Beginner’s guide (Part 1)
We present the first part of this quick guide for beginners so you can have a slight idea of which are the most used words in the world of digital currency investments.
These are the basic words to keep in mind:
What is Blockchain?
Blockchain technology is a data storage base where information is recorded, using a shared and unmodifiable ledger.
Its main characteristics being security, speed, decentralization, immutability and traceability.
What is Bitcoin Halving?
The Bitcoin halving is an event that occurs approximately every four years, and which reduces by half the reward that miners receive for generating blocks on the Blockchain.
By generating fewer blocks, miners mean that there is less Bitcoin in the market, which increases the demand for this cryptocurrency.
What is the difference between a cryptocurrency and a token?
Cryptocurrencies and tokens are digital currencies integrated within Blockchain technology.
The main difference is that cryptocurrencies have their own Blockhain and operate within it, while tokens use the blockchain of the cryptocurrencies that exist in the market.
Altcoin.
An altcoin is an alternative cryptocurrency to Bitcoin, so any digital currency other than Bitcoin is considered an Altcoin.
The term altcoin comes from “alternative” and “coin”
Shistcoin.
The term shitcoin refers to a digital currency that has little or no value. These digital currencies are characterized by their short-term price increase, followed by a large drop in price.
These types of investments are usually not good, and the vast majority of the time the money invested is lost.
What is the ATH of a digital currency?
The ATH is the acronym for “All Time High”, which means that it is the highest price that that digital currency has reached in its history.
When a coin exceeds its previous maximum price, we would find ourselves facing a new ATH.
White paper.
A whitepaper is a technical document that shows detailed information about a specific project.
This document specifies the objectives of the project, who the team members are, the details of the distribution of its token and the economics of the project, a detailed description of the problems it solves, information on the roadmap and possible cases. of use.
What is fomo?
FOMO is an acronym that comes from the English expression “Fear Off Missing Out”, which in Spanish means “fear of missing out.”
The person who has FOMO has the feeling that they may be missing something, which causes them to make decisions without having thought about them much and in a compulsive manner.
Which can cause you to make bad investments.
What is fud?
FUD is an acronym that means “Fear, uncertainty, Doubt”
It is used in different contexts such as politics, marketing and financial markets to create a strategy that generates negative emotions in people.
In the world of cryptocurrencies, FUD is generated through negative rumors or fake news, with the goal that the investor sells their assets and the price falls.
Swap.
In the world of cryptocurrencies, the Swap is the exchange of one digital currency for another, without the need to go through a fiduciary currency, such as the dollar or the euro. Which allows these currencies to be exchanged quickly and easily.
Dyor
The meaning of DYOR means “Do Your Own Research.” It is a phrase widely used by some people to tell new investors that they have to do the research on cryptocurrency projects themselves before investing in them.
To the moon.
The expression of to the moon is usually made when investors have hope and high expectations that the price of a cryptocurrency will increase considerably.
Whales.
Whales are all those investors who own a large amount of a certain digital asset, being able to significantly influence the price, both when selling and buying.
Portfolio.
Cryptocurrency portfolio refers to the set of cryptocurrencies that an investor owns.
HODL
The word HODL is said when an investor buys a cryptocurrency and makes the decision to hold it for the long term, hoping that its value will increase over that period of time.
