It can be overwhelming to start with cryptocurrency. You hear ”to the moon, diamond hands, hodl,” and before you knew it, there are a lot more. But don’t let this scare you out! I have compiled a list of the important crypto-words you shoud be aware of pertaining to Stellar but not limited to Stellar itself. I have made them totally simple for crypto-beginners.
- Cryptocurrency - a digital currency commonly referred to as crypto. Magic internet money. 😁
- Blockchain - it is essentially a distributed ledger technology stored across servers around the world that keeps the records of transactions. Still hard to understand? Just think of it like a digital notebook that is shared with all your classmates(and anyone else who wants to!) and you help record and validate transactions.
- Stellar lumens(XLM) - the native asset of Stellar. It acts as the bridge for processing transactions e.g. sending USD to EUR will be like this: USD>XLM>EUR
- Stellar DEX(SDEX) - SDEX is the decentralized exchange of Stellar where you can trade all Stellar assets and assets issued by anchors on Stellar like Bitcoin, Ethereum, BAT, USD, Peso, gold, silver and stocks. To access, SDEX, use Stellar wallets or Stellar exchanges.
- Stellar Development Foundation - a non-profit organization that speaks for Stellar, improves the code, and accelerates the adoption of Stellar.
- Stablecoins - cryptocurrencies that are pegged to fiat like USDC(a dollar-pegged stablecoin), DAI(a decentralized stablecoin pegged to a dollar), and EURT(a euro-pegged stablecoin). The purpose of stablecoin is to avoid fluctuations.
- Anchors - asset-issuers on Stellar network. In simple terms, they are the ones who issue tokens like metal tokens, cryptos, and stablecoins.
- Lumenauts - people holding XLM and believing in the success of Stellar.
- Hodl - holding coins and not selling them.
- Altcoins - alternative coins to Bitcoin like XLM, ADA, and ETH.
- Whales - institutions or individuals holding large amount of coins.
- Alt season - when the dominance of Bitcoin goes down and altcoins go to the moon. 🌙
- To the moon - when coins go up in value.
- DCA - dollar cost averaging which means you buy cryptos at a fixed interval e.g. $20 of XLM/weekly.
I hope this helps you out in exploring the world of cryptocurrency with confidence. remember, knowing the important crypto-words is just half of the battle; you must also help spread the knowledge. Tell your friends, your partner, or your family or you can simply refer them to this blog.