If you’re new to the world of cryptocurrency, you may have come across a variety of terms and jargon that can be confusing and intimidating. From “blockchain” and “mining” to “altcoins” and “smart contracts,” it can be overwhelming trying to make sense of it all. That’s where this article comes in. Therefore, more investors are inclined towards the use of platforms like Immediate Connect.
In an effort to demystify the cryptocurrency landscape, we’ve compiled a glossary of common terms you’re likely to encounter as you delve deeper into the world of digital currencies. So, let’s get started deciphering the cryptocurrency lingo.
A Guide to Common Cryptocurrency Terms- Points To Note
- Address
The crypto coins are identified under their unique address or the blockchain network. You might consider blockchain as the commonly used GPS device in vehicles and your crypto address as the targeted destination address. Without this, no coins get stored, and the blockchain cannot confirm or even verify their existence. Therefore, with the right address, you can never obtain a coin.
- Airdrop
It is the method of distribution where the tokens are sent across varied wallet addresses. Airdrops are mainly used as a marketing technique to stimulate further engagements and performances of the underlying company or platform and the respective token.
- Bagholder
Bagholder mainly describes a person holding onto their assets irrespective of the continued decline in their values. They might retain their position even while the asset’s value gets destroyed to zero, mainly out of the hope that their value will bounce back eventually.
- BTD
BTD is a term signifying an individual buying an asset at its lowest price. The acronym targets purchasing at the time of the dip. It means you are deriving the perks of the opportunities for locking into several cryptos at discounted rates. The primary idea behind this pricing will eventually get back with an increased value.
- Cryptojacking
Cryptojacking is a form of cybercrime where the possible hackers co-opt an unsuspecting computing potential of the victim to secretly mine cryptocurrencies on behalf of the hacker. It is also termed as ‘malicious crypto mining, where cryptojacking turned out to be a massive issue during the crypto boom of 2017 when Bitcoin and other crypto prices escalated.
- Altcoins
Altcoins are crypto coins other than Bitcoins. Do you have a proper understanding of Bitcoin? Here is a great introduction to Bitcoin and a refresher of your knowledge. Bitcoin was launched in 2011 when thousands of altcoins emerged. A few coins disrupted the markets and shaped the industry trends, and some coins are like hot garbage ridden with financial crimes.
- Flippening/Flappening
The flippening term was coined in 2017, describing an effective flip in the massive crypto marketplace. Distinctively, it is a theoretical event where the ETH or Ethereum overtook BTC or Bitcoin as the prominent crypto in terms of complete market capitalization, which is the entire number of tokens under circulation multiplied by the 1 token’s value.
- FOMO
FOMO, or the ‘fear of missing out,’ is the fear of every investor or trader where they might get scared about missing out on potentially rewarding opportunities.
FOMO can intensely impact the prices of cryptocurrencies, causing significant volatility in the crypto markets. It even leads the investors to incur their greatest fear of financial losses.
- FUD
FUD is a term in communications and marketing that implies ‘fear, uncertainty, and doubt.’ It is the psychological technique used for influencing individuals toward an adverse outlook on things such as products, brands, or markets, specifically through the spread of inappropriate information to incite fear.
- HODL
It is the abbreviation implying ‘hold on for dear life,’ which a term HODL is derived from the misspelling of hold that has stuck around in the intent of keeping. It implicates the strategies of buying and holding. The crypto trader purchasing a coin does not intend to sell it in the future of the holder or the coin.
Conclusion
Considering the earlier performance, there is no guarantee or prediction for future performances. The value of the crypto assets can increase or even decrease, potentially leading to further losses for every substantial amount of buying price.