You can’t call yourself a crypto-trader if you don’t have these crypto-trading terms on your finger tips! Crypto-terms are necessary to remember. It can take some time to learn, we know that! If you’re a true crypto-trader, over the time you’ve developed a great knowledge base. So there is no harm in revisiting them, right?
But, if you don’t know what these are then your knowledge about crypto-trading isn’t as vast as you think it is. Then you’re in great trouble. Let’s just end the mystery and look at the crypto-terms shall we?
ICO stands for Initial Coin Offering. An ICO is like the stock markets initial public offering. Its basically the time where the crypto sells it tokens before its released in the market. It can exciting and risky too. There could be profit or there could be only loss. You can end up buying something which makes you shitload of money! Or you can end up buying something which completely worthless and all your money is gone to shit! There is no in between. It’s this or that!
Traders are usually into diversifying their portfolio. It’s the smart choice to make actually. So, every traders has limited number of coins per crypto. But, then there are the whales of the market. These are the people or they could be entities who just commit their heart and soul to one coin. They end up owning a very large percentage of that one count, then they are just more than a status symbol. Its how you get in a powerful position. When the whales decide to sell or buy, they sometimes often sell enough that it can potentially affect the value of the coin. That’s why whales aren’t as innocent as they seem!
“Multi sigs” are a type of trade security. It’s critical because the transactions are irreversible. When this form of trade security is applied, more than one individual has to sign off in order for the transaction to be approved. This is how the transaction security is more efficient. Since, the authority is distributed a single person can’t run away with all the money.
Every crypto has it own equation. Its because of the equation the blockchain exists. The equation is responsible for determining the validity of every block and that’s why transactions are so freaking secure. There is no faking it! The equations has no room for any frauds. So, basically mining is the act of solving the equation. The moment anyone solves the problem, the person gets a shiny digital coin. It can be time consuming and requires a computer to do it efficiently.
They are actually the most promising technology. There is no need for relying on manual transactions. With smart contracts all the crypto-traders can automate their deal, either with other traders or an exchange. It can be as simple as selling something when your stock reaches a percentage and you want to maximize your profits. It all depends on your own goals! If you have any, if not then its time to think of some to successfully trade in the crypto-world.
What are your final thoughts? Did you know these terms already? If not then, congratulations! You’re on your way to become a much better crypto-trader. Never stop learning!