Terms and phrases that you’ll come across in trading that are important to know.
Trading with Bitcoin has become a popular trend. It’s a popular cryptocurrency that’s become more common in the mainstream. If you’re a beginner then you need to know the basics before you being trading. That means that you’ll need a wallet to store your Bitcoin.
There are different types of wallets you’ll come across. These include mobile, paper, web, desktop, and others. You can choose one that suits your needs. Moreover, you’ll need to know the difference between a Bitcoin trader and a Bitcoin investor.
Also, you’ll need to get familiar with the different types of trading. Making analyses is another thing you should know. By doing so you’ll be able to get a better grasp at the price. But what you should also familiarize yourself with is the Bitcoin trading lingo. In that regard, there are some terms and phrases that you’ll come across:
This is a term used to refer to taking advantage of trading. The specific advantage it refers to is the difference between 2 exchanges. For example, in one exchange Bitcoin is selling for $7,000 and in another, it’s selling for $8,000. In the case of the arbitrage, you’d buy Bitcoin at the first exchange and sell it at the second. You’ll be making a profit of $1,000.
An address is something similar to a bank account. In other words, it’s the place where you can send and receive Bitcoin. This is something every Bitcoin trader has.
The Bitcoin blockchain is the distributed ledger system. It’s made up of several blocks containing all the verified transactions. The blockchain is a decentralized system and the transactions on the ledger cannot be erased.
To put it simply, an exchange is like a market place. If you want to buy or sell Bitcoin then you need to go to an exchange. When trading Bitcoin you can use various apps and websites that will help you in the process.
Trading bots have also become pretty popular. If you’re looking for one then you should learn more about Bitcoin Loophole. This platform lets you start trading with just 3 easy steps. First, you make an account. Then you deposit the minimum amount of $250 and off to the final step. Once you adjust the bot’s settings then you can let it do the hard work for you. Make sure to check on it from time to time.
Bulls are traders that believe that some asset’s price will rise. If a trader is optimistic about the price rising then that’s called a bullish frame of mind.
Bears are the opposite of bulls. These traders are optimistic about the decline in the price of a certain asset. These trades have a bearish frame of mind.
This is a term that refers to any other cryptocurrency besides Bitcoin. There are lots of cryptocurrencies you’ll run into online. Some of them are as popular as Bitcoin while others are new on the market and are trying to make a name for themselves.
ATH (All Time High)
Bitcoin is known to be a highly volatile cryptocurrency. It has its highs and lows and the ATH can be used to better determine the price and potential profit you can make. Moreover, Bitcoin can have several highs before reaching a new ATH.
FOMO (Fear Of Missing Out)
This happens when investors start buying a certain asset because they expect its price will rise in the future. This in turn gets the attention of other investors that also start buying that asset in fear of missing out. However, this can be used to manipulate investors into buying an asset whose value drops.
HODL (Hold On for Dear Life)
This term is actually a misspelling of the word hold. Later it became the abbreviation that’s known today. As mentioned before, Bitcoin is a volatile cryptocurrency. This means that its price can grow rapidly so if you have such an asset then you should hold on for dear life.
Similarly to actual mining, Bitcoin mining means getting new Bitcoin units once a block is depleted. Bitcoin miners need serious hardware and electricity to mine. As a reward for contributing these resources, they get digital tokens.
If you’re new to the market then you’re a noob. Instead of jumping right in you should sit and observe the market. This will let you know how it works and how to best use your budget. Avoid making rash decisions if you’re a noob.