Top important terms for a novice capturadora
When just starting to trade cryptocurrency, many words seem incomprehensible, as if from another language. Part of it is. In order to learn from other traders and their boards, remember these 15 main terms from the world of cryptocurrency.
Althingi call all cryptocurrencies except the bitcoin — they can be completely distinguished or promising, but bitcoin was the first, so it holds a special place.
This word can be heard when any discussion of cryptocurrency. The blockchain is the basis of any digital currency. In fact it is a public electronic register in which are recorded all transactions of a cryptocurrency, so when users perform a transaction or bottom, it grows. However, the range of applications of this technology in recent times not restricted to cryptocurrency — the blockchain as protect data from spoofing, it found many applications, from banking to voter lists.
3. Market capitalization
The market capitalization of cryptocurrencies tells about the size of the market it is possible to calculate by multiplying the number of existing in the moment of coins at their current value. Market capitalization may be indicative of the level of demand for the cryptocurrency.
The creators of some cryptocurrency to the launch of the network arrange pre-sale: one — to earn more on speculation, others because I really believe in their technology. Thus, while the coins are released, customers receive tokens after the launch of currency can be exchanged for coins.
5. Fiat money
It is possible to earn on trade cryptocurrency, but in the shops it is accepted rarely. Furthermore, it may be unwise to store the savings in this volatile asset need something more stable, for example, Fiat money. This word is familiar to us all national currency: Euro, dollars or rubles.
6. The primary offering of coins, or ICO
The primary offering of coins similar to an initial public offering of shares on the stock market — when a new cryptocurrency project before selling the tokens. For many this is the most dangerous and exciting form of trading — you can become one of the first to obtain huge profits, but you can buy a token that will be useless, and is not coming to the market.
Most traders prefer to diversify their portfolio, and therefore, they do not have huge amounts in one cryptocurrency. However, sometimes another, and then one person or organization at hand may accumulate an appreciable percentage of all coins in circulation — and this is not only a status symbol, it’s real power, because when a market participant sells or buys, the amount can be such that the transaction will affect the price of the cryptocurrency.
8. Cryptocurrency exchanges
Yes, you can just find someone and share with him the coin, but in most cases people buy and sell cryptocurrencies on the exchanges. Choose the exchanger to suit your needs — they’re all slightly different, including a set of cryptocurrencies.
At the heart of every cryptocurrency there is some kind of equation, it is based on the existence of the blockchain. It can determine the correctness of each block of information, and it serves as a guarantor of security, not allowing you to fake information about the transaction. Mining — solution of this equation, and the one who solves it first gets the coin. Mining is available to anyone, but he takes a lot of time and requires a powerful computer.
Yes, you’ve guessed it — wallets are indeed used for the storage of cryptocurrency, but they are different. Most traders utilize online wallets directly on the exchanges, more serious for the sake of safety professionals often prefer hardware wallets. There is a third option — your own wallet on your computer. The choice is yours.
11. Multiple signature
The fact that transactions in the blockchain are irreversible. Therefore, as security measures are sometimes applied multiple signature, i.e., a transaction requires the consent of multiple parties, which means one unscrupulous participant will not be able to steal the funds.
12. Smart contracts
Smart contracts is one of the most useful and promising technologies related to crypto — software contract, allowing to automate the transaction. For example, it may be selling at a certain price or escrow.
13. Address of wallets
Each purse has a unique address, and it allows people and organizations to send each other money. In many cases, transactions are anonymous, but the address is visible to all — it is a random sequence of characters, which in any case can not lose, because it indicates your coins.
14. Ppl were
The fork is a situation when the cryptocurrency as something fundamentally changing; often the developers want to fix or add. It would be easy to do if the thing someone has been controlling, possessing the greater part of computing, but most often it is not. Also update the fork can be issued to correct the error. Usually after a fork, the price jumps dramatically.
15. Pump and Dump
Thanks to sharp cyclical changes in the price of bitcoin and other cryptocurrencies have become known to the General public. Sometimes this happens after the news, and sometimes it is the result of manipulation by people with enough coins to affect the value of the cryptocurrency.