Short crypto lexicon
Am I the only one who’s tired of always explaining the same words to people who ask questions about crypto?
I decided to write this short lexicon so that, from now on, I can just link it to whoever has trouble to understand the crypto jargon.
I will divide the lexicon in two, in the first one I’ll explain the most basic words everyone has to learn when doing their first steps in crypto. In the second one, I’ll try to do something more blockchain technology related.
Blockchain is literally a continuously growing chain of blocks that contains informations. It’s main purposes is that it is designed to be secured and trustless.
That name first came up with Bitcoin’s whitepaper, it is only a pseudonym and, as of now, we still have no clue about his/their identity/ies.
Satoshi Nakamoto is the creator of Bitcoin and thus blockchain as well.
Satoshi is also the name we use to call the smallest unit of a Bitcoin wich is 0.00000001 BTC. For exemple, if you want to buy some token other than BTC and each of them cost 0.0000004 BTC, it is easier to say that they are valued at 40 satoshis.
You should, at the very least, read a project’s whitepaper if you plan to invest in it. It is where all the theory of the project is explained. They usually start with presenting a problem and introduce their solution to it.
Cryptocurrency exchanges are online platforms that can be used by everybody to buy and sell Bitcoin and altcoins. There are different sorts of them, the most important ones being the brokers, such as Coinbase allow people to buy and sell cryptocurrencies with Fiat, and the traditionnal ones such as Binance, Kucoin, Bittrex, where you can find lot of different altcoins and trade them against others.
Fiat money is currency that usually has been issued and legalised by a government, it has no material value and is only based on faith people put in it.
The name altcoin has been given to every other cryptocurrencies that are not Bitcoin, they don’t all serve the same purposes even though a lot of them are basically Bitcoin clones with just a few changes.
Short for fear, uncertainty and doubt, is a tactic used, not only in crypto but also in plenty other fields such as politics or marketing, to influence people by spreading negative information.
Short for fear of missing out, is the anxiety to miss an event happening elsewhere. In crypto, it often results as bad decisions and loss of money by people buying altcoins when its price has already been making incredible growth.
Thanks for reading!