So you may have heard about cryptocurrencies, and wanted to get into it, but then on every forum and subreddit came across terms like "FUD" and "sat" that you’ve never heard of before, well my dear friend fear no more, because this is Cryptocurrency terminology for dummies :
Altcoin – any cryptocurrency that isn’t Bitcoin
ATH – all time high (refers to the highest value a coin ever had)
Block- a single collention of transaction data on the blockchain
Blockchain- all of the blocks connected together
Bot – an ai that trades automatically
Bubble- when a market is extremely overvalued, is followed by a crash
Buy order- a request to buy a cryptocurrency on an exchange
Coin- a cryptocurrency
Crypto – short for cryptocurrency
Day trading- short term trading that takes place within a single day
Dead cat bounce – a momentary recovery in the falling price of a cryptocurrency followed by a further decline
Exchange- a site where you can buy and sell cryptocurrencies for other cryptocurrencies
Fiat currency- a currency established as money by government law or regualtion
FUD – Fear, Uncertainty and Doubt : a tactic of decreasing trust in a cryptocurrency in order to drive the value down so that it can be purchased cheaply or to drive people to the competition
Genesis block- the fist block of a blockchain
Hash- a mathematical formula calculated by miners that verifies blocks
Hodl – a misspelling of hold, simply means to not selling a cryptocurrency
ICO – initial coin offering, a kind of pre-sale of a new cryptocurrency
Mining- calculating hashes for blocks, this takes a lot of computing power and it is rewarded with the transaction fees paid and new coins generated
Moon – an extreme raise in the value of a cryptocurrency
P2P – peer to peer, transactions are made between individuals without any interference from a central authority like a bank
Private Key- essentially your signature/password, store it securely
Public Key- the address that transactions go to, you can share this publicly
Pump N’ Dump- a group buys a lot of a crypto for a low price, then aggressively advertises it in order to drove the price up and then sells for a profit, often frowned upon and most of the time just a scam to get people to buy worthless coins
Satoshi / sat- 0.00000001 Bitcoin
Shill – a person that promotes a coin with the intent to drive its price up because he already owns some
Shitcoin- a low quality coin
Stop-loss order – a specific price that you set at which you will automatically sell you coins in order to prevent further losses if the coin is crashing
Technical analasys / TA – methods used to predict future market direction, often not accurate
Trading wall- a high interest in either buying or selling a coin
Transaction fee- the miners choose which transactions to put into the blocks, this fee is used to incentivise them to put your transaction in
Wallet- a place where you store your cryptocurrencies, can be online, offline, software, hardware and even printed on paper, you should keep them very secure
Whale – a person with a large sum in cryptos
Hope this helped you get started and Happy trading!