Before you get started with your crypto investment journey, it is essential to learn basic crypto terminology. Below I have listed 20 of the most commonly used crypto terms in the industry.
1) Hodl
Hodl is an acronym that means to “Hold On For Dear Life”. Its the long term investment approach to not care about volatility swings in the market. Hold your positions and only accumulate on dips. Overtime, the price of strong assets will be much higher in the long term then when you buy them now.
2) Cryptography
Writing or solving coding solutions
3) Smart Contracts
Smart Contracts are simply programs on a blockchain that execute actions only when predetermined conditions are met. I kind of look at them like if/then statements. They are just like contracts in the real world, only digital. For example, If the temperature stays at 90 degrees for four days straight, farmer John receives 100,000 dollars as crop insurance. In the real world, a third party intermediary will send John that 100,000 dollars and you can guarantee that there will be a delay in between. You can anticipate about a 3-5 business day delay to clear everything with the bank. Smart contracts remove the middleman and immediately execute the transaction so John receives his money instantaneously once the predetermined conditions are met.
4) Degen
Degen’s are people who gamble their money with little to no knowledge on what they are actually investing in. Here at Moonboy Capital Ventures, we teach our students the proper behavioral practices to help you grow your wealth in the long term by making educated and calculated decisions based on research.
5) Defi
Defi is a technological improvement that enhances the current legacy financial system. It is highly efficient financial infrastructure built to democratize and decentralize financial money markets and systems. We dive more into defi in our advanced course where I teach you how to earn yields as high as 100% apy.
6) Stablecoin
A coin pegged 1 to 1 with a real world fiat currency like the dollar. Think of stablecoins like “crypto dollars”. They are used as a hedge against the volatility of the market. When participating in DEFI, you can swap a volatile asset for a stablecoin in anticipation of downward price action so you can buy more of that asset at a cheaper price.
7) Exchange
A platform where you can swap one crypto asset for another
8) Altcoin
Any alternative cryptocurrency that is not Bitcoin
9) Blockchain
A secure and decentralized ledger system
10) Fiat
A currency controlled and backed by a government and not a commodity like Gold. Some examples are the U.S. dollar or the Euro.
11) Gas fee
A fee paid to a network when completing a transaction. We explain this further in our advanced course
12) Swing trade
capitalizing on market volatility to make profit
13) Crypto Address
A virtual location where your assets are sent to and stored. This is covered more in the intermediate course.
14) Dapps
Decentralized applications built on top of a decentralized network. We go more in depth with this in the advanced course.
15) Whale
Anyone holding a large stake in a crypto asset or someone who can move the price of a crypto asset if they buy or sell a large amount at one time
16) Staking
Locking up your cryptocurrency to help secure a network and you are paid that cryptocurrency in return. We explain staking more thoroughly in our advanced course and how to earn 5% to over 100% apy passively staking your assets
17) Mining
A decentralized network of computers solving complex math problems to earn the right to verify transactions on a blockchain
18) Hard Fork
A decentralized network software update
19) Market Cap
The price of a crypto asset times it’s supply. In our advanced course, we discuss the full spectrum of market cap and using it to analyze entry and potential exits points when deploying your capital strategically.
20) Airdrop
When a project sends free tokens or coins to wallet addresses in hopes to raise awareness as a form of marketing or to reward users
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