Basic terminology when participating in the Crypto market #ππ«π²π©ππ¨β
π Cryptocurrency Cryptocurrency is cryptocurrency, electronic money, or virtual currency β A decentralized digital currency that can be used for trading goods, services, and asset transfers, operating independently without being subject to managed by any third party. The first cryptocurrency to appear in the world was Bitcoin. Bitcoin was released in January 2009.
π Bitcoin The name of a cryptocurrency symbolized as BTC. Currently, Bitcoin is the top 1 coin, representing cryptocurrency. The birth of Bitcoin also gave birth to the concept of "cryptocurrency" today.
π Blockchain Blockchain is a distributed ledger that records all transactions and smart contracts for a cryptocurrency or platform. This book is shared with those participating in the network. This shows that in the entire system there is not just one location where a single document can serve as a single source of authority, because copies of the same ledger version are located in that location. many places. 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 hack.
π ALTCOIN (alternative coin): all coins other than bitcoin
πSHITCOIN (Junk Coin): is a coin with a capitalization of less than $100 million, its trading volume is extremely low, small and unstable. ...
π STABLE COIN: The coin is attached to a fixed asset to stabilize the cryptocurrency market. Stable Coin must be supported by the assets it is "anchored" to such as gold (Digix Gold Tokens - DGX), a certain type of fiat currency (Tether - USDT), or other cryptocurrencies (MarketDAO - DAI ) Popular Stable Coins today include Tether (USDT), TrueUSD (TUSD), Paxos (PAX) and USD Coin (USDC), Dai (DAI), Maker (MKR).
π AIRDROP - RETROACTIVE: Airdrop is an event that distributes a number of tokens of a project for free to users who meet certain criteria to attract the attention of the community. Many people participating in this market who do not have capital can "make money with zero capital" by participating in testnet events (product testing) or participating in marketing events of projects to receive airdrop rewards. . Retroactive is basically a form of free distribution of a project's token amount to users based on their contribution to the project. This activity is similar to an airdrop, but Retroactive often does not announce it in advance and users often have to spend money to pay transaction fees or provide liquidity... to become early users of the project. Retroactive started gaining popularity in 2020 when Uniswap distributed $UNI tokens to users who traded or provided liquidity on the platform. At that time, each regular account will be given 400 UNI tokens with a value at that time of approximately $2,000. After that, many projects have applied this method to carry out promotional campaigns for product launches and attract more users. Typically, there are big names such as Aptos, Arbitrum, ENS, 1inch, optimism, paraswap...
πWALLET: Wallet is the digital space that stores your Crypto.
πFIAT: Fiat money - a currency with only symbolic value that is priced and issued by the State. Each country will have a different fiat currency. The value and popularity of fiat currency often symbolizes the economic strength of that country. For example: Fiat currencies such as EUR, British pound, ... (high value) or USD (high popularity) are all currencies of countries with strong economies.
π P2P (Peer-to-peer): person to person, implying equality with each other, no one is better than anyone else. This term can be combined with other terms such as P2P transaction (peer-to-peer transaction), P2P network (Peer-to-peer network).
π Volume: Volume of transactions performed in a certain period of time
πSMART CONTRACTS: Smart contracts. This is a new concept of embedding code that can be executed like software programs, it is embedded in transactions so that depending on the situation, that transaction can be executed under different conditions. In addition to digital currencies, some blockchains also support smart contracts. The most prominent smart contract network is Ethereum. Smart contracts allow non-monetary assets to be exchanged instantly on the blockchain without the need for an intermediary. Assets can include membership records, insurance, or even real estate.
π SATOSHI: Satoshi is the smallest currency unit of Bitcoin, 1 BTC is equivalent to 100,000,000 Satoshi. This unit is named after the founder of Bitcoin.
π Satoshi Nakamoto: Is an anonymous person or organization who created Bitcoin and created the open source software Bitcoin Core (formerly known as Bitcoin-Qt) to make Bitcoin usable by the public.
π NFT (Non-fungible Token): a type of digital asset with properties that cannot be copied.
π Initial Market Cap: market capitalization, the calculation is to take the current price of that coin or token multiplied by the circulating supply
π Gas fee: transaction fee when trading tokens or coins
π HODL/HODL: hold a certain coin or token for a long time
π White Paper: document detailing the project
π FOMO (fear of missing out): The effect of fear of being left behind. Things that you initially have no need for but because the crowd is doing it, and you also want to do it to be like the crowd, that is FOMO.
π FUD (fear, uncertain, doubt): the project has a lot of bad news and mixed comments π Shill: the act of encouraging people to buy a certain coin or token and inflating the price to increase it
π ATH (All time High): is the highest price, peak of a certain coin/token in the market up to the present time.
π ATL (all time low): lowest price in coin history
π KYC (know your customer): verify your identity
π ROI (return on investment): means the amount of profit or loss you make from a coin is calculated by the amount you are holding of that coin minus the initial amount you invested in that coin.
π LIQUIDITY: liquidity. Simply put, it is the maximum amount you can sell a certain coin at any given time in the crypto market. If the total selling order price is greater than liquidity => the project is in major crisis.
π SLIPPAGE: price slippage when buying a coin. For example, on PancakeSwap, if you set a slip order at around 5%, the system will automatically match the buy/sell order within a positive/negative range of 5% of your desired price.
π TP (take profit): take profit
π STL or SL (stop loss): cut loss
π CEX (centralized exchage): centralized exchange. Vdu like Coinbase, Binance, Huobi, MEXC,...
π DEX (decentralized exchange): decentralized exchange. Vdu like PancakeSwap, Poocoin, ApeSwap,...
π SAFU (funds are safe): the number of coins or tokens is still safe, this term is rarely used
π RUG PULL: the act of withdrawing all investors' capital and running away. Like SquidGame Token Gold
π DEV (Developers): Project developers, specifically programmers.
π BACKERS & PARTNERS: Investors & partners (there are many types of partners such as strategic partners, media partners,...)
π PEAK: Buy tokens at high prices, not in a good position
π Bottom selling: is the act of selling coins at the lowest price when the coin price then increases, causing investors to lose money. π BUY THE DIP: Catch the bottom - Buy tokens at low prices, good positions
π DApp (Decentralized App): Decentralized application. Unlike a regular application (which uses centralized servers to run the application's code). The DApp will run on a decentralized peer-to-peer network.
π METAVERSE: There is still no unified concept of the metaverse, but to put it simply, the metaverse is a virtual world where you can live, make friends, make money, and shop just like the real world.
π MINING: Vietnamese means "coin mining". An act of accessing the network of a certain blockchain system, taking advantage of the super-fast algorithm processing feature of the chips (miners) to handle the system's requests. After resolving the request, the owner of the miner will receive a portion of the reward from the system. PUMP: The act of manipulating and inflating prices using many different tricks. Basically, creating a buying power greater than selling power to increase the token price for a certain period of time. π DUMP: Is the act of manipulating, causing the price of a certain token to drop for the purpose of buying more, or simply selling out (in large quantities) causing the price to drop sharply.
π FUNDAMETAL ANALYSIS (FA): Fundamental analysis or general analysis. An approach used by investors to establish the "intrinsic value" of an asset or business. By looking at a number of internal and external factors, their main goal is to determine whether the asset or business is overvalued or undervalued.
π TECHNICAL ANALYSIS (TA): Also known as technical analysis or chart analysis, is an analytical skill that aims to predict future market behavior based on previous price movements and trading volume.
π ERC-20: This is the most popular standard used for Smart contracts on the Ethereum Blockchain when issuing Tokens. In addition to ERC-20, there are other token standards on the Ethereum network such as ERC-721, ERC223...
π BSC (BEP 20): represents tokens traded on Binance Smart Chain, similar to other platforms such as: TRC20 β TRON Chain BEP 2 β Binance Chain BEP 8 β Binance Chain (mini-token)
πPOW: Proof of Work is a way to confirm transactions. It prevents an attack on the network by making mining calculations difficult and preventing many fake requests. It takes a long time for miners to calculate the block equations, but then they get the rewards once they solve them.
πPOS: Proof of Stake is another way to validate transactions. The block is selected and mined based on its wealth or βstakeβ. When it is being processed there is nothing, but βforagersβ (similar to miners) take transaction fees instead.
