Did I wake up on the wrong side or right side today? I guess you are the only ones who can tell when you are done reading
For a while we have been hit with the crypto gospel and the traders are either on fire or very low-key
If you do not hear about Bear or Bull market with someone crypto-centric, omo you have not started
It's funny because for something whose value depends on other existing currencies, I am amazed at its adoption and how it has soared in the world
In fact, if you are not informed on it, you could see it as a carefully crafted illusion with similarities to a Ponzi scheme
Anyway, we are not here to down our crypto boys and girls but to make us informed on some things that make up the crypto world
You may still end up not knowing jack but hey, I at least helped you get in the door; you can do the rest yourself.
What is cryptocurrency?
A digital mode of exchange that is verified and maintained by a decentralized system known as cryptography. I guess you can see why the "crypto" is necessary.
These type of currencies have no restrictions or centralized authority. That is why there is a new currency every two seconds like there is air to breathe or water to drink. Examples include Bitcoin, Litecoin, Ethereum, Luna and so on.
Of course it is a very volatile market so that fear is responsible for the hesitance on the part of authorities to adopt it gracefully but some countries are already working towards making it an official mode of exchange.
The very first is Bitcoin and it is the most trusted for a lot of traders as it was the starting point for the revolution that we see today. We are told of the man Laszlo Hanyecz who bought two pizzas for 10,000 bitcoins in 2010 and this was the first ever recorded crypto transaction.
Motivational speakers have had a field day with the stuff as they have to constantly remind us that if he had kept his coins, he would have been worth over twenty times more than he is today. Well, we live and we learn right?
So what are those terms that people use everyday that confuse us and need understanding?
Welcome to your crash course and ensure you do more research for a better understanding
Let's get right to it!!
DIP: You must have heard this repeatedly from our crypbros(crypto bros, you know, like tech bros) anytime a currency experiences a slight change. A dip occurs when a digital currency is losing value due to certain conditions in the market. When that happens, it is said to be dipping and most times, traders say that is the best time to buy any coin of interest.
This is really dangerous and exciting at the same time because for those who buy at that period, they get more for their money and may potentially make more when the value appreciates. They could also lose almost all of it if not all when the value keeps dipping (LUNA).
It really is a risky business so do not go in if you don't have the cojones to take a constant beating
BEAR MARKET: Honestly, I really don't know why or how this name was chosen but so but I am making a hypothesis that the softness of teddy bears is responsible 😎😎😴😴👀👀 Sue me!!
I say this because of its correlation to the meaning in crypto which is an all- round drop in value of crypto currencies with a widespread pessimism accompanying it. So when a majority are not making profits, the BEAR is real.
BULL MARKET: Now even the name sounds strong enough right? Or don't you realize a bull is a male cow? Yeah, very strong beings hence the strength attached to this market. According to my Naija people, "everywhere stewwwwww". Prosperity is the order of the day as everyone is optimistic of the future and growing value of the coins. There is less buying and more selling.
HODL: Hold On for Dear Life!! Yes ,it is that simple. Traders and crypto freaks are encouraged to hold coins for as long as especially if they are somewhat sure the coin they have would flourish soon. This is normally common in a Bear market.
DEFI: Simply put, Decentralized Finance. It defines the whole spectrum of the crypto craze that is on a mission to replace traditional ways of banking and exchange of currencies. We always have the middleman which is the bank aiding that exchange and the governments being the regulators of how these échanges should occur.
With this new system, there is no middleman and exchange is swift and flexible. This however comes with a lot of risks because no regulations or restrictions means more room for loss and no one to hold accountable.
BLOCKCHAIN: Just as you have bank statements and records, the Blockchain serves the same purpose. It is a record of every transaction every conducted on the crypto network.
NFT: Non- fungible tokens are digital assets similar to real life paintings or rare items owned on the crypto network. They can be minted from a new token or from an existing program or show. If you remember the Twitter craze of people taking pictures to sell on a platform called Opensea, then you have an idea of how NFTs perform.
I would not want to bore you any further with all these interesting terms but I hope you were able to gain a thing or two from my lessons😎😎
For more information, check out these sites
1. https://geekflare.com/finance/crypto-terms-for-beginners/
2. https://www.cnbctv18.com/cryptocurrency/crypto-phrases-that-crop-up-every-time-a-bear-market-comes-round-14071682.htm
Have a wonderful day ahead
What are you glad you learnt today?