Journey towards Financial Freedom in A Third World Country : The New Vocabularies (Part 2)

Journey towards Financial Freedom in A Third World Country : The New Vocabularies (Part 2)


If you missed the first part, you can find it here, here come the second part folks, enjoy!

Disclaimer: this is a dumb-it-down personal take of mine and if you still don't understand some of it, it might help to find some video on YouTube that can explain it much more clearly.



Overbought: a condition when a large number of a certain cryptocurrency has been bought with constantly increasing price in a certain period of time while expecting for a period of selling which will, in turn, cause the price to decrease

Oversold: a condition when a large number of a certain cryptocurrency has been sold with constantly decreasing price in a certain period of time while expecting a period of buying which will, in turn, cause the price to increase

P2P (Peer to Peer): a connection in which two or more computers are connected with each other without any intermediate third party

Private Key: a combination of numbers and letters used to access your wallet. NEVER share it with ANYONE as the one who has access to your private key has access to your money!

PoS (Proof of Stake): a mechanism in which a person can mine or verify transactions based on the number of coins that they hold. The more coins a miner owns, the more mining power they have.

PoW (Proof of Work): a mechanism that requires miners to use their computational power to solve complex mathematical puzzles to verify transactions and add them to the blockchain

Pump and Dump: the practice of buying a lot of certain cryptos to pump (raise) its price and make other people invest in it, then selling said crypto to get the profit. This is a very common practice amongst 'shitcoins' that you should avoid getting into.

Shilling: simply said, a pump and dump but with endorsement, and the pump is done silently.

Shitcoins: cryptocurrencies that have no future or are meant as a joke

Smart Contracts: a programmed contract that can execute and carry itself out automatically under certain conditions.

Short Selling: when traders sell something they don't have, with the hope of buying said items at a lower price than which they sold it at and earning the margin.

Technical Analysis: analysis using a trading tool to forecast the future of a cryptocurrency by looking at its historical data

Transaction Fee: fees given to miners involved in a successful approval of a transaction in a blockchain

Volatility: a measurement of how risky an investment in a certain security or market index. A highly volatile market usually have big swings in either direction (price going up and down by a lot in a short-medium period of time)

Wallet: a system that stores private keys that can exist in software, hardware, and other forms

Whale: very rich investors or traders with enough money to move the market by him/herself

White Paper: an explanation that provides information and roadmaps of a cryptocurrency to convince investors to invest in said cryptocurrency

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I think that covers most of the common terms that are usually used in cryptocurrency discussions and or articles. I hope that this might be helpful to some of you. If you have any inputs and insights that might help me write better, kindly do so in the comments. You can follow me to join in my project of writing and also support me by tipping and giving me a thumbs up, thank you!

 

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Sponked
Sponked

Passionate in learning, come join my journey!


Financial Freedom in a Third World Country
Financial Freedom in a Third World Country

This blog is created to share my journey towards reaching financial freedom while living in a third world country

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