What is cryptocurrency? 7 certain Cryptocurrency terms need to know

By Le Anh | Experience

What is cryptocurrency?

Hello everyone, the topic today I would like to introduce to you is Cryptocurrency and its terminology.

But before going to understand what Cryptocurrency is, we should learn a little about the development of money.

Let's start!

We all know that, in ancient times, the main form of exchange was barter. At that time, commodities like buffaloes and cows could be considered currency.

But when the urbanization process came, the government began issuing coins and banknotes for easier control.

In the process of development, the Internet was born which led to the development of electronic commerce.

Where you can buy anything, anywhere, and this consumer behavior must be paid via credit cards issued by banks.

And so far, when Blockchain technology was born, as a corollary it changed the currency form again and this time it was the Cryptocurrency.

This is what we will explore together in this article.

What is cryptocurrency?

To the definition of:

Cryptocurrency is a medium of exchange like the currencies issued by the government.

Cryptocurrency uses security encryption algorithms to ensure the exchange of information in digital form and control the creation of new units.

Follow me:

Cryptocurrency is simply a new form of currency evolution, also known as cryptocurrencies.

What is blockchain?

I will explain in a simple way as possible about this problem as follows:

Blockchain is simply a technology that allows it to record information like a ledger.

The interesting thing about Blockchain is that once data is saved to a Blockchain, no one can delete or change it and the Blockchain is almost impossible to be hacked.

Maybe you are interested in: 19 The industry will be changed by Blockchain technology

7 terms in the Cryptocurrency market

In a certain field, there are always related professional terms that you need to know.

Cryptocurrency is no exception. It also has its own terminology and below are 7 commonly used terms:

  1. ICO
  2. White list
  3. KYC
  4. Altcoin
  5. FOMO
  6. FUD
  7. Pump & Dump
What is an ICO?

ICO stands for Initial Coin Offering - You can understand it as a form of raising funds for the project by selling a corresponding amount of tokens.

For example: Project A needs to raise $ 15 million through the ICO form, they need to sell a corresponding token of $ 15 million. Simple as that.

Useful articles for you: Invest in ICO with 5 simple steps

What is a whitelist?

Whitelist can be said to be an indispensable term if you invest in an ICO.

Put simply, Whitelist is a white list. It means that you can participate in buying tokens during the project's crowdfunding.

And usually you need to complete KYC to be on this list.

What is KYC?

KYC is an acronym for Know Your Customer.

It helps the project to verify the investor's identity to ensure the project is not controlled by a certain group.

What is altcoin?

The definition of altcoin is all other coins Bitcoin. Eg Ethereum is an altcoin.

Ripple is an Altcoin.

What is FOMO?

FOMO is an acronym for Fear of Missing Out - It is a psychological syndrome of fear of missing out on something.

People with this syndrome will have the feeling that they are about to miss something if they do not make a decision quickly.

This motivates them to take immediate action, lack of reason and of course most of them are wrong actions.

What is FUD?

FUD is the abbreviation for Fear, Uncertainty and Doubt, which means Fear, Uncertainty and Doubt.

If you are feeling scared, uncertain about the information, the current situation of the market, that is you being FUD.

What is Pump and Dump?

To perform the Pump and Dump trick requires a shark or a group of sharks with a lot of money.

First, this group will choose the coin or price, then slowly push the price up. Combining information to create FOMO and then selling off simultaneously makes Dump pathetic price.

Some other terms

Apart from the above 7 terms, there are also some following terms:

  • ATH: All Time High - means that the coin's price is about to break its highest price in the past.
  • DYER: Do Your Own Research - Do your own research, check the information before making an investment decision.
  • HODL: Means an action not to sell the number of coins held regardless of what happens because they believe it will increase in price again in the future.
  • REKT: Refers to someone losing a big, heavy hole.
  • BAGHOLDER: Large hold coin holders waiting for prices to rise and sell in the future.
  • GO TO THE MOON: Coin prices will be strong or will increase in the near future.

Epilogue

Through this article, you have understood what the concept of cryptocurrencies is? As well as some common terms in this market.

Hopefully it will help those newcomers participating in the cryptocurrency market in general and Bitcoin in particular.

Hello and see you again in the next article!

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