Popular Cryptocurrency Terms Every Crypto Trader Should Know About
Cryptocurrency isn’t just a novel investment option, and in many ways represents a different world altogether compared to traditional stocks and bonds. Between unfamiliar acronyms, emerging technologies, and keeping up with memes and tweets, just learning the basics takes time, even for seasoned traditional investors.
As with any investment, it’s important to understand exactly what you’re investing in before you start. That’s especially true when it comes to a speculative — and still evolving — asset like crypto. From technical terms and acronyms to specific slang, it seems as if trading and investing in crypto has its own language. While on the one hand a novice trader might get overwhelmed with all these crypto terms, on the other hand getting familiar with them is essential to keep up with the market situation and hence trade successfully.
ADVISE. You should only ever put into crypto what you’re willing to lose, and experts recommend dedicating no more than 5% of your portfolio to these digital assets.
But another item you should add to your checklist is at least a beginner’s understanding of what you’re getting into, including how crypto differs from other investment strategies, and the different factors that can affect a cryptocurrency’s market value.
Are you ready to learn what some of the most common crypto terms and abbreviations mean? If your answer is yes, then let’s dive right into it, By Safu Academy
Fear Of Missing Out (FOMO)
Since crypto is still a very volatile market, every trader will sooner or later be looking at insane price increases of a particular project and then jumping in to buy that token in fear of missing out on the profit opportunity thinking that they are missing out on something. If this ever happened to you (and it probably has), you’ve experienced FOMO, which is basically a short form for ‘fear of missing out’. Since crypto trading is still vastly influenced by emotions or sentiment, FOMO still has a large effect on prices. To conquer the market’s fluctuations it’s essential to have a feel of the sentiment, which can be done by going over a huge number of Twitter posts and news from the crypto sphere, but this can be an extremely inefficient and time-consuming process.
The term ‘hodl’ derives from a misspelling of ‘hold’ (while others claim it’s an acronym for “Hold on for Dear Life”). Hodlers approach trading with a long-term strategy, as they hold their coins and don’t get distracted with the short-term volatility in crypto. Their strategy involves simply buying an asset and letting it increase in value over time, not getting distracted (selling) even if the market value goes down substantially. While it seems that being a hodler is easy because you don’t have to track crypto markets on a daily basis, it requires extensive research of the project you want to invest in. The analysis must be thorough and must confirm your hypothesis about the strong fundamentals of a project in order to make sure it will stand the test of time.
Do Your Own Research (DYOR)
Another widely spread cryptocurrency term is DYOR, which stands for ‘Do Your Own Research’. It is used to encourage crypto investors to complete due diligence into the project before putting their life savings into it, so that they are completely aware of why they are buying a specific cryptocurrency or supporting that project. DYOR is commonly used all around the internet, but doing your own research is especially important in crypto, because of the lack of regulation and elimination of third party intermediaries. That isn’t necessarily a bad thing (we could argue that it’s a good thing), but it requires you to exercise a higher degree of caution and diligence. To make sure that everyone, who is new to the crypto world has a step-by-step guide with numerous examples and simple explanations of everything from the essentials on what blockchains are and how crypto works to the basics of charting and even more advanced indicators. Our Academy program offers a complete overview of trading and cryptocurrencies in general and is available for free.
All-time high (ATH)
ATH is an acronym for all-time high. The full form is probably self-explanatory enough. It is the highest recorded price of a particular digital asset. For example, the ATH of Bitcoin (in dollar terms) still stands at $69,000, the price at which it peaked at the start of November last year. When the price breaches the previous all-time high, everyone who ever bought the coin is in profit (at least temporarily). Interestingly, if the price manages to break above the previous ATH with a strong bullish move there isn't necessarily any obvious resistance levels ahead thus the price may enter what we call “price discovery”. This refers to the process of finding out the price of a given digital asset, during which it may peak several times in a row. However, it doesn’t mean that the price will just keep going up forever, as traders will eventually look to take profits at some point.
An ICO, or Initial Coin Offering, is how blockchain projects raise money to create a new coin, app, or service. They are a crypto industry equivalent of Initial Public Offerings (IPOs) of stocks. Interested investors can buy into an ICO to receive a new cryptocurrency token issued by the project. These tokens usually represent a stake in the project, but sometimes they even have an added utility related to their product or service. Since there is very little regulation of ICOs, you have to be extremely cautious when participating (or rather before participating). Make sure you thoroughly read the project’s whitepaper and be certain that the people putting up the ICO are real and can be held accountable. To put it simply, initial coin offerings represent an investing opportunity that can either generate you extraordinary profits or leave you holding a worthless bag.
This SAFU NETWORK special feature will work like Launchpad where users will use their SAFU-BNB LP tokens to buy new tokens offered for sale by other start-up projects in their private and public Sale. And After-sale finish – Project gets BNB tokens, the buyer gets project tokens Bought, and subsequently, 100% of the SAFU fee used in this sale is burned.
Efficient and powerful payment system and a payment solution with cutting edge features developed by safu network to make your life easier by Accepting safu token payments from any merchants and wholesalers. Simply scan and pay.
Dice games are games that use or incorporate one or more dice as their sole or central component, usually as a random device. For example, in backgammon, a dice game, the starting position is predetermined and equal, and all subsequent moves are fully known to both players. What constitutes the imperfection of its information is the unpredictability of future dice rolls. Dice games are therefore games of future imperfect information because whatever strategic
So, with SafuWallet App you will play a game of chance and Earning game where you can bet that price of Safu or other cryptos will rise or drop, and when it happens you earn money depending on how much your bet is the amount was.
An altcoin is any coin that’s not Bitcoin. Altcoins can be anything from the second-most popular coin, Ethereum, to any of the thousands of coins with very minimal market value. Experts say you should largely stick to the bigger, more mainstream cryptocurrencies as an investment.
The first and most valuable cryptocurrency launched on Jan. 3, 2009. While its value has climbed steadily since then, it has seen wild fluctuations. In the past months alone, the price of Bitcoin has fluctuated from a record high of $64,000 to below $30,000.
A peer-to-peer electronic cash system that formed from a fork of the original Bitcoin. Where Bitcoin is widely accepted as too volatile to be useful as a currency, Bitcoin Cash is designed to be better optimized for transactions.
SAFU NETWORK TOKEN (SAFU)
A Great Token built on the Binance Smart Chain (BSC) accessible and usable by anyone and most importantly a Fiat convertible token through different payments gateways.
SAFU is the first utility DEFI token that has a vast user case. At first with its own wallet then finally having its own main net chain in the future.
As a utility Token, Safu will be used as a Gas fee Token in-house where all Transactions will need gas in the SAFU token, it will be used to buy utility mobile networks, pay bills and buy goods and services from merchants using SafuPay. SAFU Will be used on gaming platforms inside SafuWallet, In other words, $Safu is a means of settlement on Safudex in paying gas fees, Charity organization aid, medium of exchange, cross-border payments, and a lot more. SAFU will be used in SAFU-NFTs markets and users will have a possibility to buy NFTs with SAFU and mandatory pay fees in Safu tokens as a means of settlement between parties trading NFTs on our Platform. This will increase Safu demand and the price will increase considerably.
With SAFU TOKEN and our platform, you will generate passive income with features like but are not limited to high-yield farming, static staking pool, dice Game, and more.
Groups of data within a blockchain. On cryptocurrency blockchains, blocks are made up of transaction records as users buy or sell coins. Each block can hold only a certain amount of information. Once it reaches that limit, a new block is formed to continue the chain.
A digital form of record keeping, and the underlying technology behind cryptocurrencies. A blockchain is the result of sequential blocks that build upon one another, creating a permanent and unchangeable ledger of transactions (or other data).
A representative store of digital value that lives on a given blockchain or cryptocurrency network. Some blockchains have the same name for both the network and the coin, like Bitcoin. Others can have different names for each, like the Stellar blockchain, which has a native coin called Lumen.
A unit of value on a blockchain that usually has some other value proposition besides just a transfer of value (like a coin). Example of token is SAFU built on BSC
Cold Wallet/Cold Storage
A secure method of storing your cryptocurrency completely offline. Many cold wallets (also called hardware wallets) are physical devices that look similar to a USB drive. This kind of wallet can help protect your crypto from hacking and theft, though it also comes with its own risks – like losing it, along with your crypto.
The principle of distributing power away from a central point. Blockchains are traditionally decentralized because they require majority approval from all users to operate and make changes, rather than a central authority.
Decentralized Finance (DeFi)
Financial activities are conducted without the involvement of an intermediary, like a bank, government, or other financial institution. example of DEX are:
* SAFUNETDEX, 1INCH, PANCAKESWAP, MDEX, SUSHISWAP and more
Decentralized Applications (DApps)
Applications are designed by developers and deployed on a blockchain to carry out actions without intermediaries. Decentralized finance activities are often completed using decentralized apps. Ethereum is the main network supporting activities in decentralized finance.
Experts sometimes compare specific cryptocurrencies to real gold based on the way it can store and increase in value. Bitcoin is commonly referred to as digital gold.
A cryptocurrency exchange is a digital marketplace where you can buy and sell cryptocurrency.
When a blockchain’s users make changes to its rules. These changes to the protocol of a blockchain often result in two new paths — one that follows the old rules, and a new blockchain that splits off from the previous one. (Example: a fork of Bitcoin resulted in Bitcoin Cash).
A fee that developers have to pay to the Ethereum network in order to use the system. Gas is paid in ether, the native cryptocurrency of Ethereum.
The first block of a cryptocurrency ever mined.
A feature written into Bitcoin’s code in which after a certain number of blocks are mined (typically every four years) the amount of new Bitcoin entering circulation gets halved. The halving can have an impact on Bitcoin’s price.
A unique string of numbers and letters that identify blocks and are tied to crypto buyers and sellers.
A software-based cryptocurrency wallet connected to the Internet. While more convenient for quickly accessing your crypto, these wallets are a bit more susceptible to hacking and cybersecurity attacks than offline wallets — just as files you store in the cloud may be more easily hacked than those locked in a safe in your home.
Initial Coin Offering (ICO)
A way that funds are raised for a new cryptocurrency project. ICOs are similar to Initial Public Offerings (IPOs) of stocks.
Market Capitalization (MC)
Cryptocurrency market capitalization refers to the total value of all the coins that have been mined. You can calculate a crypto’s market cap by multiplying the current number of coins by the current value of the coins.
The process whereby new cryptocurrency coins are made available and the log of transactions between users is maintained.
A computer that connects to a blockchain network.
Non-fungible Tokens (NFTs)
Non-fungible tokens are units of value used to represent the ownership of unique digital items like art or collectibles. NFTs are most often held on the Ethereum blockchain.
Two users interact directly without a third party or intermediary.
Your wallet’s address, which is similar to your bank account number. You can share your public wallet key with people or institutions so they can send you money or take money from your account when you authorize it.
The encrypted code that allows direct access to your cryptocurrency. Like your bank account password, you should never share your private key.
The pseudonymous creator of Bitcoin. No one knows the true identity of Nakomoto — or if it’s more than one person.
An algorithmic program that enacts the terms of a contract automatically based on its code. One of the main value propositions of the Ethereum network is its ability to execute smart contracts.
Stablecoin or Digital Fiat
A stablecoin pegs its value to some other non-digital currency or commodity. A digital fiat represents a fiat, or government-backed currency on the blockchain. (Example: Tether, which is pegged to the U.S. dollar)
Programmer who invented Ethereum in 2015.
A place to store your cryptocurrency holdings. Many exchanges offer digital wallets. WALLET may be hot (online, software-based) or cold (offline, usually on a device).
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