25 Must-Know Cryptocurrency Terms For Beginners

Quick Navigation

  • ATH (All-time high)
  • Alternative Coins (Altcoins)
  • Bitcoin Maximalist
  • Bitcoin to the moon
  • Block reward
  • Blockchain
  • CEX – Centralized Crypto Exchange
  • DAO
  • dApps
  • DEX
  • DeFi
  • Digital Address
  • Digital Wallet
  • FIAT
  • FOMO
  • FUD
  • HODL
  • Halving
  • ICO
  • IEO
  • KYC
  • Market Cap
  • Mining and Miners
  • Proof-of-stake (PoS)
  • Proof-of-work (PoW)
  • Private Key (Seed)
  • Pump & Dump
  • Satoshi
  • Shitcoin
  • Total Market Cap
  • Whale (Bitcoin Whale)
  • Whitepaper

Cryptocurrency Terms

  1. ATH (All-time high):
  • Highest price reached by an asset, with Bitcoin’s ATH at $19,800.
  • Opposite: ATL (All-time low).
  1. Alternative Coins (Altcoins):
  • Digital cryptocurrencies other than Bitcoin, each with unique features.
  • Examples: Ethereum, Ripple.
  1. Bitcoin Maximalist:
  • A person who strongly believes only in Bitcoin, dismissing other altcoins as unnecessary.
  1. Block Reward:
  • Compensation miners receive for validating transactions and recording them on the blockchain.
  1. Blockchain:
  • A vast information file listing all transactions ever made, serving as the heart of the Bitcoin network.
  1. CEX (Centralized Crypto Exchange):
  • Online trading platform operated by a specific entity, allowing crypto and FIAT trading.
  1. DAO (Decentralized Autonomous Organization):
  • An organization without a central government, often operated by shareholders with transparent rules.
  1. dApps (Decentralized Applications):
  • Applications built on blockchain technology without a central operational authority.
  1. DEX (Decentralized Exchange):
  • Exchange without a central authority, offering enhanced security over CEX.
  1. DeFi (Decentralized Finance):
    • A monetary system built on public blockchains without centralized institutions.
  2. Digital Address:
    • A unique sequence of letters and numbers representing cryptocurrency wallets.
  3. Digital Wallet:
    • An application for storing digital currencies, using public addresses and private keys.
  4. FIAT:
    • Any state-backed currency used in daily transactions (e.g., USD, Euro).
  5. FOMO (Fear Of Missing Out):
    • Fear of not entering a profitable trading position.
  6. FUD (Fear, Uncertainty, and Doubt):
    • Spread of negative news about crypto to create panic.
  7. HODL:
    • A term derived from “hold,” signifying a long-term belief in Bitcoin despite price fluctuations.
  8. Halving:
    • A process that halves rewards for miners every four years, affecting Bitcoin’s supply.
  9. ICO (Initial Coin Offering):
    • Fundraising method for crypto projects, offering tokens to investors.
  10. IEO (Initial Exchange Offering):
    • Fundraising conducted by a crypto exchange for creating a new token.
  11. KYC (Know Your Customer):
    • Identity verification process for users due to regulations.
  12. Market Cap:
    • Current price of a cryptocurrency multiplied by its total circulation, indicating its value.
  13. Mining and Miners:
    • Process of creating new cryptocurrencies, done by miners solving complex equations.
  14. Proof-of-Stake (PoS):
    • Consensus algorithm allowing users to validate blocks based on their coin holdings.
  15. Proof-of-Work (PoW):
    • Original consensus algorithm confirming transactions through competition among miners.
  16. Private Key (Seed):
    • Unique key or seed phrase required to access cryptocurrency funds.
  17. Pump & Dump:
    • Artificially inflating and then quickly selling an asset to profit, often in lower-cap cryptocurrencies.
  18. Satoshi:
    • Cent unit of Bitcoin, representing 0.00000001 BTC.
  19. Shitcoin:
    • Nickname for altcoins with no working product or value, often used by Bitcoin Maximalists.
  20. Total Market Cap:
    • Combined market capitalization of all cryptocurrencies.
  21. Bitcoin Whale:
    • Individual or entity owning a significant amount of Bitcoin, capable of influencing its price.
  22. Whitepaper:
    • Authoritative report informing readers about the specifications of a newly created crypto project.

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