Steemit Crypto Academy | Introduction to cryptocurrency trading by professor @besticofinder | Homework - Task 1
Introduction to cryptocurrency trading
I was very excited when the Steemitblog Team announced that it would form an academy of cryptographic studies and today it is a reality. In their first update they informed us that they had a group of 5 teachers and each of them had already prepared their tasks for each of the users to participate.
They all expose speeches with very important classes within the cryptographic system. Each one assigns tasks that require research at the basic level. Which leaves the opportunity for everyone to participate.
In my particular case, I really liked the class:
Introduction to cryptocurrency trading by professor @besticofinder
Because it explains in a very clear and understandable way the steps we must follow to enter the world of cryptocurrency trading.
In his first task he asks us the following:
Homework - Task 1
Make an article with short explanations of following fundamental trading terms : Altcoins , Stable coin , trading pair , Bagholder , HODL , Sats , Bear/Bearish , Bull/Bullish , FUD etc. You need to do your own research on each term and provide a small explanation.
Imagen de Jae Rue en Pixabay
ALTCOINS
the word altcoins is formed from the words "alternative" and "coin", the term is used to refer to digital currencies that are not Bitcoin.
They were created to streamline transactions and other needs, for example some are faster,
Advantage:
UTILITY. They are easier to use than Bitcoin, therefore they have a more active use in making payments.
DECENTRALIZATION. Great autonomy and independence since they do not have a management center for our data and operations.
INNOVATION. New cryptocurrencies are constantly emerging that are authentic altcoins that improve blockchain technology and its use.
SECURITY. The blockchain on which cryptocurrencies are based provides transparency in information.
Source
STABLE COINS
They are "tokens" that are linked to the value of a "fiat" currency (such as the dollar or the euro), to material goods such as gold or real estate, or to another cryptocurrency.
There are also 'stablecoins' that are not associated with any other currency but are controlled by algorithms to maintain a stable price.
The main motivation for creating a "stable currency" is to try to protect investors in times of volatility.
Advantage:
They offer greater stability. Known as Tether or DAI, they try to reduce the volatility of virtual currencies such as 'bitcoin' or 'ether'
Source
TRADING PAIR
It is a business strategy. It allows benefits in the market before an uptrend, a downtrend or a lateral movement.
In cryptocurrencies this strategy is used to find the balance and predict the movements of cryptocurrencies.
The most used cryptocurrencies offer the most popular trading pairs,
For example, BTC / ETH are different cryptocurrencies but with similar movements, so if BTC rises a lot and ETH remains stable, the trader of pairs will buy ETH and sell BTC since it assumes that both cryptocurrencies will return to their equilibrium point.
Interesting reading: Lecture 23: Pairs Trading
Pair trading was pioneered by Gerry Bamberger
Source
Bagholder
The word is derived by combining shareholder with the expression "left holding the bag."
In cryptocurrency it refers to the investor who has a portfolio of cryptocurrencies with minimal growth prospects.
Interesting reading: Definition of Bag Holder
Source
HODL
The word HODL (from English HOLD, but misspelled)
It is used to refer to the decision to acquire a Bitcoin (mainly) and not to sell it. It is seen as an investment philosophy.
This in order to wait for them to increase in value and see that the initial investment appreciates quickly.
Interesting reading: Hodling's beginnings
Source
SATS
Bitcoin only had two official units: Bitcoin called as BTC and Satoshi called Sat and the plural form is Satoshis which is often abbreviated as Sats.
In the same way that the dollar is divided into 100 cents.
One bitcoin can be subdivided into 100,000,000 bits and all of these units are measured in Satoshis.
Source
By Eva K. - Eva K., CC BY-SA 2.5, https://commons.wikimedia.org/w/index.php?curid=824045 Bear/Bearish
A Bear uses its claws in a downward motion to attack. An investor is "bearish" when he takes advantage of the market that is going down. Being able to identify bearish, or bearish trends, is an important part of trading because market sentiment is a key factor in determining how financial markets move.
Bull/Bullish
A bull uses his horns in an upward motion to attack. An investor is "bullish" when he sees upward trends in stocks and takes advantage of them. Traders can also invest on the growth of the value of a market
Source
FUD
The initial FUD for Fear, Uncertanity and Doubt, which stands for fear, uncertainty and doubt, qualifies a business strategy, which consists of sharing negative information in order to harm a competitor.
An example of FUD are rumors and false information about the supposed Prohibition of cryptocurrencies in some country where negotiations are being carried out with them.
Problems with Tether, also releasing negative information from many months ago, etc.
Source
Conclusion :
For every beginner in cryptocurrency trading, it is important to know the fundamental trading terms and their application both in theory and in practice.
Thus, an initial development can be obtained that will be accumulated with practice and experience.
Thanks to all who have made this course possible and the free participation of the students.
Guidelines
• Your article should be at least 300 words.
• You have to do your own research on each term and explain the idea shortly.
• No plagiarism please . You can use images taken from copyright-free sources mentioning the source.
• The final submission date will be 14/02/2021
• Add tag @besticofinder in your post, it will help me to find your submission. Use #cryptoacademy, so that Steemit Team can find you.
Cc: -
@besticofinder (teacher)
@ steemcurator01
@ steemcurator02
https://twitter.com/mariita52steem/status/1360431290714046468?s=20
Thank you for your work and contribution to steem greeters project.
Very grateful for your practical support and your words. Happy and long life.
Hello mariita52!
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