Demystifying Crypto Jargon: A Glossary for the Bitcoin Enthusiast
When you plan to invest in cryptocurrencies, the first thing you will definitely want to do is to register with the crypto exchange platform. There are around 600+ stock exchange platforms that provide you with easy and seamless trading experience. However, we cannot conclude that all these exchange platforms are perfect for you.
Therefore, it is important to go through each of them and find out the most important functions. Once you are convinced, you can register and start trading. But before taking this step, it is also important to familiarize yourself with all the terminologies and jargon in this field.
Since the crypto market is new, many investors who have recently started trading are trying to jump into the pool. But doing it without information will not help you. Therefore, it is recommended that one should always know the key terms that are widespread in the crypto market.
The insider’s guide to understanding crypto terms
- day trading- The first term we discuss is crypto day trading. Every trader has an investment strategy. The day trading option is quite popular among crypto traders as it is a nice crypto trading strategy that involves selling traded stocks within the same day.
- Ox market– When the market is bullish or when there is a bullish market, prices in the market usually move upwards for a certain period. Usually, this period is considered a positive trend in the market.
- bear market- this is a negative trend or when the market starts, or prices start to move down. Usually, investors try to buy in at this time or when the market is bearish.
- Alternative Cryptocurrencies- When we start exploring the crypto market, every investor comes across different terms like cryptocurrencies or alternative cryptocurrencies or bitcoin. Therefore, a common question here is whether all these are the same or different. When it comes to the functional part and the function of all these cryptocurrencies are same; However, in terms of use cases, alternative cryptocurrencies may have different uses compared to bitcoin.
While bitcoin’s role is limited to transactions, alternative cryptocurrencies are divided into stable coins, tokens and forks. Therefore, every cryptocurrency that exists in the market except bitcoin is called an alternative cryptocurrency. Around 40% of the crypto market is captured by bitcoin, while the rest of the 60% is shadowed by cryptocurrencies or alternative cryptocurrencies. Some common examples that fall on this list are Ethereum, Litecoin, Dodge Coin and others.
- Cryptography- An important term that you should definitely know is cryptography. Cryptography plays an important role in ensuring the greatest possible safety and security for the trading factors in a decentralized platform. Cryptography is not just limited to cryptocurrencies. Rather, it finds application in our day-to-day programming, which is used to create a secure system. It helps secure blockchain and cryptocurrencies via SHA 256.
- dApp These programs operate on the Blockchain system. This is where Ethereum comes into play, another popular cryptocurrency after Bitcoins. These are used to develop smart contracts. Smart contracts are basically digitized contracts that have predetermined terms and conditions. dApp helps with automation of systems, and ensures seamless transactions between buyers and sellers. The use of smart contracts is expanding across the different industry segments, and the most extensive use is seen in the real estate market.
Conclusion
This was the basic information about the key terms you will come across in the crypto market. Therefore, you need to start reading as much as you can about the crypto market before you go ahead and register on any of the crypto exchange platforms. At the same time, it is also important to do research about the crypto exchange platforms.
Crypto investors looking for profitable results can consider logging on to a credible platform such as Bitcoin Pro. There are several other crypto exchanges you can explore. But don’t make a decision in haste. Always focus on learning about the crypto market first and then make a decision on investment. So what are you waiting for? Join crypto communities where you can get the most credible and authentic information about the crypto ecosystem.
