Several Trading Terms for Cryptocurrencies - A Quick Overview | Homework @besticofinder Task Lesson 1
Good day my co-students at Steemit Crypto Academy!
The first week of the Academy was remarkable and it was quite important to note all the lessons provided by the professors to learn more about Cryptocurrency and Blockchain Technology.
This post would discuss several Cryptocurrency Trading Terms required by @besticofinder for Lesson 1 in its homework task.
Several Trading Terms for Cryptocurrency
- SATS
Sats literally means the smallest fraction of bitcoin or the term to call a bitcoin cent. The term Sats has been taken from the name of the founder of Bitcoin, Satoshi Nakamoto. A single unit of Bitcoin, or 0.00000001 BTC, is called a satoshi.
- PUMP AND DUMP
A 'pump and dump' is a form of investment scheme when a market participant or a variety of market participants work together to inflate the price of a commodity such that they may sell it while the value is unnecessarily large. This activity may be especially pervasive when it comes to digital currencies when traders can quickly get together using Telegram groups with the intention of causing certain cryptocurrencies to increase dramatically in value.
- ALTCOINS
An altcoin is defined as any cryptocurrency except Bitcoin. "Altcoin" is a combination of two words: "alternating bitcoin" or "alternative coin." In fact, it refers to a group of cryptocurrencies, ultimately all cryptocurrencies other than Bitcoin. Some examples of altcoins include Ethereum, Ripple, Dash, Litecoin, NEM, Dogecoin, Monero, etc.
- FIAT
A currency that has no intrinsic value but is considered to be a legal tender by governments that control the production of the currency through central banks. This is often found in the form of paper notes but is increasingly digitally represented.
- HODL
Originally, this was a misspelling of 'hold' trapped between traders who would hold positions in cryptocurrencies for a long time. Later it became the acronym for Hold On for Dear Life.
- MARKET CAPITALIZATION or MARKET CAP
The market capitalization of a cryptocurrency is determined by multiplying the price of a cryptocurrency by its circulating stock. This is a somewhat crude metric used to rate cryptocurrencies by relative worth, which derives its formula from that of shares for a given stock.
- TOKEN
Synonym for cryptocurrency or altcoin, although often most commonly used in reference to cryptocurrency that exists on another blockchain, rather than independently. For example, tokens are considered to be those created under the ERC-20 standard.
- ICO
An initial coin offering (ICO) is the first time a company has sold digital coins to the public in an order to increase funds. Companies also keep these offerings so that they can fund ventures. These digital token sales have also been similar to initial public offerings (IPOs) where businesses sell more conventional securities, such as stocks and bonds, to generate cash.
- HARD FORK
The hard fork is a type of fork that causes a permanent change to the protocol or rules of a digital currency. If each of these forks takes place, it results in a brand new blockchain that will not allow any blocks mined under the old rules. The old chain will survive, though, creates an environment in which both the old and the new blockchains can continue.
- MINING
Mining is the method of generating new digital currency units. For example, every time a block is mined, the bitcoin network releases new bitcoins. In this case, mining involves checking transactions and merging them into two blocks. This verification involves hardware and energy, and miners are compensated with digital tokens for providing the necessary services.
- FOMO
The word "FOMO" stands for the expression "fear of missing out." This happens as buyers start purchasing a specific asset on the basis of their hopes that it will grow in value. Market investors will quickly rush to the asset if the asset has sharp returns. Being swept up in FOMO could be risky. More precisely, picking up an asset because it has recently enjoyed substantial upside down will lead one to fall prey to market manipulation.
- FUD
Fear, uncertainty, and doubt can be summed up using the phrase "FUD." The concept behind this is that market players can spread false or incorrect information in order to minimize the price of the asset. A trader may want the price of an asset to drop so that they can either successfully reduce it or purchase it at a cheaper price and maximize their chances of making a profit.
- ATH
ATH is an abbreviation of "all-time high." This word may be useful to know for monitoring digital currency markets. These assets are so unpredictable, so holding ATH in mind can prove beneficial. A digital currency could theoretically reach a few local highs before rising to a new all-time high.
- WHALE
A person or organization with very significant cryptocurrency assets. Typically in relation to the incredibly broad purchase/sell orders which have the effect of a price change.
There are quite a number of Cryptocurrency Trading Terms and some of them that we need to understand. I assume you will also be motivated by these terms and brief descriptions.
Thank you very much, waiting for the next lesson and the next task to be completed.
Daming coins mo ma'am
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