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.