For cryptocurrency investors, it is essential to understand the terms associated with Bitcoin and cryptocurrencies. This article will provide you with all the most popular terms before starting to trade.
A
- Airdrop
An airdrop is a form of giving away free tokens to users.
Airdrops are often used in advertising strategies, introducing ICO projects to attract users to participate in the coin project community.
- ASIC (Application-Specific Integrated Circuit)
An integrated circuit manufactured specifically for a specific purpose. For example, Bitcoin ASIC miner.
- Altcoin
Altcoins are the common name for cryptocurrencies other than Bitcoin. Most previous altcoins are improved versions of Bitcoin.
Currently, the Altcoin Token Utility represents a project and is worth using in the project's ecosystem.
- AMA
Ask me anything - is an online event that answers community questions. AMA can be Livestream, or live answers on Facebook, Telegram ... answer questions.
- ATH (All time high)
The highest point in terms of price or capitalization that a coin, a stock ... achieved in history.
B
- Bottom Fishing
Bottom Fishing is an act of buying at low prices by investors. With the thought that it is the lowest price possible and expect the price to bounce back to make a big profit.
- Blockchain
Blockchain is a decentralized ledger (Distributed Ledger). It records the transaction data.
- Bull market
A bull market is a term that indicates the market is in a growing trend.
- Bear market
A bear market is a term for the market is in a downtrend.
C
- Circulating Supply
The total number of coins in circulation in the market.
- Child node
The node extends from another node - the parent node.
D
- Dapp
dApp (Decentralized Applications) is a decentralized or decentralized application.
- Derivatives
Derivatives are the names of financial instruments. It allows investors to trade multiple products based on price without owning the product.
- DYOR
DYOR stands for Do Your Research - it means to do your research.
E
- ERC-20
ERC-20 (Ethereum Request For Comment) is one of the technologies in the Ethereum Network. This is the most common standard used for Smart Contracts on the Ethereum Blockchain when issuing tokens.
In addition to ERC-20, there are other token standards on the Ethereum network such as ERC-721, ERC223 ...
- ETF
Exchange-Traded Fund or ETF is a form of passive investment fund modeled on an index of stocks, bonds, commodities (gold, agricultural products), currency, or crypto ...
ETFs have many advantages over traditional stock exchanges.
F
- Fiat money
Fiat money, also known as fiat money, is a currency issued by the government. Fiat currency has the most weight today is the US Federal Reserve (FED) issued under the guarantee of the United States Federal Government.
- Fomo
FOMO - Fear of Missing Out is a syndrome of fear of missing out, fear of losing opportunities. This is very popular psychology of investors, present in almost all forms of transactions from securities, Forex, to cryptocurrencies ...
- Fud
FUD - Fear, Uncertainty, and Doubt is a state of anxiety, skepticism, and uncertainty about investors' markets. This state usually appears when bad news of the market appears, which will cause investors to sell-off.
H
- Hold coin
Hold coin is a term in the crypto market that refers to holding cryptocurrency.
Hold coin is a form of long-term investment, investors buy and store for a long time waiting for price increases.
- Halving
Halving is the event that halves block rewards. Every 4 years, Bitcoin goes through this important event. This is a feature that simulates the gold mining process, increasing the scarcity and difficulty in the mining process.
- Hard Cap
Is the maximum amount of capital that the project wants to raise through ICO, IEO ...
- Hard fork
As an update of the Blockchain system will conflict with the old version, this resulted from a Blockchain system being divided into two systems.
- HYIP
HYIP stands for "High Yield Investment Programs". These are super profitable investment programs. Nearly 100% of large projects entrusting large profits will scam.
I
- ICO
ICO (Initial Coin Offering): This means issuing money for the first time, this is a way of calling capital in the Crypto market.
- IPO
IPO (Initial Public Offering) is "Initial public offering".
The term is used to refer to a company that first mobilizes large capital from the public through initial public offering and listing on the stock exchange.
K
- KYC
KYC (Know your customer): means knowing your customers, is a regulation that forces companies operating on the Crypto market to know their customers.
This regulation is for governments to combat money laundering and illegal actions in the cryptocurrency market.
L
- Leaf node
The node has no child nodes.
M
- Minning, Minner
Mining is a mining activity and Miner is a participant in mining.
Maybe you are interested: What is coin mining? Guide to dig coins for newbies
- MMO
MMO is the abbreviation for "Make Money Online", also known as making money online.
This is the job you use a computer or phone (mostly computers) with an Internet connection to do the job with the ultimate purpose of making money.
- Mainnet
Is the official network - the official version of Blockchain after the developers test on the testnet successfully.
When the mainnet is released, it means that the coin has an independent Blockchain network, has its wallet platform ... However, the mainnet may be changed when new updates from the project team appear.
- Margin
Margin, also known as margin trading, is a tool of modern finance. Allows investors to use many times the existing capital to invest.
- Marketcap
Market cap is the market capitalization value = Coin price x Number of coins in circulation.
- MasterNodes
These servers perform various functions on the system. Masternodes are Blockchain wallets, running online at a fixed static IP address.
O
- OTC
OTC (Over the counter) is term insecurity used to refer to decentralized markets. That is trading outside traditional exchanges.
The OTC may be an individual broker or an authorized OTC trading company.
For example, such as Huobi's C2C platform, Binance OTC ... individual OTC brokers can provide you with BTC, USDT, or securities trading services - directly with VND via Banking.
P
- PoA
PoA (Proof of Authority): proof of operation - is an alternative to PoS and PoW.
The proof of operation decides to create capacity for one or more customers on a private key database.
- PoB
PoB (Proof of burn) is an alternative consensus algorithm that tries to solve the power consumption problem of POW.
Instead of using miners, miners need to burn or destroy tokens, allowing them to write blocks in proportion to the burned coins.
- PoD
PoD (Proof of Developer) is a mechanism that was redeveloped back in 2014. As a means for cryptocurrency and ICO projects to verify that they are actively managed by the developer (s).
PoD in crypto is often confused with Proof of Delivery in finance.
- PoS
PoS (Proof of Stake): proof of stake. A form of mining based on the number of coins holding. A 5% holder can mine 5% of the coin.
- PoW
PoW (Proof of Work): proof of processing, is a form of mining based on the capacity of the computer. Machines with more power will dig more.
- Pump & Dump coin
Pump & Dump is very popular in markets such as stocks, forex, cryptos, and even gold.
- Parent node
The node contains expansion nodes (child nodes).
Q
- QR code
QR Code (Quick Response code) is a kind of quick response barcode. It has a square format that is often used to encode website links.
R
- Root node
The highest node in the Blockchain network.
- Rekt
Rekt is a concept for someone's failure. Or show someone's downfall.
In trading, people use the word Rekt to indicate heavy losses.
- ROD
ROI (Return On Investment) is the return index. Put simply, "profit" - profit (expressed as a percentage) of the total investment.
S
- Satoshi
Satoshi Nakamoto is said to have created Bitcoin. Satoshi or sat is also the smallest currency unit of Bitcoin: 1 BTC = 100,000,000 sat.
- Shilling
In the Crypto market, the term refers to the act of pumping news about a project to enhance the value of certain coins.
- Sibling node
The node connects to the same big node - parent node.
- Smart contract
Smart Contract is a term that describes the ability to self-make terms and enforces agreements of computer systems using Blockchain technology.
- Soft fork
Are software changes compatible with the old interface? Usually does not require users to upgrade to the latest version for the current interface.
However, the upgrade will help your software overcome the limitations of the old version and greater compatibility with new applications.
- Stable Coin
The coin is attached to a fixed asset to stabilize the crypto market.
T
- Testnet
A test network - Blockchain version for developers to test new features without affecting the current protocol.
Usually, any coin has its testnet for testing new features.
V
- Volatility
Volatility is the volatility of a market. This is a measure of the price volatility of a financial asset traded such as securities, cryptocurrencies, gold, etc.
The higher the volatility index, the more likely the value of the asset is likely to change (increase/decrease) suddenly in a short time.
- Volume
The transaction volume of an asset in a certain time (hour, day, month ...).
Y
YTD
YTD (Year to date) refers to a period starting from the first day of the current year or the financial year until the current date.
➤ Learn more: The Most Popular Bitcoin Glossary of terms you must know before trading