A handy guide to understanding frequently used bitcoin trading terms for beginners Anyone who is new to the bitcoin trading scene can easily confuse buzzwords like “bitcoin,” “mining,” and “cryptocurrency.” Sure, the bitcoin glossary is not only confusing but also intimidating for new crypto traders out there.
Are you new to the world of bitcoin trading? If you nod in the affirmative, then the unknown crypto-trading terminology can quickly leave you overwhelmed. But you are in luck because we have compiled this guide that has almost all the bitcoin terminologies that you will definitely encounter when you land on a crypto exchange.
In this guide, we are going to define some of the most commonly used terms in bitcoin trading. The best part? We are defining each of these terms in simple English so that you do not get confused. Well, then, now it is time to get ready for the low-down on bitcoin terminology that will help you navigate the crypto landscape more confidently. Let us get started then. The most common bitcoin terminology that every new trader must know Address It is the string of characters that you can use for receiving and sending crypto money. You can think of it as your email address used for receiving digital currency. All Time High (ATH)
This term refers to the highest price a particular cryptocurrency has reached. For example, $19,665.39 is the highest that the bitcoin price has ever been. Altcoin It is any digital currency other than bitcoin. Arbitrage It is the process of benefiting from the difference in rates of a cryptocurrency between exchanges and then trading to make a profit. ASICminer The term “ASCI� is expanded as Application-Specific Integrated Circuit. It is a miner or super-advanced computer chip used for helping anyone mine or generate cryptocurrency. Bear market It is a phenomenon that happens when the crypto market at large goes down in value for an extended time period.
Bitcoin This is a common digital currency and global payment system. Bitcoin ATM
It is an ATM where you can exchange your fiat money for bitcoins. Block It is a digital location where the information or data from a bitcoin transaction is stored. You can think of it as a block or a single page in a big ledger. Blockchain It is a network or chain of blocks having the information related to digital transactions. Think of a blockchain as an accounting ledger used for storing records. BTC It is bitcoin’s ticker symbol. Bull Run This phenomenon happens when the crypto market goes up in value for a long period. Cold Wallet Or Cold Storage It is a wallet stored offline and is not having access to the web. Cryptocurrency Also known as crypto or crypto coin or crypto money, it is a digital currency that uses the power of cryptography for generating fresh units and confirming transactions. Cryptography It is the method where high-tech computers are used for solving a complicated code. Decentralized System A system where there is no central authority. Digital Signature
It is a mathematical computation used for verifying a transaction’s authenticity. Distributed Ledger It is a database that is shared among a wide network of computers for making transactions publicly available. Ethereum It is a public blockchain that uses smart contracts. Exchange It is an online destination where you can sell and buy bitcoin and other cryptocurrencies. Faucet It is a reward system that provides bitcoins to people who complete a specific task. Fiat Currency It is a traditional currency issued by a nation’s government. FOMO It is an acronym that is expanded as fear of missing out. This term is used when everyone is buying a red-hot crypto coin out of the fear of missing it out. Fork It is a drastic change in the blockchain protocol for creating a totally different way for the technology. When a fork happens in the blockchain, new coins are created from the ones that are already there. A case in point: Bitcoin Cash is Bitcoin’s fork. FUD It is an acronym for fear, uncertainty, and doubt.
FUDster This is a person who spreads FUD by bad-talking about a specific coin. Genesis Block It is a name used for referring to a blockchain’s first solved block. Halving It is a period when the reward on a mineable cryptocurrency is halved by 50 percent. For example, a bitcoin’s supply is finite. To be precise, there will only be 21 million bitcoins. So, in the case of bitcoins, the reward for solving each block is halved every four years. Hardware Wallet It is a physical wallet in which you can store your crypto money. Hash It is a large chunk of data that is represented using a string of characters. As a rule, a hash is mostly written in a hexadecimal form. Hashrate It is the total time taken by a computer to solve a hash puzzle present inside a block. HODL It is an acronym that is expanded as hold on to dear life. This slang in the crypto community is used among crypto traders to encourage each other not to sell their digital currency fast. Hot Storage Also known as a hot wallet, hot storage is meant to store digital currencies online. Initial Coin Offering (ICO)
It is a phenomenon when a company crowdfunds its digital coin for the first time for raising capital for its project. Know Your Customer (KYC) It is a business’s legal requirements for verifying its consumers. Lightning Network It is a second-layer tech that is used for accelerating the transaction times of bitcoins and some other cryptos. Limit Buy and Limit Sell It is a period where you buy or sell a cryptocurrency as soon as it touches a predefined price. Market Cap It is the total market value of a crypto coin’s circulating supply. Market Buy and Market Sell It is a phenomenon where you put in a request for buying or selling a digital currency at the market price. Mining Pool It is a set of people combining their resources for mining a cryptocurrency and eventually sharing the earned rewards. Mining Rig It is a powerful computer system engineered to mine altcoins and bitcoins. Mining
It refers to the process of solving the hash puzzle inside a block of a blockchain. The computer that successfully solves the puzzle gets a portion of the mined cryptocurrency as a reward. Node It is the name given to a computer or mining rig that is part of a network or blockchain. A node is actively involved in mining the digital currency. Paper Wallet It is the process of writing down the private or public address of your digital currency and storing it inside a locker or safe where nobody can find it. Private Key It is a series of characters meant for granting you access to funds stashed on a public key. You can think of the private key as your email password. Proof of Stake It is the concept explaining that your rig’s mining power should increase according to the number of mined crypto money you hold. Proof of Work It is a data piece, which is solved by the lion’s share of nodes present on a network. Public Key It is a series of characters that you can use for sending or receiving a specific digital currency. Pump and Dump
It is a scheme where a group of people build fake hype around a coin and buy it so fast that its price goes up. But then when the price of the said coin is too high, they sell all their holdings to turn a huge profit. QR Code Someone’s crypto asset’s pixelated version. Satoshi Nakamoto It is the name of a person or a group of people who were behind the development of bitcoins. Satoshis It is the smallest part into which a bitcoin can be broken. Shill It is when someone is hyping up a particular digital currency so much so that it looks a really great investment. Smart Contracts It is a digital protocol that is used for developing and enforcing real-world contracts. Technical Analysis Analyzing how the price movements happen for a specific digital coin. Doing this kind of analyses is important if someone is planning to buy or sell a particular crypto coin. Telegram It is an instant messaging app that is highly popular in the bitcoin community. Ticker Symbol
It is the symbol that is used for identifying a specific cryptocurrency on the exchange. For example, a bitcoin’s ticker symbol is BTC. To The Moon This is a phenomenon when a digital coin’s price dramatically rises in a very short period. Trading Bot It is a software program that is used for buying or selling crypto money based on a set of criteria on different exchanges. Wallet It is a destination where someone stores all their digital assets. Whale In the crypto world, whales are investors who hold a lot of digital assets. White Paper It is a doc written by a crypto coin’s founders; this document gives clarity on the mission of the coin and its use cases. Now, you know a thing or two about the most commonly used bitcoin trading terms. Armed with this knowledge, you’ll definitely be buying, selling, and trading BTC more confidently. But for getting the hang of these arcane words in a better way, you must have skin in the game and buy some bitcoins on some renowned cryptocurrency exchanges. However, when it comes to finding crypto exchanges, you will be spoiled for choice as there are so many options out there. When the talk is about finding the most dependable crypto exchanges, it sure comes down to OKEx. OKEx: A dependable crypto and BTC exchange
Being a global crypto and bitcoin exchange, OKEx brings top-class and the most advanced financial services for traders across the world. This cryptocurrency exchange harnesses the growing power of blockchain technology for simplifying and securing the entire trading process from end to end. As a global cryptocurrency exchange, OKEx offers hundreds of futures trading pairs and tokens so that the traders can improve their business strategy. As far as the trading volume goes, OKEx is undoubtedly one of the most robust digital asset exchanges on the market. Even better, the BTC futures trade at this cryptocurrency exchange has a daily volume of $1.5 billion. Best of all, this cryptocurrency exchange brings game-changing crypto-trading technology that prioritizes user security above everything else. Now, what is holding you back? Get on to OKEx and expand your investment portfolio by including digital currencies such as bitcoins.