19 COMMON WORDS YOU HEAR CRYPTOCURRENCY INVESTORS USE DAILY

19 COMMON WORDS YOU HEAR CRYPTOCURRENCY INVESTORS USE DAILY 

19 common words you hear cryptocurrency investors use daily and their definition
19 common words you hear cryptocurrency investors use daily and their meaning

 

Have you been hearing some terms in the crypto space but you still find it difficult to get their meaning??

Or do you get confused on some popular crypto terms that are missing in your dictionary?

Worry no more as we will be explaining popular words that you hear in the crypto space.

INTRODUCTION TO 19 COMMON WORDS YOU HEAR CRYPTOCURRENCY INVESTORS USE DAILY

This article will expose you to the top 19 common words you hear cryptocurrency investors use daily and explanation on their meanings.

19 common words you hear cryptocurrency investors use daily.

All explained in a very short way.

NB: I tried to explain them in plain English for easy understanding.

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1. WALLET – This is an online wallet(you can call it purse) where you store your coins. Example is trust wallet.

It is just like your normal wallet that you put in your back pocket. But this is an electronic wallet or digital wallet. Just like cryptocurrency is a digital money, this wallet is used to store cryptocurrency.

There are a lot of cryptocurrency wallets out there. Some popular and trusted ones are Trust Wallet, Meta mask, Tron wallet, Block chain wallet, Safepal wallet, Coinbase, Luno wallet and so on.

2. EXCHANGE – This is an online platform where you can buy, trade and sell coins. Example is Binance.

It is an online market. Just like your physical market where you buy and sell, this is same case with exchange. It is where you can trade your coins. You can buy or sell.

Popular exchanges are Binance, poocoin and so on.

 

It is usually not adviceable to store your coins in exchanges, you can trade their and store your coin in other wallets.

Examples give in number 1 above.

3. ADDRESS – are numbers and alphabet which you can use to receive or send tokens.( It works like your account number).

Just like your physical address which is used to locate you. Same is applicable to wallet address.

Your wallet address serves the same purpose as your bank account number. Just as your bank account number is used to send money to your account, so also is the wallet address used to send money to your crypto wallet.

4. ALTCOIN – This is any coin that is not Bitcoin. Example is Etherum, XRP etc.

The full meaning is alternative coin. Coins that can also be traded, stored in the crypto space but they are not Bitcoin.

5. TOKEN – it is a Cryptocurrency that is functioning under the supervision of a coin’s blockchain.

It is a cryptocurrency that is dependent on a parent coin. E.g Muskswap token, web3 token and so on.

6. STABLE COIN – a coin that is tied to the value of something like the dollar which makes it’s price not to fluctuate.

The coin tends to move together with the value of the US dollar which is the popular exchange currency in the crypto space.

An example is the Tether USDT.

7. GAS – a fee you pay for transaction or execution of smart contracts, commonly used in Etherum and Binance Smart Chain.

It acts like an interest. For example, the charges bank take when ever you want to make transfer or buy airtime from your bank account.

This is in same case with the Gas fee in cryptocurrency.

It is the transaction fee.

8. REKT – simply means wrecked. When you lose all your money or most of your money while trading.

It is a state of extreme lost which can lead to loss of hope.

 

For example, you decided to trade with $100 and you lost all the $100 without any profit. That is REKT.

Also read; Meaning and how to write a BACKGROUNDER

9. MOON – when the price of a coin has a positive movement.

 

You might be hearing or reading contents saying that a coin is moving or will move to the moon.

It means that the coin will have a positive motive.

 

The positive movement is increase in value. This is usually calculated in percentage of the current price.

 

10. HODL – drunken spelling of HOLD meaning to buy a coin and hold it to make profit.

In full it means to Hold Long. To buy a coin at a cheap price and leave it in your wallet, once the price goes up (to the moon) you can now sell it at a higher price and take your profit.

11. P2P – Peer to Peer enables transaction between two entities without a middleman.

It is simply a method of selling your coin or token to someone who needs it and you are paid.

12. FOMO – Fear Of Missing Out is when you are worried if you don’t buy a coin when others are, you may regret later.

This happens especially when you hear that a particular coin will do massively and you are worried to buy the coin.

13. BULLISH – when a coin is moving in a positive direction. Just like moon.

As explained, it is just like moving to the moon.

A coin is bullish when the price is rising thereby bringing more profit to the holders and investors.

14. BEARISH – movement in a negative direction. Downward.

It’s simply the opposite of bullish.

15. TAKE PROFIT – selling or swapping, or converting or withdrawing part of or all of your money on a particular coin after making profit.

It is when you withdraw your profit made from trading or hodl on a particular coin or token.

16. STOP LOSS – applying a point where you want to take out your money to a stable coin after losing part of money.

A typical example is when you move your Bitcoin and swap it to USDT in order to avoid further loss or depreciation in value of the coin.

17. TARGET – deciding how much profit you want to make on a particular trade.

It is simply your aim and vision when making a trade.

Example when you make a trade with $200 and you are aspiring to make a 50% profit from the trade. Your target is said to be %50 which is $100

 

18. FARMING – staking your coins for a particular period of time while you receive rewards for doing so.

 

Staking is a good blogging idea if you are investing in a real coin.

Its just like locking your coins such that you can’t have access to them for a set period of time.

And when the time ends you get rewards.

 

19. AIRDROP – a campaign strategy on a new coin to gain popularity.

It is simply a strategic means of gaining more users and investors of a newly Launched coin by giving out the coin in a large quantity for free or very low price to the public.

WHY YOU SHOULD KNOW THESE TERMS

You are to know these terms because cryptocurrency is now a trend. A generally accepted means of making payments and transactions in the crypto space. Hence it is important you get used to these terms.

IN CONCLUSION;

These are the major crypto terms you hear in the Crypto currency space.

If you have other terms you wish to know their meaning or you need more clarification on a particular term listed above, kindly use the comment section below to drop your questions and we will gladly get back to you without delays.

Thanks for reading, do share with others too

19 COMMON WORDS YOU HEAR CRYPTOCURRENCY INVESTORS USE DAILY

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