Important Cryptocurrency Terms and Concepts
Have you ever caught yourself thinking that what the hell is the language these crypto nerds are using?
Let me explain the following Cryptocurrency terms and definitions which will indefinitely be helpful if you want to indulge in cryptocurrency trading or investing.
Is Crypto Trading Profitable ?
Crypto trading will give you profits if you trade smartly and it will put you at a loss if you don’t use sense. Crypto trading prices are highly volatile compared to traditional currencies, so they can also give you higher profits/losses.
What is Crypto Bull Run ?
A Crypto bull run is just like a stock run. A crypto bull run is that stage of the cryptocurrency when the said currency’s prices are constantly on the rise. This run is most profitable for investors.
What is Crypto Bear Run ?
The bear run is just the complete opposite of the bull run. In the bear run, cryptocurrency prices are constantly falling. However, if you act smartly and invest in a crypto coin near its bear-run end, you may be able to climb a profit ladder.
What is Crypto Banking ?
Crypto banking refers to the exchange of goods or services by the use of cryptocurrencies.
What is Crypto Arbitrage Trading ?
Cryptocurrency arbitrage is a type of trading in which a trader buys a cryptocurrency at a particular price from one exchange and then sells it on another exchange. Trader profits by the price difference between the two exchanges.
What is Crypto Forex Trading ?
Crypto forex trading simply refers to the trading between cryptocurrencies and fiat currencies or foreign currencies.
What is Crypto FOMO ?
FOMO stands for Fear Of Missing Out. It is just a fancy word that the community uses to express its greedy emotions.
What is Crypto idx ?
Cryptocurrency IDX is an internal trading asset of a popular cryptocurrency exchange Binomo. It is also an ideal short-term trading instrument in the platform.
What is Crypto Liquidity ?
The capability of a cryptocurrency to be converted into a physical asset like cash is called crypto liquidity. Higher the liquidity, the higher the market growth of a cryptocurrency.
What is Crypto Leverage ?
Cryptocurrency leverage is a loan provided to an investor by an exchange. Leverage amplifies the amount of trading value which may result in profit or loss. It is also a medium to control the investor account.
What is Crypto Leverage Trading ?
Crypto leverage trading is like red roses on a minefield. Leveraged trading lets you trade 2X – 10X times of your actual money. Use minimum leverage if you are a newbie.
What is Crypto MCO ?
Originally name Monaco, MCO is the symbol used for the Crypto.com cryptocurrency.
What is Crypto NFT ?
NFT stands for Non-fungible token and it is a collectible type of cryptocurrency token. Unlike conventional cryptocurrencies, NFT are not interchangeable because each token is unique in its properties. They provide better liquidity than other cryptocurrencies.
What is Crypto Pump And Dump ?
Crypto pumping is when an individual or a group of people buy a substantial amount of a cryptocurrency in order to artificially increase the price of that coin. Then they dump the coins at a higher price to the victims who think this is just a bull run, thus making a profit. This illegal technique is usually done on smaller exchange platforms.
What is Crypto Staking ?
Cryptocurrency staking is one of the easiest methods to earn residual income in the crypto industry. Crypto staking involves the buying and holding of a cryptocurrency in a wallet to support the operations like transaction validation, PoS (Proof-of-Stake) of that particular blockchain network.
NOTE: Different blockchains require different investment amounts for staking.
What is Crypto Trading Cheat Sheet ?
Day trading charts of a cryptocurrency are known as a crypto trading cheat sheet.
What is Crypto Token ?
A crypto token is a particular fungible and tradable asset of a cryptocurrency. These token are usually sold in an ICO (initial coin offerings) of a cryptocurrency. Each token holds a specific detailed representation of the currency in its blockchain.
What is Crypto Volatility ?
Crypto volatility points to the fast and sudden movements in the price of a cryptocurrency. To be honest, all cryptocurrencies are highly volatile. Suppose you own $1000 worth of bitcoins and a week later, there may be a high (such as 10%) increase or decrease in value. Cryptocurrency markets have ten times more volatility than stock markets.
What is Crypto Volatility Index ?
The Crypto volatility index is like a chart that is used to measure and analyze the volatility of a cryptocurrency. For example, Bitcoin has its own volatility index called BVOL (bitcoin Volatility Index).
What is Crypto Wash Trading ?
Crypto wash trading is another market manipulation tactic. Cryptocurrency traders increase trading prices by increasing trading volume. They do this by making cross-trades and wash out their transactions. Various traders, investors, and even exchanges have been reported for wash trading.
What is Crypto Quantitative Trading ?
Cryptocurrency quantitative analysis is a technique used to understand the behavior of a cryptocurrency. It mostly involves mathematical calculations and statistical researches to predict the future evaluation of a cryptocurrency.
What is Crypto Yield Farming ?
Crypto yield farming is one of the easiest ways to earn a side income. It allows investors to earn interest by investing in a Defi market. You basically invest a major cryptocurrency like BTC, ETH on a yield farming platform which in turn, lends it to a borrower. So, you earn interest the same way a bank earns interest. It is also worth noting that cryptocurrency yield farming is only profitable if you invest quite a high amount of money.
What is a Crypto Trading Bot ?
A Crypto trading bot is a computer program that is configured to perform automated cryptocurrency trading. These trading bots can do extensive research and analysis in seconds and start a trade accordingly. I think crypto trading bots will become the only way to perform cryptocurrency trading in the future.
Are Crypto Trading Bots Profitable ?
For a beginner, crypto trading bots are highly risky because these bots can only be programmed manually. They will do what you program them to do. So, to make them profitable you need to have a good amount of experience in cryptocurrency trading.
What is Crypto Engine ?
Crypto Engine is one of the most successful trading bots. Its creators have claimed a success rate of 90%, which is pretty high if you ask me.
Note: This is not promotional.
How to learn Crypto Trading ?
Starting crypto trading is easy but learning crypto trading is an entirely different thing. So I recommend you learn from various cryptocurrency trading courses, watch educational videos, try to learn and understand cryptocurrency trading as much as possible.
Which Crypto Trading Platform is best ?
There are hundreds and hundreds of crypto trading platforms. I personally like to use eToro, IQ Option, and Binance.
What are Crypto Trading Pairs ?
Crypto trading pairs mean trading between two different cryptocurrencies. For example, BTC/ETH, BTC/XMR can be called trading pairs.
What are Crypto Trading Signals ?
Crypto trading signals are used to predict the change in the price of a cryptocurrency. There are many trading signal suppliers that you can buy and reap profits.
Where to Start Trading Crypto ?
There are many crypto trading platforms. You can choose anyone that you like. Some famous ones are Binance, Cex.io, etc.
Which Crypto Trading bot is best ?
Crypto Engine is the most widely used cryptocurrency trading bot with a success rate of 90%. So I think it must be the best.
Is Crypto Trading ‘Halal’ ?
Crypto trading is not ‘halal’ or ‘haram’. It falls in the grey areas various Muslim committees have not banned it and nor have they promoted it.
Where is Crypto Trading with lowest fees ?
Poloniex, Binance, Bitfinex, etc most popular for the lowest trading fees.
Can I Start Crypto Trading with $100 ?
Crypto trading can be started for as little as $10.
What is Crypto Trading with Stop Loss ?
Crypto trading Stop Loss is like a loss limiting barrier. If you start losing money in a trade, stop loss will stop the ongoing trade at a certain point to limit your loss. Stop-loss is an optional feature on trading platforms but everyone should use it for their own safety.
Can I do Crypto Trading without verification ?
Yes, you can do cryptocurrency trading without any id or verification. I have written a detailed article about cryptocurrency trading without id verification. Click Here To See how!
Is Trading crypto like Forex ?
Ways to trade are the same in cryptocurrency and forex. However, trading is completely different. Forex trading provides high leverage, very high liquidity over cryptocurrency trading whereas crypto trading has proven to be massively profitable than forex trading.
Is Trading Crypto like Stocks ?
Stocks mainly give you small but consistent gains for years but cryptocurrency has proven to be quite the opposite. Surveys conducted on stocks vs cryptocurrency suggest that crypto trading is ten times more profitable than stock trading.
Crypto Trading vs Forex Trading
Forex trading gives more leverage than crypto trading. Forex trading provides very, very higher liquidity than cryptocurrency trading. But crypto trading is much, much profitable than forex trading.
Crypto Trading vs Stock Trading
Cryptocurrency trading is ten times more profitable in a ten times shorter span of time than stock trading. Even the best-performing stocks have been overshadowed by cryptocurrencies.
Crypto Trading vs Holding
Crypto trading and holding are two entirely different aspects. You should do trading if you think you can earn profits but if you are a beginner, I recommend holding is best because holding is also a kind of long-term trading with long-term gains.
Crypto Trading vs Investing
Do both. Investing in a cryptocurrency will save money for the future and trading will make profits for a living.
Crypto Trading vs Mining
Both are completely different ways of earning cryptocurrency. Trading requires extensive knowledge of markets, signals, statistics while mining requires a significant amount of investment in hardware and software to be profitable.
These are all the basic cryptocurrency frequently asked questions that I could come up with.
If there are any other cryptocurrency terms that I missed, please ask me in the comments below and I’ll be happy to explain them.
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