LESSON 1.4: Crypto terms and definition
A simple guide to understanding crypto terms.
Hi Frenz,
Have you ever felt lost while taking a stroll down town and you said words like, I never knew this place existed.
That is how the Web3 landscape can be sometimes.
The expanding world of Web3 brings us new terms and definitions.
The deeper you get into the crypto and blockchain industries, the more confusing they are.
When I started out in the crypto space I wondered for a while why the word “hold” is spelt as “hodl” and why it’s pronounced the same way, after a bit of research I realized it was someone who posted on social media some years back that he is hodling his asset that caused the use of the word.
Before you think he must be an important person for his word to become popular, he wasn’t, the word just trended and was relatable.
In this post, we will look into some terms in the crypto space, from basics like HODL and whale to more advanced concepts like onramping and offramping.
First, let’s talk about HODL, which is later HOLD ON FOR DEAR LIFE is a term used to describe holding onto cryptocurrencies for a long period, regardless of market fluctuations.
next let’s talk about WHALE: A whale is a large investor or trader who has a large amount of cryptocurrency.
When this person makes a large deposit or withdraw it affects the market which either causes a dump in price or a rise in price.
Then let’s talk about bull market: this type of market occurs immediately after bitcoin halving and it is expected that during this period there is increase in the coin prices while on the other hand is Bear Market, this happens immediately after the bull market and during this period it is expected that there will be decline and corrections in the market.
An all-time high (ATH) is the highest price a particular coin has ever reached, Bitcoin has once reached an ATH of $70000. When a coin gets a new ATH it is often seen as a significant milestone for a project and can lead to increased interest and investment.
When you hear FUD (FEAR, UNCERTAINTY, AND DOUBT) it means their is negative sentiments and misinformation spreading about a cryptocurrency or the market as a whole. This can lead to market volatility and price fluctuations.
You experience FOMO(fear of missing out )when you buy into a cryptocurrency or market trend due to fear of missing out on potential gains. It can lead to impulsive decisions and market bubbles.
Then let’s have pump and dump this is a manipulative situation where a group of individuals artificially inflate the price of a cryptocurrency by spreading false information and hype, then sell their holdings at the inflated price, causing the price to crash.
When a cryptocurrency's price "goes to the MOON," it means it has experienced a significant and rapid increase in value. This can lead to increased interest and investment in the project.
Onramping refers to the process of entering the cryptocurrency market by exchanging fiat currency (such as USD/NAIRA) for cryptocurrency.
This can be done through various means, including cryptocurrency exchanges, brokerages, or payment services while Offramping is the opposite where an investor exchanges their cryptocurrency for fiat currency, effectively exiting the cryptocurrency market.
In conclusion, understanding the language of the cryptocurrency industry is good for you if you are looking to participate in the space. You will get familiar with the terms as you perform activities around the space. So chill and learn them gradually as you need to.
Lesson 2: Wallet and Exchanges (NEXT)