Planning to invest in cryptocurrencies, certainly registering yourself on the crypto exchange platform is the first thing you would do. There are around 600+ exchange platforms providing you easy and seamless trading experience. However, we cannot conclude that all these exchange platforms are perfect for you.
Hence, it’s important to run through each of them and find out its key features. Once you are convinced of it, you can register and start trading. But, before taking this step, it is also important to get yourself acquainted with all the terminologies and jargon of this field.
Since the crypto market is new, many investors who have newly started trading are trying to jump into the pool. But doing so without information will not help you. Hence, it is recommended that one should always know the key terms prevalent in the crypto market.
The Insider’s Guide To Understanding Crypto Terms
- Day Trading- The first term that we are discussing is crypto day trading. Every trader has a strategy of investment. The day trading option is quite popular among the crypto traders as it is a fine crypto trading strategy which involves selling traded shares within the same day.
- Bull market– When the market is bullish or when there is a bullish market, the pricing in the market usually moves upwards in a definite period. Usually, this period is considered a positive trend in the market.
- Bear market- this is a negative trend or when the market starts, or the pricing starts to move downward. Usually, the investors try to buy in at this time or when the market is bearish.
- Alternate cryptocurrencies- When we start exploring the crypto market, every investor comes across different terms like cryptocurrencies or alternate cryptocurrencies or bitcoin. Hence, a common question here is whether all these are the same or different. Coming to the functional part and functioning of all these cryptocurrencies are the same; however, when it comes to using cases, alternate cryptocurrencies may have different uses as compared to bitcoin.
While bitcoin’s role is limited to transactions, alternate cryptocurrencies are subdivided into stable coins, tokens, and forks. Hence every cryptocurrency currency that exists in the market other than bitcoin is called an alternate cryptocurrency. Around 40% of the crypto market is captured by bitcoin, while the rest of the 60% is shadowed by cryptocurrencies or alternate cryptocurrencies. Some common examples that fall on this list are Ethereum, Litecoin, dodge coin, and others.
- Cryptography- An important term that you should definitely know is cryptography. Cryptography plays an important role when it comes to ensuring utmost safety and security of the trading factors in a decentralized platform. Cryptography is not just limited to cryptocurrencies. Rather, it finds application in our day-to-day programming, which is used to create a safe system. It helps to secure blockchain and cryptocurrencies via SHA 256.
- dApp- These programs operate on the Blockchain system. Here comes into the picture Ethereum, another popular cryptocurrency after Bitcoins. These are used to develop smart contracts. Smart contracts are basically digitized contracts that have pre-decided terms and conditions. The dApp helps with the automation of systems, ensuring seamless transactions between buyers and sellers. The use of smart contracts is expanding across the different industrial segments, with its most profound use being seen in the real estate market.
This was the basic information on the key terms you will come across in the crypto market. Hence, you must start reading as much as you can about the crypto market before you go ahead and register yourself on any of the crypto exchange platforms. At the same time, it is also important to do your research about the crypto exchange platforms.
The crypto investors looking for profitable results, can consider logging on to a credible platform like the Bitcoin Pro. There are several other crypto exchanges that you can explore. However, don’t make a decision in rush. Always emphasize on learning about the crypto market first and then making a decision on investment. So, what are you waiting for? Join crypto communities where you can get the most credible and authentic information on the crypto ecosystem.