Want to be comfortable in the world of cryptocurrency? Must-read this 60-page guide to industry terms! This guide covers everything from basic concepts like cryptocurrencies, blockchains, and stablecoins, to trading terms like long, short, and leverage, to technical terms like nodes, smart contracts, and DeFi. A solid understanding of these terms will provide you with a solid foundation for confident conversations and investment decisions in the cryptocurrency community.
60 must-read industry terms in the currency circle: let you know the encryption jargon well
Enter the currency circle, you You'll discover a world full of unique terms. Understanding the jargon is critical to understanding projects, participating in discussions, and making informed investment decisions. This article will explain 60 must-read industry terms in the cryptocurrency community to help you get started quickly and understand the crypto jargon.
Basic terminology:
Cryptocurrency: A digital or virtual currency protected by cryptography.
Blockchain: A distributed, immutable ledger used to record cryptocurrency transactions.
Bitcoin (BTC): The first and best-known cryptocurrency.
Ethereum (ETH): A blockchain platform that supports smart contracts and decentralized applications.
Stablecoin: A cryptocurrency whose value is pegged to a fiat currency (such as the US dollar), such as USDT.
Altcoin: Any cryptocurrency other than Bitcoin.
Exchange: A platform for buying and selling cryptocurrency. For example, OKX, Binance.
Address: A unique identifier used to receive and send cryptocurrency.
Private Key: The key used to access and control your cryptocurrency and must be kept safe.
Public Key: Paired with the private key, used to verify transactions.
Mining: The process of verifying transactions and adding them to the blockchain.
Hash Rate: A measure of the computing power of miners.
Consensus Mechanism: A mechanism used to verify transactions and maintain blockchain network security, such as PoW and PoS.
Proof of Work (PoW): A consensus mechanism that requires a lot of computing power, such as Bitcoin using PoW.
Proof of Stake (PoS): A consensus mechanism that selects validators based on currency holdings, such as Ethereum using PoS.
Market Capitalization: The total value of a cryptocurrency, equal to the circulating volume multiplied by the current price.
Trading Volume: The number of cryptocurrencies traded within a specific time period.
Token: A digital asset that represents a certain asset or utility, usually issued on the blockchain.
ICO (Initial Coin Offering): A way to raise funds by issuing tokens.
IEO (Initial Exchange Offering): A way to raise funds by issuing tokens through an exchange.
Trading Terms:
Long: Buying a cryptocurrency in anticipation of a price increase.
Short: Sell a cryptocurrency in anticipation of a price drop.
Leverage: Use borrowed funds to trade, magnifying returns and risks.
Margin: In leveraged trading, users need to deposit funds as collateral.
Liquidation: In leveraged trading, when the user's margin is insufficient to cover losses, their position will be forced to be liquidated.
Limit Order: An order to buy or sell at a specific price.
Market Order: An order to buy or sell immediately at the current market price.
Stop-Loss Order: An order to automatically sell when the price falls below a specific level.
Bid Price: The highest price the buyer is willing to pay.
Ask Price: The lowest price the seller is willing to accept.
Slippage: The difference between the actual transaction price and the expected price.
Trading Pair: A trading combination between two cryptocurrencies, such as BTC/USDT.
Technical terms:
Node: A computer that maintains a blockchain network.
Fork: The blockchain splits into two or more different chains.
Smart Contract: A computer program that automatically executes the terms of a contract.
Decentralized Application (DApp): An application that runs on the blockchain.
Decentralized Finance (DeFi): Financial applications and services based on blockchain.
Oracle: A bridge that brings real-world data into the blockchain.
Layer-2 expansion solution: a solution to improve blockchain transaction throughput.
Zero-Knowledge Proof: A method of proving something without revealing specific information.
DeFi terminology:
Liquidity Mining: Provide liquidity for decentralized exchanges sex and get rewarded.
Staking: Lock cryptocurrency to support the blockchain network and earn rewards.
Lending: Lending or borrowing cryptocurrency on a decentralized platform.
Yield Farming: Utilize various DeFi strategies to maximize returns.
NFT terminology:
NFT (Non-Fungible Token): A unique digital asset that represents ownership .
Metadata: Information describing the NFT, such as name, description, image, etc.
Other commonly used terms:
FOMO (Fear Of Missing Out): Impulsive investment due to fear of missing out.
FUD (Fear, Uncertainty, and Doubt): Spreading fear, uncertainty, and doubt to manipulate the market.
Whale: A large investor holding large amounts of cryptocurrency.
Airdrop: Free distribution of cryptocurrency or tokens.
Rug Pull: The project party ran away with the money.
White paper: A document describing the technology and vision of the project.
Market Making: Maintain market price stability through buying and selling.
ATH (All-Time High): The highest price in history.
ATL (All-Time Low): All-time low price.
HODL: Hold cryptocurrency for the long term.
Bull Market: A market trend in which prices rise.
Bear Market: A market trend in which prices fall.
Gas fee: The fee required to conduct transactions or execute smart contracts on the Ethereum network.
Metaverse: A shared, persistent virtual world in which users can interact and experience.
Summary:
Understanding these terms is just the beginning of learning in the currency circle. The cryptocurrency market is complex and full of risks. Please be sure to conduct sufficient research and carefully assess the risks before investing. I hope this article can help you better understand the “jargon” of the cryptocurrency community and make your crypto journey smoother.
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