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Home Blockchain & Crypto

Crypto Terms You should know before entering

idigital news by idigital news
February 14, 2022 - Updated on October 4, 2022
Reading Time: 2 mins read

This post is also available in: Burmese

More people keep entering into crypto world. Most of them are holding their hope that they will become a millionaire in the near future by trading cryptocurrency. For the beginners, some cryto terms may be a little strange for them. Here we go.

HODL

It means “Holding for Dear Life”, although the term comes from a user’s typo in a bitcoin forum in 2013. It refers to a passive investment strategy where people buy and hold. cryptocurrency – the place of its sale – in the hope that its value will grow.

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Blockchain

Digital form of records and technologies behind cryptocurrencies. The blockchain is the result of a set of blocks that succeed each other to form (along with other data) a permanent and immutable transaction desk.

Market Capitalization

Also known as Market Cap. It means the total value of all coins mined. You can calculate crypto market cap by multiplying the current number of coins by the current value of the coins.

Decentralization

The principle of power distribution from a central point. Blockchains are traditionally decentralized because they require more permission from all users to operate and make changes, rather than a central authority.

DeFi

Short form of Decentralized Finance. Financial activities performed without the involvement of an intermediary, such as a bank, government or other financial institution.

Stablecoin or Digital Fiat

A stable coin is backed its value with another non-digital currency or product. (Example: Tether, is backed with US dollars)

Rug Pull

Rug Pull is a malicious operation in the cryptocurrency industry where crypto developers abandon their projects and run away with investor money. Some rug pulled coins are baby musk and Squid Game Token.

Tags: bitcoinblockchaincryptocurrency
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