Let\u2019s get straight to\u00a0it<\/p>\n
It\u2019s the total market value of a cryptocurrency if all<\/strong> its tokens or coins were in circulation<\/p>\n Here is how to get the FDV= Current Price<\/em>\u00d7Total Supply<\/em><\/p>\n For example, if a token is priced at\u00a0$10<\/em><\/p>\n And its total supply is $1billion tokens, the FDV would be FDV=CurrentPrice\u00d7TotalSupply<\/em><\/p>\n $10 \u00d7 1,000,000,000 = $10\u00a0billion<\/em><\/p>\n Note: some projects do not have FDV because there is no total supply e.g.\u00a0Eth<\/em><\/p>\n or market capitalization, is the number of tokens currently available and traded in the\u00a0market.<\/p>\n For instance, if a project has 100 million tokens in circulation, the market cap would\u00a0be:<\/p>\n Market Cap = Current Price \u00d7 Circulating Supply<\/strong><\/p>\n $10\u00d7100,000,000=$1 billion<\/strong><\/p>\n TVL refers to the total amount of assets locked in a decentralized finance (DeFi) protocol, such as a lending platform, staking pool, or decentralized exchange\u00a0(DEX)<\/p>\n A high TVL often indicates greater trust and\u00a0usage.<\/p>\n APY represents the annualized return on an investment, taking into account compound interest. It\u2019s commonly used in staking, yield farming, and savings protocols.<\/p>\n APY helps investors compare the potential returns of different crypto investments.<\/p>\n ROI measures the profitability of an investment, calculated as a percentage of the initial investment.<\/p>\n ROI is a universal metric used to evaluate the success of an investment, whether in crypto or traditional finance.<\/p>\n ATL is the lowest price a cryptocurrency has ever\u00a0reached.<\/p>\n A CEX is a cryptocurrency exchange operated by a centralized entity (e.g., Binance, Coinbase). Users trade on these platforms, but they don\u2019t have full control over their\u00a0funds.<\/p>\n CEXs are user-friendly and often have high liquidity, but they come with risks like hacking or regulatory issues.<\/p>\n A DEX is a peer-to-peer exchange that operates without a central authority (e.g., Uniswap, PancakeSwap). Users retain control of their funds through self-custody wallets.<\/p>\n DEXs align with the decentralized ethos of crypto but may have lower liquidity and a steeper learning\u00a0curve.<\/p>\n NFTs are unique digital assets that represent ownership of items like art, collectibles, or virtual real\u00a0estate.<\/p>\n NFTs have revolutionized digital ownership and created new opportunities for creators and investors.<\/p>\n A DAO is an organization governed by smart contracts and community voting, rather than a central authority.<\/p>\n DAOs empower communities to make collective decisions, often in DeFi or NFT projects.<\/p>\n KYC refers to the process of verifying the identity of users, typically required by centralized exchanges and financial institutions.<\/p>\n KYC helps prevent fraud and money laundering but can conflict with the privacy-focused ethos of\u00a0crypto.<\/p>\n AML refers to regulations and practices designed to prevent illegal activities like money laundering through\u00a0crypto.<\/p>\n AML compliance is crucial for exchanges and projects to operate legally and avoid penalties.<\/p>\n PoW is a consensus mechanism used by blockchains like Bitcoin, where miners solve complex mathematical problems to validate transactions.<\/p>\n PoW is secure but energy-intensive, leading to debates about sustainability.<\/p>\n PoS is a consensus mechanism where validators are chosen based on the number of tokens they \u201cstake\u201d or lock up as collateral.<\/p>\n PoS is more energy-efficient than PoW and is used by blockchains like Ethereum 2.0 and\u00a0Cardano.<\/p>\n DeFi refers to financial services (e.g., lending, borrowing, trading) built on blockchain technology, operating without intermediaries.<\/p>\n DeFi aims to democratize finance but comes with risks like smart contract vulnerabilities.<\/p>\n CeFi refers to traditional financial services offered by centralized entities in the crypto\u00a0space<\/p>\n CeFi bridges the gap between traditional finance and crypto but carries counterparty risk.<\/p>\n IL occurs when providing liquidity to a decentralized exchange (DEX) and the value of the deposited assets changes compared to holding\u00a0them.<\/p>\n IL is a key risk for liquidity providers in\u00a0DeFi.<\/p>\n A measure of a blockchain\u2019s scalability, indicating how many transactions it can process per\u00a0second.<\/p>\n Higher TPS means faster and more efficient networks.<\/p>\n Refers to the base layer of a blockchain (e.g., Bitcoin, Ethereum).<\/p>\n L1 blockchains are the foundation for building decentralized applications (dApps).<\/p>\n Refers to scaling solutions built on top of Layer 1 blockchains (e.g., Lightning Network for Bitcoin, Base for Ethereum).<\/p>\n L2 solutions improve scalability and reduce transaction costs.<\/p>\n That\u2019s a\u00a0wrap.<\/p>\n Hope you find this\u00a0useful.<\/p>\n From FDV to IL, learn 20 useful crypto acronyms and terms<\/a> was originally published in Coinmonks<\/a> on Medium, where people are continuing the conversation by highlighting and responding to this story.<\/p>","protected":false},"excerpt":{"rendered":" Let\u2019s get straight to\u00a0it 1. FDV- Fully Diluted Valuation: It\u2019s the total market value of a cryptocurrency if all its tokens or coins were in circulation Here is how to get the FDV= Current Price\u00d7Total Supply For example, if a token is priced at\u00a0$10 And its total supply is $1billion tokens, the FDV would be […]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-43106","post","type-post","status-publish","format-standard","hentry","category-interesting"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/43106"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=43106"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/43106\/revisions"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=43106"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=43106"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=43106"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}2. Market\u00a0Cap:<\/h3>\n
3. TVL\u200a\u2014\u200aTotal Value\u00a0Locked:<\/h3>\n
4. APY\u200a\u2014\u200aAnnual Percentage Yield<\/h3>\n
5. ROI\u200a\u2014\u200aReturn on Investment<\/h3>\n
6. ATH\u200a\u2014\u200aAll-Time\u00a0High<\/h3>\n
ATL can be a psychological benchmark for investors looking for bargain-buying opportunities.<\/h3>\n
7. CEX\u200a\u2014\u200aCentralized Exchange<\/h3>\n
8. DEX\u200a\u2014\u200aDecentralized Exchange<\/h3>\n
9. NFT\u200a\u2014\u200aNon-Fungible Token<\/h3>\n
10. DAO\u200a\u2014\u200aDecentralized Autonomous Organization<\/h3>\n
11. KYC\u200a\u2014\u200aKnow Your\u00a0Customer<\/h3>\n
12. AML\u200a\u2014\u200aAnti-Money Laundering<\/h3>\n
13. PoW\u200a\u2014\u200aProof of\u00a0Work<\/h3>\n
14. PoS\u200a\u2014\u200aProof of\u00a0Stake<\/h3>\n
15. DeFi\u200a\u2014\u200aDecentralized Finance<\/h3>\n
16. CeFi\u200a\u2014\u200aCentralized Finance<\/h3>\n
17. IL\u200a\u2014\u200aImpermanent Loss<\/h3>\n
18. TPS\u200a\u2014\u200aTransactions Per\u00a0Second<\/h3>\n
19. L1\u200a\u2014\u200aLayer\u00a01<\/h3>\n
20. L2\u200a\u2014\u200aLayer\u00a02<\/h3>\n