The cryptocurrency ecosystem is young, dynamic, exciting and very lucrative. Any aspect of the world- be it the currencies themselves (Bitcoin) or the technology (Blockchain) already enjoy market caps to the tune of hundreds of billions of dollars.
Even though many feel that this ecosystem is dominated by the young tech nerds (and they might be right), there are other important and mature players getting to the action. Seasoned investors from Wall Street, high flying corporates as well your normal retail investor is trying to get a piece of the crypto pie.
While many people are aware of what Bitcoin and Blockchain broadly mean, very few know about the details. The purpose of this article is to make people aware of some of the top terms in the world of cryptocurrencies.
Top 5 Crypto Lingo, which you should know: The List
If you have ever visited any Bitcoin forum, you might have come across this term. HODL is an abbreviation for ‘Hold Onto Dear Life’ which is very closely linked with the nature of Bitcoin’s volatility. It refers to a policy of investors, which asks them to brace for stability.
Many feel that HODL came into being when a drunk user did a typo on the word ‘HOLD’. However, the term has stuck and become common parlance for a period when Bitcoin’s value experiences sharp swings.
When Satoshi Nakamoto first created Bitcoin, it was the first cryptocurrency in the world. In the past twelve years, there have been numerous other cryptocurrencies spun from the same technology. All these cryptocurrencies, which are not Bitcoins, are called Altcoins.
Ethereum, Litecoin, Bitcoin Cash, Chainlink, are some of the popular Altcoins. Some of them are decentralized, and may or may not run on their own Blockchain technology. They also hold value, which is far less than that of Bitcoin. Cumulatively they comprise of just 30% of the total cryptocurrency market.
3.Bull Run and Bear Run
These two terms are common to the stocks and share-trading world. A Bull Run or feeling bullish is characterized by an asset rise valuation. For example, when the stock market keeps rising, you know that you are in the middle of a Bull Run. This is very similar to the rise in the valuation of Bitcoin. When Bitcoin rises, the investors start feeling bullish!
You might have guessed what a Bear Run means by now. It refers to a situation where the market is going to experience a severe downturn. Falling stocks and falling prices of Bitcoin characterize a bear run.
As the term suggests, ‘Whales’ stand for some of the biggest investors in the cryptocurrency universe. These investors often own and command hundreds if not thousands of Bitcoins, with valuation ranging from millions to billions of dollars.
If you want to know about some of the Whales in the crypto ecosystem, you might be familiar with some names. Cameron and Tyler Winklevoss, Michael Novogratz, Paul Tudor Jones are some of the biggest names who are speculated to own thousands of Bitcoins in existence.
Many people criticize Bitcoin for the simple reason that it is not based on any physical asset. Some even go into say that; the valuation is based out of thin air. To counter this, many have started advocating for ‘Stablecoins’.
The value of Stablecoins is based on some physical asset. This can be gold or the corresponding currency. Many Stablecoins are backed by the value, which is equivalent to one dollar. Stablecoins are intended to provide all the advantages of cryptocurrencies, minus the negatives.
The Final Word
The crypto ecosystem is booming like never before. With market valuations skyrocketing, more and more people are turning to crypto trading platforms, read here how cryptocurrencies powering the startup.