Some Basic Terms In Crypto For Every startup.

Some Basic Terms In Crypto For Every startup.

Having a good knowledge of some basic terms in the crypto world can help a beginner do well

in every crypto activity.

It is very easy to start something, but the right knowledge about your area of interest can

determine the extent you will go in the field. For instance, a trader enters the market to buy some

Fabrics, he asks the seller to give him the goods, to pay by installment, the trader has no idea

what the word is, so he refuses, and as a result, he loses the buyer. This is what

happens when a person that is going into a business does not know about some terms that help

him in making the business easy.

Some of the terms that are used in the world of crypto will be explained in this article to help

beginners make the right choice in the world of crypto.

Read Also: How to buy cryptocurrency And What Cryptocurrency To Buy.

Bitcoin

Bitcoin is the first cryptocurrency that came into existence in 2009 and since then has

continuously dominated the crypto market even till date with over 19,000 coins in circulation.

Bitcoin is using a decentralized system to operate, which means it is a system of payment that

is not controlled by the government or organization, but it is controlled and managed by the

the individual that bought the coin.

Some of the facts that made Bitcoin a unique coin are its decentralized, secure, and transparent

system.

Altcoin

The term altcoin is used to refer to all cryptocurrency that is not bitcoin, bitcoin paved the way

for the activity of cryptocurrency, and the progress of bitcoin is what gave birth to altcoin, today

we have two types of coin in the crypto world Bitcoin and altcoin, which are also known as the

alternative coin.

To some people investing in altcoin is another way of increasing their crypto portfolio, to others,

it is their interest in the type of technology that altcoin operates in. Today there are more than

1,600 altcoins and more are being launched daily.

Read Also: How To Buy Altcoins With A Credit Card In Five (5) Easy Steps

Bear

A bear market is a period where the price of digital assets will drop, after the fall in price, there is

also recovery within the same interval, a bearish market happens and will go up again after

some time. Bear or bearish is a word used to refer to a market that is currently dropping its

value.

Fiat

The word fiat is a term that refers to the system of money that the world is operating with, that is

the system of money that is controlled by the government. Fiat money can also be regarded as

physical money used for buying and selling in the physical world.

NFTs

NFT is an abbreviation used for non-fungible tokens. A non-fungible token, however, is a digital

asset that can also serve as a means of transaction just like the crypto coin but is used in the

digital world to represent real-life assets like pictures, and furniture.

The reason why NFT is called a non-fungible token is that it cannot be substituted with real-world

asset, non-fungible token exists on the blockchain, which means they also have some of the

features that assets in the blockchain have, one of those features is decentralized features but

is also running on a decentralized parameter.

Read Also: How Is NFT Different From Cryptocurrency

Gas fee

A gas fee is the unit of measurement for the amount of work that a particular coin transaction

requires, when a person is sending a coin to another address in the blockchain, it will require a

gas fee for miners to review your transaction, miners are computers that run on a particular coin

network, it verifies the transaction by solving complex mathematical puzzles, let’s say you are

sending Ethereum to another wallet, the Ethereum protocol will require a fee for the

transaction to be successful.

The more complex the transaction calculation is, the more gas fee it takes, all

transactions need a gas fee, and if a user does not include enough gas fee in his wallet before

any transaction, the transaction can be rejected.

Bull

A Bull period is a time when there is an increase in the crypto market consistently, and the price keeps

moving up without coming down, the term is used to describe this period because of the

features of the animal.

Mining

After the release of any cryptocurrency, it can be mined by anyone with the right technical ability

and knowledge of the crypto world. Mining is the process of solving complicated mathematical

puzzles and those that mine will be rewarded with new coins at the end of each mining.

Read Also: Best Four cloud mining sites in 2022

HODL

The name was coined by Gameyuubi, it means to hold your cooling for a long period without

selling them, HODl is an abbreviation for “hold”, the term became popular in the crypto space as

more people became exposed to the idea of holding their coin without selling it, especially

during the Bear period.

Initial Coin Offering (ICO)

This is the process of raising funds for a new crypto project, all projects in the crypto world need

funding to sustain them and bring them to listing. ICO is the best way to raise money for

crypto projects, in the process, investors are exposed to the project and they can invest if they

see potential in the project.

Bull/Bear trap

Bull trap happens when the price of an asset tricks you into buying it and it suddenly goes down

(the price suddenly falls), Bear trap is when the price of an asset tricks you into selling the asset

(because you feel it will soon enter the bear period) then it suddenly goes up.

The bull and bear trap happens all the time in the crypto world, especially when a person was

expecting to benefit only and immediately in the bull instead of HODL.

Conclusion

The best way to make it in the world of Crypto is to research and understand some of the terms that are used, so as

not to get confused when you see them. Knowing the right term at the right time can also help in

discouraging uncertainties.

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