Blockchain Terminology and Common Cryptocurrency Terms Explained

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1. What Is the Cryptocurrency World?

The "crypto world" refers to the natural community formed by digital currency enthusiasts. Though niche, it encompasses diverse participants engaging in activities like ICO investments, token trading, and mining.

2. What Are Fiat Currencies?

Fiat currencies are government-issued legal tenders, such as the US Dollar (USD) or Chinese Yuan (CNY), backed solely by state credibility.

3. Understanding Tokens

A Token (or "通证" in Chinese) represents a blockchain-based proof of rights, not a currency. It digitizes real-world/virtual assets, enabling quantified value exchange beyond traditional ledger limits.

4. What Is an Airdrop?

An Airdrop is a crypto marketing tactic where projects distribute free tokens to users’ wallets proportionally. Example: Holding Ethereum (ETH) may qualify you for related token airdrops.

5. Crypto "Candies" Explained

Candies are free tokens distributed during ICO phases to attract users and boost project visibility.

6. Breaking Issue Price ("破发")

When a token’s market price drops below its initial offering price, it’s termed "破发."

7. Private Placements in Crypto

Private Placements involve non-public fundraising from select investors, offering early access to tokens before public listing.

8. ICO (Initial Coin Offering)

Similar to IPOs, ICOs raise capital by issuing project-specific tokens in exchange for established cryptocurrencies like Bitcoin (BTC).

9. Major Crypto Exchanges

Top platforms include:

10. Key Trading Features

| Feature | Description |
|--------------|--------------------------------------------|
| 24/7 Trading | Markets never close, unlike stock exchanges. |
| No Price Limits | Tokens can surge/drop 20%+ daily (e.g., BTC’s historic rallies). |
| T+0 Settlement | Instant buy/sell vs. stocks’ T+1 delay. |

11. Crypto Wallets

Wallets store digital assets securely. Examples:

12. Deposits & Withdrawals

Transfer tokens to/from exchanges anytime, though processing times vary.

13. Long/Short Positions

14. Bullish vs. Bearish Signals

15. Blockchain Types

| Type | Description |
|--------------|--------------------------------------------|
| Public Chains | Open to all (e.g., Ethereum). |
| Private Chains | Restricted access (e.g., enterprise solutions). |
| Consortium Chains | Governed by groups (e.g., banking alliances). |

16. Market Trends

17. Arbitrage ("搬砖")

Exploiting price gaps across exchanges (e.g., buying BTC cheap on Platform A, selling high on Platform B).

18. Leverage Trading

Leverage amplifies gains/losses (e.g., 10x trades). High-risk, akin to gambling.

19. Order Types

20. Key Trading Metrics


FAQs

Q1: How do I start trading cryptocurrencies?

Begin by selecting a reputable exchange like 👉 OKX, completing KYC, and funding your account via bank transfer or card.

Q2: What’s the safest way to store crypto?

Use hardware wallets (e.g., Ledger) for long-term holdings and enable 2FA on exchanges.

Q3: Can I mine Bitcoin with a regular PC?

No—BTC mining requires ASIC rigs due to high computational demands.


Disclaimer: This content is educational only. Conduct independent research before investing.