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| 1. | | parent_author | "" |
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| parent_permlink | hive-167922 |
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| author | macronald |
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| permlink | 11-common-language-in-cryptocurrency |
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| title | "11 Common Language in Cryptocurrency" |
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| body | "Every business comes with its unique terms. A better understanding of the terms makes it easier for you to manage the factors attributed to the business.
In cryptocurrency, it is necessary to understand the common terms attached to the trade.
This article is aimed at listing a few major terms in cryptocurrency, and what they mean.
**1. Finance**
Finance in crypto simply includes payments, privacy, wallets, exchanges, and other components known as stable coins, different storage systems, and merchants that use the cryptocurrency to operate their businesses.
**2. Tokens**
Tokens are simply virtual currencies. They are assets or utilities that can be traded residing in their blockchains. Tokens are usually created, distributed, sold, and circulated through the standard initial coin offering (ICO) process.
Tokens stand as a certain unit of value that can be used for investment, trading, and store of value. They exist in their blockchain which makes it possible to access these tokens.
**3. Pump**
Pump is a very common word in crypto currency. A pump happens when market participants work collectively to inflate the price of an asset so that it can be sold at a high value.
**4. Market capitalization**
The word capitalization is used when traders try to measure the relative size of a crypto currency . This is calculated by multiplying the current market price of a particular coin with the total number of coins in circulation.
Market cap. Serves as a yardstick for measuring and keeping stock of the market value of a currency.
Market capitalization helps to:
- Analyze the dominating crypto currency.
- Influence traders choice of purchase.
**5. Mining**
Mining is the activity of inventing new coins and adding them to the blockchain. Mining is a process in transactions between users which is verified and enlisted in the blockchain. The product of mining is invention and introduction of new coins into the already existing supply.
It is this activity that makes the peer–to–peer and decentralized system possible. In mining, as soon as a transaction is confirmed, they are added into blocks.
**6. Fork**
Fork is a crypto currency. A fork is said to have occured when a blockchain diverges into two potential paths forward. This usually happens when there is no consensus between parties. When there is no agreement between parties, a new Chain may emerge.
A fork can be short lived or permanent. Examples of fork are the Ethereum and Ethereum classic.
A fork can be accidental or intentional.
An accidental fork occurs when two miners find a block at nearly the same time. While intentional forks are forks that come as a result of new innovations. Simply put, they are forks that modify the rules of blockchain.
**7. Wallet**
A crypto currency wallet functions just like your normal pocket wallet. The difference is in the form. A crypto wallet is a device, software, program which stores the public/ or private keys for crypto transactions.
To narrow it down, a wallet is a software or an application that is used for saving or storing cryptocurrencies. Examples are; Trust wallet, Luno app, Roque app, etc.
**8. HODL**
HODL is a sland other than abbreviation. This slang originated way back on December 18, 2013. HODL means' Hold on for dear life'.
The wisdom behind the slogan is to encourage traders of Bitcoin to hold(that is to store it) believing that I will pump in the future. This common, but vital slang in the world of cryptocurrencies save you a lifetime of loss.
This word of encouragement because crypto is obviously a word of uncertainty where you can not predict the market nature. A coin may be of value today, and fall drastically tomorrow. This condition puts traders in the temptation of selling off even without profit. A world from a trader way back in December 2013 recommended that traders should cultivate the habit of holding back their coins till an obvious increase in value comes, then the trader can sell off.
**9. Altcoin**
Altcoins are currencies that came after the invention of Bitcoin. Every other currency aside Bitcoin is an altcoin.
**10. Fiat**
A fiat currency is simply anything in the form of money that is generally acceptable as a medium of exchange.
**11. Fomo**
This stands for 'fear of missing out'. This is a feeling very common with traders of cryptocurrencies currencies.
This often happens when there is a perceived rush in the purchase of a particular altcoin. Traders are likely to be in mixed feelings or in a hurry to buy so as not to lose out on the benefit attached to such coin.
I hope you’ve enjoyed this post.
Right, now it’s time for you to start putting these 11 cryptocurrency words. Learning these them will make it easier to understand how cryptocurrency works and you will have a significant advantage.
Posted Using [LeoFinance <sup>Beta</sup>](https://leofinance.io/@macronald/11-common-language-in-cryptocurrency)" |
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hiveblocks