What is ATH (All-Time High)?
As this is being written, the all-time high price (ATH) of Bitcoin is $19,800. On the 26th of December 2017, the ATH was reached. An all-time low (ATL) is the inverse of an all-time high (ATH).
What are Alternative Coins (Altcoins)?
Thousands of more digital currencies use blockchain technology, similar to Bitcoin. There is creativity and individuality in every coin. Most altcoins go unseen because of their small market capitalization and low daily trading activity. Nonetheless, Ethereum and Ripple are just two of many alternative coins that trade well versus fiat currencies and have good liquidity. Many of the thousands of cryptocurrencies that existed at the time lost value or just vanished.
Who is a Bitcoin Maximalist?
This individual is completely and utterly committed to Bitcoin. In most cases, the maximalist will view the other cryptocurrencies with contempt and dismiss them as “shitcoins.”
What is a Block Reward?
In exchange for successfully confirming new transactions and recording them on the blockchain, miners are rewarded this payout.
What is Blockchain?
A blockchain can be considered a massive information file with a record of every single transaction that has ever been carried out. The technology known as blockchain, which functions as a form of ledger, lies at the core of the Bitcoin network.
What is a Centralized Crypto Exchange (CEX)?
You can swap cryptocurrencies for fiat currency on an internet platform called a crypto exchange. When an exchange is centralized, one entity controls all aspects. You can only trade cryptocurrencies with other cryptocurrencies on most exchanges. But bigger ones also let you trade cryptocurrencies for fiat money. Binance, Coinbase, Kraken, Bitstamp, and BitFinex are among the most well-known exchanges.
What is a DAO?
Decentralized autonomous organizations (DAOs) function autonomously and without a central authority; they are often shareholder-run and have their rules codified in an open and verifiable computer program. Notable DAO Hack: In 2016, an attacker exploited a security flaw to steal Ethereum. Theft of more than $70 million (or 3.6 million ETH) occurred in just a few hours. In reaction, the price of ETH fell by more than 30% in a single day.
What are dApps?
Decentralized Applications, or dApps, are programs that use blockchain technology but do not have a single administrator.
What is DEX?
Cryptocurrency Terms For Dummies: A decentralized exchange (DEX) is run independently of a single corporation. With DEX, there are fewer regulations and a higher degree of security, making it more difficult to penetrate. This is one advantage over CEX.
What is DeFi?
DeFi, short for “decentralized finance,” is an alternative to traditional banking that uses public blockchains to disperse financial power away from one entity.
What is a Digital Address?
An array of 27–34 characters, including letters and numerals. Every single address is unique. One digital address is this: The sentence sounds like 135sti2R9ZooiGrFFRJxYGeDvF5Uvjj7JK. One way to think about digital lessons is as cryptocurrency wallets. We need the recipient’s digital address to transfer their cryptocurrency or money.
What is a Digital Wallet?
One way to store digital currencies is in a digital wallet, an app on a mobile device, a desktop computer, or even a remote server. Wallets designed to hold Bitcoin are the most common. A digital wallet requires a public address and a private key to store cryptocurrency. Cold storage paper wallets or hardware wallets like Trezor and Ledger are the most secure digital wallets. Learn more about digital wallets here.
What is FIAT?
Valid currency issued by a nation or state. All the common coins we deal with daily (dollars, euros, Canadian dollars, etc.) are part of it.
What is FOMO?
A trader may have FOMO, short for “Fear Of Missing Out,” if they are worried about missing out on a profitable opportunity.
What is FUD?
Fear, uncertainty, and doubt are abbreviated as FUD. It perpetuates the negative narrative about cryptocurrency that is so pervasive in the mainstream media and designed to instil widespread fear. Bullshit regarding Bitcoin regulations, talk about crypto bans, and other related topics are all examples of FUD.
What is HODL?
The shorter form of the word “hold” in English is HODL. Bitcoin holders are believers who refuse to sell their coins no matter the price. When the cryptocurrency bubble burst in December 2013, HODL was first used.
What is Halving?
Miners’ earnings for adding new blocks to the blockchain and recording and confirming transactions are halved according to a preset process. The next halving of Bitcoin will occur in the summer of 2024, as is the case every four years.
What is ICO?
Cryptocurrency Terms For Dummies: To raise funds from the general public, crypto projects often conduct Initial Coin Offerings (ICOs). Investors in initial coin offerings (ICOs) do not have voting rights as equity holders but get tokens as a reward. Hundreds of initial coin offerings (ICOs) raised capital during the ICO Bubble, which began in October 2017 and ended in March 2018. Those initial coin offerings were almost exclusively of the ERC-20 variety, built on the Ethereum network.
Many think investing in initial coin offerings (ICOs) is a great gamble. Investors lost all of their money since many ICOs were crypto frauds. In 2018, there was a significant decline in initial coin offerings (ICOs). The first exchange to launch an IEO was Binance in January 2019.
What is IEO?
An Initial Exchange Offering (IEO) is a way for a cryptocurrency exchange to raise capital to create a new token. Among initial coin offerings (IEOs), GIFTO was the first in 2018, raising $30 million on Binance Exchange. After the number of initial coin offerings (ICOs) dropped precipitously in the first half of 2019, IEOs quickly gained traction. If initial coin offerings (ICOs) are risky, then initial equity offerings (IEOs) are, too.
What is KYC?
Regulations necessitate the “Know Your Customer” (KYC) process, which asks consumers to reveal their identity. This encompasses a variety of documents, such as a passport scan, an address proof, and a webcam verification.
What is Market Cap?
The current price of one cryptocurrency multiplied by the total number of coins in circulation (the market supply) is called market cap or capitalization. Market capitalization-wise, Bitcoin is the king of cryptocurrencies.
What is Mining? Who are the Miners?
To create new Bitcoins, one must engage in mining. “Miners” solve complex equations as they work in the mining industry. The miner whose solution is the fastest will be the one to add the transaction’s reward (fee) to the block. The massive distributed public database of existing transactions, known as the blockchain, is updated with a new block every ten minutes on average.
However, In the early days of the cryptocurrency, a personal computer (PC) could be used for Bitcoin mining. Nowadays, massive corporations like Bitmain, headquartered in China, split the mining workload. Mining is possible for any cryptocurrency employing the Proof-Of-Work (PoW) algorithm, not just Bitcoin.
What is Bitcoin to the Moon?
Cryptocurrency Terms For Dummies: Moon is a term used to describe an asset whose price grows significantly, as in “Bitcoin to the moon!”
What is Proof-of-Stake (PoS)?
This consensus algorithm lets Users choose the following block to validate based on their coin holdings. In exchange for locking their tokens, network security is ensured, and token holders are rewarded.
What is Proof-of-Work (PoW)?
The blockchain network’s initial consensus algorithm. New blocks can be added to the chain, and transactions can be confirmed using the algorithm. When confirming transactions, miners compete for rewards.
What is a Private Key? What is Seed?
You can’t access the money at any public or digital address without the corresponding private key. An illustration of a private key can be seen here: PpzdCJf1s4WdsK;6AkL0TJAuKcucHGqWVfUIa4g1haE0ilcm7eWUDo..fd. One common way to express a private key more clearly is using a seed phrase. However, Twelve or twenty-four words make up the seed.
What is Pump & Dump?
P&D refers to the practice of artificially increasing an asset’s price (“pump”) for a short time before quickly selling it off (“dump”) at a lower price, causing its value to fall back to its pre-pump level. It becomes easier to pump and dump coins when trade volume and liquidity are low. Usually, lower-cap cryptocurrencies are the ones that get P&D.
What is Satoshi?
The Bitcoin cent is one Satoshi. In Bitcoin, one Satoshi is equal to 0.00000001. Satoshi Nakamoto, the mysterious person behind Bitcoin, is the inspiration for its name. Even when Bitcoin’s price hits over USD 1,000,000, Satoshi Nakamoto intended for it to be used as ordinary cash, which is why there are eight decimal places.
What is a Shitcoin?
A “shitcoin” is an altcoin that is useless and has no real-world application. As a general term, Bitcoin maximalists tend to use “shitcoins” to characterize cryptocurrency in general.
What is the Total Market Cap?
Cryptocurrency Terms For Dummies: When all cryptocurrency markets are included, the result is the total market cap.
Who is a Bitcoin Whale?
An individual or organization with sufficient Bitcoin holdings to manipulate the price of Bitcoin through large-scale purchases or sales.
What is Whitepaper?
A whitepaper, sometimes abbreviated as “WP,” is an official paper outlining the details of a brand-new cryptocurrency initiative. In the conventional world of finance, it serves as the equivalent of a business plan. However, Chapters in the WP often cover the project’s technical features, the team, the problem they solved, and the token.