cryptocurrency terminologies
Tech Stuff

Understanding cryptocurrency terminologies

Spread the love

Mfonobong sat on the bench at the serene Regent Park in London.

She opened an app on her phone and stared at it.

She scrolled up and down the screen and frowned her face.

She sighed and closed the app.

“Young lady, you seem agitated, what is the matter?” The young man seated next to her inquired

“Do you do cryptocurrency? I am trying to find my way around it but I don’t understand some of these Cryptocurrency terminologies. Can you help me?”

The man smiled, “My name is Gregory, I am a lecturer at Coin University, a decentralized platform for crypto education”.

“Oh, this is a good coincidence! Please what is Fiat?” Mfon questioned.

“Fiat is Government-issued currencies, e.g, Pounds, Naira, Euro, Dollar”

“Okay, what is Blockchain?”

“Blockchain is the technology of cryptocurrency that keeps the system secure and decentralized.”

“What is a White paper?”

“A white paper is a document that outlines what a cryptocurrency is created to do and how it will achieve it”

cryptocurrency terminologies
Image credit: Time

“What is Tokenomics?”

“Tokenomics is a combination of Token & Economics. It helps us understand the supply and demand characteristics of a cryptocurrency”

Mfon smiled in appreciation, “Thank you, I hope I am not asking too many questions”

“Please ask as many as you want. I am here for you” Gregory assured with a smile.

“What is a coin and a token?”

“A coin is an asset that is native to its own blockchain, e.g Bitcoin, Ethereum, Solana, etc, while a Token is created on existing blockchain. Every cryptocurrency created under BSC, SOL, ETH or any other blockchain is a token. E.g, $cake (Bsc), $rope (Sol), $UNI (Eth).”

“That’s quite a mouthful, you would have to explain further but let’s move on. What is Market capital?”

“Market capital is the total trading value of a cryptocurrency. It is calculated by multiplying the Current Price X Circulating Supply”

“There’s a term that I hear people use all the time. They call it Pump and Dump. What does it really mean?”

“Pump and dump is kind of like a scam where people who own a large share of a coin encourage others to buy to artificially pump the price. Once the price reaches a high point, they sell off all that they own and the price falls drastically. You have to be careful of pump and dump projects as a newbie in crypto”

“Thank you. How about the moon? People always say ‘to the moon”, what do they mean?”

“Moon and mooning is just a belief that a cryptocurrency will rise exponentially in price”

“Wow, cool. What is Hodl?”

“Hodl is a misspelling of the word “Hold”. It is the decision to hold onto a coin and not sell in the short term. It is a profitable strategy for crypto investors whose coins comprise of quality coins that appreciate over time.”

“Wow, this is very insightful and I now understand certain things. Thank you for the explanations” Mfon said.

“You’re welcome but there’s still a lot more terminologies you need to learn. Cryptocurrency is a vast and interesting field”

“Can I get your phone number so that I can stay in touch for more lessons?” Mfon asked.

“No problem, we can chat on Telegram and you can join our group for more lessons”

They exchanged phone numbers.

“Today is a good day, I am bullish today,” Gregory said as he returned his phone to his pocket.

“What? Do you mean that you are a bull?”

Gregory threw back his head and laughed out loud.

One Reply to Understanding cryptocurrency terminologies

Leave a Reply

You cannot copy content of this page

%d bloggers like this: