Cryptocurrency Terminologies We should All be Familiar With

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Good day everyone and welcome to my blog. I realized that many crypto enthusiasts and traders alike don't use the common terms in the crypto space. Some don't even know about the existence of these terms nor their meaning so I decided to share the few I know. The crypto traders made these terms and they are kinda fun to use so it's only nice for us to use these terms and pass them on.

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Arbitrage

This when one buys cryptocurrencies from an exchange and sells it at another exchange which happens to offer a higher selling price. Various exchanges sells their currencies at different rates. For example steem on roqqu is $0.40 and $0.35 on Binance, so you buy from Binance and sell it in roqqu to make profit.

Rug Pull

This is a scandalous act that occurs when crypto developers elope with the liquidity pool of a token after investors have put their money into it. It mostly occurs on Decentralized exchanges where listing of token is made easy. The developers list their scam token and draw out investors through social media and when investors swap their coins for the token, they pull out and run. At times like this, the price of the scam token goes down to $0.

Burn

A crypto currency burn takes place when the person with control over the token gets rid of a portion of the tokens to reduce it's market supply. Let's say i was Justin Sun and I want to burn 1 million TRX, I would send them to a burner wallet ( a wallet where one cannot retrieve the funds inside). By doing this, I would successfully reduce the TRX in circulation and increase the price would occur as it would become scarce.

Altcoins

These are simply crypto currencies that aren't Bitcoin. Bitcoin is Soo great they had to place it in a classification of its own. Examples of altcoins include Ether (the most popular), trx, ripple, algorand, steem e.t.c

Stable coins

Stable coins are cryptocurrencies whose value is pegged on the value of a more stable currency. This means it's value depends on the value of another more stable currency. The most common example is the U.S dollar. So many stable currencies like HBD, BUSD, USDT, USDJ are pegged with the dollar hence making them far less volatile than other cryptocurrencies.

Moon

This is a term used by crypto traders and analysts when they notice a spike in the currencies price or when they predict a future uptrend. You often see things like steem to the moon or steem is mooning well they are try to say that steem price would soon go up or it is rising steadily.

Pump and Dump

As the name implies, a pump and dump happens when one acquires or is in possession of crypto assets then makes use of false and misleading information so as to increase the currencies value then sell it off at the increased price. In the crypto world today, there are alot of false and misleading information and this would make people have the fear of missing out (FOMO) and they would buy the said cryptocurrency making them lose in the long-run.

Bullish/Bearish

A bearish market signifies a decline in the price of a cryptocurrency. It is usually characterized by low confidence and selling off the currency hence causing it's price to fall.
A bullish market signifies a rise in the price of an asset. When they say the Market is bullish then the currency is showing signs of an uptrend and an increase in price. Here investors are optimistic about the currency and decide to stay buying and HODLing.

Cryptography

This is a secure way of communicating which allows only the sender and the receiving party to know the contents of the message. It involves a complex encryption of the message and sending to the receiver who would decrypt it without other third parties knowing it. Cryptocurrencies are based on Cryptography as it ensures the safety of our assets and ensures that only those with the private keys can decrypt the message. This is why key security is one of the most important parts of cryptocurrencies.

ATH

An acronym for All Time High. This shows the peak price of the cryptocurrency in question since it entered the market. For example steem peak price was about 4 years ago (2018) in January it was $8.57 for each one.

ATL

An acronym for All Time Low. This shows the lowest price ever achieved by the currency when it enters the market. Cryptocurrencies can be highly volatile and hence have very fluctuating prices. A currency can move from $0.01 to $1.8 in a matter of hours. Steem lowest price of all time is $0.06920 back in March 2017. So you can see from the ATH and ATL you can see the change in steem price in just 9 months it moved from an ATL to an ATH.

Block Explorer

From the name we can deduce that a block explorer is something used to explore/check all the transactions that has occurred on a Blockchain network. They are usually online websites. Every cryptocurrency has a block explorer. If I want to check the any transaction that was carried out on Bitcoin and other altcoins, I would go to their block explorer and one can check as far as the first Bitcoin block.

Block Rewards

It is not a new thing that cryptocurrencies are mined and not just fall from the sky. Mining cryptocurrencies isn't an easy task and there are people who do this for us so block rewards are the new tokens which are given to the miners for their work. Just like you are given block rewards for staking your cryptocurrencies, miners get theirs too. Miners are those people that create new cryptocurrencies by solving complex puzzles. They also validate transactions and record them in various ledgers.

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Not everyone on Steemit is all about trading at first but as time goes on they become more and more interested in the world of cryptocurrencies so it is necessary to teach them as time goes on. I hope I've been able to simply explain the terms in this post and I hope that I can teach the readers even if it's a little. We never stop learning until we meet our end. Everyday I spend on Steemit, I multiply my knowledge by ten fold. Thanks for reading.

Special thanks to @tron-fan-club & @steemcurator01

[10% to @tron-fan-club]