For novice investors interested in the market Cryptocurrencies (Cryptocurrency)Understanding the basic terminology is important because it will help you stay on top of the news, read reviews, and make more confident investment decisions.
Here are the basic terms you should know
Bitcoin (BTC)
BitcoinIt is the first cryptocurrency in the world created to be used as an intermediary in exchange without relying on banks or governments. It is a digital asset that many investors use as Store of Value
Altcoin
AltcoinIt is all kinds of crypto coins that are not Bitcoin, such as Ethereum (ETH), Solana (SOL), Cardano (ADA), etc.
Wallet (Digital Wallet)
Purseis the storage of your digital coins. It is divided into two main categories:
- Hot Wallet:Online and convenient, but vulnerable to hacking
- Cold Wallet:Offline. More secure but more cumbersome to use
Exchange (trading platform)
Exchangesis a platform used to trade digital coins, such as Maxbit, Binance, Coinbase
DCA (Dollar Cost Averaging)
DCAIt is an investment strategy of buying coins in installments for equal amounts to help reduce the risk of price fluctuations.
Market Order and Limit Order
- Market Order:Order/Sell coins instantly at current market prices
- Limit Order:Set the desired buy/sell price and wait for the market price to meet the set price.
HODL
HODLDerived from the word “Hold”, it means holding a coin for a long time. It does not sell, even if the price fluctuates.
FOMO/FUD
- FOMO (Fear of Missing Out):Fear of missing out on opportunities led to coin buying on a trend.
- FUD (Fear, Uncertainty, Doubt):Negative news or uncertainty. Causes concern and the decision to sell the coin
ATH (All-Time High) and ATL (All-Time Low)
- NOTE:The all-time high price of a coin
- ATL:The all-time low price of the coin
Staking
Stakingis to lock digital coins in the system to help secure the network and exchange them with Reward in coins
rubric
Understanding these basic terms will make it easier for you to keep track of the crypto market, reduce confusion, and help you make confident investment decisions.
Starting from Bitcoin → Altcoin → Wallets → Exchanges → DCA → Ordrs → HODLThen gradually learn more other terms according to experience.
