I assume that not everyone is an expert in cryptocurrency. So, from Level 1 to Level 3, I produced a list of crypto words and their definitions. Hopefully, this clarifies a few more crypto terms.
LEVEL 1:
1. FUD: Fear, Uncertainty and Doubt (So a FUDster is a person who spreads rumor's.)
2. FOMO: Fear Of Missing Out
3. HODL(the most obvious): Originally hold misspelled, also Hold On For Dear Life
4. FIAT: Government issued currency
5. WHALE: Someone who owns a lot of Crypto
6. Brr: Brr describes the sound that money printer makes when the government prints money.
7. REKT: When an investor is blown out of the water by a catastrophic coin crash, the term "rekt" is used.
8. SLILL: An individual promoting Alt-Coins for their own benefit.
LEVEL 2:
1. Node: A computer that validates transactions.
2. DeFi: DeFi stands for Decentralized Finance. It is a grab phrase for financial services based on public blockchains, most famously Ethereum. With Defi you can do most of the things that banks support, but it's faster and doesn't involve any paperwork or a third party.
3. Cold Wallet: An offline wallet
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- Hot wallet:** An online wallet
5. NFT: A non-fungible token is a digital asset that can be used to represent anything.
6. Halving: The Block reward for miners is cut in half.
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LEVEL 3:**
1. Lightning Network: The lightning network is a bitcoin second layer solution that employs micropayment channels to increase the blockchain's ability to process transactions more quickly. Lightning network transactions are faster, less expensive, and more easily validated than transactions made directly on the bitcoin blockchain (i.e., on-chain).
Only when the blockchain has been updated to reflect the transactions on the public ledger are on-chain transactions considered genuine.
2. Yield Farming: Yield farming is a method of allowing bitcoin investors to lock up their assets in exchange for rewards. It's a mechanism that allows you to earn fixed or variable interest by investing cryptocurrency in a DeFi market. It entails using the Ethereum network to lend bitcoin.
Yield farming is usually done on Ethereum with ERC-20 tokens, and the incentives are also ERC-20 tokens. While this may change in the future, the Ethereum ecosystem currently houses practically all yield farming transactions.
3. ICO: ICO stands for Initial Coin Offering. When a new cryptocurrency or crypto-token is released, its creators offer a limited number of units to investors in exchange for other big crypto coins like Bitcoin or Ethereum. Ripple was the first cryptocurrency to be released through an initial coin offering (ICO).
Ripple Labs began developing the Ripple payment system in early 2013, generating over 100 billion XRP tokens in the process. These were sold in an initial coin offering (ICO) to help fund the development of Ripple's platform.
4. Genesis block: A Genesis Block is the moniker given to the first block "ever mined" in a cryptocurrency like Bitcoin. A blockchain is made up of a series of blocks that are used to store information about transactions that take place on the network. Each block has its own unique header, which is recognized by its block header hash.
These blocks are piled one on top of the other, with the Genesis Block serving as the foundation, and they continue to rise in height until the blockchain's conclusion is reached and the sequence is completed. One of the factors that makes a blockchain-based cryptocurrency so secure is the layers and rich history of each sequence.
And Yup! this is the end of Level 3 :)
Keep following me :) Thanks for reading.