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*29 Cryptocurrency Terminologies and abbreviation you should get Familiar with*
*CRYPTO TERMINOLOGIES AND ABBREVIATIONS*
1. *FIAT* - Government-issued currencies i.e Naira, Dollar
2. *BLOCKCHAIN* - the technology of cryptocurrency that keeps the system secure and decentralized.
3. *DEFI* - (Decentralized Finance) is an ecosystem that operates independently, free of third parties or exchanges.
4. *CEFI* - (Centralized Finance) had always been the standard for trading Crypto before DEFI. CEFI involves the use of companies operating exchange platforms like Binance, FTX etc
5. *WHITE PAPER* - A white paper is a document that outlines what a cryptocurrency is created to do and how it will achieve it.
6. *TOKENOMICS* - This is a combination of Token & Economics. It helps understand the supply and demand characteristics of a cryptocurrency
7. *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.
8. *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.
9. *COIN* - There is a difference between Coins and Tokens. A coin is an asset that is native to its own blockchain. E.g Bitcoin, Ethereum, Solana
10. *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.
11. *MARKET CAPITAL* - The total trading value of a cryptocurrency. Calculated by (Current Price x Circulating Supply= Mcap)
12. *STABLECOIN* - A cryptocurrency that is tied to the value of the US dollar to make it more stable and less volatile. E.g USDt, Busd
13. *PUMP AND DUMP* - This is kind of like a scam where people who own a large share of a Coin encourage others to buy to artificially pump the price.