A Quick Overview on Crypto Basics

Written by Sushanth Kumar Reddy Kura | Published 4 months ago | 4 min read

   


Now that Crypto is booming, a lot of newbies are entering this space. So if you are new to this crypto and bitcoin world, there are few terms that you need to be aware of before starting your crypto journey. Here is a quick overview on a few crypto terminologies that everyone needs to know.


1. FOMO

FOMO stands for Fear Of Missing Out. It is basically the feeling that you get when you see a big green candle on the price chart of a coin that you don’t have in your portfolio. So, people in this situation often tend to freak out and buy the pumped coin in hurry.


2. FUD

FUD stands for Fear Uncertainty and Doubt. When someone spreads negative news about a certain coin or whole market, it is called FUD. This usually makes the way for a big sell-off, leading to a coin/token crash or entire market crash


3. ATH AND BTFD

ATH stands for All Time High. It basically represents the highest historical price of a specific coin. BTFD stands for Buy The F***ing Dip. When people are selling because of fear that's the perfect time to buy ☺


4. Shill

Shilling is an activity of endorsing a coin heavily in the public. Traders/investors who bought a coin usually have an interest in shilling it. They do it to ignite the public interest in that particular coin in a hope that the coin’s price will increase.


5. Soft Fork

It is the change of a set of rules or protocol in a cryptocurrency that is backward compatible. As it is backward compatible even the non-updated nodes can still process the transactions and push the blocks into the blockchain. For example: If a new rule changed the block size from 3MB to 2MB even then the non-updated nodes can still push the blocks with size 2MB or less.


6. Hard Fork

It is the change of a set of rules or protocol in a cryptocurrency that is not backward compatible with the previous versions. As it is not backward compatible non-updated nodes cannot process the transactions or push the blocks into the blockchain. Hard Forks can be used to change or improve an existing protocol or even create a new protocol and blockchain.


7. Distributed Ledger

It is basically a way of recording information that is distributed among different nodes or devices. This eliminates 'single point of failure attack'  i.e. even if one node fails data can be retrieved from other nodes. Blockchain is also a distributed ledger that as we all know was created to keep the track of bitcoin transactions.


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