This is Part 2 of this cryptocurrency & blockchain dictionary. You can read also Part 1. Today I will present you some new crypto words.
1. HODL = this is a commonly word used in the crypto space, it comes from "hold" and the story behind it is that a drunken user misspelled it like this. It means that you will not sell the crypto assets you have regardless of price volatility;
2. ALTCOIN = alternative coin, it describes any other cryptocurrencies then Bitcoin;
3. ICO = Initial Coin Offering - it is known as a token sale, in order to develop the blockchain network a company can sell some of the network tokens to get some fiat. There are also some scam stories out there because some of them want only to get the money, they promise big things but don't deliver anything. Also, it can be an opportunity for someone to buy crypto at a lower price, because the crypto price is very low;
4. FIAT = the currency we are using now (eg. USD, EUR etc.);
5. DIGITAL CURRENCY = cryptocurrency (eg. $BTC, $ETH, $EGLD etc.);
6. ATH = all-time high;
7. ATL = all-time low;
8. BEAR / BEARISH = it is believed that the cryptocurrency will decline in value, so basically the price will go down;
9. BULL / BULLISH = it is believed that the cryptocurrency will increase in value, so basically the price will go up;
10. FOMO = fear of missing out, you know the feeling when you see a cryptocurrency going up really fast and you want to buy it too? well, this is FOMO;
11. KYC = Know Your Customer - for example lots of exchanges need some additional information about you when you want to buy cryptocurrency such as: picture of ID Card / Driving Licence - this is a security measure for money laundering; (eg. Binance, Crypto.com)
12. MARKET CAP = Market Capitalization - the total value in the market, for example for Bitcoin you can calculate it by multiply the total number of Bitcoin in circulation and the Bitcoin price;
13. PUMP AND DUMP = when a cryptocurrency increased a lot and people start buying it and then when people make some profits they start to sell the crypto this will cause an increase of the price follow up by a decrease;
14. WHITE PAPER = official document where developers explain how their blockchain works and what problems it solves; it's worth reading these white papers in order to try to understand better the fundamentals behind a project you trust; sometimes it can be really technical;
15. SATOSHI = 1 Satoshi = 0.00000001 $BTC - it comes from Satoshi Nakamoto the creator of Bitcoin;
Your cryptocurrency vocabulary it's increasing right? You can also take a look at Part 1 where you can find other explained words.
Let me know in the comments what words were new to you, if any.
Hope you find something new.
Have a nice day,