Getting invovled with Crypto trading is going to mean a learning curve! You should be aware of some of the basic terms used and referenced which are given below.
These terms remind the traders to (Do Your Own Research) as well and do not blindly follow other people. Because mostly, people give false claims that result in the loss of immature traders.
Market-cap is the most important term used in trading and during the analysis of any coin. It shows the total worth of any coin and money into it. The total market cap can be calculated by multiplying the circulating supply of tokens and the current price of tokens as well.
Market cap = circulating supply of token * price of the token
This term is used by the people and the most common term used in trading. All the conventional currencies like USD, Euro, AUD, CAD and many other currencies are called fiat currencies.
Pump and Dump
Major players of crypto play tricks in trading and deceive people by pumping (artificial increase in price) and dumping the (artificial decrease in the price) tokens.
Proof of work (PoW) is a form of zero-knowledge cryptographic proof in which one party (the prover) proves to others (the verifiers) that a certain amount of computational effort has been spent for some reason. Following that, with little effort on their part, verifiers will confirm this expenditure.
This term is used by the traders when the market is in an upward trend and has more demand. Thus it helped in the increase of the price of coins and called Bull Run. Bear term is used by the traders when the market is in a downward trend and has less demand and decreases the price.
It means an all-time high price of tokens. In simple terms the highest price it’s ever been.
All other coins other than bitcoin are termed altcoins.
The significant buyers and holding a large amount of bitcoin that mostly make or break the trends are called whales.
A wallet is a secure digital account where people keep their bitcoins and altcoins as well.
The Distributed Ledger Technology (DLT) is a shared database that is maintained by multiple participants across multiple nodes. Blockchain is a type of distributed ledger technology (DLT) in which transactions is registered using an immutable cryptographic signature known as a hash.
Charting and analysis
Charting and analysis is the crux of trading. These are the tools of every professional and successful trader. Different platforms have made trading easy by providing all the necessary guidance to the people and its users that caters to all the issues faced by them. Educational videos, seminars and expert trading are copied to get a better understanding of trading.