Do you know what are some of the most important trading terms? If you are just starting out in this industry it is vital to get informed on all of them.
Also, not all experts know of all the trading terms either, which is why you always have to learn and educate yourself as time goes on. The glossary below explains some of the basic terms. Keep on reading and find out all there’s to it.
Crypto Glossary of Terms all beginner traders should know
- Accounting token: an alternative to stablecoins. These are tokenized credit or debit entries, just like any spreadsheet-based accounting system.
- Algo-trading: an automated trading system where orders that are bought or sold are placed thanks to the rules and navigation or a computer program.
- Blockchain: a transparent, permanent ledger that registers every transaction. It links a series of blocks, uses all of its power to link bitcoin and other cryptocurrencies.
- Bull market: also known as a stock market in which you can see the expedited price of assets. People see this as a place for potential investments.
- CeDeFi: stands for centralized decentralized finance. It is a system of different applications that merge policies for infrastructure.
- Chain split: this happens when a codebase has been copied from older crypto but its development continues independently.
- Cold storage: a type of long-term cryptocurrency storage that can work and perform so well that is approached completely offline, minimizing potential thefts.
- Cryptography: is a method for secure communication using code. Blockchain addresses generated for wallets are paired with private keys that allow the transfer of cryptocurrency.
- DAICO: a method that is used for decentralizing funds, perfect for allowing backers to vote in case their funds are not aligned, along with certain conditions.
- DDoS: cyber-attack in which the system is filled with requests and is overwhelmed, used to prevent service of legitimate requests.
- EIP: describe standards for the Ethereum platform, including core protocol specifications and contract standards. Used as proposals for new functions.
- E-signature: your own authentic signature that is made with a sign, symbol, or sound to form a legal document.
- Exit scam: used as a trick to shut down an operation or a project after the hacker accumulates enough money.
- Fiat currency: Government-issued currency. For example, it can be USD, EUR, GBP, CNY, JPY, etc.
- Flash loan & fash loan attack: a type of uncollateralized lending, or when an attacker exploits a smart contract.
- GitHub: a code hosting platform, allowing developers to collaborate on various projects.
- Hash: is a result of a hashing algorithm with a unique fixed-length string for secure selection of data.
- Hash rate: a type of measurement and power that is consumed by a network for everything to operate at a steady continuous rate.
- HD wallet: an approach used by BTC & Ethereum wallets when restoring a MetaMask wallet from the Secret Recovery Phrase.
- Inflation: when an increase in prices happens but a fall in the purchasing of the value of money.
- Internal transaction: happens with contracts, rather than between addresses. Used and crucial to carrying out the action in question.
- KYC: stands for know your customers. A process in which a business must verify the identity and background information of the user through their address or finances.
- Large-cap: used to describe big projects or organizations with a capitalization of $10 billion at least and anything above.
- Ledger: is a record of any financial statement or transactions that can’t be changed in the system.
- Liquidity: availability of liquid assets to a company or market. An asset is considered more liquid if it can easily be converted into cash.
- Liquid market: it is a market that has a large number of sellers and buyers. In this platform, every trade is executed at a lower cost.
- MCAP: stands for market capitalization = a total of a cryptocurrency’s price.
- Mid-cap: is a special measure that is derived from a math computation. With it, the market value of crypto ranges and depends on variation from $1-$10 billion.
- Mobile wallet: your very own wallet that you can install and use on your phone.
- Node: a basic unit of blockchain infrastructure that stores data.
- NFT: stands for a non-fungible token. It is usually an artwork of some sort.
- Off-chain: when a transaction is processed outside and off the blockchain with a reduced cost.
- OTC: stands for over-the-counter. Can be both a transaction or a trading process. Often done through peer-to-peer private trades.
- Permission ledger: a blockchain network in which access to a ledger or network requires permission from an individual or a group of people.
- Rug pull: a type of scam where a developer can abandon a project but end up taking the money from the investor.
- Secondary market: a market where different investors can trade or buy different assets.
- Security token: used to add an additional layer on top of traditional security.
- Transaction block: a collection of transactions on a blockchain network, gathered into a set or a block that can then be hashed and added to the blockchain.
- Toll bridge: bridge powered by a smart contract where a monetary value called a toll fee unlocks access to extra functionalities.
- Unregulated: something that isn’t controlled by a centralized authority or a governing intuition.
- Validity proof: proof submitted along with certain types of rollups to prove that the transactions are valid.
- Volume: how much cryptocurrency has been traded over a set period, such as the past 24 hours.
- Whitelist: a list of interested participants in an initial coin offering.
- Zero-knowledge proof: proving certain information or data is true without revealing it.
How to start trading?
Are you intrigued by this process? Bitcoin trading or crypto trading, in general, can be a fun way to make money while investing only a bit of your time into the whole process. With the proper software, you can get an algorithm that does the process for you. Check out bitcoinscodepro.com/de/login and see what they can do for you.