Get to know the main terms used in the cryptoactive market
Much is said about how to invest in the crypto market and the importance of knowing the sector. To start in this journey, there are some basic terms, used in the day by day of cryptomoeda investors, that all the beginners should know.
„The market is on the rise, Wealth Matrix has recently reached its maximum value in Reais and there are many other cryptomoedas appearing on the market. For those who already understand the subject some words from this universe are unknown, imagine for those who are beginning to be interested in this medium“, explains Daniel Coquieri, COO of BitcoinTrade, a broker specialized in the cryptomoedas market.
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According to the executive, it is important to be aware of the terms most used to better understand this field and invest with knowledge.
To help understanding cryptomorphs, Coquieri created a list of the words most used by the community.
Altcoins or alternative coins: name given to all virtual coins and tokens that appeared after the creation of Bitcoin. Apart from Bitcoin, all other coins are called altcoins.
Arbitrage: strategy in which a person buys a certain cryptomeda of an exchange that is at the lowest price and sells in another that is at the highest price.
Digital assets: term used to refer to any cryptomeda or token.
Multiple signature (multi-sig): feature that allows a cryptomeda to be spent only if a group of people authorizes the transaction to take place. This type of function is generally used by companies in order to avoid spending without the consent of all members who hold the keys to the portfolio.
Bull: the so called „bulls“ are the investors who believe that there will be an increase in the price of an asset. And Bull Market is the term used to represent an upward trend in prices in the market.
Bear: the so called „bears“ are the investors that are pessimistic in relation to the market recover. And Bear Market is the term used for when the market is in low, that is, when the prices are in drop.
Whale: people who have large quantities of cryptomites. Whales can influence the market when they sell their cryptoactives.
Genesis block: the first block of a blockchain
Blockchain: works as a virtual database. In it, all the information and data of a certain process are recorded in a public way. To guarantee that your system is safe, since the blockchain does not need intermediaries to work, all the computers connected to it have a copy of the blockchain information. Even if one person tries to change a piece of data it will not affect the system, since all the other computers have the real information.
Cryptomeda: name given to the virtual currencies that, like any other currency, have buying and selling power in the market.
Private key: code that allows the user to have access to his virtual currency portfolio, as if it were the password to a bank account.
Cold Wallet: Off-line wallet is considered the safest way to store your crypts since it is not connected to the internet.
Day trader: a strategy used by investors with a bolder profile. Day traders seek to buy and sell assets on the same day, aiming a quick profit.
Exchange: they are the brokers of cryptomedas. Through them it is possible to buy, sell and make virtual currency exchanges.
Forks: are updates and changes made to the rules set or the code of a crypto currency.
Fees: fees paid for each trade that takes place in the blockchain.
Halving: periodic event that happens every 4 years and consists in reducing by 50% the reward paid to miners for their work.
Hype: term used to say that something is a trend or that is in the focus of attention.
Input: term used for entering transactions at an address.
Pound: Virtual currency of the Facebook social network.
Distributed ledger: term used to explain how Blockchain works.
Lending: means to lend your crypts in order to generate profits, through daily interest.
Litecoin (LTC): virtual currency created by Charlie Lee in October 2011 to be a clone of Bitcoin.
Liquidity: volume of money available for market order execution.
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Lettuce hand: investors who can’t deal with the volatility of the cryptomoeda market. As a consequence they end up selling their currencies and often stay at the loss.