Are you new to cryptocurrency? This post offers some terminology to get you started.
Definitions and Acronyms
Cryptocurrency – a digital asset maintained on a decentralized system using cryptography to verify and record transactions.
Alt Coin – any cryptocurrency that is not BTC. Over 30,000 listed currently. There will be future blog posts discussing many of these.
Crypto Ledger – a record keeping system on a blockchain using cryptography. The cryptography keeps user identities private while publicly tracking movement of all assets on the blockchain. (Not to be confused with “Ledger” brand of crypto cold wallets)
Private Key – alphanumeric code that acts as a password to authorize crypto transactions, providing access to crypto assets.
Public Key – code linked to a private key that allows one to receive transactions from anyone or any entity without permission
Cold Wallet – offline storage of the private keys
Hot Wallet – online storage of private keys
NYKNYC – Not your keys, Not your crypto. This refers to people keeping their crypto assets on another platform, typically an exchange. This creates a risk where they can lose their assets if the exchange is compromised.
NFT – Non-Fungible Token. A unique tokenized asset that is stored on a blockchain. Tokenization is the process of creating a unique code for an asset from metadata then storing it on the blockchain. This connection between the asset and the tokenized data creates the NFT.
FUD – Fear, Uncertainty, Doubt. This refers to information sharing in attempt to create a negative opinion. This can include both true verified information and speculative unverified claims.
HODL – Hold on for dear life. This term is used when someone is not planning to sell, used especially during times of high volatility. (The origins of this term was an online forum where a user misspelled the word Hold when stating they had no intention to sell their Bitcoin)
Diamond/Paper Hands – Diamond hands hold their assets, Paper hands sell assets easily.
Whale – holder of a large quantity of an asset. Often their holdings are large enough to create market volatility if they make big moves.
Shill – when someone with a vested interest in an asset tries to create hype and buzz to attract new investors. It is common for influencers on social media to be paid to “Shill” a coin or NFT.
Ape – to buy/invest in a newly released coin or NFT project without doing any due diligence
Next post will delve into some of the larger cap Alt coins.