Want to build digital wealth? Then this episode is for you. Listen in to Goddess of Crypto as Halle Eavelyn covers the vocabulary you need to know if you want to get invested in crypto – so tune in and learn more about the different kinds of coins, what they are, and other terminologies that can help you build your digital wealth.
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Money Talks: Crypto Vocabulary
In the last crypto vocabulary episode, I covered some of the more advanced words that might help you navigate the new energy of money. Our episode will focus on the money aspect of crypto. This one is a throwback to the first crypto vocabulary episode. I wanted to make sure you newbies are grounded before we dive in.
Crypto or cryptocurrency is what I like to call the new energy of money. Think of this as money’s next evolution. It is the first time that money has been changed in hundreds of years, altcoin, anything in crypto that is not Bitcoin, Ether, or Litecoin. These are also known as s*** coins. Sorry, I do not make this stuff up. In fact, for many Bitcoiners, if it is not Bitcoin, it is an altcoin, which brings us to a slight nuance in this.
Meme coins, which are s*** coins, are any altcoin that doesn’t have a product attached to it and as the token itself. Memes can get hugely popular without meaning anything, like a picture meme, and so can tokens. Sometimes a meme coin can get so popular, people start creating things that can be bought with it, giving utility to the meme coin. Dogecoin is a good example of this. Without utility, meme coins are likely to drop to zero over time.
Token versus coin. A coin is built on top of its own blockchain, like Bitcoin. A token is built on someone else’s like Doge, which is built on the Ethereum blockchain. As an investor, you might not care. There is a stronger possibility of fraud when the token doesn’t control the blockchain. This is why some people call themselves Maxis.Crypto or cryptocurrency is the new energy of money. Think of this as money's next evolution. Click To Tweet
A Maxi only buys one thing. While there are Ethereum maxis, Cardano, and even Doge and Shiba maxis, the OG, the original gangsta, is Bitcoin. Bitcoin maxis think you should only buy Bitcoin because everything else is a copy of the original. DCA, dollar-cost averaging, where you put money in, regardless of what the current price is. This takes away stress, and apparently, it is good to do over time because it balances out the amount of your investment by averaging it. I truly believe in dollar-cost averaging. I personally buy Bitcoin every single Friday. You do you.
A stable coin is usually pegged to the US dollar, though at least one stable coin pegs gold. These coins are stable. They only fluctuate when the dollar does, which is a lot less than a more volatile asset like Bitcoin. However, if the dollar varies a lot, it can get knocked off sync with a stable coin, which does happen infrequently.
I believe that over time, Bitcoin will become less volatile and more stable itself. I’m going to remind you that the US dollar is no longer backed by anything and hasn’t been in about the last several years. When people say, “That isn’t backed by anything, that is not backed by the dollar.” They are ignoring the fact that the dollar isn’t backed by anything at all. That is the definition. Government-controlled money that is not backed by anything is the definition of Fiat currency.
Staking is our last crypto vocabulary word. Staking means that it is the crypto equivalent, semi equivalent. Think of it like a bank CD. You are tying your tokens or your coins up for an agreed-upon period of time. You earn a percentage of that same token or coin while your coins or tokens are held. The rates are often a lot higher than regular interest, often averaging 20% or 30%. You can stake your stable coins too, which are the least volatile ones, although you will see lower percentages with those.
One of the things that I saw is that Crypto.com, has its own token, CRO. They were doing staking, and they dropped their interest rates significantly overnight. That caused a lot of people to get very unhappy with Crypto.com and sell, and also the price started to plummet. That is something that you might want to be aware of is again, this is why you want to DYR and do your own research. You make sure that you believe in whatever that project is that you are staking your money in for 90 days or longer, that you believe in them long term.
I hope this has been helpful for you. These episodes are super short because there is so much information in them, and the definitions can get overwhelming. You could always read this blog post multiple times, and here is a reminder. There are now three of these crypto vocabulary episodes, in case you missed either of the last two.
Please always be sure to like and share the show with mothers, grandmothers, daughters, your besties, and all the women in your life. I am so grateful to you, and please also feel free to send comments or requests for future episodes. We have some incredible guests coming up over the coming episodes. Thank you so much.