Ever been stuck in between a group of crypto enthusiasts and wondered what they are talking about and what are the constant weird terms they are mentioning here? If yes, then you have come to the right place to learn more about these unfamiliar cryptocurrency terms that could eventually become famous in the coming years.
In one way or the other, bitcoin is making headlines every day. More and more investors are crowding the cryptocurrency sphere with the hope to reap big benefits. Besides, big corporations are also lining up to both invest and accept bitcoins. All these trends represent the growing domination of cryptocurrency in the digital world. Unfortunately, despite the market hype, only crypto enthusiasts are very familiar with many cryptocurrency terms.
Commoners feel intimidated towards unfamiliar cryptocurrency terms and neglect to learn and understand them. But one thing they should keep in mind is that they can’t trade bitcoin to its fullest if they walk away from learning the core aspects of the digital currency market. Cryptocurrency terms come either from computer programming or slang and words originated from crypto communities. Therefore, even if you are not tech-savvy, you can still have a glance at such cryptocurrency terminologies and try to remember them for a better trading experience. Although some cryptocurrency terms might sound difficult to understand, they carry simple meanings. IndustryWired has listed the top unfamiliar cryptocurrency terms that everybody should know in 2021.
The Most Unfamiliar Cryptocurrency Terms
Cryptocurrency gained popularity over its unregulated and decentralized nature, which is not bound to any government regulations. But without rules, it is critical to maintaining trading movements. Therefore, distributed ledger acts as a commonplace to store data related to a network of decentralized nodes. Besides, the distributed ledger makes it hard for attackers to crack down the network and makes it more immutable.
Solana is becoming the frontier of blockchain networks. With a block time of 400 milliseconds and transaction fees less than US$0.01, this token is almost a revolution. Since its debut, Solana has jumped to the seventh spot among the world’s top 10 largest virtual coins. Crypto enthusiasts have an optimistic view that blockchain could become the long-term competitor to Ethereum.
The fork represents the split of the blockchain. The blockchain split creates an alternative version of blockchain and helps both the blockchains to run simultaneously. It happens when blockchain undergoes a radical change in blockchain code and later divides its potential coding paths. As a result, blockchain users will have to show support for one chain over the other. A famous example of fork is Bitcoin Cash’s split from bitcoin.
Oftentimes, bitcoin and other cryptocurrency assets are stored on online wallets, making them vulnerable to rare attacks. But Cold Wallets come as a handy solution. Cold Wallets, also called hardware wallets or offline wallets, stores cryptocurrency assets offline. Since it is not connected to the internet, it encrypts itself from hacks. The exact opposite of a cold wallet is a hot wallet.
Metaverse denotes the shared virtual environment on the web. The Covid-19 pandemic has incited crypto enthusiasts to look for disruptive trends like Metaverse. The term is a collation of ‘Meta,’ meaning beyond, and ‘universe.’ Metaverse represents a shared virtual network where everything can be bought and sold. Even things like land, buildings, vehicles, and names can be traded, often using cryptocurrency. It covers a plethora of concepts like a virtual office, tools to games, etc. People can engage with their friends, visit a building, or buy and sell services in the virtual environment.
Arbitrage refers to one of the tactics that crypto investors use to gain profit. They take advantage of the price difference between two crypto trading platforms and make money from it. For instance, if a bitcoin is sold for US$49,950 at one exchange and US$50,000 at the other, a trader can buy it for the minimum cost and sell it at the other platform for the maximum rate. It provides a modest profit to investors.
FOMO, or Fear of Missing Out, is a common feeling of warning to enter the crypto market before the price could shoot up. Many are experiencing FOMO recently as the bitcoin price is reaching new heights, making them regret their decision to leave out the bull ride.