10 Crypto terms explained in an easy to understand way!

If you are a new to crypto, I’m sure certain words would leave you scratching your head, some might even frustrate you. This short article seeks to explain some terms I use often in my analysis of tokens and coins, in the simplest of way possible. If you are a total newbie, we have a detailed newbie page dedicated to crypto beginners.

Coin

A coin is a store of digital value that exists on a and blockchain or  cryptocurrency network. Some cryptocurrencies  share the same name for both the network and the coin. Take for example, Bitcoin. Others may have different names for each, like the Ethereum blockchain, which has a native coin called ether. 

Token

The word token is one of the most popular words in the industry.  It has a broad meaning as many people use it, as a matter of context. I don’t want to further bombard you with double meanings of words. So, I’d define it by it most common use case.

Tokens are  cryptoassets or cryptocurrencies that run on top of another cryptocurrency’s blockchain. You’ll encounter this usage if you become interested in decentralized finance (or DeFi). While a cryptocurrency like Bitcoin has its own dedicated blockchain, DeFi tokens like Dai and ENJ run on top of, or leverage, an existing blockchain, most commonly Ethereum and recent Binance blockchain.

White paper

white paper is an informational document usually issued by a company or not-for-profit organization to promote or highlight the features of a solution, product, or service that it offers or plans to offer.

Market Cap

Crypto market capitalization is the total value of a cryptocurrency. Crypto market capitalization is calculated by multiplying the price of the cryptocurrency by the number of coins in circulation.

Liquidity pool 

A liquidity pool is simply the amount of cryptocurrencies locked into a smart contract by it developers to enable investors or traders trade the assets on a decentralized exchange (DEX).


Click here to know the 40 most used terms in crypto


Tokenomics

The word ‘tokenomics’ is a portmanteau, made up of two words: token and economics. Therefore, tokenomics is basically token economics or crypto economics. It is the study of the economics of a particular crypto token – from its qualities to its distribution and production.

Pump and Dump

A pump and dump is a  scam usually involving crypto. Scammers create false hype about a stock in order to generate interest. Once investors start buying shares, the price of the stock goes up. When the price reaches a certain point, the scammers behind the fake hype sell all of their shares.

Rug pull

A “rug pull” in cryptocurrency circles, occurs when a token’s creators abandon the project by exchanging many virtual coins for real-world cash.

Source: Reddit.com

Shilling

Shilling is the advertising of a cryptocurrency by someone with either status or reputation or someone who is trying to promote a project. — A shill will want to draw attention to the project so that investors flood to the cryptocurrency, raising the demand and spiking the price.

Honeypot

A honeypot is a smart contract that pretends to leak its funds to an arbitrary user (victim), provided that the user sends additional funds to it. However, the funds provided by the user will be trapped and at most the honeypot creator (attacker) will be able to retrieve them.

Click here to read more token reviews

1 Comment

  1. Hi!
    I’m an expert in web development.
    Web development is a fair capacity for doing an assignment as an agent and besides helpful for dealing with your own liabilities later on. generally, web development is a specialized expertise. numerous huge associations need a web engineer for staying aware of our business.
    I make a Site shakeelmumtaz, where you can discover with respect to web development.

64 Trackbacks / Pingbacks

  1. VikingSwap Token: legit or Scam. Do your due diligence. - knowledgegapexpert
  2. Chihuahua Token: legit or Scam. Do your due diligence. - knowledgegapexpert
  3. Coin of nature Token: legit or Scam. Do your due diligence. - knowledgegapexpert
  4. Doge Floki Coin: Legit or Scam. Do your due diligence. - knowledgegapexpert
  5. BuffedShiba ($BSHIB): Legit or Scam? Do your due diligence. - knowledgegapexpert
  6. Mononoke Inu (Menonoke-Inu) Review:Legit or Scam - knowledgegapexpert
  7. KLEEKAI ($KLEE) TOKEN REVIEW: SCAM OR LEGIT - knowledgegapexpert
  8. Gogeta Inu review: Legit or Scam? Do your due diligence - knowledgegapexpert
  9. TheMarsShiba Token Review: Legit or Scam. Do Your Due Diligence. - knowledgegapexpert
  10. Kishimoto inu token review: Legit or ScamDo your Due Diligence - knowledgegapexpert
  11. Wakanda Inu review: Legit or Scam? Do your due diligence - knowledgegapexpert
  12. Elonomics: Legit or Scam? Doing Due Diligence. - knowledgegapexpert
  13. Little Rabbit Token Review: Legit or Scam? Do your Due Diligence. - knowledgegapexpert
  14. Kishi Inu Token Review: Legit or Scam? Do your Due Diligence - knowledgegapexpert
  15. Catecoin Token Review:Legit or Scam? Do your Due Diligence. - knowledgegapexpert
  16. Uniswap Finance Review: Legit or Scam - knowledgegapexpert
  17. GreenMoonZilla Review: Scam or Legit? - knowledgegapexpert
  18. Uplink Review : Legit or Scam? - knowledgegapexpert
  19. AngrySquid Review : Legit or Scam? - knowledgegapexpert
  20. Freiza Inu Review : Legit or Scam? - knowledgegapexpert
  21. Kodi Token Review : Legit or Scam - knowledgegapexpert
  22. EVDC Token Review : Legit or Scam? - knowledgegapexpert
  23. RichQuack Review : Legit or Scam? - knowledgegapexpert
  24. META Review : Legit or Scam? - knowledgegapexpert
  25. Goku Inu Review : Legit or Scam? - knowledgegapexpert
  26. DogeZilla Review: Legit or Scam? - knowledgegapexpert
  27. Scientia Coin Review : Legit or Scam? - knowledgegapexpert
  28. Luffy Inu Token Review : Legit or Scam? - knowledgegapexpert
  29. Bezoge Earth Review: Legit or Scam? - knowledgegapexpert
  30. Solar Energy Coin Review : Legit or Scam - knowledgegapexpert
  31. MarsSpaceX Token Review: Legit or Scam - knowledgegapexpert
  32. King Floki Review: Legit or Scam? - knowledgegapexpert
  33. Squid Moon Token Review: Legit or Scam? - knowledgegapexpert
  34. Wolverinu Review : Legit or Scam? - knowledgegapexpert
  35. Tails Coin Review: Legit or Scam - knowledgegapexpert
  36. Shiryo Inu Token Review: Legit or Scam. - knowledgegapexpert
  37. Rainbow Token: Legit or Scam? - knowledgegapexpert
  38. MetaPets Coin Review : Legit or Scam? - knowledgegapexpert
  39. Vibe Token Review : Legit or Scam? - knowledgegapexpert
  40. MicroPets Review: Legit or Scam? - knowledgegapexpert
  41. Satoshistreetbets Token Review: Legit or Scam? - knowledgegapexpert
  42. Nevada Coin Review: Legit or Scam? - knowledgegapexpert
  43. PrinceFloki Review: Legit or Scam - knowledgegapexpert
  44. Cheems Inu Review: Legit or Scam? - knowledgegapexpert
  45. Clifford Inu Review: Legit or Scam? - knowledgegapexpert
  46. Inuyasha Token Review: Legit or Scam - knowledgegapexpert
  47. GamingShiba Review: Legit or Scam? - knowledgegapexpert
  48. Cujo Inu Review: Legit or Scam? - knowledgegapexpert
  49. AquaGoat Coin Review: Legit or Scam? - knowledgegapexpert
  50. Bitgert/Bitrise Token Review: Scam or Legit? Doing your due diligence - knowledgegapexpert
  51. GreenChart Token Review: What is GreenChart? Is It Legit or a Scam? - knowledgegapexpert
  52. Defi Degens Land Review: Scam or Legit? - knowledgegapexpert
  53. Shinji Inu Token Is A Scam. Here is Why! - knowledgegapexpert
  54. Son Of BabyDoge Review: Legit or Scam? - knowledgegapexpert
  55. These 9 Coins Will Make You a Crypto Millionaire in the Coming Months, Here is Why. - knowledgegapexpert
  56. ArchAngel Token Review: A Gem or A Scam? - knowledgegapexpert
  57. Apollo Inu Review: A 1000X Gem or Just another Scam? - knowledgegapexpert
  58. Shikage Token Review: 1000X or Another Scam? - knowledgegapexpert
  59. Volt Inu Token Review: Legit or Scam? - knowledgegapexpert
  60. Catgirl Coin Review: Legit or Scam? - knowledgegapexpert
  61. Grimace Coin Review: Another Squid Game Token? – KnowledgeGapExpert.com
  62. Saitama Inu Review: Legit or Scam – KnowledgeGapExpert.com
  63. Belon DAO Token (Honest) Review: Legit or Scam? – KnowledgeGapExpert.com
  64. What is ApeCoin: All you Need To Know About ApeCoin – KnowledgeGapExpert.com

Comments are closed.