In This post we gonna talk about CryptoCurrency all you must know first of all.
Disclaimer: Everything you find in this article are for informational purposes and not investment advice!!!
What is a Cryptocurrency?
A Cryptocurrency is a Virtual Currency created from computer code and protected by Cryptography.
Cryptocurrency transactions made using the blockchain technology, and everyone can see all transactions made using Cryptocurrency on the blockchain.
For privacy only the adress who receive the crypto used in the transaction are visible you can't see who received an amount of crypto.
Crypto transactions are validated by devices called miners that have graphics cards and enough computing power to perform a large volume of operations per second.
And as a reward the transaction fees are shared with the owners of these devices who participate in the validation of these transactions.
Here are the definitions of some terms you need to know about crypto currencies.
1. WALLET : This is an online wallet (you can call it a wallet) where you store your coins. For example: trust wallet, metamask
2. EXCHANGE : This is an online platform where you can buy, trade and sell cryptos.
Example: Binance, LBank, Kucoin, Gate.io, Crypto.com.
3. ADDRESS : These are numbers and an alphabet that you can use to receive or send tokens (it works like your account number).
4. ALTCOIN : This is any coin that is not Bitcoin. Example: Ethereum, XRP, Litecoin...
5. TOKEN : this is a Crypto that operates under the supervision of a coin's blockchain.
6. STABLE COIN : a coin that is linked to the value of something like the dollar, so its price does not fluctuate.
7. GAS : the fee you pay for a transaction or execution of smart contracts, commonly used in Ethereum and Binance Smart Chain.
9. MOON : when the price of a coin has a positive movement.
10. HOLD : which means buying a coin and holding it for profit.
11. P2P : Peer to Peer allows a transaction between two entities without an intermediary.
12. FOMO : Fear Of Missing Out: you fear you will regret later if you don't buy a crypto now while others do.
13. BULLISH : when the value of a crypto moves in a positive direction, upwards
14. BEARISH : when the value of the crypto moves in a negative direction; Downward.
15. TAKE PROFIT : sell some or all of your crypto after making a profit.
16. STOP LOSS : This is about limiting your losses on a crypto when the market is bearish
17. FARMING : putting your coins into play for a particular period of time while you receive rewards for it.
18. AIRDROP : a strategy of giving away a new coin for free to gain popularity.
19. ALL TIME HIGH : the highest price ever reached by a specific crypto
20. ALL TIME LOW : the lowest price ever reached by a specific crypto
21. DIP : when the price of a coin is falling. This is a good time to buy.
22. ESCROW : a middleman in a transaction.
23. FIAT : government owned currencies that are in crypto currency. Example: USD, Euro, NGN.
24. DYOR: Do Your Own Research. Do your own research before investing in a crypto project.
25. LIQUIDITY : The liquidity of a crypto currency is defined by how easily it can be bought and sold without impacting the overall market price.
26. WHALE : A term used to describe extremely wealthy investors or traders who have enough funds to manipulate the market.
27. FUD : Fear, uncertainty and doubt
In the world of Crypto currency we find:
Decentralized Cryptos such as: Bitcoin (BTC), Ethereum (ETH) or Litecoin (LTC).
Also central bank Cryptocurrencies called CBDC (Central Bank Digital Currency).
N.B: Not all CBDCs are cryptocurrencies, to be a Cryptocurrency they must use blockchain technology.
In another point of view there are mainly five categories of Cryptocurrencies:
1- Layer 1: Blockchains that allow the creation of smart contracts and tokens.
For Example: Ethereum, BSC, Avalanche, Solana, Polygon, Fantom.
2- Layer 2: Blockchains derived from layer 1 blockchains, and which aim to help them expand, to offer innovative uses or lower fees. Ex: Optimism, Boba Network, Arbitrum, Metis Andromeda.
3- Layer 0: Ultra-ambitious blockchains that want to connect layer 1 blockchains together! Ex: Polkadot, Kusama, Cosmos, Osmosis.
4- DeFi projects:
Projects that allow people to lend money and get paid, without going through a bank:like intermediary. Ex: Curve, MakerDAO, Anchor, Uniswap, Lido.
5 - NFT, Play-to-earn and Metaverse projects: Related to virtual worlds, online video games and collectibles. Ex: Apecoin, Decentraland, The SandBox.
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