Newbies in the digital currency world will have to face a great deal of trade jargons. Whether you are an investor or someone looking for a GBTC trust alternative,you need to be familiar with the terms and phrases used in the cryptocurrency field. Don’t know where to get started? Fret not for we have you covered. Here are some of the most important terms and phrases you need to understand:
Altcoin
Derived from “alternative” and “coin,” altcoin pertains to a digital currency other than bitcoin. There are over 5,000 altcoins according to Bitcoin.com.
Bitcoin
Bitcoin is a digital currency that started it all. Created in 2009,it works like an online version of cash and has since been the leading virtual currency.
Cryptocurrency
Cryptocurreny is a type of currency that is secured by cryptography. It is a form of digital asset built on blockchain technology.
Distributed Ledger
Distributed ledger pertains to a system designed to record data distributed across channels and accessible through different devices. The Blockchain is an example of distributed ledger created to monitor Bitcoin transactions.
Exchanges
Exchanges are marketplaces where transactions occur. This is where traders carry out their digital currency dealings. For instance,if a person wishes to buy Bitcoin,they can do so by going to an exchange.
FOMO
FOMO is simply an acronym for “fear of missing out.” This happens when an investor purchases an asset expecting that its value will rise. People in the market can flock to an asset if it shows considerable gains. Traders must be wary of getting caught up in a FOMO. Such scenario could be a trap built by market manipulators.
Market Cap
Market cap is short for market capitalization,which pertains to the total market value. For instance,the market cap of Bitcoin is the number of BTC outstanding times the price of the virtual currency.
Mooning
When a currency is “mooning,” it means it is rising sharply in value.
Whale
Whale pertains to the traders who are known to make significant bets. They make large transactions; therefore,they are capable of changing the game in the market. They are the big swimmers who control the waves in the trade.
These are only a few of the most common terms you would hear amongst traders and investors in the cryptocurrency world. Learn more so that you won’t look or sound like a “noob.”
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