We will talk about some cryptocurrency-related terms and abbreviations here. We talked about a few in the first post, but let’s talk about it more here.
First, each cryptocurrency has its own abbreviation. For example, BTC for bitcoin. ETH for ethereum. etc…
Mining is the process of creating new coins of certain cryptocurrencies.
Proof of work “POW” is a method of mining new coins by using extensive processing power to compete with other miners to earn block rewards. Bitcoin is the most famous example.
Proof of stake “POS” is a method of mining new coins by investing some money in buying coins determined by each blockchain to be able to join the reward pool for this blockchain. The current Ethereum blockchain is an example.
Decentralized application “Dapp” is an application stored on a blockchain.
Play to earn “P2E” is a way to make some profits by playing games that give rewards on blockchains like Splinterlands and Axie.
Initial coin offering “ICO” is the process of selling new coins at the start of a blockchain project and it can be done in many ways.
Airdrop is an activity done by blockchain projects to gather people to form a community and gain some popularity. In which the cryptocurrency project distributes some coins for free for people who join the community.
Bounty is an activity in which a crypto project distributes some coins for people who do certain tasks.
Decentralized exchange “DEX” is a marketplace to buy and sell cryptocurrencies using smart contracts without a central authority like Uniswap.
Centralized exchange “CEX” is a trading platform in which you deposit your coins and they will hold it and you can trade on it like Binance.
Staking is putting your coins in a pool for a certain amount of time to gain some profits over that time.
Annual percentage yield “APY” is how much you can earn if you staked your crypto coins in some pool.
Farming is another form of staking done to gain some profits from the same currency staked or something else.
We will update this post with more terms. So, please let’s meet again when you have the time. Until then 🙂