Cryptocurrency Terms Every Crypto Trader Should Know

Are you a newbie in the crypto world?

Have you been hearing of some terms but don't understand what they mean?

Not to worry because i've got you covered.

Here are some common concepts and technical terms you need to know before starting to trade cryptocurrencies:

ICO / ITO: An Initial Coin Offering (ICO) , is the collection of coins from an "initial public offering" , when the shares of a company are listed for the first time on the stock exchange.

It is usually carried out before the release of the chain of blocks of a currency and involves the public sale of a certain percentage of the initial collection of the currency in order to accumulate funds for development.

An alternative name to this is an Initial Token Offer (ITO) .

Market capitalization : The market capitalization of an altcoin is the total value of all its currencies. It is a common practice to use the currently available supply instead of the total supply, and this may exclude pre-mined ones not released.

Therefore, market capitalization is calculated by multiplying the price per currency by the number of currencies currently launched in the open market.

Pre-Mining: When a part or all of the initial supply of a coin is generated automatically by the developer at the public launch or before, rather than being generated over time through a form of mining, this is called "pre- mining ".

The pre-mined coin can be used for legitimate purposes, for example, for the development of crowdfunding through an ICO , or to deposit in a fund for the continuous development and promotion of a currency.

Insta-mination: Because some altcoins enthusiasts are very cautious with coins that have a pre-mination , automatically suspecting a scam, a number of developers have tried to find different ways to gain control over a large percentage of the supply of a coin from the beginning.

One way to do this is to have easy mining for a short period after launch, during which developers instantly seek to extract a large number of coins at very low cost.

The difficulty then increases rapidly after a short period of time.

Sometimes this period of short mining and high profitability can take place before a currency has even been announced to the public. This is called an "installation" .

Ninja throw : A ninja throw is basically a method to lead an installation . It involves announcing a currency suddenly without warning, with mining beginning immediately the currency is announced.

By the time other users have had the opportunity to prepare to start mining, the developer may have carried out their own installation .

Another ninja launch tactic is to create only one ad with very basic information, behavior and installa- tion , then add more information to attract interest after a significant amount of coins have been mined.

FUD: The acronym FUD means 'Fear, Uncertainty and Doubt' . In cryptography, it is often used to refer to negative talk about a currency that is inaccurate or misleading, usually published in forums and social media.

This kind of FUD can be the result of a genuine response of fear among the holders of a currency whose value is crashing or it can be deliberately spread to suppress the price, either by competing currencies or speculators seeking to take an offer in advance and announcing the currency later.

FOMO: This means the “Fear of Missing Out.” These term is generally used to describe fear-based factors that get in the way of trading.

PoD: Some coins have anonymous developers that do not reveal their real identity. There may be good reasons for this and it cannot prevent the approval of a currency.

For example, the creator of Bitcoin never revealed his identity to the real world but if the developers are anonymous, then there is a greater risk that they will disappear and this can be quite risky

Emissions program: The rate at which new currencies are generated and the pattern by which this changes over time. This can also be described as the "emission curve" .

Ponzi Scheme: An investment scam in which the main investors receive returns from the capital of subsequent investors, so that an increasing supply of new investors are needed for these returns to be paid.

If there is no reason for people to buy a coin as something other than an investment or for example if its creators never try to chase regular users, then this can be described as a Ponzi scheme .

Whales: A Whale of cryptocurrency is a great possessor, who has enough coins to move the market for a substantial amount when they buy or sell.

Bag holders: People who are left with a currency that has depreciated in value by a large amount, and who continue to hold hope (usually in vain) of being able to sell at higher profits later, this is described as "bag holder" "

Bots: Casual term used to refer to an automated trading software.

These are some of the most general terms you can usually find when it comes to cryptocurrencies and some of these terms are used here on Steemit without users knowing the meaning.

Hope i've been able to add to your knowledge.