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Basic crypto traders terminology you should know about

The crypto economy is gaining popularity at a faster rate than ever before. Now that technology has paved the way for more accessible means to digital assets, more people are getting interested in investing in cryptocurrencies.

While dipping your hands in digital assets may seem easy, growing your funds actually involves a lot of careful planning and consideration. Entering the digital realm requires an understanding of how it works to harness its full potential, and learning the jargon is one of the easiest ways to get a deeper understanding of the whole process.

Knowing basic to advanced terms can help you catch up with the latest trends in digital currencies. If you want to learn more, dive into this article and add these basic crypto terminologies into your dictionary to increase your expertise!

Crypto glossary 101

Altcoin – A digital currency other than Bitcoin (Ethereum, Cardano, Ripple).

Address – Refers to the wallet address that crypto users and investors have. This address is used to determine the origin and destination of the cryptocurrency being exchanged. Most of the time, addresses are composed of alphanumeric characters and symbols.

Algorithm – An algorithm in cryptocurrency is designed within the system to execute different sets of instructions that can solve certain lags in the network. This can either be utilised to implement smart contracts or fix bugs in the blockchain.

All or none (AON) – The All or None or (AON) is an order used when all the requirements within the network are met. If the rules aren’t carried out properly, the orders won’t be implemented.

All-time high – The term ‘all-time high’ is used for cryptocurrencies that are being exchanged in dollars, bitcoin, ether, or Binance coin.

Allocation – Allocation means that a certain percentage of the overall amount of cryptocurrencies are being distributed to certain parts of the community.

Alpha – In cryptocurrency, the Alpha means the pilot phase of a newly developed cryptocurrency.

Anti-Money Laundering – The anti-money laundering term is a set of stringent rules used to prevent illegal activities relating to cryptocurrencies.

Application Specific Integrated Circuit – Also known as ASIC, this device is a high-powered tool used by miners to effectively and efficiently mine cryptocurrencies. Bitcoin and Ethereum miners usually use this device.

Arbitrage – An arbitrage is the process of buying and selling digital assets on exchange sites to maximize the profits generated. Usually, selling cryptocurrencies in huge amounts of quantities can produce substantial profits.

Asking price – The asking price for cryptocurrencies means the lowest price possible.

Atomic swap – Atomic swap is technology utilised for smart contracts that enables exchange sites to implement it without the need to use centralized or decentralized parties.

Attack surface – An attack surface is a vulnerable area of the blockchain that hackers and internet crooks can breach.

Bags – A bag is a portfolio that contains different types of digital assets.

Batching – Batching means organizing a set of transactions by batch to make a more streamlined process for efficiency.

Bear/Bearish – A bearish run in the crypto market denotes negative progress of a certain coin for consecutive months. It’s usually the downward movement of the coin in the market.

Benchmark – A benchmark in crypto means two cryptocurrencies are being compared to each other. Usually, a benchmark is where digital assets are analysed in terms of market strength, speed, and market capitalization.

Beta – A Beta is a stage where a new cryptocurrency is being tested by a group of experts, usually developers, to see how it will fare. In this stage, developers fix any bugs and other issues. The Beta is preceded by the Alpha stage.

Binance Academy – Binance Academy is a site that is a repository of knowledge and information about cryptocurrencies.

Bit – Bit is a subunit of Bitcoin. 1 Bitcoin is equivalent to a million bits.

Bitcoin – Bitcoin with a capitalized ‘B’ refers to the technology, community, the protocol and the software used in the blockchain. Meanwhile, bitcoin with a decapitalized ‘b’ stands for the unit of currency.

Block – A block is where important information about transactions are kept. All the transaction history since the blockchain is up and running is recorded in this block. Once a block logs the information, it can no longer be altered or changed.

Block explorer – A block explorer is a website that allows people to view any transaction happening within the blockchain.

Blockchain – The blockchain is a decentralized platform where all the transaction history is recorded. This ledger is often used to power different cryptocurrencies, decentralized apps, and other projects related to cryptocurrency. With layers and layers of algorithms on top of it, it’s impossible to hack or alter the data record in the blockchain.

Coin market cap – A coin market cap is a site where you can find relevant information that gives real-time information updates on all cryptocurrencies in the market.

Cold wallet – A cold wallet is a type of crypto storage that comes in the form of devices that can be connected to the internet. The most popular cold wallet is the Trezor or the API.

Dark pool – A dark pool is a private exchange where transactions are confidential. Usually, these types of exchanges are considered sketchy. Only people who get invited can trade within the dark pool.

Day trading – Day trading in cryptocurrency means that a person is buying and selling cryptocurrencies daily to make profits.

Encryption – Encryption means a secure way of ensuring that information such as codes, passwords, and such won’t be accessed by internet crooks through the use of SSL.

Gas – Gas refers to the fees paid to carry out a transaction within the blockchain. However, not all platforms require gas. The most popular cryptocurrency using gas is Ethereum.

Genesis Block – The genesis block refers to the first block present in the chain. It can also be referred to as the foundation block of a certain blockchain.

Hard fork – A hard fork means that the current blockchain protocol in use will undergo major development to meet its fullest potential.

HODL – A HODL means ‘hold on for dear life,’ which is a term used in the crypto community when investors hold on to their coins during a downward movement in the market.

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