Cryptocurrency - a short beginner's Dictionary

In order to understand the topic of cryptocurrency as quickly as possible, first of all it is worth getting acquainted with its key concepts.

A short dictionary will allow you to perceive any material you study much better, significantly reduce the number of questions that arise, help you feel more confident in communicating with other market participants and, in general, will be an excellent starting point in the world of cryptocurrency.

So, remember the following definitions or save this article:

Cryptocurrency is a digital currency without physical expression, the unit of which is a coin (from the English "coin" - coin). It is considered an alternative to fiat currencies.

Fiat currencies (fiat) are the national currencies of different countries, for example, the US dollar or the British pound sterling.

A cryptocurrency exchange is a place where buyers and sellers can trade cryptocurrency and make various transactions with it.

Bitcoin (Bitcoin) is the first cryptocurrency issued in 2009 by a man under the pseudonym Satoshi Nakamoto. He is still a confident market leader.

Altcoin - all digital assets that are alternatives to bitcoin.

A token is a digital asset related to a hotel project and issued on the basis of a cryptocurrency.

A stablecoin is a token with a fixed exchange rate, often linked to the dollar.

Shitcoin is a coin issued by scammers, which is also often called an unpromising cryptocurrency.

Ether, Ethereum (Ethereum) is the largest altcoin by capitalization, the second leader of the crypto market after bitcoin. It was released in 2015 by the developer Vitalik Buterin.

Blockchain is a distribution registry consisting of a chain of interconnected blocks, each of which contains transactions. The sequence of these blocks is not subject to change, otherwise all data in the network ceases to be valid.

A wallet is a tool for storing cryptocurrency and transactions with it.

A key is a set of characters that provides access to a crypto wallet. The public key provides access to the wallet data, and the private key provides access to the possibility of spending funds.

Transaction is an operation in the blockchain, for example, the transfer of funds between wallets.

Mining is the process of obtaining (mining) cryptocurrency, which consists in the fact that the user finds a block in the coin's blockchain and receives a reward for it in the same cryptocurrency.

Mining farm - several devices that have been combined with each other for a more efficient mining process.

Bulls are market participants who expect an increase in the price of a crypto asset. Therefore, the growing market is called bullish.

Bears are market participants expecting a decrease in the price of a crypto asset. A falling market is bearish.

Flat, sideways or sideways movement - the clamping of the cryptocurrency price in a certain range, its movement from the lower border of the sideways to the upper and back.

Volatility is the intensity of price fluctuations over a certain period of time. The greater the volatility, the more the coin became more expensive or cheaper for, for example, a week.

Dump is the deliberate sale of a large amount of cryptocurrency to collapse its rate.

A long or long position is the purchase of a crypto asset in anticipation of its growth.

Short or short position is the sale of a crypto asset in anticipation of its fall.

Pump is a deliberate significant overestimation of the price of a coin, which, as a rule, is carried out by several large market participants for subsequent sale to other players at a high price.

All Time High (ATH) is the maximum value of a cryptocurrency in the entire history of its existence.

Decentralized Application (Dapp) — decentralized applications and services with open source and autonomous operation, built on the blockchain.

Decentralized Finance (DeFi) is a decentralized service that includes exchanges and platforms for issuing loans and opening deposits secured by cryptocurrencies.

Fear of missing out (FOMO) - fear of lost profits, mainly characteristic of beginners.

Initial Coin Offering (ICO) or initial coin offering is a way to attract primary capital using cryptocurrency, when a project sells its tokens to investors and uses the proceeds for further development. ICO participants hold the purchased tokens hoping that their value will increase in the future.

Initial exchange offering (IEO) is an alternative to ICO with the main difference that the project organizes the initial sale of tokens using a specific exchange.

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