A Guide to Crypto: A-Z
- Rebecca C
A – AutoCoinPayments
AutoCoinPayments is a turn-key solution for you to spend your crypto. We are empowering people to purchase real-world items. Whether you have Bitcoin, Ethereum, XRP, Dogecoin, Nano, or something else, we will be the middle point in your spending. We will mitigate the risk for both businesses and customers by being the centralised conversion hub for the payments. Not only that but we will also have a marketplace where you can search for the real-world item you want to buy.
B – Bitcoin
Bitcoin was the first cryptocurrency to successfully record transactions on a secure, decentralized blockchain-based network. It uses peer-to-peer technology to operate with no central authority or banks. Managing transactions and issuing bitcoins is carried out cooperatively by the network. Bitcoin is open-source, its design is public, nobody owns or controls Bitcoin and everyone can take part – buy it, own it, sell it, spend it.
C – Cryptocurrency
A cryptocurrency often referred to as crypto, is virtual or digital money that takes the form of tokens or coins. The majority of cryptocurrencies don’t have a physical form, they’re a virtual coin held in a virtual wallet. Approximately 5,392 cryptocurrencies are being traded currently.
D – Dogecoin
Dogecoin is a cryptocurrency that was created in reference to a popular Internet meme. It has many similarities to Litecoin. However, the main difference is that there is no hard cap on the number of Dogecoins that can be produced.
E – Ethereum
Ethereum is an altcoin alternative to Bitcoin. It’s the second most successful cryptocurrency to Bitcoin, thus showing it has great potential as a coin for the future. The complexity with Ethereum comes into play with the fact that it is programmable, this gives it many uses. There is 5 times the amount of Ethereum in circulation than Bitcoin.
F – Fiat
Fiat currency is legal tender that stems its value from its issuing government. The strength of the government that creates the value of fiat currency is key in this type of money. Most countries around the world use the fiat currency system to purchase goods, services, invest and save. Fiat replaced the gold standard and other systems in establishing the value of legal tender.
G – Goals
Achievements you want to set for trading/selling/buying. Individuals can set certain goals for things such as a price they want to buy into bitcoin at, a price they want to sell XRP at, or a savings goals as you might see in traditional banks.
H – Higher Highs
When a coin has multiple consecutive high peaks that continue to be higher than the previous peak. These tend to be the points at which people will look to sell.
I – Indicators
Tells you the moving average of the coin and where it might be moving to. It’s important to keep an eye on the indicators if you hold crypto. Indicators are good estimates for when you should buy/sell your crypto coin of choice.
J – Jargon
Jargon is the word for technical language regarding a subject (we struggled to find a J). All these words are the jargon within the crypto industry.
K – Key
Your private key for your crypto wallet is similar to that of a secure password. Whoever knows your key can access your coin wallet. It’s important to keep this private if you must share it ensure it is communicated privately. If you lose or forget your key you will lose access to your wallet if you have 10 incorrect attempts at accessing it. Better make sure you don’t forget it or the coins will be lost!
L – Ledger
A secure physical storage device for your cryptocurrency. Similar in looks and design to that of a USB stick this encrypted device will allow you to gain access to your crypto wallet. The Ledger company has created Ledger Live software that provides a user interface for all your holdings. This gives the user the ability to add new wallets for different cr>yptocurrencies to their device.
M – Mining
To look at what mining is we’ll take bitcoin as the example: roughly 21 million bitcoins will ever be created. New coins are generated every 10 minutes by bitcoin miners who help to maintain the network by adding new transaction data to the blockchain.
N – Nano
Nano is another type of cryptocurrency currently on the market.
Nano is decentralized, sustainable, and secure digital money focused on addressing the inefficiencies present in existing financial systems. Uniquely designed to provide simple peer-to-peer transfer of value, Nano empowers individuals with the most efficient and accessible digital money possible, connecting them to the global economy with minimal impact. Nano provides an intuitive experience that feels like digital currency should - no fuss, no fees, no waiting.
O – Order
You put an order in when you want to purchase crypto. There are 3 different types of orders. Spot orders, margin orders, P2P orders (peer to peer). A spot order is a typical fiat to crypto purchase or crypto to crypto. A margin order is buying crypto but with leveraged broker money. A P2P order is trading your crypto assets with another person.
P – Purchasing
Purchasing is when you choose to buy a particular type of cryptocurrency. The best time to purchase crypto coins is when they are in a trough or dip in the market, this means you can buy in cheap and when the market goes back up or stabilises you will have made money on it. Thus, you may want to sell or spend your crypto.
Q – Quantity
Quantity simply defines the amount of crypto you hold. This is essential for a holder to understand in order to realise how much profit is being made relative to the price conversion.
R – Rates
Monitoring the live rates of various coins could almost consume your time if you allowed it to. You need to understand the stock charts if you’re going to enter the world of crypto trading. Understanding the patterns of the coin you hold and seeing where it could be heading will be important for you to buy/sell.
S – Selling
Selling goes hand in hand with understanding and keeping up with the live market rates. Knowing when to sell your crypto can be a tricky choice to make. Sometimes you may even choose not to sell your crypto, you may wish to spend it instead which is becoming increasingly possible with the continuous adoption of crypto as a payment method by companies across the world.
T – Trading
There are 2 different types of trading in the crypto market: margin trading which is done through brokers money. This can be subject to fees and liquidation on the value of your crypto if you don’t have the experience or knowledge to trade yourself. The second type is trading your own money rather than through a broker, this uses less leverage, you have more control over the trade, and is therefore generally considered safer.
U – USDT
USDT is a stable coin that doesn’t look to be profitable, it is a cryptocurrency that aims to match the rate of the US Dollar. It was created to help with fiat withdrawals as the closeness of the rate to the US dollar makes it the least risky crypto for users to convert back to a traditional currency.
V – Verification
Verification is the term used when you are required to pass certain security steps to use your crypto. You have to verify your wallets in order to buy or send. This is usually done through email and text (2-factor authentication), sometimes 3 steps are required if the trade is a particularly large value.
W – Wallet
A wallet is a term used for what your digital cryptocurrency is held in. You can hold multiple wallets of different coins at any time.
X – XRP
XRP is a digital asset built by the company – Ripple. It has been built for global payments. XRP has 100 billion tokens available which is almost 100 times more than Bitcoin. XRP can also be traded and sent faster than Bitcoin, the average transaction send time makes this a highly attractive token on the crypto marketplace.
Y – Yield
To calculate your crypto buying/selling profit you would calculate your percentage yield.
Z – ZRX
ZRX is an exchange token and asset that was created from the Ethereum blockchain. As we said earlier Ethereum is programmable, and many new coins/tokens have been made from it, including ZRX.