Seven Crypto Words Every Novice Must Know

While you can always consult an internet dictionary for fundamental definitions and common usages, the purpose of this article is to help you learn new crypto words through a more entertaining and useful lens.

Bitcoin

Bitcoin is the first and most popular digital money. The digital currency was introduced in 2009 and operates on peer-to-peer technology. Bitcoin is considered decentralized, which implies that no authority or government owns or controls it. Bitcoin issuance and transaction management are the exclusive responsibility of all network participants. Bitcoin has a number of intriguing and distinctive characteristics, including decentralization, security, and transparency. All of these factors make Bitcoin more than a conventional payment mechanism.

Altcoin

This word is used to refer to all other cryptocurrencies than Bitcoin. Since Bitcoin was the first cryptocurrency, all other cryptocurrencies are known as “altcoins.” There are already more than 1,600 distinct altcoins on the market, and new ones are introduced daily.

Some individuals invest in them in order to diversify their bitcoin portfolio, while others purchase them because they like the technology they are based on. For instance, Ethereum is a cryptocurrency that leverages smart contracts (blockchain-based, self-executing contracts) and has become popular for hosting ICOs (initial coin offerings).

HODL

Hold is what’s misspelled as HODL meaning “holding on for dear life”. The word was invented in 2013 by a bitcoin investor called GameKyuubi, and it refers to the act of not selling your coins. It has gained popularity in the cryptocurrency world as a positive reminder that hanging onto your coins may be preferable to selling them at a loss, particularly during downturn markets.

Bearish

Bearish is used to indicate a market whose value is presently declining. A bear market is a period during which the value of an asset declines, followed by a rebound within the same period. A bearish market exists when the price of an asset has sustained downward momentum until it begins to rise again.

Bullish

A bullish market is one in which prices continue to rise from one period to the next. Because bulls leap forward with their horns up when they are agitated, the name “bull” is used.

Fiat

“Let it be done” is the literal translation of the Latin word fiat. It is used to characterize the current monetary systems that are supported by governments. You are likely acquainted with fiat currencies such as the U.S. dollar, the Euro, and the Yen.

Mining

Mining is the method through which cryptocurrencies are generated. After a currency has been published, anybody with the necessary equipment and technological know-how may mine it. Solving complicated mathematical riddles is required for mining, and miners are rewarded with fresh coins for each challenge they complete.

Bitcoin cryptocurrency Guide