If you are new to the cryptocurrency space you will probably encounter some new terms you never heard before. Here is a list of some useful terms:
FIAT (FIAT money) – A currency that is issued and backed up by a government – it’s just the money we all know and use daily such as the US dollar/Euro/Yen and so on.
FOMO – The initials of Fear Of Missing Out. Mostly used when the prices are surging and people are afraid to miss the train.
FUD – The initials of Fear, Uncertainty and Doubt. Mostly used when people spread negative news.
HODL – There are two versions that explain this term:
Just a simple typo of ‘hold’
The initials of Hold On for Dear Life
this term mostly used to convince people to not sell their coins no matter what. ‘Hodlers’ believe that cryptocurrencies are the future and still in it early stages so even if the prices are going down they believe the prices will be way up in the future. They base their arguments on the history of the cryptocurrencies prices that had several ‘crashes’ but always recovered and surged higher.
Moon/Going to the moon – Means the price is going high (as the moon is high in the sky obviously)
ATH – The initials of All Time High. The term refers to the highest price the coin ever was.
Whale – This term is used to describe people with large amount of money/cryptocurrency that can move the prices in the markets.
Altcoin – The abbreviation of alternative coin. This term usually mean any cryptocurrency which is not Bitcoin, although some can argue that Ethereum and Ripple and maybe some other cryptocurrencies are not altcoins because they were made for different purposes.
Blockchain – Blockchain very briefly is a public ledger that records and validates all transactions of the cryptocurrency. Blockchain also refers to the whole technology behind Bitcoin that made it possible to work.
Satoshi – Satoshi is the smallest unit a single bitcoin can be divided to. One satoshi equals to 0.00000001 of a bitcoin. It is named after the creator of Bitcoin – Satoshi Nakamoto.
Token – Okay here it’s a little bit complicated: we have different cryptocurrencies – and each cryptocurrency has its own blockchain, but you can also create a new cryptocurrency that uses an existing blockchain of other cryptocurrency, and once a new cryptocurrency is build on top of other existing blockchain it’s no longer called a cryptocurrency but a Token. Good Example is the Ethereum platform that made easy for people to create tokens that run on Ethereum’s blockchain which currently has over 400 tokens(!)
ICO – The initials of Initial Coin Offering – if you familiar with the stock market then ICO is the IPO version of a cryptocurrency. IPO is Initial Public Offering – it’s basically the first time a company starts to trade in the stock market and enables to the public to buy shares of the company. ICO is the same thing with cryptocurrency – it’s the first time the public can purchase coins of the new developed cryptocurrency.
Fork – This term means an software update of a cryptocurrency.
There are two types of forks: soft fork and hard fork.
Soft fork mostly mean an update in the cryptocurrency code that may affect miners but has no affect to the people holding the coins.
Hard fork usually occurs when there is no consensus on a major update that a cryptocurrency will go through – hard fork will cause to a split that will create two different cryptocurrencies with two different blockchains. This will affect both the miners and the holders of the coins. The miners will have to choose which blockchain to support and the holders of the original coin will receive the equivalent amount of the new coin – yes basically free money(!)
Smart Contract – One of the features in the Ethereum Blockchain. Smart contracts basically allow to create a digital contract that can move money under specified conditions without human interference.
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