Looking for a site to understand what cryptocurrencies are? Or whatthey mean? Or have you been wondering why Cryptocurrencies have gained so much popularity over the past few years? Then, you are at the right place at the right time.
Well, before diving straight into what CRYPTOCURRENCIES mean, we would like to know what the term money means and its characteristics.
Money, as we all know, is the major facilitator of exchange. In simple terms, it brings about the buying and selling of goods and services, in this modern world.
CHARACTERISTICS OF MONEY.
Enough people must have it,
Merchants, traders must accept it as a form of payment or legal tender,
Society must believe that it is valuable and will remain valuable in the future.
Just to mention a few of its peculiarities.
Now having known this, cryptocurrency will be easily understood.
WHAT IS CRYPTOCURRENCY?
The term cryptocurrency come from the cryptographic processes that developers have put in place to guard against fraud. Cryptocurrencies are known as ‘digital-money’ or ‘digital-assets. They are created by powerful computer networking software, solving complex problems, that enables security for trading and ownership of currencies, usually through the process of MINING. Mining is the most common way through which cryptocurrencies are created.
Bitcoin remained the only cryptocurrency until 2011 when groups of people decided to create alternative coins popularly known as ALTCOINS. Bitcoins and other cryptocurrencies are supported by a technology known as the BLOCKCHAIN. Blockchain continuously maintains clean records of transactions and tracks its owner. Public Blockchains are usually decentralized, which means they operate without a central authority such as a bank or government.
Individual units of cryptocurrencies can be referred to as coins or tokens, depending on how they are used. Some are intended to be units of exchange for goods and services, others are stores of value, and some are mostly designed to help run computer networks that carry out more complex financial transactions.
Cryptocurrencies on the larger scale are easily gotten through purchasing, usually from a company, individual or an exchanging platform.
TERMINOLOGIES USED IN CRYPTOCURRENCY
ALTCOIN = Any cryptocurrency other than bitcoin.
ASHDRAKED = A situation where you lost all your money.
BAGHOLDER = A person who buys and hold coins in large quantity hoping to make good profits in the future.
BEAR/BEARISH = Negative price movement
BTFD = Buy The Fucking Dip (an indication to buy a coin when it has been dumped so hard)
BULL/BULLISH = Positive price movement
DUMP = To Sell off a coin
DUMPING = Downward price movement
DYOR = Do Your Research
FA = Fundamental Analysis
FOMO = Fear Of Missing Out (A coin is pumping and you get the feeling it’s gonna pump more, so you buy high)
FUD = Fear Uncertainty & Doubt
HODL = Hold/Hold a position
JOMO = Joy Of Missing Out
LONG = Margin bull position
MCAP = Market Capitalization
MOON = Continuous upward movement of price
OTC = Over The Counter
PUMP = Upward price movement
SAJ #CANDLE = Huge green candle
SHITCOIN = A coin with no potential value or use
SHORT = Margin bear position
SWING = Zig zag price movement (Upwards and downwards)
TA = Technical Analysis
REKT = When you have a bad loss
REVERSE INDICATOR = Someone who is always wrong predicting price movements.
RSI = Relative Strength Index
WHALE = Very Wealthy trader/Market movement
Above are common terms used in cryptocurrency.
TYPES OF CRYPTOCURRENCIES OR ALTCOINS (COINS APART FROM BITCOIN)
Generally, the numerous types of cryptocurrencies are grouped under two major types which are:
Coins; which normally include Bitcoins and Altcoins.
Tokens; which simply mean programmable assets that live within the blockchain of a given platform.
Now let’s talk about the most common types of cryptocurrencies. For now, 5 widely used and most common types of crypto would be discussed.
As earlier mentioned, Bitcoin was the first-ever made cryptocurrency, and remain the only one until 2011 when other altcoins were made. Bitcoin was created in 2009 by a person or possibly a group of people, which goes by a fictitious name – Satoshi Nakamoto.
Bitcoin was designed to be independent of any government or central bank. Instead, it relies on blockchain technology, a decentralized public ledger that contains a digital record of every Bitcoin transaction.
Bitcoin currently, is the largest digital currency, whose market price is currently about $43,800 and its market capitalization is approximately $832,879,493,000.
Ethereum is a non-bitcoin cryptocurrency which implies that it is an altcoin. Ethereum, also known as Ether, launched in 2015, is currently the second-largest digital currency by market capitalization after Bitcoin, whose market price is currently about $2900 and its market capitalization is approximately $352,958,150,800.
The system allows you to use ether (the currency) to perform several functions, but the smart contract aspect of Ethereum helps make it a popular currency.
Litecoin also a non-bitcoin cryptocurrency was launched in 2011 and was created by Charlie Lee. Litecoin offers faster transaction confirmation.
It is also one of the fastest-growing altcoins created after the order of Bitcoin. Litecoins market price is currently at $112 and its market capitalization is approximately $7,832,367,218.
4. CARDANO (ADA)
Cardano was co-founded by Charles Hoskinson, who was one of the mathematicians who created Cardano. He was also one of the early founding members of Ethereum though, he left along the line owing to some disagreement concerning Ethereum’s direction.
Cardano which is one of the most ambitious upcoming coins aims to provide solutions to some of the impending problems such as legal contract tracing, voter fraud to mention a few.
Cardano trades currently at 1 ADA for about $0.9722 and its market capitalization is at $32,687,469,613
5. TETHER (USDT)
Tether also was one of the first coins that were known as a “stable coin” whose value is pegged to fiat currency- the U.S. dollar.
Tether was also created to provide transparency, faster transactions/lower exchange charges (gas fee). During the early months of 2021, tether was used in trading Bitcoin.
Tether roughly maintains the same value as the U.S. dollar. Tether was launched in 2014 and currently has a market capitalization of $79,597,436,085.
The cryptocurrency market is a highly volatile market and extremely risky for beginners. The market has gotten its attention by speculators and merchants. It has provided an alternative currency for the less developed countries and has opened the doors of economic transformation.The above is not sufficient knowledge for a beginner to dabble into the market. Subsequently, there would be latest news on what coin to buy, and other cryptocurrency based knowledge. Do well to subscribe to this blog.