Don’t worry if you’ve been curious about trading cryptocurrencies like Bitcoin, Ethereum, and Ripple but haven’t known what terms to use because this article has you covered. Don’t worry about hodl or a blockchain; they’re only two of the bitcoin terms that are explained in this essay. Read More
Hodl
The term “hodl,” short for “hold,” is a Bitcoin meme that originated on the BitcoinTalk website and refers to the practise of keeping one’s digital cash rather than selling it. Using the term “hodl” to describe your feelings about the coins (or dicks, etc.) you are trading or investing in is common. Read more
Hold on for dear life is supposedly an abbreviation for this phrase, according to certain sources. Some think the price spiked because of deliberate manipulation, while others point to a forum where an anonymous trader accidentally spelled “I’m going to hodl” instead of “I’m going to hold.” It is possible to keep tabs on the current value of Bitcoin by going online.
Satoshi
There are eight digits of decimal precision in the Bitcoin system. In the Bitcoin currency, one satoshi is the smallest unit of currency. One bitcoin is equal to one hundred million satoshis, and they were named after Bitcoin’s anonymous founder, Satoshi Nakamoto. At its most basic level, one satoshi is equal to 0.00000001 bitcoins.
Blockchain knowledge
All Bitcoin transactions are recorded in a public distributed ledger called the blockchain. Each block must be validated by a consensus of thousands of computers worldwide.
A Wallet
Your cryptocurrency will be stored safely and securely in this digital wallet. It’s essentially a safe deposit box for your coins, protecting them from the possibility of loss in the event of a system meltdown or the breakdown of the original website. It’s important to note that wallets come in a variety of styles.
Wallets, where fiat currency may be exchanged for cryptocurrency, are called exchanges, and examples include OKEx and Kraken (Bitcoin, Ethereum, etc.). They make it easy for people who want to trade or invest to do so with people who own currencies on the platform.
Trades
Bitcoins can be bought and sold on exchanges. You and the seller or buyer cannot communicate with one another directly and must go through the exchange in order to make a purchase or sale. There is a wide range of interactions:
Automated, centralized exchanges such as Kraken are managed by reputable outside parties. They buy and sell virtual coins for real money using fiat currencies like the US dollar and the euro (and vice versa).
Decentralized exchanges, like Bitsquare and Binance, don’t need a central authority or middleman to help users trade with each other.
6-Initial Coin Offering/Initial Trading Offering
By participating in an Initial Coin Offering (also known as an “Initial Token Offering”), investors gain a stake in the development of a new digital currency, which is typically built on Ethereum or comparable technology.
Smart Contracts, Number Seven
In a blockchain system, smart contracts are computer programs that record and verify transactions. Smart contracts are designed to function without the requirement for trust or oversight from a central authority. Since they can run on their own, they have direct control over the digital currency at stake (instead of having to wait for a person to step in).
Cryptocurrency jargon may be difficult to decipher at times, but it’s a fantastic resource for staying abreast of developments in the digital currency market. You can get ahead of the crypto market and your own investment goals if you arm yourself with as much information as possible.
