What is crypto? The crypto market is a potential but relatively complex market with new and diverse terms and knowledge. Understanding crypto terms will help you not be surprised when participating in this market, have an accurate judgment of the market, and avoid unnecessary risk of asset loss.
What is encryption?
It is a form of electronic currency that is issued and used as a means of transaction on a blockchain platform.
What is encryption terminology?
What is Crypto Investment? The term Crypto is understood as a cryptocurrency used through blockchain transaction data. This currency operates in electronic form and is often known by names such as coins, cryptocurrencies, cryptocurrencies, etc. It will exist, store and execute transactions through components, software and applications or dedicated digital wallets
Most commonly used encryption terms
Terms starting with the letter A
Address: This is the address where you receive money every time you want to transfer money. In the crypto field, this address will be basa64 encoded and attached with a checksum to avoid entering the wrong address. In simple terms, a wallet address is like a bank account.
Algorithm: refers to the algorithm used by cryptocurrency.
Altcoin: This is a common name for cryptocurrencies other than Bitcoin. Most of these coins are upgraded versions of Bitcoin.
Cryptographic terminology from the letter B
Bottom fishing: The act of investors buying at low prices, expecting that this is the lowest price they can buy at, and that they will make a large profit when prices rise again.
Bottom catching: Also known as a bull market. This crypto term refers to a market that is in an upward trend, with the price of coins/tokens increasing by more than the historical average. Bull markets are characterized by long-term increases, large amounts of buying and selling, and buying demand often exceeds selling demand.
Bear/bearish: This crypto term is also known as a bear market. In contrast to a bull market, the term is used to refer to a market that is in a downward trending phase. The market will now record a sudden and sustained drop in coin/token prices for a long time. In a bear market, there is more sell demand than buy demand from investors.
Blockchain: The term blockchain refers to a decentralized database that stores all information in blocks, which will be encrypted and expand over time. Simply put, it is an electronic ledger that stores all transaction information and ensures objectivity and transparency, the information cannot be changed in any way, and is distributed across many different computers connected in a public network.
Bitcoin: is the first complete cryptocurrency that uses blockchain technology, abbreviated as BTC to distinguish it from other coins when traded on exchanges.
Binary Option: This is a crypto term that refers to a game called "binary options" where traders predict the candle prices over a short period of time and if they win, they get money, if they win, they get money, and if they lose, they lose money.
Cryptography terminology in C
CEX – Centralized Exchange: CEX stands for Centralized Exchange. The floor will be managed by a third party (a company or organization that owns the floor). All assets that participants deposit into their accounts will be managed and strictly controlled by that company or organization. You need to understand this crypto term so as not to confuse it with the term DEX (decentralized exchange).
What is Circulating Supply: This is an index of cryptocurrency that will provide participants with the total number of coins circulating in the market.
Cryptographic terminology from the letter D
Dash: is a digital currency that uses decentralized cryptocurrency technology. Dash can be understood as the name of electronic cash or digital currency unit.
DEX – Decentralized Exchange: DEX stands for the phrase Decentralized Exchange, which is used to refer to decentralized exchanges. This means that when investors trade digital currencies on this exchange, they will not be subject to the management and administrative constraints of any individual or organization, but only buyers and sellers to trade and link.
On-chain data: These are metrics of an asset class on the blockchain. This data is often used to predict the current condition of that asset class and make future assessments based on it.
Terms based on the letter E
Ecosystem – Ecosystem of Blockchain: This is the ecosystem of the blockchain. An ecosystem will consist of many products that are connected and complement each other in the blockchain database.
Ethereum: is the name of the earliest blockchain technology network. It allows program fragments to be embedded into the blockchain foundation as a complete programming language.
Ether: This is the name of the cryptocurrency offered in the Ethereum technology network.
Fomo: It’s a psychological syndrome, fear of missing out. This term is also a crypto term that many people use when investing. Because it’s a common psychology among many investors, it exists in most types of trading from stocks, gold, forex to cryptocurrencies…
Full node: This is a network node that contains complete data of transactions, and each node can be turned on or off. When machines are connected to the network, they will need to synchronize or access data from well-informed network nodes. A network with many fully annotated ones will ensure that data is widely replicated and copied, helping to avoid data exchange or loss.
Cryptographic terminology based on the letter I
ICO: The abbreviation of Initial Coin Offering, which used to refer to the first issuance of coins, is a way to raise funds in the crypto market. The team that develops this coin will sell a certain number of coins to the market, which is similar to the company's first issuance of shares to the public.
IDO: This stands for Initial Decentralized Exchange Offering. Just like ICO, this is also a form of fundraising. However, now the place where funds will be raised will be decentralized platforms such as Poolz, Dao Maker,..
IEO: Short for Initial Exchange Offering, it is also a form of fundraising. But for IEO, it will be achieved through token sales on exchanges.
IFO: Short for Initial Farm Offering, it is a form of fundraising everywhere. This method will use LP tokens, which are tokens received when providing liquidity, as tickets to participate in IFO
IPO: This is a fairly common and often mentioned crypto term. It is an abbreviation of the phrase Initial Public Offering. This term is used to refer to companies that first issue shares and list them on the stock exchange to raise funds widely from market participants.
Encryption terms in L
Leverage: This term refers to investors borrowing money from the exchange to go long/short. This method will help those with less capital to make more money from the market if the price is in a favorable direction (long position, the price goes up, or short position, the price goes down). Conversely, it can also cause investors to lose money when the price is in an unfavorable direction (long position but the price goes down, or short position but the price goes up).
Liquidity: It is the liquidity on a decentralized exchange (DEX) or a centralized exchange (CEX). If the liquidity level is high, it means that there will not be much spread in the transaction because the market demand for transactions is high at this time. This is one of the most important crypto terms you need to know.
Liquidity Provider: These are the units that provide liquidity to decentralized exchanges, such as Uniswap, Sushiswap, etc. They will receive part or all of the transaction fees, as well as many other benefits such as project tokens.
Cryptographic terms in M
Money Flow – This crypto term simply means the flow of funds in the entire market. When money flows into an ecosystem, it helps the price of tokens in that system rise.
Market cap – Market capitalization: Market capitalization will be calculated using the following formula: Market cap = coin value x number of coins in circulation.
MMO – Make Money Online: This is a fairly common term today, especially during the recent pandemic. MMO stands for “Make Money Online”, which means making money online. You will use an internet-connected device to carry out income-generating work across multiple platforms.
Cryptographic terms with the letter V
Volatility – Market volatility: This is a crypto term that you need to pay special attention to in order to properly view and analyze the market. It is a measure of the volatility of the price of an asset such as stocks, forex, bitcoin, etc… The higher the index, the more susceptible the asset’s value is to sudden fluctuations in a short period of time.
Volume: This is a measure of the number of coins traded over a period of time. The index will be calculated by calculating the total amount of coins or tokens bought or sold during that period.
Conclusion
The above are some common crypto terms that investors need to know to participate in the cryptocurrency market. However, this is only a small part of the vast amount of knowledge about this market. So, if you want to learn more about this market, have more knowledge about crypto, and thus get more benefits in the process of participating.