Crypto Jargon Demystified

Investing in blockchain-based assets has become one of the most popular options in recent years. However, there are still many people who are not familiar with the main features of these digital assets, what they represent, and how to make the right actions so you can secure a profit. There are trending options like Bitcoin and Ethereum, but you can choose from over 3,000 different cryptocurrencies. Still, not all of them will provide the same potential for a profit.

Besides the ability to make the right choice on investing, you should learn more about technical features, possible trading processes, converting options, and security. For example, it is important to choose the right e-wallet so you can keep your crypto safe. One of the best options today is Crypterium since you can use it as a standard credit card and store both fiat currencies and crypto.

In case that you are not familiar with this market, you will notice that many specific terms might sound confusing in the beginning. There is a huge community of people who are trading with these assets, and they have created many jargon terms related to various processes, types of crypto, investing, and more. We are going to introduce you to some of the most common phrases.

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1. Blockchain

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This is the first thing that you should learn about cryptocurrencies. This system represents the background of these digital assets, and it is a unique system where data is being stored. the main advantage is that this system is decentralized, which means that there is no way for any form of cyber threats. Miners are those who are providing resources to this system. The reason why it is called blockchain is that every time a new transaction is made, it requires a new block of codes.

2. Mining

You probably already heard about this process. There are still many people who prefer making a profit through mining instead of trading. The name often confuses people. The reason for such a name is because the process symbolizes the mining process where you can use special equipment and software to connect to the network and share your resources to provide faster generating of codes that are storing data, adding new data, and creating more coins.

This option was especially popular in the first few years. It is more challenging today because the process is getting more difficult over time, and there are expenses related to hardware and electricity. However, the constant rise in the value of BTC is keeping people interested in mining.

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3. Whale Investors

The name suggests that the account has a huge amount of crypto, and certain activities on such an account could affect the whole market. The great feature is that there are several websites where you can track the activities of these investors, and that can help you to make better decisions and follow the most recent trends. This option could save you from losses caused by high volatility.

4. HODling

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If you were reading some articles about this market, you probably noticed this term. You have to know that it was not a spelling mistake where someone wanted to write holding, even though the meaning is the same. The HODL is a term that represents an action where you will invest in crypto and keep it on your wallet until it reaches a higher price. This was especially a good option for those who started investing right after some of the first cryptocurrencies were introduced to the market. For example, you could buy 1 BTC for less than a dollar ten years ago.

5. Mooning

It is interesting how this market has also a set of unique phrases, which is also a feature known in the stock market. When it comes to mooning, it represents a situation where a particular trading asset started to increase in value overnight. On the other side, you have to be careful when investing in unstable options. This market is highly volatile, and there are big changes possible every day.

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6. Tokens

It can be confusing when you constantly read about tokens while looking to find more info about cryptocurrencies. They are often mentioned together, and people who are not familiar with this market should know that tokens are not the same as crypto. The main purpose of tokens is to award those who are sharing resources to the blockchain. Moreover, there are three types of tokens, asset, utility, and payment. Online exchanges are using them for conversion into fiat currencies.

7. Altcoins

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Bitcoin is the first and most popular and valuable crypto. The term Altcoin is related to all other options since they are only an alternative to BTC. The fact is that the prices of these assets often follow the trends of Bitcoin.

However, there are already some options that are becoming independent from the influence of Bitcoin price, such as Ethereum. The main advantage of Ether is the new system that allows digital integration for businesses called smart contracts. With this feature, you can send and receive confidence and official documents and sign them by using blockchain technology.

The Bottom Line

These are only some of the terms popular in this market. Also, we have selected phrases that will be easier for beginners to understand. On the other side, there are many more complex terms that you will find over time. For instance, the difference between the fungible and non-fungible tokens, which is related to possible conversion, or hash, which is a special method of encryption used to store data in the system.

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There is no reason to get stressed out if you find it difficult to learn all these terms in short time. Learning the basics will be enough to start with investing and trading, while you will catch with other more complex terms over time. If you are planning to start investing in crypto, it is essential to learn more about the options with best potential. Also, focus on learning more about the factors that could affect this market, like actions of big investors, official regulations, technical features, and more.