A Beginner’s Guide To Cryptocurrency Terminologies

Table of Contents

Have you ever encountered messages from a crypto enthusiast and immediately thrown into a world of confusion, and it seems they’re speaking gibberish? You’re not alone.

Certain terms are peculiar in the crypto world, and I’m here to break them down for you. In this article, I will be giving a beginner’s guide to cryptocurrency terminologies; their meanings, and where they originated.

Cryptocurrency Terminologies

1. HODL:

This means “Hold On For Dear Life”. It is an investment strategy when people buy and hold on to crypto, instead of selling it. People do this in the hope of it increasing in value over time.

2. Gas:

Gas is a fee that developers have to pay to the Ethereum network to use the system. It is paid in ether, the native cryptocurrency of Ethereum.

3. Altcoin:

This refers to any crypto coin that is not Bitcoin. Altcoins can be anything from the second-most popular coin, Ethereum, to any of the thousands of coins with very minimal market value.

4. Decentralized Finance (DeFi):

These are financial activities conducted without the involvement of an intermediary, like a bank, government, or other financial institution.

5. Market Capitalization:

This refers to the total value of all the coins that have been mined. You can calculate a crypto’s market cap by multiplying the current number of coins by the current value of the coins.

6. Blockchain:

This is a digital record-keeping system and is the underlying technology behind cryptocurrencies. A blockchain is essentially a digital ledger of transactions that is duplicated and distributed across the entire network of computer systems on the blockchain.

7. Metaverse:

The metaverse is a virtual world that mimics the real world whereby users, businesses, and digital platforms can exist and interact.

8. Exchange:

An exchange is a platform where you can buy and sell cryptocurrencies. Crypto trading platforms can be peer-to-peer or OTC (over the counter).

9. Non-Fungible Tokens:

A Non-Fungible Token is a unique digital token that can serve as a certificate of authenticity and proof of your right to own and display the art on your digital wallet.

10. Mining:

This is the process by which new cryptocurrency coins are created. It is also the process where blocks are added to a blockchain, thereby verifying transactions.

11. Wallet:

A wallet is a new place to store your cryptocurrencies. These wallets can be online and software-based (also known as Hot Wallets) or offline (also known as Cold Wallets).

12. Stablecoins:

These are coins with a fixed value that are usually pegged to a leading fiat currency like the U.S. dollar, a basket of fiat currencies, or exchange-traded commodities. An example of a Stablecoin is Tether (USDT).

13. Shitcoin:

A shitcoin is a crypto coin with no obvious potential value or usage.

14. Memecoin:

These are coins created as a joke or meme.

15. Moon:

This is when the value of a cryptocurrency rises constantly.

Conclusion

There are still lots of other crypto terminologies and jargons out there. You might be new and unfamiliar with the crypto world but don’t hesitate to search for the meanings of terms you come across.