Quick lexicon of the world of cryptocurrency

in #bitcoin7 years ago (edited)

Many of you ask about the meaning of a word or acronym, and many of the terms used come from the English language.

In this article you will find a non-exhaustive list of words used in the world of crypto-currencies (and trading in general) and their definition.

Feel free to add definitions of words in comment, to ask us, or to complete ours.

Altcoin / Cryptocurrency alternative
All crypto-currencies except Bitcoin, because it is the first cryptocurrency and therefore often serves as a standard.

Arbitration / Arbitration
Buy and sell a cryptocurrency to make profit through the difference in value between trading platforms. Example: I buy Bitcoin on Coinbase and I sell it on Binance.

ATH (All-Time-High)
The highest value ever reached for a particular cryptocurrency.

Bearish / Bearish
The value of a cryptocurrency is downtrend.

Blockchain / Blockchain
Technology that allows you to store and / or transmit information transparently without being controlled by any organization.

Bollinger Band / Bollinger Bands
Graphical indicator that shows the current volatility of a cryptocurrency.

Bullish / Haussier
The value of a cryptocurrency is uptrend.

Candle / Candle
Visual indicator signifying a rise or fall in value according to a unit of time. If the candle is green it indicates that there has been a rise between the beginning and the end of this time; if the candle is red it indicates a drop.

Correction
Trend reversal (usually bearish) of at least 10%. NB: Corrections are vital to the health of the market.

dip
Corresponds to the valleys of a curve and therefore to a low value of a cryptocurrency. This is usually a good time to buy, it is called "buy the dips".

dump
Very fast decrease of a cryptocurrency following an event, an information or a manipulation of the market (example: sale in very big quantity). A dump is usually preceded by a pump.

ERC-20
Standard defining a common list of rules to follow for Tokens to work in the Ethereum system.

Exchange / Exchange
Website in the form of platform on which we can sell and / or buy crypto-currencies (examples: Coinbase, Binance, Bittrex, Kraken, HitBTC, ...)

FIAT / Trust Currency
These are the currencies used by different countries (€, US $, CAD $, ...).

FOMO (Fear Of Missing Out / Fear Of Missing An Opportunity)
Strong desire to buy a cryptocurrency because its value is skyrocketing. The sensation will be accentuated if a set of individuals reacts in the same way because of the snowball effect (it goes up -> FOMO -> Purchase -> it goes up -> ...).

Fork / Fork
This is a division in 2 of a Blockchain. This type of event appears when new standards are embedded in the source code of a Blockchain.

FUD (Fear, Uncertainty, and Doubt / Fear, uncertainty and doubt)
Propagating negative information about cryptocurrency in order to lower its value.

Hardware wallet / Hardware wallet
Tool allowing the storage of crypto-currencies in the most secure way. (Example: Ledger nano or Trezor)

Hold / Hodl / Keep
Manner of managing its crypto-currencies by preserving them on the long term. The term HODL has become a meme to a message posted on the BitcoinTalk forum (https://bitcointalk.org/index.php?topic=375643.0), since it has also been transformed into the acronym "Hold on for dear life ", which could be translated as" Keep your crypto-currencies in the long run as if your life depended on them ".

ICO (Initial Coin Offering)
Crowdfunding system that allows a blockchain-based company to raise funds to grow and integrate trading platforms. This can be compared to an IPO or websites like Kickstarter, Ulule, etc.

Limit order / limit buy / limit sell / limit order / purchase limit value / sell limit value
When a willingness to buy or sell a cryptocurrency to determine a value that must be achieved for the transaction to be made, this for the purpose of buying at a low price, making profit, or limit losses. Note: the transaction will probably not happen immediately.

Moving Average Convergence Divergence (MACD) / Moving Average of Convergence / Divergence
Graphical indicator and technical analysis tool corresponding to the study of two curves based on different time intervals.

Market Cap / Market Capitalization
Can translate into the total value of a cryptocurrency. This value is obtained by multiplying the number of units of this cryptocurrency by the current value of a unit.

Market order / market buy / market sell / market order / purchase price at market price / sale value at market price
Unlike the limit order (see definition above), the market order is directly related to the value of the cryptocurrency at the moment you look at its curve. You can therefore buy or sell a cryptocurrency immediately at the current value.

MEW (MyEtherWallet)
Website that provides an Ethereum / ERC-20 portfolio.

Mooner / Go to the Moon
Used to talk about the significant growth of a cryptocurrency.

Pump
Very fast growth of a cryptocurrency following an event, an information or a manipulation of the market (example: purchase in very large quantity). A pump is usually followed by a dump.

ROI (Return on Investment) / Return on Investment
Calculation which makes it possible to know the percentage of gain, obtained thanks to the following calculation (realized profit / basic investment) x 100.

Software Wallet / Software Portfolio
As the name suggests it is a software or an application to store its cryptocurrencies.

TA (Trend Analysis / Technical Analysis) / Technical Analysis
To analyze the past variations of a cryptocurrency in order to draw a motion prediction. NB: it's never 100% reliable

The Flippening
Event corresponding to the moment when the Market Cap of Ethereum will exceed that of Bitcoin. It can also be used occasionally with other crypto-currencies (example: the market cap of Litecoin which will exceed that of the Ethereum).

Tokens / Tokens
This corresponds to the currency of a cryptocurrency, for example the Ethereum token is ETH.

Whale / Whale
Entity with a large amount of cryptocurrency and therefore the financial ability to voluntarily change the price of a cryptocurrency.

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