Cryptocurrency and Blockchain Dictionary

Terms commonly used in the world of blockchain and cryptocurrency

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This is a transaction that is carried out in order to earn money to increase the cost of a cryptocurrency asset. The algorithm of actions is as follows: 1) The trader believes that the price for token x will begin to grow in the near future, so he buys a certain number of these tokens on the exchange 2) then patiently waits until the price for token x grows to a certain mark 3) As soon as this happens, the trader sells tokens x at a higher price Profit: The difference between the price of the sale and the purchase price.

Other Important Terms

Wrapped token

This is a copy of any token transferred from one blockchain to another. There are many blockchains in the cryptocurrency industry: Bitcoin, Ethereum, Cosmos, Avalanche, etc. Blockchains are deprived of the opportunity to "understand each other": everyone acts according to their own rules and speaks their own language. Each blockchain has its own Native token - a coin that is used to pay for the commission: for the Bitcoin network, this is bitcoin (BTC) for Ethereum - ETH For Cosmos - Atom For Avalanche - Avax If you want to carry out any actions, for example, send a USDT tokens to the EThereum network to another wallet, the commission will have to be paid in ETH tokens if Avalanche is an AVAX commission, etc. However, if you decide to send your USDT from Ethereum to Avalanche, your USDT will be lost. Why? Because USDT on the Ethereum and USDT network on Avalanche is not the same thing, because we remember that each blockchain lives according to its own rules. And what to do if you urgently need to send your USDT from one network to another? For these purposes, cross -miners were invented - special applications that allow you to translate tokens from “one language to another”, that is, from one blockchain to another. In one network, the token is blocked, and in another - a copy is created that does not lose its original value. For example, if you transfer BTC from the Bitcoin network to Ethereum, it will become WBTC, i.e. wrapped.

Anti-Money Laundering

AML is the abbreviation for ‘anti-money laundering’. AML stands for policy and legislation on money laundering. This prevents illegally acquired funds from being converted into a legal variant. Within the crypto world, it is no longer unusual for AML techniques to be used by exchanges and wallets. This term is often used as AML/KYC, where KYC stands for ‘Know your customer’.

Dior or Dayor

The abbreviation, which stands for "conduct your own research." This term is used in cases where it is recommended to independently study the project, get acquainted with its white paper, see ratings on various aggregators, etc., and not to believe the word for other investors.

Activity

A certain procedure in which you need to participate in order to receive projects at an early stage (subscribe to social networks, fill out the form/glimas, participate in the twist, raise the node, participate in the Ambassador program, come to the shade, participate in the lottery on the tokensele)

Airdrop

An airdrop is a way to distribute coins. End users can generally get coins for free or in exchange for a small task, such as subscribing to a newsletter, sending a tweet or inviting other people via a personal affiliate link.

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