Terms for Crypto Newbie Traders

Whether you are a novice or an experienced trader in the Crypto market, you can easily get confused when faced with the terminology used in this industry. The crypto market has a huge pool of terms that you will probably never use, but understanding the definition differences between antonymous pairs of words like “inflation” and “deflation” will help. That greatly influences the investment strategy.
Once you understand the difference of each term, you can confidently explore and conquer this lucrative market.
1. Cryptocurrency:
A common name for all cryptocurrencies (or virtual money, electronic money) – a form of digital asset designed as a highly secure medium of exchange, operating independently is not based on any third party management.

2. Fiat:

Fiat money, is an asset that has no intrinsic value (real value), is issued according to government regulations, is often widely circulated and used as an equivalent item to exchange goods. national and international (e.g. USD, EUR, VND, …)

3. Bitcoin (BTC): 

Is the first cryptocurrency invented in 2007 and is the most popular coin in the Crypto market today, valued at about $30,000 – $50,000 at the present time.

4. Altcoin:

It stands for “Alternative coin”, which is the common name of all cryptocurrencies other than Bitcoin. Up to now, there have been about 5400 altcoins invented and operated globally.

5. Stablecoin:

Is a coin that is attached to a certain fixed asset to stabilize the cryptocurrency market, supported by the assets it “anchored” such as gold, fiat money or cryptocurrencies. other chemical. Some popular stablecoins today are Tether (USDT), USD Coin (USDC), Dai (DAI), VND Coin (VNDC).

6. Token:

Is a cryptocurrency code that is issued based on a pre-existing platform, used as a currency. Unlike the concept of “coin” which refers to an individual asset class that operates individually and has its own storage wallet, tokens can be considered as operating fuel for a network (gas) or as a unit of exchange in applications ( CMT), stored on the coin’s wallet and regulated on transaction fees based on the native platform.

7. Transaction:

Transaction, only buying and selling activities between participants in the cryptocurrency market in particular, in the financial sector in general.

8. Transaction fee:

Transaction fee, applied at certain exchanges. This fee is determined by each exchange itself.

9. Exchange:

An exchange, where participants in the Crypto market are concentrated such as buyers, sellers, traded products (cryptocurrency) or other intermediaries to take place. exchange. There are more than 400 exchanges, in Vietnam, investors can easily trade cryptocurrencies through the VNDC Wallet Pro application.

10. Mining:

Mining, is the process by which miners (miners) use supercomputers (diggers) to mine cryptocurrencies.

11. KYC:

Is the identity verification required by the exchange for participants, in order to ensure the fairness and safety of the accounts, usually done by sending custom documents. (ID card, CCCD, Passport) and portrait photography. This is a common term, short for Know Your Customer. KYC is a regulation that forces financial institutions to know personal information about their customers. This regulation is a way for governments to combat money laundering or other crimes in money transfers.

12. Volume:

The total trading volume of an asset in a certain period of time (hours, days, months, …), including both selling and buying volumes, has an important meaning in reflecting strength of that asset class.

13. All-time High (ATH):

The time when an asset reaches its highest price ever.

14. Bull/bullish & Bear/bearish:

The up and down trend of the market. This is a way of naming market trends after the attacks of the animals. Bull (the bull) usually attacks (butts) upwards and Bear (the bear) usually attacks (scratches) downwards. Thus, when the market is trending up, we call it a bull/bullish market and a bear/bearish market in the opposite case.

15. Pump & Dump:

Only the effects of the market on prices. Pump is to push the price up, also known as “pump price”. Dump is to push the price down, usually sell off assets to withdraw money.

16. Github:

An open source management tool, helping to ensure transparency and open source software for the blockchain sector. This is a software source code management and sharing tool that can be used for free, so it is used by many blockchain application developers because of its transparency, publicity and ability to cooperate between programmers. Its very high pellets.

17. Governance:

This is also a new term commonly used in recent times. Since each cryptocurrency ecosystem has so many participants, it is difficult for consensus “shareholders” to choose certain directions for the community. Governance is a way of allowing the community to make joint decisions without creating conflict. This also means to govern, or to rule. In the ecosystem, cryptocurrencies are programmed with Governance feature to help holders based on that exercise their voting rights.
A cryptocurrency system requires not only a governance system, but also a decentralized governance system (Decentralized Governance), that is, it is not necessary to trust a person or an organization that the community can trust. Council can make decisions by voting. Encryption technology allows the community to vote and control that voting so that it is fair and transparent.

18. FUD:

The abbreviation for Fear – Uncertainty – Doubt means Fear – Uncertainty – Doubt. These are forms of psychological uncertainty when users make decisions to invest, buy, sell, or trade on cryptocurrency exchanges. FUDer means person with those characteristics. In order not to be considered a FUDer, investors should take the time to thoroughly research and make a solid and rational investment decision.

19. Gas:

Is the name of a unit of energy measurement used in Ethereum. Gas measures how much “action” an action or set of actions takes: for example, to do an action A it will take 30 gas, or to make action B simpler just need 15 gas. When making certain transactions, investors are also affected by Gas fees.

20. ICO:

An acronym for Initial Coin Offering, this is a form of initial capital raising, ie the development team can sell an initial amount of coins to the public like the initial issue of shares of the companies. Initial Public Offering (IPO).

21. Inflation:

Is inflation. Inflation increases when the quantity of money supplied is greater than the quantity of goods in the market, making the prices of goods more expensive. Inflation is the opposite of Deflation.

22. Deflation:

Is deflation – the opposite of what inflation means. Deflation means that when the quantity of money supply is less than the circulating demand of that currency causes its price to rise.

23. Dyor:

stands for (by your own research).

24. Fomo

Fear of missing out: the regretful feeling when something skyrockets without your presence.

25. Jomo:

Joy of missing out: in contrast to the popular Fomo feeling, Jomo is the feeling of joy because of being abandoned: the feeling of joy when you do not participate in the pumping phase when the price drops suddenly.

26. Ledger:

Ledger in accounting. In the field of cryptocurrency, every transaction of cryptocurrency is stored in a database like a ledger of accountants.

27. Hodl:

hold position, crypto slang word, means holding and not letting go. can be advice in volatile markets.

28. Hype:

Means exaggeration or exaggeration. In the field of digital currency trading, an unusually inflated currency is called a hype.

29. Liquidity:

The ability of the market to buy or sell assets combined with a relatively stable and consistent price level between transactions called liquidity

30. Market maker:

(mostly) strong institutional traders (see: whale) and good understanding of market dynamics. Wall guys are the most important for keeping the market in “range”.

31. Marketcap:

Total market value of a coin. This value is calculated as the most recent matching price multiplied by the total number of coins circulating in the market for a given coin. This value may fluctuate depending on the needs of the market between buyers and sellers from time to time.

32. Open source:

Open source code. Open source is often talked about in the software industry where programmers make their software source code publicly available for anyone to see and use.
Hopefully, when you understand more of these terms, you will have a deeper understanding of how the cryptocurrency market works, as well as the types of psychology investors often experience in the process of investing.

Have a great experience with this potential cryptocurrency market!

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