"Cryptocurrency slang" or "cryptocurrencies world basic terminology"
AirDrop
(Airdrop) – literally, this term means - "landing" or "cargo drop" . This refers to the free distribution of tokens among the cryptocurrency community. Sometimes such events are held after forks or at the very beginning of the project to advertise it and attract attention. This allows you to make the token popular in a short time and attract more investor capital. To receive free tokens, you must fulfill a certain number of simple conditions. AirDrop allows you to make a profit for the minimum number of actions. The received tokens can be sold immediately after they are listed on the exchange and exchanged for cryptocurrency. Often, this method is resorted to before the launch of ICO-ampaign to popularize a new site, platform, order, program or cryptocurrency that is not yet on the exchanges. Cryptocurrency airdrops are referred to as a type of “viral marketing”. It is still impossible to consider that an “airdrop” is a “bounty”. In order for the transfer of electronic coins to occur, you need to fulfill a number of conditions related to the promotion of the project, unlike «Bounty» (Bounty), which provides for the distribution of tokens as a gift. AirDrop more implies a fixed number of rewards for all those who fulfill certain conditions for the dissemination of information about the project, and sometimes the distribution of tokens directly to investors or participants.
Altcoin
(Altkoin) – is the common name for all types of cryptocurrencies with the exception of Bitcoin. The term is an abbreviation for "Alternative Coin", which translates as an alternative coin from bitcoin. To date, there are more than 2200 altcoins in circulation, and their number does not stop growing. The world's first cryptocurrency was Bitcoin, which was created in 2009. This cryptocurrency was developed in order to create an independent and uncontrolled by any state or financial structure, a digital currency that could be paid on the Internet. Later, other developers borrowed this idea, and began to come up with other coins that would have similar functionality. The first among them was Namecoin, which was created in 2011. Alternative digital money can appear in various ways. But, the most popular option is a bitcoin fork. The bitcoin code is open, they simply copy it, make minimal adjustments, launch an advertising campaign and capitalize on a new project. Other well-known ways for altcoins to appear are hard forks.
Arbitrage
(Arbitrage) – is the process of buying a cheaper cryptocurrency on one exchange and then selling it on another. Fees and coin prices may change at any time when transferring coins from platform to platform, especially during times of high volatility. Another factor is the delays associated with the deposit and withdrawal of coins to the sites. The difference between the market value of coins and is profit. In fact, arbitrage is a sequence of operations for buying and selling currency on different sites (spatial arbitrage) or over a certain period of time (temporal arbitrage). The profit of an arbitrage specialist is calculated as the difference in the price of buying and selling an asset. This strategy is applicable to the cryptocurrency market as well. But here, earnings from the purchase and sale of an asset on different sites (cryptocurrency exchanges) are considered arbitrage. And classical trading, in which an asset is bought at a low price and then sold at a high price, is quite suitable for the definition of temporary arbitrage.
ASIC
(Asik) – is an abbreviation of the English term "order Specific Integrated Circuit", which means "special purpose integrated circuit". The concept refers to the field of mining and defines one of its types. Unlike conventional integrated circuits for general purposes, specialized circuits are used in a specific device and perform strictly limited functions that are specific only to this device. Thus, acceleration and increase in the effectiveness of computing processes is achieved in comparison with multitasking devices. This allows you to perform functions faster and, ultimately, cheaper. Mining on ASIC is no different from the usual - it's all the same performance of a huge amount of complex mathematical calculations in order to receive a reward for finding a new block. However, the advantage is that this type of block mining allows you to direct the computing power of the device to specific tasks, thereby not wasting them on non-targeted processes. In addition to the increase in hashrate and other advantages of specialized equipment, as ASIC mining developed, problems emerged. An "arms race" has begun. The creators of blockchain protocols are looking for ways to resist ASIC mining, and mining equipment manufacturers are looking for ways to get around the tricks of the developers. Asik is a microchip focused on performing tasks of one specific type. The first Bitcoin ASICs were released in 2012 – by that time, traditional mining had already faced the problem of falling profitability due to increased mining complexity and excessive power consumption.
ATH
- "All Time High" (All Time High) - the highest price of any cryptocurrency or token that has broken all its previous records, and is at the highest level in its history. In other words, this is the largest exchange value of the asset rate for the entire time of its existence from the moment it appeared on the market. In the market, this phenomenon is treated either emotionally, trying to invest in a growing cryptocurrency as quickly as possible, or very carefully, realizing that it is necessary to conduct a fundamental analysis in order to determine when the asset price reaches resistance and the rate starts to fall. The all-time high by itself should not be used to develop a trading strategy, but it can and should be one of several tools to consider.
Baghodler
(Baghodler) – this term implies an unsuccessful long-term strategy, which was based on holding a digital asset to a higher market rate, however - an asset depreciated. Any cryptocurrency periodically, and sometimes often shows a decline. A trader always has a choice between panicking and selling the asset immediately, or holding the asset until the situation changes. If the expected correction did not happen, and the investor lost more than he could lose initially, then the term "Baghodler" is applicable to him.
Bear
(Bear) – a term in exchange trading, which refers to traders who sell cryptocurrency in large quantities at the peak of its high rate, and then reduce its rate and spread the opinion that the rate will fall, which in turn will create an active sale of the necessary cryptocurrency , which will help the trader to buy it back at a lower price and benefit from it. The analogy with this name of traders was taken from the behavioral nature of the animal, since the bear is always trying to pin down its prey to the ground. Similar actions with the cryptocurrency rate are done by “bear traders”. However, after the bear has bought the cryptocurrency at a low rate, it becomes a «bull» and waits for a good moment to sell. The opposite term to the definition of "bear" is the term «bull».
Bear Market
A market condition in which digital asset prices are falling, the price of a currency pair is declining, and other traders amplify this trend by actively selling currencies. This is usually accompanied by widespread pessimism, which in turn fuels the flow of negative sentiment. Its opposite is a «bull market», in which sentiment towards prices is positive.
Blockchain
(Blockchain) - the concept of "Blockchain" has become actively discussed with the growing popularity of cryptocurrency. It is believed that this technology can become a real breakthrough in the field of finance and secure databases. Blockchain is a chain of blocks, each of which has a timestamp, a link to the previous block and is stored on different computers. If you do not go into technical nuances, then the very principle of the blockchain is quite simple. It can be thought of as a ledger that every event participant has and is constantly updated. In fact, any event can be entered into this book - from financial transactions with cryptocurrencies Bitcoin, Etherum, etc. to the results of voting in presidential elections or identification data. The trick of the blockchain is that the pages (read blocks) of this book are simultaneously stored by all network users, are constantly updated and link to old pages. And if someone tries to cheat the system by tearing out or pasting a page into the book, the system will immediately turn to tens of thousands of other versions of this book and find a discrepancy in the block structure. The underlying blockchain system is an ever-growing sequence of blocks that are shared between participants using peer-to-peer networks, which most people use to download and torrent. A timestamp (hash sum) is added to each block, which is easiest to imagine as a unique fingerprint. The very term Blockchain partially characterizes its tasks and purpose. The "Block" part is the blocks, "chain" is the "chain". It turns out that Blockchain is a chain of blocks. And not just a chain. It follows a strict sequence. What are these blocks and what is the chain? Blocks are data about transactions, deals and contracts within the system, presented in cryptographic form. Initially, the blockchain was (and still is) the basis of the Bitcoin cryptocurrency. All blocks are arranged in a chain, that is, they are interconnected. To write a new block, sequential reading of information about old blocks is necessary. All data in the blockchain is accumulated and forms a constantly updated database. It is impossible to delete anything from this database or to replace / replace a block. And it is "limitless" - an infinite number of transactions can be recorded there. This is one of the main features of the blockchain.
Bounty
(Bounty) – is an opportunity to receive a reward in cryptocurrency for certain advertising and information activities without the need to invest your money in the project. This mainly applies to ICO. Reward in the form of tokens is charged for various kinds of PR. The company issuing tokens is especially interested in the promotion of their virtual coin, so the popularization of the coin has a huge role. It could be social media posts. Of great interest to fans of easy profit is the implementation of promotional tasks that do not require great intellectual effort - subscribe to social networks. ICO network of the project, make reposts and write comments on the forum. This is more typical for a not entirely conscientious ICO. That is - about the same network marketing, and the distribution of cheap gifts and an attempt to promote the gullibility of users, thereby building a marketing pyramid.
BTFD
- "Buy The Fucking Dip" (Buy a coin) – the purchase of a currency by a trader when its price reaches its maximum decrease. There is a high probability that the price will jump again and you will be able to earn decent money. BTFD is literally a call to buy cryptocurrencies after prices fall. This is a trading method that involves buying a coin that has just plummeted. Including, and thanks to FUD. the purchase of a currency by a trader when its price reaches its maximum decrease. There is a high probability that the price will jump again and you will be able to earn decent money. BTFD is literally a call to buy cryptocurrencies after prices fall. This is a trading method that involves buying a coin that has just plummeted. Including, and thanks to FOMO, in order to restore its price as soon as possible.
Bull
(Bull) – a trader who believes that the price of a particular cryptocurrency will rise. Bulls are the most positive and beloved type of traders. By analogy with the animal world and bulls, they were given such a nickname because the bull, when attacking, throws its victim up, which they do with the cryptocurrency rate, that is, they raise it on the horns, for which they received such a nickname. This type of traders always try to increase the price of crypto assets. When people talk about a “bullish trend” or “bull market”, they mean that an asset is going up in price for a long time. In honor of the traders who continued the just cause, who actively increased the growth of rates on the stock exchanges, in New York on Wall Street in front of the northern entrance to the Bowling Green square, a monument to a bull, made of bronze, weighing three and a half tons, was erected. This is the prototype of assertive stock market players and a symbol of unbridled capitalism. The opposite term to the definition of "bull" is the term «bear».
Bull Market
A market condition in which prices on exchanges are rising and the general public's opinion of the market is positive, prices are rising, or are expected to rise in the near future. The term “bull market” is most often used in relation to the stock market, but can be applied to any tradable asset such as bonds, currencies, commodities, and digital assets (cryptocurrency). Bull markets are characterized by optimism, investor confidence, and expectations that good results will continue. The duration of the growth of assets (bull market), as a rule, lasts from several months to several years. It is very difficult to constantly predict when the trend in the market will change. Part of the difficulty is that psychological effects and investor expectations can sometimes play a big role in market development. The opposite of a "bull market" is a «bear market», in which sentiment towards prices is negative.
Circulating Supply
is the number of coins or tokens that have been mined or put into circulation. This is the approximate number of coins that are currently in circulation and distributed on the market. This term is also called "Circulating Supply". The term refers to the number of coins in free circulation on the market. The price of a coin does not matter in and of itself. However, the price of a coin multiplied by the number of coins in circulation gives the market cap of the coin. This criterion is used to determine the market capitalization and rating criteria, and generally affects the trading of cryptocurrencies.
Crowdsale
(Crowdsale) – is the initial purchase of tokens of a new cryptocurrency before its release to the ICO. For the first time, such an event in the world of crypto-currencies took place at the turn of 2013-2014, when the first ICO in the history of the crypto-currency world was launched, and it was called “Mastercoin” (modern name is Omni). Subsequently, the term token was assigned to primary coins and its widespread use began. Crowdsale usually occurs before the project officially starts its work. It is designed to raise funds for the development of the project, pay for the work of software developers and other things that a cryptocurrency startup needs. During the crowdsale, those who wish are invited to purchase tokens of the future project, and the proceeds go to its development and ICO. Since its inception, blockchain technology has been widely used. On its basis, many interesting and useful projects operate, and new ones are constantly being released. The implementation of most ideas requires impressive funding, which innovators are trying to attract at an early stage in various ways, including crowdsale.
Dildo
(Dildo) - this term refers to huge candles, more than 10%. Long rising (green) and falling (red) Japanese candlesticks in technical analysis. This word comes from the porn industry. Large growing candles on the chart, having a value of more than 10%, visually, according to the authors of this name for this phenomenon, it resembles the subject of a dildo.
Destination tag
(Тег призначення) – 6-9 digit number, has a unique look for each wallet. Destination tag - additional information for transactions, such as Ripple. It serves to identify the client on the exchange, since the recipient's address can be the same. Some exchanges do not request/provide the tag.
Dump
(Dump) – literally - "reset". That is, the sale of a significant amount of cryptocurrency at a low price, which leads to a sharp decrease in the price of the coin. An artificial depreciation of the cryptocurrency exchange rate, committed by major market players. They sell coins in large quantities, thereby creating an oversupply in the market. After the depreciation, they buy it back at a lower cost. The opposite of this concept is the concept «Pump». In stock trading of digital assets, such strategies are aimed at creating a panic decline in order to repurchase the discarded asset at a lower price. or sell at once (Dump) a huge amount of an asset in order to bring down the price. The distinctive characteristics of Dump are: organized by large players with a large cash reserve, behind this are the major players of the cryptocurrency market, that is, those who have millions of American currency in stock; last from a few days to 2-3 weeks; all the time they are heated by news, and – illogical; the currency on the dump abruptly and rapidly slides without anyor for obvious reasons.
DYOR
- abruptly and rapidly slides without anyor for obvious reasons. DYOR - "Do Your Own Research" – perhaps the most universal advice in trading cryptocurrencies and in the broader context of investment in general. DYOR suggests that financial decisions should be made only after traders use DYOR due diligence so that they can be sure that the process is not being driven by FUD, FOMO or some other act of spreading malicious or simply erroneous information. The only common feature of all successful traders is that they all spend time on DYOR.
Exchange Glass
(Stock glass) – the term "stock glass" comes from the English phrase "depth of market", which literally means "depth of the market". The glass looks like a table displaying orders for the purchase and sale of virtual coins. They contain information about the value and number of assets participating in the auction. Thanks to such a tool, market participants evaluate the value of supply and demand, analyze the liquidity of the instrument and decide whether to buy or sell cryptocurrency or not. The stock glass, in simple words, is a scheme with the display of orders for the acquisition (ask) and sale (bid) of assets. In the slang of experienced traders, the tool is often called a «bucket». It accumulates information about the price and number of assets. From the information received, the trader makes a conclusion about the level of demand or supply for a particular cryptocurrency. The stock glass is also used in technical analysis. The glass has the form of a table with information about future orders for the purchase or sale of virtual coins. To conduct a transaction, a trader creates an order on the selected platform by filling out an order. Next, the service selects the necessary offers with a course and volumes suitable for the trader's orders. According to the glass, you can judge the desire of players to trade a virtual coin at a specific rate. If there is a suitable offer to buy or sell, an operation is carried out, and the value of the asset is adjusted in the direction of the transaction. It is important to remember that if there is a sell order, the buyer is looking for options with the same or higher value. If there are no offers of interest, the order remains "hanging" in the glass until the transaction is completed or the applicant cancels the command.
FOMO
"Fear of missing out" –This is a unique event in the market that can have a striking positive effect on trading. Traders are so afraid to miss it that for many it has turned into a "Lost Profit Syndrome".It manifests itself in situations such as the early sale of cryptocurrencies due to fear of losing profits, buying at the maximum due to the feeling that you are missing something important, or the fear of missing the start of a promising ICO, which is why funds are invested in dubious projects. It is the fear of missing out on benefits that most often leads to the fact that profits are really lost. Getting rid of FOMO is difficult, but you can fight it. To do this, it is necessary to create a number of rules when trading on the stock exchange or choosing a project, as well as limits on possible allowable losses and profits. Ubiquitous social networks have contributed to the creation of this phenomenon, which was added to the Oxford English Dictionary in 2013 and represents an obsessive phobia of missing an interesting event or a good opportunity. There is also an opposite definition, which is called JOMO (Joy Of Missing Out) the joy of a missed opportunity.
Fork
- comes from the English word "Fork" – fork, or branch. It implies using the code base of a software project as a start for another one. In this case, the main project can either continue existence or terminate it. In the field of cryptocurrencies, this is a cryptocurrency that appeared as a result of a "branch" from another cryptocurrency using the same program code. This means a modification of the source code of the cryptocurrency, as a result of which a somewhat similar, but completely different coin appears. This is a change in the rules within the network of a certain cryptocurrency. The fork is considered an offshoot of the new blockchain chain from the main one. Any, even the most minimal change in the parameters of the cryptocurrency, is considered a fork. Most of the forks were made in the Bitcoin network, since it was and remains the foundation of the crypto industry. Basically, the forks were made by enthusiasts, to whom the original coin seemed imperfect. Someone was not satisfied with the block size, someone did not like the transaction speed, and someone was dissatisfied with the encryption algorithm. There are two types of cryptocurrency forks – Softfork and Hardfork. Softfork implies minor rule changes that do not require software updates. In addition, backward compatibility between the old and new rules is preserved, and interaction between nodes is preserved as well. Therefore, all computers do not need to instantly adopt new rules to continue working with cryptocurrency. These code changes are reversible. Hardfork is a more significant change in the rules under which the software is necessarily updated. Those computers (nodes, masternodes) that remain on the old version of the code stop receiving information from nodes that have switched to the new version. In 2016, the Ethereum hard fork took place, as a result of which two different chains appeared – Ethereum (ETH) and Ethereum Classic (ETC). The Litecoin cryptocurrency is actually a fork of Bitcoin, and then an independent cryptocurrency. An analogue is the Dash cryptocurrency, which originated as an idea to make Bitcoin anonymous, but it, in turn, is an altcoin, not a fork of Bitcoin.
FUD
- Fear, Uncertainty, and Doubt" – literally means "Fear, Uncertainty and Doubt." This term implies uncertainty in one's own decisions or in the correct assessment of the current situation. In some ways, the concept has something in common with FOMO, but it does not include a random component. When they talk about the fad in crypto trading, it means that someone is whipping up panic through forums, media, social networks in order to bring down the price of cryptocurrency and buy it cheap. This expression refers to the practice of bad actors who are trying in every way to bring down the price of a coin. FUD often takes the form of misinterpreted or even outright fake news to convince coin holders to sell their holdings.
Halving
– this term is translated from English as «halving» or implies «division by two». This is a decrease in the reward for miners for each new block they have mined in the blockchain network. With the onset of halving, the decrease in reward for each mined block is halved. Bitcoin developers programmatically laid halvings in the bitcoin network every 210 thousand blocks, that is, once every 4 years — until the moment when, with the extraction of 21 million coins (presumably in 2140), the issue of cryptocurrency will be completed. If at the beginning of bitcoin's history, miners could earn 50 BTC for adding a new block to the blockchain, then after the first halving, their remuneration was reduced to 25 BTC, and after the second – to 12.5 BTC. Since 2009, from the launch date of the first cryptocurrency, on the bitcoin network, halving has been carried out on November 28, 2012 and July 9, 2016. The next halving on the 630000 block can be expected in May 2020. It will reduce the reward to miners to 6.25 coins. Many believe that as a result of halving, Bitcoin mining will eventually become less profitable, and in the future it will not be profitable at all, and will be stopped. But, this is not quite true. After the reduction of the reward for the extracted block, the price for one Bitcoin coin should increase. In addition, the limited supply of bitcoin will create an additional incentive for the growth of its price. This is the main reason for halving – keeping inflation under control using an artificial deflationary model. If coins are created too quickly or their release is not limited, too many coins will appear in circulation and their value will gradually decrease. This is exactly what can be observed in the world of fiat currencies. If the bank increases the issue of currency while maintaining stable demand for it, then the value of the currency falls and vice versa.
Hamster
– these are gullible new players in the market. They are very trusting and inexperienced. They do not have the experience and knowledge to make their own and competent decisions, and are very malleable to someone else's opinion, as well as trusting of almost any point of view or forecast. Hamsters often repeat the same mistakes and are often susceptible to emotions. In the world of cryptocurrencies, there is a saying "cut hamsters", this concept is interpreted as profit on gullible players. Hamsters often suffer because of their own gullibility, as they are often leaked untruthful information, or are involved in "Pamp" and "Damp" schemes. While the value of the cryptocurrency was low, some unscrupulous traders are beginning to actively buy this type of cryptocurrency, spreading the rumor that this currency will soon begin to grow rapidly and at its peak, it will be profitable to sell it. And at the moment of hype, the demand for this cryptocurrency really begins to grow, albeit slightly. At the same time, whole platforms, forums, printed materials, articles, news and media are sometimes used to spread rumors, if there is such an opportunity. Most often, this kind of fraud is carried out by narrow groups of unscrupulous traders. Hamsters are beginning to succumb to influence and "stuff their cheeks" with a lot of coins, at an already growing price. As a rule, they do not start buying immediately, but at a time when the price will rise significantly and continue to grow. Fearing that they will not have time to buy such a promising asset, hamsters begin to buy almost at the peak of the maximum possible growth of this cryptocurrency in certain market conditions. Unscrupulous traders at this moment begin to actively sell cryptocurrency at an inflated price, which is so actively bought up by hamsters. On a significant difference in rates, gambling traders have a profit. After some time, the rate of the cryptocurrency that the hamsters bought will begin to actively fall, but they will think that this is a temporary phenomenon and will expect. However, with a stable fall, hamsters on emotions will simply sell the accumulated crypto in a fit of anger at the market price, while losing the difference. Dumpers at this point will again buy all the currency back at a low price. After a long time, confidently and gradually the state of the market will level off and the rate will return to its real level.
Hare
- traders who buy a lot of different cryptocurrencies and make a deal on small market fluctuations in a short period of time. This type of earnings is also called "scalping".By analogy with the behavior of a hare, traders make fast and many small jumps. Hares are the most active in the cryptocurrency market. They can receive small benefits both on the purchase and sale of digital assets. Again, by analogy with the hare, this type of traders always manage to bite into small transactions with each little bit, scrape themselves on a carrot.
Hashrate
– the unit of measurement is the computing power of the cryptocurrency mining equipment. During mining, computing equipment solves a huge number of mathematical problems, only after that you can get cryptocurrency. At the same time, all past transactions are stored in the public domain. Bitcoin miners select the desired hash from various combinations, which gives access to secret keys and to new operations. All this complex mathematical process requires a powerful special device that will help you find the right hash in the shortest possible time. Simply put, hashrate can be defined as the speed at which a graphics card (GPU) or ASICis running. If you compare with a car, then the more horsepower in the engine, the more powerful the car, and in mining, the more hashrate, the more coins.
Hodl
– the term means long-term investment or holding of an asset. The term «Hodl» appeared due to a typo by one trader. In December 2013, one of the bitcoin depositors, being emotional instead of the phrase «I am hodling». The trader meant that he would hold the coins no matter what. The crypto community "picked up" the typo, there were a lot of jokes on this topic on social networks. And later the term was developed and became an abbreviation of "Hold On for Dear Life" — to hold on as if it were vital. If a person says that he «hodles», it means that he believes in his token and will keep it, despite the jumps in the exchange rate. Thus, the concept has become synonymous with long-term investment in the world of cryptocurrencies.
ICO
(Айсіо) – is a form of attracting investments in the form of selling to investors a fixed number of new units of cryptocurrencies received by a one–time or accelerated issue. This term comes from the English words "Initial Coin Offering", the initial placement of a coin, which means the appearance of a new cryptocurrency on the exchange. ICO is a cryptocurrency crowdfunding, that is, raising funds for something on the side. ICO often involves projects that are somehow related to blockchain technology and cryptocurrency. Investors purchase a token (Token). for a fiat currency. The main task of the initiators of cryptocurrency crowdfunding is to sell as many tokens as possible. Rather, sell enough coins to develop project. Their real value remains uncertain until the project goes on the stock exchange.
Infinite Supply
– There are coins with an infinite supply, for example: Ethereum. The Circulating Supply of Ethereum is over one billion coins (ETH), and it does not have a Maximum Supply, hat is, the maximum supply is equal to infinity. This means that the coins of this cryptocurrency can be mined endlessly, and their value will be regulated by the features of the Ethereum platform itself, the specifics of Smart-contracts the amount of remuneration for the extracted block, the level of complexity of mining, the size of investments in this platform, as well as regulation and legislative norms regarding cryptocurrencies from states with the world's strongest economies.
Japanese Candles
– the amount of transactions made on one particular exchange within a certain time interval. Japanese candlesticks have been known to stock traders for several centuries, and for a long time there has not been a more convenient and generally accepted way to represent the price. Yes, of course, there are bars, lines and many other types of visual display, but it is candlesticks that have gained the greatest response and recognition among traders. And there are reasons for this: Japanese candlesticks are visual and informative, they allow you to accurately determine the price limits for the past time interval. Among other things, the chart of Japanese candlesticks is also a method of technical analysis, which is called «candle analysis».This type of cryptocurrency chart, which shows not only the current price, but the highest and lowest price for the period, as well as the opening and closing price of the timeframe. Japanese candles were invented by the rice merchant Homma Munehisa in the XVII century.
Lambo
– his statement, which has become the soil for many memes and humor on this topic, implies instant and sharp enrichment associated with a sharp jump in the cryptocurrency exchange rate. At the same time, the total amount of the difference between the cost of buying assets and the cost of selling them is so large that you can buy a Lamborghini car. If people mention the phrase "When is Lambo?", they mean the question – "When will they earn enough money to buy a Lamborghini?". Many cryptocurrency millionaires have started buying "Lamborghini". The increase in sales was reported by the manufacturer of sports cars. The peak of sales occurred in December 2017, when the price of Bitcoin reached its first ever record level, and amounted to almost 20 thousand dollars per coin. The Lamborghini car is an indicator of the status of crypto traders. Therefore, it is believed that in the case of a "tothemoon", you can buy a "lambo". The phrase and humor on this topic have become so popular that they even released a cryptocurrency with the same name "Lambo". At the same time, the authors were not even engaged in promotion – the popularity of the topic did its job. However, this project was considered speculative. Manufacturers of cars of the same name also decided not to stand aside and began selling their cars for cryptocurrency. For example: 35-year-old programmer Peter Saddington purchased a 2015 Lamborghini Huracan, worth $ 200,000, for just $115, which he once invested in Bitcoin. The emergence of this concept is due to the fact that often holders of cryptocurrencies get rich very quickly. By asking such a question, they mean whether it was really possible to make good money on cryptocurrencies.
Long
– a position that opens if the trader assumes that there will be an upward movement on the market. Usually long positions are opened by a trader if he believes in a project or cryptocurrency and believes that it will significantly increase in price over a long time. To long is to play for an increase, first there is a purchase and making a profit in the event that the price rises and then there is a sale.
Margin Trading
– trading using funds provided to the trader on credit secured by a specified amount - margin. Such trading in cryptoassets significantly increases the trader's deposit, his income, as well as the risks of losing everything very quickly. Compared to regular trading accounts, margin accounts give traders access to more funds, allowing them to use it in their positions. When trading cryptocurrencies, funds are often provided by other traders who earn interest based on market demand for margin funds. While there is little demand for this feature, some cryptocurrency exchanges provide loan facilities for their users. Cryptocurrency margin trading means buying digital assets with a larger amount of coins or tokens that you have available. This is possible thanks to the lending market, known as “leverage”, which also works for cryptocurrencies.
Market Cap
– in the cryptocurrency market, this indicator illustrates the dominance of coins. Market capitalization is determined by multiplying the total number of issued coins by the market value of one coin. The capitalization of the entire crypto-currency market already amounts to several tens of billions of dollars, and can compete with the capitalization of the world's leading top companies. The market capitalization of cryptocurrencies is the cumulative value of all virtual coins that are available to users. The capitalization of a digital currency can be calculated by multiplying the number of issued coins by the exchange rate. Thus, capitalization depends on the price and the number of coins. Cryptocurrency capitalization is one of the key indicators for investors. The higher it is, the less the virtual currency is subject to volatility. Therefore, in order to influence the value of BTC or Ethereum, it will be necessary to sign a series of transactions for multi-billion dollar amounts.
Maximum Supply
– is the maximum number of coins that a cryptocurrency will ever have. In other words, this is the maximum issue of the currency. When the number of coins reaches the maximum (Maximum Supply), then no more coins will be issued from the cryptocurrency, since they have already reached the maximum supply, that is, all coins will be in circulation. As an example, consider the very first cryptocurrency Bitcoin. The supply of bitcoin is 21 million coins. Around 2140, BTC is expected to reach its maximum supply. Bitcoin controls the supply and the block reward decreases every 4 years. It is expected that 99% of Bitcoins will be mined by 2032. And only the extraction of the last 1% will take 100 years. It should be understood that miners will not mine a coin if the mining reward is lower than the cost of mining coins. Accordingly, Bitcoin will never reach its maximum supply.
Mining
– The term "Mining" is usually associated with Bitcoin, one of the most popular cryptocurrencies. This concept refers to all varieties of digital currency, since it literally means “mining” (from the English. Mining - mining). A seemingly simple operation - running a computing program - can bring good profits without manual labor investments. In traditional financial systems, new banknotes are simply printed by national governments when they need it. But digital currencies appear differently. They are generated by computers, and this process is called mining. This is the generation of new coins, which is carried out in the process of performing mathematical calculations of hash functions for transactions by the nodes of the cryptocurrency network. Since there is no single center, large computing power is needed to ensure the speed of transactions and the stable operation of the peer-to-peer network. Mining is called the search for blocks using complex calculations. Blocks are like math puzzles. Video cards or ASICs must do thousands or even millions of operations per second to find the correct answers to solve the block. The work of the miners is to pick up a single hash from a huge number of combinations along the chain. This hash matches the secret key and new transactions. Thus, the miner can receive a reward in bitcoins for the work done. A large number of miners are involved in guessing the hash. After the hash is guessed, all transactions are closed and the miners start mining a new block. The mathematical model looks like this. Miners are looking for a hash consisting of the hash of the previous block, a random number, and the total sum of hashes over the past few minutes. Miners change the random number for one single purpose - it must meet all the conditions of the system.
Mining Farm
– mining farms are often also called "Crypto farm" - this is a whole system of computing equipment that mines cryptocurrency by finding blocks. In simple terms, mining farms are rooms with a large number of computers and servers that deal with mining tasks. When cryptocurrencies appeared, the complexity of calculations was low, the blocks were found quickly enough, and there were few people involved in mining. All these factors allowed anyone to mine cryptocurrency using only a regular home computer. So far, only 4 types of crypto farms are known: CPU farms - this type of farm was popular during the formation of the cryptocurrency sphere. At that moment, to extract a block, the power of a conventional processor was enough for calculations. Now this type of mining is practically in the past. There are practically no those who continue to mine the crypt, and only some of its types, of this type; GPU farms - on this type of farms, video cards are used for calculations. As it turned out, for the extraction of cryptocurrencies, some models of video cards outperform processors in speed by more than 100 times. At one time, this led to a sharp increase in the number of GPU farms. The advantage is that video cards allow you to mine many types of cryptocurrencies, and not just one specific coin; FPGA farms - this technology preceded the advent of ASIC- mining and was inferior to the latter in terms of energy consumption and efficiency. This is a fan matrix that is user-programmable. Such matrices had a huge problem - high heat transfer. That is why they have not received much distribution; ASIC-farms - appearanceASIC-farms, seriously changed the entire mining industry, as they performed their task an order of magnitude better than previous devices. However, their significant drawback is that they are set up only for the extraction of a certain crypt.
Moose
– this definition comes from the consonant English word "Loss", which means - loss. Those players who do not receive profit with particular frequency, but incur only losses, regularly “catch the moose”. Traders who regularly catch moose are also called deer.
Nocoiner
– this is the name of people who not only do not have cryptocurrencies, but who despise cryptocurrencies and their supporters. The term is used both for those who simply do not own coins, and those who emphasize their skeptical or negative attitude towards them, stating that this is another financial pyramid scheme. Also, these are people who missed their opportunity at one time to buy Bitcoin at a low price because they thought it was a scam or a financial pyramid, and now they are angry at everyone for missing the moment. Nocoiners also include people who take out their anger on the Bitcoin Hodlers, constantly claiming that Bitcoin will soon fall in price, that this is all a global scam, a financial bubble, or something similar to a financial pyramid. As a rule, nocoiners have very low computer skills, and often do not have at all. Nocoiners are practically devoid of the ability to think mathematically and the ability to foresee the future of the digital economy. They do not have financial literacy and do not use analytical data, spreading only rumors and inaccurate data. The typical nocoiner is not just skeptical or even pessimistic about cryptocurrencies, they demonstrate confidence that the collapse of the crypto industry is inevitable. Noukiner not only doubts the practical value of cryptocurrencies, he unequivocally declares that this value is zero, contrary to the facts and evidence to the contrary. There is also a subspecies of nocoiners who believe that cryptocurrencies are used only in criminal activities and exist only for money laundering.
Ostrich
– is an investor who does not react to critical situations or events that may affect investments. By analogy with the largest bird in the world and the legend that the ostrich hides its head in the sand - these investors prefer not to pay attention to changes in the market, and behave calmly. The ostrich effect is one in which investors bury their heads in the sand hoping for better days. Ostriches appear (or disappear) most often in bear markets, when people tend to experience the most financial stress. People have taken to burying their head in the sand as a symbol of ignoring the problem, just like ostrich traders pretending that nothing is happening.
OTC
- "Over the counter" – this term refers to over-the-counter trading carried out directly between clients and market makers. In this case, the seller and the buyer enter into a transaction directly with each other, usually with the assistance of third parties. For a long time, OTC trading has been an important tool in the traditional financial market, but in 2018 it has found wide order in the field of cryptocurrencies. Refers to a trading method that does not use an exchange service. In OTC trading, buyers and sellers themselves agree on an exchange rate for a specific currency and, often with the help of a trusted escrow, transact with each other directly. OTC trading is often found among teams that buy or sell cryptocurrencies to large private investors.
Pig
– this is the name of traders who are overly greedy and try to get the maximum benefit from the exchange rate difference, as a result of which they themselves suffer. They are called pigs not by analogy with an animal, but because the pig is a symbol of greed. Such traders hold the cryptocurrency at the time of its peak, although everything suggests that the rate is about to decline and it is better to sell the asset. Due to excessive greed, pigs often become "prey" to wolves and bears for the simple reason that the market can turn sharply and yesterday's profit becomes today's loss.
Pump
- literally - "pump". This refers to the pumping of cryptocurrency in order to increase its price in the market. This is deliberate market manipulation that occurs when large groups of investors buy a huge amount of an asset at the same time in order to drive prices up. This phenomenon existed in the stock market long before cryptocurrencies. The price of a certain cryptocurrency is artificially increased due to fake news and advertising. When the maximum is reached, the currency sells quickly(Dump) P&D groups who pre-purchased it in bulk. The price of cryptocurrency drops sharply, and scammers make a profit. In the securities market, such activities are punishable by law. The cryptocurrency market is predominantly unregulated, but some exchanges have themselves declared war on such groups.
Rekt
– this term has several versions of its origin. Some believe that the term is borrowed from the world of computer games. The official version is considered to be the deliberately distorted word "Wrecked", which means "crushed". Literally means the concept - defeated, defeated. Another version of the origin of this slang statement, which is that this is a distortion of the word "rectal" and literally means "I'm in the ass." The second option is closer to traders, although it is not an official interpretation. The concept implies a situation where a trader or investor has lost all their savings due to a collapse in prices. To receive a rect means to sell the crypt too sooner or later. In other words, to suffer losses by not coping with emotions.
Scam
– the name of projects that closed for various reasons. Most often, this term has a negative connotation and refers to scammers who spent ICO under false pretenses. Cryptocurrency scam is a project created to attract investments and terminate the fulfillment of obligations to its participants. The word "Scam" is of English origin and translates as "fraud". The term "Scam" is often used in relation to HYIP projects - these are special projects that promise high interest rates to investors, but, in fact, are financial pyramid schemes. It is precisely because of such phenomena that the sphere of cryptocurrency is often identified with financial pyramids, believing that the whole industry, in fact, is a pyramid scheme. But in Scam projects, payments to old participants are made at the expense of new investors. At a certain point, the creators disappear, and with them the money of gullible users and investors disappears. If the project ceases to fulfill its obligations to the participants, it is automatically considered a "scam". A similar type of fraud is relevant for ICO-projects that collect money from users for the initial placement of coins on the exchange. The site developers announce the cryptocurrency and offer investors to invest in it, and in the future to receive a rapid and stunning income, as well as a number of privileges. At the same time, many projects are never implemented, which automatically assigns them the status of "Scam". Considering what a scam is in cryptocurrency, one can answer unequivocally - this is fraud, deception of users.
Sheep
– Sheep are very timid and indecisive traders. In the cryptocurrency market, they decide to purchase a digital asset for a very long time, and then hesitate for just as long to sell it at a favorable rate in both cases. They are constantly unsure of the market and its signals, mindlessly following the crowd, by analogy with the animal, after which they are named, and then becoming either a bull or a bear, but are called sheep. When the market fluctuates strongly, the sheep lose their investment. This type of person simply listens to others for financial advice and often misses the most significant moves in the market. They can also be called lemmings for an analogy with the group actions of these animals. Lemmings are also found in the name of emotional players who give in to their fears or euphoria.
Shill
– the term denotes an exaggerated public approval of a coin. Market participants who have bought new tokens are interested in a "shilling" - an artificial hype around a new coin. In other words, they compulsively create the illusion of popularity by exaggerating the company's reputation or presenting other information, artificially promoting the project. Barker (shill) acts as a client. Often this is a whole team whose goal is to attract customers through advertising on social networks and other channels for the dissemination of information, knowingly fraudulent tokens or cryptocurrencies.
Shitcoin
– the literal meaning of this word means such a bad and cheap cryptocurrency that it is compared to manure. From the English word shit - shit, they are also low-cap (low capitalization - low capitalization). Cryptocurrencies with no value. This is the name of the coins offered by scammers. Also, this name is absolutely unclaimed and not interesting coins for traders. A derogatory term used to describe some mediocre altcoin that has become worthless. The value of Shitcoin may disappear, as interest in it was not realized either due to general disappointment, or due to the incompetence of the project team, or because of the banal scam of the project.
Short
– A position that is opened if the trader expects the market to fall. A short order assumes that the trader borrows tokens from the exchange, sells them, and when the chart reaches a low point, buys this currency and returns it to the exchange. The difference between the sale price, which is higher, and the purchase price, which is lower, the trader keeps for himself - this is his profit. Shorting means holding a short position because first there is a sale, and then they buy it back at a low price while making a profit.
Smart-contracts
– a smart contract is an electronic protocol written using a computer code. Its purpose is to transfer information and ensure that both parties fulfill the terms of the contract. One of the key features of Smart contracts is the ability to securely exchange money, shares, property and other assets directly, without the participation of intermediaries. In a simplified form, this is somewhat similar to online purchases using transit accounts, when the sender of the goods does not receive money until you pick it up and confirm receipt, and vice versa - if you do not pick it up, then these funds will be recovered penalty and shipping costs. Smart contracts operate in a similar way, but with more conditions. This is a program that monitors the fulfillment of the obligations of both parties prescribed in the contract, and also automatically collects fines for violation or non-compliance with the terms of the transaction. Smart contracts ensure the security of the transaction and are free from the risk of ambiguous interpretation of the conditions due to the fact that they are based on cryptography. For smart contracts, the Ethereum cryptocurrency (Ethereum) is used as payment for transactions. This is not just a cryptocurrency, it is a platform that allows you to create other blockchain orders on it. The Ethereum platform uses a currency called Ether (ETH), which serves as a means of payment for transactions. The Ethereum blockchain works in the same way as the Bitcoin blockchain - a network of computers runs special software that allows you to verify transactions on its network. However, Ethereum here acts more as a drive than a regular cryptocurrency. Ether is required to run smart contracts and orders on the Ethereum blockchain.
To the moon
- the concept of "To the moon" or as it is also voiced by "Tuzemun", means a sharp rise in the value of the cryptocurrency. This value appeared in 2017, during the cryptocurrency fever. At that time, the cost of new cryptocurrencies really skyrocketed. Every major coin experiences this flight sooner or later, and some of them do it repeatedly. Flying to the moon is loved by all market participants, since all cryptocurrency holders benefit, however, this phenomenon occurs very rarely, and therefore, cryptocurrency holders who have just invested in one or another cryptocurrency mentally say “To the moon”. It should be noted that this phenomenon is a painstaking and protracted process, and the price increase occurs sharply, rapidly and for a long time, like the flight to the moon itself.
Token
– An analogue of shares for cryptocurrencies, before they are held ICO. The generalized name of any digital record in the blockchain, which is a unit of measure for any asset digitized in the existing blockchain. Cryptocurrency tokens are certain assets, a kind of monetary counterpart, a value that reflects participation in a project, proof of ownership, or any other significant aspects. Sometimes they are used to finance a company, in turn, the use of other tokens in cryptocurrency is the creation of an analogue of shares. Owning tokens does not provide an opportunity to participate in project management. A token is a mandatory aspect of any ICO. Tokens are an internal asset ICO (проекту). Such an analogue of the company's shares (future cryptocurrency). The tokens are intended to allow you to participate in the project that will eventually be launched as a result of the crowdsale. Depending on what services the project offers, the token will serve as a kind of ticket to access these services. As soon as ICO will end and the project will go public - the token will turn out to be a "universal payment instrument". In this case, it can be easily sold for cryptocurrency. main stage ICO, the initial coin offering, is also called a crowdsale or tokensale (sale of tokens).
Wallet
– a software order that allows you to make a transaction from a given address and view its balance. In other words, this is a software implementation of a physical wallet in which funds are stored, expressed in digital assets. A cryptocurrency wallet is a tool that you can use to interact with the blockchain network. All wallets in the world of cryptocurrencies are divided into only two types - cold and hot. A hot wallet is a set of software tools placed in an account of a certain service or exchange, the funds from which can be spent at any time. This wallet is constantly connected to the internet because it maintains an active connection to the internet and it only works when there is a permanent internet connection. Both online wallets and wallets of cryptocurrency exchanges or payment systems are considered hot. A cold wallet for cryptocurrencies is primarily a package of tools in a USB drive that can be used to store information that is needed to access cryptocurrencies that do not require a permanent Internet connection. A "cold" wallet works in exactly the opposite way to a "hot" one. It is not designed to send cryptocurrencies on a regular basis, however, funds can be received at any time. A cold wallet does not have a direct connection to the internet as it is used to store cryptocurrencies offline. If the wallet does not have an Internet connection, attackers will not be able to steal funds from it, this is possible only with direct physical access to the storage medium with the wallet. A “hot” wallet, on the contrary, remains vulnerable to attacks by intruders, so it is recommended to store the minimum required amounts in it. Although you can use both wallets to receive funds, it is recommended to rely on a hot wallet. After confirming the transaction, money from the hot wallet can be immediately transferred to the cold one. Users leave a small amount of cryptocurrency in the hot wallet for current expenses. Everything else is stored in a cold wallet, accessed only when needed. Simply put, a hot wallet is more like a checking account, while a cold wallet is more like a savings account. Power users store most of their cryptocurrencies in a secure offline cold wallet and spend them with a hot wallet. "Hot" wallets, as a rule, work on the same principle, but "cold" wallets are divided into the following groups: Software wallet - a program that is installed directly on a computer; Mobile wallet - allows you to conduct transactions using your phone. The mobile phone itself supports cold storage media; Hardware wallet - has a small size and a built-in display. The device is very similar to a hybrid of a flash drive and an MP3 player; Paper wallet - involves the storage of cryptocurrency through a printed key and address on paper. The funds are outside the Internet, which protects them from outside interference. Maybe in the form of a QR code.
Weak Hands
– this is the name of those who cannot withstand the depreciation of the value of the cryptocurrency on the market and begins to actively sell it. This is a phenomenon among cryptocurrency owners who are prone to panic during a slight or rapid fall in the value of the crypt. Similar to trembling hands, crypto holders often get nervous and sell as soon as there are signs of a price decline. This does not always lead to a loss of profit, since they are often purchased at a lower price, which only further fuels the fear that the value of a digital asset will again drop to its previous level, which will exclude the possibility of getting the coveted difference. For trembling hands, there are not many signs that are inherent in other terms, there is only one - if the rate drops even a little, then you need to sell.
Whale
(Whale) – these are the legendary participants in the cryptocurrency market, on whose interventions it is customary to write off all inexplicable situations on the exchanges. There are very few whales, but each of them is so rich and owns so much cryptocurrency that they are able to almost single-handedly turn the cryptocurrency market in the direction it needs. This is a large crypto trader or a group of traders who are able to influence the market situation. Therefore, when the price starts to drop or rise sharply for no apparent reason, it is most often said that the whales are manipulating the market.
Wolf
– experienced and prudent traders. Most of their trades are profitable. Wolves are well aware of all the inhabitants of the cryptocurrency market, since they have been on it for a very long time. They often take advantage of the weaknesses of others for personal gain. The wolf on the exchange is a player with great experience, knowledge and self-confidence, whose transactions almost never fail. These types of traders are almost always confident in the correctness of their decisions, and even when they are not, they simply sit out losses and still sell crypto at a bargain price.