;
Hope you liked these words and you have learn something new. You can also take a look at Part 1 and Part 2 where you can find other explained words.
Let me know in the comments what words were new to you, if any.
Have a nice day,
CryptoCata
