All Crypto Terms And Their Meanings You Need to Know As a Novice (Part 1)
Are you aspiring to dive into crypto trading or you are still a novice in it? Then this article is for you because i will be walking you through all the crypto terms that you need to know in order to prepare you as you go into your crypto journey.
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Below are the various Crypto Terms you need to know as a crypto novice.
Note: These article will be divide into 4 in order to cover many more Terms
All Crypto Terms and Their Meanings
The first in our list is Address. In digital currency, an address is basically a destination where a user sends and receives digital currency. In a way, it is similar to a bank account.These addressses usually include a long series of letters and numbers.
An altcoin is a digital currency other than bitcoin. There were more than 1,000 altcoins listed on data source CoinMarketCap at the time of this writing.Another way of describing the term “altcoin” is referring to it as an alternative protocol asset, meaning that it follows a protocol (set of rules) that’s different than that of bitcoin.
In crypto, arbitrage refers to taking advantage of the price difference between two different exchanges. If bitcoin is selling for £8,950 on one exchange and £9,000 on another, a trader can buy the digital currency on the first exchange and sell it on the second for a modest profit.
“ATH” is an abbreviation of “all-time high.” This term can be quite helpful to know for tracking the digital currency markets. These assets are so volatile, so keeping their ATH in mind can prove valuable. A digital currency could potentially hit several local highs before rising to a new all-time high.
“Bears” believe that an asset, for example a digital currency, will decline in value. Another way of putting this is that if a trader thinks a cryptocurrency will depreciate, their sentiment surrounding the digital asset is “bearish.” In many situations, traders will make use of this expectation by taking a short position on an asset, meaning that they will make a wager that will pay off should the asset in question fall in value.
Many digital currencies make use of blocks, which contain transactions that have been confirmed and then combined together.
The blockchain, which is a distributed ledger system, consists of a series of blocks. These blocks contain verified transactions. The blockchain was designed to be not only decentralised, but also immutable, meaning that entries could not be erased once placed on this distributed ledger. The idea of the blockchain was first introduced when the bitcoin white paper was released in late 2008.
If a trader believes that an asset will rise in value, he or she is a “bull.” When an investor has this optimistic expectation of an asset’s future bull, this frame of mind is described as “bullish.”
The network for a digital currency reaches consensus when the network’s nodes agree that a transaction took place. This agreement is crucial if the varying network participants (nodes) are to have the same information. In other words, consensus is crucial to distributed ledger systems.
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