The Crypto Market: 10 Terms You Should Know

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Are you a newbie wanting to explore the cryptocurrency industry? If so, you have probably encountered countless terms while researching or using an application. Cryptocurrency is known to be one of the best ways to earn passive income – but you should know by now that it’s not that easy because of its highly volatile market. Another thing that nobody told you about cryptocurrency is that it comprises many terms that you should learn and understand. Aside from enhancing your skills and training your technical skills, you should add knowing crypto terms to your list before you dive deeper into this field. To help you, we’ve compiled ten of the most common and essential words in cryptocurrency that everyone should familiarise and understand. 

Cryptocurrency: A Brief Overview

Well, first things first! Before we list and discuss the critical crypto terms, let’s briefly discuss cryptocurrency. You may have heard about Bitcoin and other cryptocurrency talks from your friends or have read stories of millionaires due to crypto trading on the internet. Whatever prompted you to join the crypto-verse, you must know the answer to ‘What is a cryptocurrency, and how does it work?’

If you’ve noticed, more cryptocurrencies have been introduced in the market in the past years. Aside from helping people earn passive income, these cryptos are created to continue the main purpose of cryptocurrencies – creating a digital currency where transactions and records are maintained by a decentralised system instead of third-party agents like the government or the bank.

If you’ve heard of success stories from crypto, you may have also read about millions of people who lost their hard-earned funds due to the market’s volatility and the increasing cases of crypto scams. Due to this, business people and programmers developed crypto platforms to address the security issue and increase the chances of earning profits. For instance, Bitcoin Loophole connects traders like you with expert crypto brokers that monitor the market 24/7. Compared to trading alone, these brokers have access to advanced tools and have top-notch knowledge that can help you further your career. 

Now that you have a basic knowledge of crypto and how it started, let’s go over the standard cryptocurrency terms you’ll encounter throughout your trading career.

1. Cryptocurrency Platform

You already know that you need to trade and invest. But where do these transactions take place? That’s the purpose of the cryptocurrency platform! A crypto platform or exchange is a digital place where you can perform transactions like buying, selling, or trading cryptos. As of 2022, over 500+ cryptocurrency platforms in the market offer different benefits for your career. 

Choosing a crypto platform is the first step you must take when planning to engage in crypto. With the long list of exchanges, selecting one to entrust your funds to can be challenging. However, don’t take this step for granted, as the platform you choose can make or break your career. Be sure to research the crypto platforms extensively, list their benefits and drawbacks, and compare until you find the right one.

2. Bitcoin 

Regardless if you’re already in the crypto-verse, we’re pretty sure you’ve heard or seen the term Bitcoin at least once. Millions of people would not enjoy cryptocurrency today if it weren’t for Bitcoin. Bitcoin was the first cryptocurrency to be introduced and has inspired the birth of thousands of altcoins. This crypto has gained the trust of millions of traders and investors due to its skyrocketing prices, promising gains, and stability. Even now, most crypto enthusiasts prefer to have Bitcoin in their portfolios!

3. Altcoin

If you find Bitcoin interesting, you should know about the cryptos that come after it. Altcoins or alternative coins simply refer to cryptocurrencies that are not Bitcoin. There are over 20,0000+ altcoins to choose from if you plan on diversifying your portfolio – but the most popular one is Ethereum. Each altcoin has different benefits and effects on your career as well.

4. Blockchain

As mentioned, cryptocurrency transactions do not involve banks or the government. You might be wondering where you can find all the data of your trades. The answer: Blockchain. This digital ledger stores and records all the cryptocurrency transactions that users make. Blockchain is not immune to crypto hackers but has a better line of defence because of its decentralised nature. 

5. Non-Fungible Tokens (NFT)

Non-fungible tokens can be anything you own, such as photos, music, videos, articles, digital art, or logos. They simply refer to collectables, like some people collect vintage items. These can be just ordinary things unless you register them as NFT! Once an item has become a non-fungible token, it will have a unique and specific address to it that’s irreplaceable.

6. Crypto Wallet

A crypto wallet is the same as your physical wallet, except that it’s virtual. It stores your cryptocurrency earnings to keep them safe and hold them for quite some time. When it comes to safety, the safety of your wallet is in your hands – literally! You’ll have a private key that acts as a password for your wallet. Just make sure you avoid losing your key or misplacing it, as there’s no other way to replace it.

7. HODL

HODL is one of the most famous and effective crypto trading strategies. The term comes from a typo of the word ‘hold,’ which refers to the buy-and-hold strategy. As a trader, you might be tempted to sell your cryptos when the price is high, but not until you learn about this strategy. The buy-and-hold technique simply refers to buying cryptos when the price is low and holding them until the price is high before you sell them.

8. Cryptocurrency Address

Their unique addresses are identified on the blockchain where your crypto transactions are stored. You can think of the blockchain as a navigation system where your cryptocurrency address is your mailing address. Due to this address, the blockchain can validate or confirm the existence of a particular transaction. Depending on your chosen currency, addresses may come in different forms, but the majority often looks like a random combination of letters and numbers. 

9. Fear Of Missing Out (FOMO)

The fear of missing out, or FOMO, refers to the dreadful feeling that investors have when they panic and rush to buy crypto for fear of losing out on profit potential. Understandably, emotions are high in the crypto industry because they involve considerable money. But know that getting carried away with FOMO may result in poor decision-making, which could harm your career.

10. Stablecoin

Stablecoin refers to cryptocurrencies whose value is tied to another currency. Since it backs its value against a conventional asset, stablecoin reduces its price volatility. Its purpose is to facilitate trades on crypto exchanges, so, for instance, instead of buying bitcoin directly through traditional currency such as the US Dollar, traders exchange it for a stablecoin.

Conclusion

Regardless if you’ve just started engaging in the crypto world, there’s a massive chance that you’ll encounter or experience these terms throughout your career, so it’s good to be prepared. The list above is just some of the crypto terms you must learn and understand to help you with your career. Remember that cryptocurrency is still developing, so don’t be surprised if the list continues longer!

*This article has been paid. The Cryptonomist didn’t write the article nor has tested the platform.