Homework - Task 1 by crypto professor @besticofinder. Short explanations of following fundamental trading terms : Altcoins , Stable coin , trading pair , Bagholder , HODL , Sats , Bear/Bearish , Bull/Bullish , FUD, etc. (Powered up 100%)
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INTRODUCTION.
Hello Steemians, it is a pleasure to be part of the crypto academy. The brain child of @steemitblog to teach newcomers the technical aspects of cryptocurrency and to support the newcomers who are entering this cryptocurrency industry.
This is my first post in the @crypto-academy. So I will give a brief details of the following terms to the best of my knowledge and research.
ALTCOINS.
Altcoins are the other cryptocurrencies launched after the success of Bitcoin. Generally, they sell themselves as better alternatives to Bitcoin.Ethereum and Ripple were the largest altcoins by market capitalization in February 2020.
"Altcoin" is a combination of the two words "alt" and "coin" and includes all alternatives to Bitcoin. The success of Bitcoin as the first peer-to-peer digital currency paved the way. Many altcoins are trying to target the perceived limitations of Bitcoin. An altcoin must have a competitive advantage to succeed against Bitcoin.1
STABLE COIN
Stablecoins are cryptocurrencies without the volatility. They share a lot of the same powers as ETH but their value is steady, more like a traditional currency. So you have access to stable money that you can use on Ethereum.2.
Stablecoins achieve their price stability via collateralization (backing) or through algorithmic mechanisms of buying and selling the reference asset or its derivatives.3
TRADING PAIR
In cryptocurrency, the term “trading pairs” describes the asset pair being traded (typically one cryptocurrency for another). For example, the “trading pair” ETH/BTC.
With ETH/BTC you can buy Ethereum with Bitcoin, or Sell Ethereum for Bitcoin. After-all, these cryptocurrencies are types of monies.4
The currencies that trade the most volume against the U.S. dollar are referred to as the major currencies, which include:
EUR/USD or the Euro vs. the U.S. dollar
USD/JPY or dollar vs. the Japenese yen
GBP/USD or the British pound vs. the dollar
USD/CHF or the Swiss franc vs. the dollar
AUD/USD or the Australian dollar vs. the U.S. dollar
USD/CAD or the Canadian dollar vs. the U.S. dollar. 5.
BAG HOLDER.
A bag holder is an informal term used to describe an investor who holds a position in a security that decreases in value until it descends into worthlessness. In most cases, the bag holder stubbornly retains their holdings for an extended period, during which time, the value of the investment goes to zero. He/She is an investor who holds onto poorly-performing investments, hoping they will rebound when chances are that they will not.6
HODL
HODL is one of the most frequently used slang terms in the Bitcoin community. Some people occasionally say, incorrectly, that HODL is an acronym for “Hold on for Dear Life.”6
FUD
FUD: Or “Fear, Uncertainty, and Doubt” is a simple term that describes the emotions that can be felt by investors during more volatile market movement time periods, when negative mainstream news cycles occur, and other uneasy moments surrounding the Bitcoin ecosystem. 7
SATS
Stacking Sats: “Sats” comes from the term “satoshis,” derived from Satoshi Nakamoto, Bitcoin’s illusive creator(s). “Sats” refers to the smallest fraction of a bitcoin that can be sent when an onchain transaction is made, which is approximately equal to 0.00000001 of a bitcoin. “Stacking sats” is a term commonly used to describe the act of regularly accumulating bitcoin—particularly in smaller increments—by buying, earning, or mining. 8
Go Long: Simply means to buy. Go long on USDT means to buy USDT.
Go Short: is when you sell first in the hopes of being able to buy the asset back at a lower price later.
BEAR/BEARISH
Bearish is the belief that the price of an asset will fall. A bear is one who acts on the market.
BULL/BULLISH
Bull is the belief that an asset or coin will rise in value.
Being a bull can represent an opinion or action. Someone who's bullish will go long on the coin they are bullish about
CONCLUSION
One thing I understand about cryptocurrencies is that, it is not an investment that one trade on carelessly. You take your time and understand how the market works, also use indicators that tells you when the market is bullish or bearish. Understand that it is a risk, that could dry up your account or increase it. Personally I use trust wallet, tronlink pro and roqqu app for all crypto transactions.
A special thanks to @besticonfider and @crypto-academy for creating this platform to help us learn more about cryptocurrencies.
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