This Story Behind 10 Commonly Used Crypto Terms For Beginners Will Haunt You Forever!
Cryptocurrency is a new and widely misunderstood financial domain. It’s already hard for many people to get their heads around the term “cryptocurrency” let alone the entire crypto ecosystem including tokens, wallets, and blockchain technology. In this article, we’ll break down 10 of the most commonly used terms in cryptocurrency:
A bear market is a condition of falling prices. A bearish market is a market that is expected to decline in value, or one in which investors expect prices to fall. It’s important to note the difference between these two terms: traders use bearish to describe their expectations for the current state of an asset and securities analysts use it when discussing long-term trends or predictions. For example, if you ask your friend if they think Bitcoin will be worth more than $10K by 2020 and they say yes, then they are bullish on bitcoin because they believe it will increase over time – but if they say no then they are bearish because they expect it not just now but in general
A bull market is a term used to describe an expected rising price of a security or asset. This can be seen in the form of stock prices, commodities, or cryptocurrency.
A bull market means that there is more demand than supply for a security, so the price is likely to go up.
A fiat currency is a currency that a government has declared to be legal tender, but it is not backed by a physical commodity. It is backed by the government’s full faith and credit. In other words, fiat money has value because the government declares it legal tender and makes it so through law.
HODL is a misspelling of the word “hold”, and it’s used to describe someone who holds onto their cryptocurrency rather than selling it. The term was coined by a user on the Bitcointalk forum back in 2013. HODLing can be a good strategy for short-term gains, but if you’re looking to invest in cryptocurrencies for the long-term, then HODLing isn’t going to help you much—it’s not an investment strategy we recommend.
In the stock market and other asset classes, long means that you expect an asset’s price to increase. In crypto, it can mean the same thing or it can mean something different. When someone says they are long on bitcoin (meaning they own bitcoin), what they really mean is that they believe in bitcoin’s utility as a currency or payment vehicle, but that doesn’t necessarily mean their investment will go up in value immediately. The term “long” is only used when referring to investing in crypto assets like bitcoin and ether (ETH) because there are no stablecoins yet; if there were stablecoins available on exchanges like Coinbase Pro, then we could talk about being short on USDT/USD instead of being short on ETH/USD since ETH/USD would be considered a proxy for USDT/USD with some volatility added due to exchange trading fees and other factors affecting market prices across platforms (more likely than not).
“FOMO” is a term that means fear of missing out. It describes the feeling you get when you see someone else buying something and the desire to buy it as soon as possible before it’s too late.
The term’s connotations are negative, but there are some positive aspects to FOMO as well: The fear of losing out on a good opportunity or deal can be motivating, especially if it pushes you to take action sooner rather than later.
Mooning is a term used to describe an increase in value of a coin or token. When mooning, the price of a particular coin or token will rise exponentially and often times, at an extremely high rate. This means that your ROI (Return on Investment) could be huge if you take advantage of it.
The term mooning has its origins from the early days of Bitcoin because its value increased dramatically over time until it reached $20K per Bitcoin.
A node is a computer connected to the blockchain network. The blockchain network is a peer-to-peer (or P2P) network, which means that there are no dedicated servers or central points of control. Instead, each node on the network stores and forwards information to other nodes, creating a decentralized system where no single point of failure exists.
Nodes store a copy of the blockchain for themselves and help verify transactions on it as well. Nodes can also serve other purposes such as providing data storage, processing power, etc., but their first responsibility is to maintain integrity of all transactions taking place in the system by verifying them against rules associated with particular blocks in case they receive them from another node which has already verified them itself before forwarding them further down stream towards its final destination – another user wallet address where he/she wants to send some amount from his/her own wallet address via this transaction request being made inside one block but has not yet been confirmed by anyone else yet; however once somebody else picks up this transaction request then all necessary steps will follow automatically until all required signatures have been collected i.e., six out of seven signatures required per block before confirming any new transaction successfully added into this particular block containing thousands upon thousands other transactions which were already confirmed beforehand too during last couple months since its creation date back in 2009 (Bitcoin).
A whale is someone who owns a lot of cryptocurrency and can influence the market. They are also known as retail investors, which means that they are regular people with small amounts of money who invest in cryptocurrencies. If you have ever seen the movie Wolf of Wall Street, you know that whales can cause some serious damage when they decide to sell all their coins at once.
10. Whales and retail investors
Whales are investors with a lot of money, and they have a tremendous influence on the price of a coin. Whales can buy and sell large amounts of coins, which can influence the price of a coin.
If you’re looking to invest in cryptocurrency, it’s important to understand how this works so you can protect yourself from losing money.
Common terms used in the crypto world
In this guide, you’ll learn some of the most common terms used in the crypto world and how to use them in your own posts. Here’s a brief overview of what they mean:
- Hashrate: The number of hashes per second that can be computed by your hardware.
- Mining Difficulty: The higher the difficulty, the more hashing power is required to mine Bitcoin with your rig. This means that you will have to spend more money on electricity bills and equipment upgrades if you want to earn profits from your mining activities.
We hope this list helps you to understand some of the common terms in the crypto world. If you want an even more comprehensive glossary of cryptocurrency terms, check out our ultimate glossary of crypto terms for beginners. We also have beginner-friendly guides for understanding the basics of Bitcoin and Ethereum, and we have a beginner’s guide to learning how to trade cryptocurrencies.