When you first learn about cryptocurrencies, you must have many difficulties because there are many new crypto terms. The following article will introduce the most commonly used words in Cryptocurrency, helping you quickly grasp this new technology.
Airdrop
Airdrop is a crypto term that refers to free tokens given to investors. Some of the forms of Airdrop that we often see are: Hold & Stake master token, Retroactive, perform tasks required by the project, …
Airdrop is often used in the strategy of introducing and advertising ICO projects to create attraction for users. Thereby collecting a large community for that coin project.
Blockchain
Blockchain is a decentralized database that helps store information in interconnected networks by encryption and will expand according to the volume of data we update. Is an electronic ledger distributed on many computers, holding and ensuring that any individual or organization will not change the information?
The connected computers in the block verify any information entered into that ledger. Of course, there is no way to change, overwrite or delete the data in that ledger. More about Blockchain can be found here: Bunnybot - Wiki
Catch the bottom
Bottom Fishing or Bottom Fishing is a crypto term that refers to a trader's act of buying at a low price. The purpose of bottom fishing is to expect that the virtual currency will increase in price after a while. They can then execute a sell order and profit through the price difference.
Peak swing
The swinging top is crypto term traders use when they accidentally buy a coin or token at a high price. But unfortunately, then it dropped in price so we couldn't sell it in time.
There are only two options at this point: hold the loss and wait for it to rise in price, or we will have to stop loss.
Binary options – Binary options
We will often be more familiar with the crypto term binary option than the binary options term. This is one of the crypto terms that any investor or trader needs to understand if they have participated in the cryptocurrency market.
In it, the user will predict the candle price in a short period of time; if the prediction is correct, he will win, and if he expects the wrong one, he will lose money.
CEX – Centralized Exchange
A centralized Exchange (CEX) is a centralized exchange; these exchanges are managed by an intermediary (the company or organization of the floor owner), and all user assets deposited into the above account are controlled and managed by that company or organization.
We can mention some popular centralized exchanges such as Okex, Binance, Huobi, etc.
DEX – Decentralized Exchange
Decentralized Exchange (DEX) is the crypto term for decentralized exchanges. They are a space for exchanging cryptocurrencies without the management or involvement of an intermediary organization.
At that time, only the buyer and seller will transact with each other—for example, some famous decentralized exchanges such as Sushiswap, PancakeSwap, Uniswap, etc.
Dapp – Decentralized Application
Decentralized Applications (Dapps) are known as decentralized applications. These applications are built on top of existing protocols and platforms.
Because Dapps are built directly on top of protocols, the nature of these decentralized applications will depend on those platforms. Dapps will mainly solve problems in specific areas; the tokens will be used inside the decentralized application—for example, tps, scalability, transaction speed, and stability.
Ethereum 2.0
This crypto term refers to Ethereum's upgrade from Proof-of-Work (POW) to Proof-of-Stake (POS), which aims to improve transaction speed and scalability on Ethereum.
ERC – 20
Ethereum Request For Comment (ERC – 20) is one of the technologies in the Ethereum Network system. This is the most common standard for smart contracts on the Ethereum Blockchain when issuing Tokens.
Besides ERC-20, we also have token standards on the Ethereum network, such as ERC223, ERC721, etc.
EMA
Exponential Moving Average (EMA) is an exponential moving average used for technical analysis. These EMAs can be used as support and resistance on a candlestick chart.
Fiat
Fiat money or fiat money – is the crypto term for government-issued currency. They have no intrinsic value, but their value is based on the usability and financial strength of the issuing country.
The fiat currency with the most weight today is the USD issued by the US Federal Reserve. At the same time, it is guaranteed by the United States Federal Government only.
Full node
A full node can download a complete copy of a particular blockchain system. They perform transaction checking based on the consensus principle between users in that network.