The primary reason why new entrants often find crypto trading overwhelming is the trading jargon being thrown around everywhere. In this article, we discuss the top 22 terms that you should know if you want to trade Cryptocurrency.
However, you can take that slow if you find all these terms intimidating and subscribe to one of the best crypto signals providers in the market. They simplify all these terms and instead of getting confused, you’d understand them rather easily. They also help you trade by sharing their setups.
Terms you need to know
Your crypto address is a string of characters and denotes the place where you can receive, store or send your cryptocurrency. It’s akin to your physical address where your receive your mails.
Altcoins is short for alternative coins and is used to represent crypto coins other than Bitcoin. Some might exclude Ethereum as well from the term as Ethereum is too mainstream a coin now. But generally, the term is used for all non-Bitcoin cryptocurrencies.
Blocks are the units in the blockchain that contain information on past transactions that happened. As one block gets full, another one is created to store further information. These are immutable making the ledger immutable.
Blockchain is an immutable ledger of blocks containing information about digital transactions. Every cryptocurrency is based on its specific Blockchain technology.
5. Bitcoin Maximalist
Bitcoin maximalist is a person who believes that Bitcoin is the only cryptocurrency to have any real value. They believe that the world only needs Bitcoin and that is going to be the case in the future.
BTFD is short for “Buy That Fu****g Dip”. The goal of every kind of cryptocurrency trade is to buy at a lower price and to sell at a higher one. That’s what brings in the profit. In trading lingo, a big drop in prices is called a dip and if the fundamentals of the crypto asset are strong, you should BTFD.
7. Crypto Mining
Mining is the process of obtaining cryptocurrency by completing tasks using specialized hardware and software.
DApp stands for “decentralized app”. Decentralized apps are applications that take advantage of the distributed approach of Blockchain technology. From games to business platforms, many major projects are popping up in this segment.
DeFi stands for Decentralized finance. Cryptocurrencies are decentralized currencies but the exchanges they are traded on are centralized. DeFi aims to do away with even that. Decentralized Exchanges are one of the most popular DeFi projects in the market.
A fork is when a blockchain-based network/project splits off into two projects with their own governing principles, resources, and participants. In the case of a soft fork, only one of the projects remains optional. This is akin to a project becoming more specialized. In the case of a hard fork, there are two brand new bitcoin networks that become operational.
Gas is the cost of computing power when transactions happen on a blockchain. Users have to pay a fee to cover this cost.
12. Hash Rate
Hash rate is the measure of the processing power of machines involved in crypto mining.
Hodl started off as a misspelling when a bitcoin investor asked his fellow investors to not sell their assets just because of a dip in the prices. Now, the term has become slang among crypto enthusiasts.
Stable coins are cryptocurrencies whose values are pegged to a physical asset. This makes their values much less prone to wild price swings. USDT is one such cryptocurrency.
15. To the Moon
“To the Moon” or a rock emoji means that they are predicting the price of a cryptocurrency to rise a lot.