Quote from ephraim on October 25, 2023, 8:25 am

In this exploration of crypto terminologies, we will embark on a journey to demystify the language of digital currencies. We will unravel the meaning of words like blockchain, decentralized finance(DeFi), wallets, ICOs, and many more. By the end of this journey, you will have a key concept and vocabulary that underpin the exciting and dynamic world of cryptocurrencies, empowering you to participate in discussions, make informed decisions, and unlock the potential of this trans-formative technology. So, let’s embark on this linguistic adventure into the realm of crypto terminologies.

• FIAT — Government-issued currencies i.e Naira, Dollar.
• BLOCKCHAIN — the technology of cryptocurrency that keeps the system secure and decentralized.
• DEFI(Decentralized Finance) is an ecosystem that operates independently, free of third parties or exchanges.
• CEFI(Centralized Finance) — this had always been the standard for trading Crypto before DEFI. CEFI involves the use of companies operating exchange platforms like Binance, FTX etc.
• WHITE PAPER — This is a document that outlines what a cryptocurrency is created to do and how it will achieve it.
• TOKENOMICS — This is a combination of Token & Economics. It helps understand the supply and demand characteristics of a cryptocurrency.
• ICO — Stands for ‘Initial Coin Offering’, which is where a new cryptocurrency gives away some coins at a discounted rate usually to finance the project.
• IDO — Stands for ‘Initial DEX Offering’ refers to the launching of a cryptocurrency on a decentralized exchange (DEX) usually at a price lower than the listing price in order to raise funds.
• TOKENS — Tokens are created on existing blockchains. I.e Every cryptocurrency created under BSC, SOL, ETH or any other blockchain is not a coin but a Token. E.g $cake (Bsc), $rope (Sol), $UNI (Eth). Tokens are the backbones of DEFI & exist to be used with DEX.
• COIN — Not to be mistaken with tokens. A coin is an asset that is native to its own blockchain. E.g Bitcoin, Ethereum, Solana.

1. MARKET CAPITAL — The total trading value of a cryptocurrency, calculated by (Current Price x Circulating Supply = Mcap).

DYOR(Do Your Own Research) — often aims to reduce the number of uninformed investors in cryptocurrency. It encourages them to research and understand a cryptocurrency before investing.

You’ve probably realized by now that this digital world is more than just a playground for words; it’s also a landscape of invention, opportunity, and transformation. This concludes our quick tour through the maze of crypto terminology. The terms and concepts we have examined — from blockchain to HODL, from decentralized exchanges to moon — are not only linguistic curiosities; rather, they are the cornerstones of a new era of financial independence, technological advancement, and technological evolution.