By Adegboyega Adeleye
It is common knowledge that the cryptocurrency space is filled with a plethora of money making opportunities.
However, navigating the cryptocurrency and Web 3 space can be difficult so it is important to understand the lingo and jargons used in the field so as to trade seamlessly and get access to the information available.
This article explores twenty key terms and terminologies you need to know as a newbie in the crypto world.
1. Airdrop
An airdrop is a type of giveaway action by the founders of a cryptocurrency, which gives away some of their tokens or coins. It is an unsolicited distribution of a cryptocurrency token or coin, usually for free, to numerous wallet addresses. You can make money from the free tokens given away by new projects.
2. Address
A crypto coin address is the location where you keep your crypto coins and from where you receive these coins. You could compare it to your home address.
3. ATH
ATH stands for ‘All Time High.’ It is regarded as the highest price a cryptocurrency has ever achieved. or the highest the price has ever been for a given asset.
4. Bull market
A bull market describes the situation where market prices are generally trending upward over a given period and the public perception as regards it is positive.
5. Bear market
A bear market is where outlooks are negative as market prices seem to be on a decline. A market in which the trend is in a downward direction is called bear market. The sentiment about the market is then negative, and prices are predominantly falling.
6. Bag
A bag in the crypto world refers to the coins and tokens you hold as part of your portfolio. The term, ‘Bag’ is used to describe a significant portion of a particular cryptocurrency.
7. Blockchain
Blockchains are a method of storing data in a decentralized way. It is a distributed database that maintains a continuously growing list of ordered records, called blocks
8. Cryptography
Cryptography refers to the science of keeping information secure and safe, and is used in many areas in computing today.
9. Cryptocurrency
A cryptocurrency is a digital currency, which is an alternative form of payment created using encryption algorithms. It is a type of digital currency that is based on cryptography. This refers to Bitcoins and the other altcoins.
10. DAO
The DAO-Decentralized Autonomous Organization – is a community-driven organization that uses Blockchain technology to manage itself. This group is governed by smart contacts. By joining the DAO, you can earn tokens by participating in discussions and voting on ideas.
Some of the advantages of DAO include security and transparency, automatic execution, and lack of external controls for their operations–its function is regulated by computer algorithms.
11. dApps
Decentralized applications (DApps) programs that run on top of blockchain networks and use smart contracts to provide trustless tools and services for end users. It gives an opportunity for you to build your apps without needing a central authority. The cost of developing an app might pose a challenge but it presents a potential return on investment and it is a lucrative venture in Web3.
12. DeFi
DeFi (Decentralized Finance) platforms include Uniswap and Aave. It is important to understand the risk of this filed because of price fluctuations. With DeFi, you can lend your crypto currency to others and earn interests. You can also earn fees whenever someone makes a trade in DeFi by providing liquidity to exchanges.
13. DEX
DEX is a Decentralized Exchange. Decentralized exchanges are a type of cryptocurrency exchange that allows direct peer-to-peer cryptocurrency transactions to occur securely online without an intermediary. No identification is required on these exchanges.
14. FOMO
FOMO is an acronym for “Fear Of Missing Out.” This sort of fear often occurs when a crypto currency rises in value so quickly that people become afraid, they will miss huge success and profit, driving the price per coin even higher.
15. KYC
KYC is an initialism for “Know Your Customer.” It refers to the verification process customers must go through to verify their identity and link it to a cryptocurrency wallet. Crypto exchanges gain a better understanding of the potential customer’s activities and can determine whether they are legal in nature.
16. Metaverse
The metaverse refers to an alternative reality that exists in the digital realm. The Web3 Meta verse is profit-oriented and one of the ways you can make huge profit is to buy and sell virtual assets like lands, buildings, and goods.
This digital space allows users to work, play, socialize and do business, interacting with others as they do. The metaverse can be described as a combination of VR (virtual reality), AR (augmented reality) and 3D worlds.
17. NFT
NFT stands for ‘Non-fungible Token.’ This refers to anything that someone can create store and sell on the blockchain but is not fungible. Each NFT is unique and cannot be used interchangeably like most other cryptocurrencies. They are unique and non-exchangeable and they live on the blockchain.
It is important to note that an NFT is a token standard and can be built on various blockchains, while ETH for instance is the native token to Ethereum and cannot be used by other blockchains.
18. Privacy token
This is a class of cryptocurrencies that enable private and anonymous blockchain transactions by disguising their origin and destination. Some of the techniques used include hiding a user’s true wallet balance and address and combining multiple transactions together to circumvent chain analysis.
19. Personal key
A personal key refers to a series of letters and numbers kept secret by the user. It is specifically designed to sign a digital transfer using a public key. In the case of Bitcoin, this is a private key that must work with a public key.
20. Wallet
A cryptocurrency wallet is a device, physical medium, program or an online service which stores the public and/or private keys for cryptocurrency transactions. A cryptocurrency wallet also often offers the functionality of encrypting and/or signing information.
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