cryptocurrency for beginners

Cryptocurrency for beginners

Crypto basics for noobs

cryptocurrency for beginnersThis Cryptocurrency for beginners article explains everything you need to know to get you started with crypro investing. What is cryptocurrency? Cryptocurrency is virtual money or a digital asset that uses cryptography to secure transactions. There are over 1400 different cryptocurrencies of whitch Bitcoin is the most known.

Before we continue… if you do decide to invest in cryptos and you are not planning on trading them anytime soon, put your cryptos on a hardware wallet! A wallet is the safest way to keep your virtual money secure. There are a lot of wallets available but make sure you buy them directly from the vendor and never second hand or from a shady dealer. Good brands are Trezor and Ledger. I use a simple Ledger Nano. Visit the Ledger website and see if there is a product that suits your needs.

Common Crypto Terms and Abbreviations

Cryptocurrency for beginners is mostly about understanding the terminology that us used in the crypto space. If you understand these terms and abbreviations suddenly, everything becomes clear.

AddressString of alphanumeric characters that is used to do transactions between wallets
Alt CoinsAny cryptocurrency other than bitcoin
AMLAnti-Money Laundering laws
ArbitrageTaking advantage of a price differences of the same coin on different exchanges
ASICApplication Specific Integrated Circuit. Chip used in mining
ATHAll Time High
BagholderPerson holding an altcoin after a pump and dump
BBSBattered Bull Syndrome
BearishExpectat decrease in price
BFX, FinexBitFinex
Block HeightBlock height is the number of blocks preceding the genesis block (first block) on the chain
Block RewardReward for solving the mathematical equation related to a block
blockchainDistributed ledgers, secured by cryptography
Bollinger BandA margin around the price of a crypto that helps indicate when a coin is overbought or oversold
BTFDBuy the Fucking Dip
BullishExpectat increase in price
C&HCup and Handle chart pattern
Circulating supplyThe number of coins or tokens that are circulating in the market
cold storageOffline wallet
CoreBitcoin developers
DCADollar Cost Averaging
DecentralizedA state where there is no central contro to infrastructure
Distributed consensusCollective agreement by various computers in a network
ExchangeWebsites where you can buy and sell crypto-currencies
FIATGovernment-issued currency
FibFibonacci retracement
FOMOFear of Missing Out
FOMOFear Of Missing Out
ForkBlockchain split into two separate chains
FUDFear, Uncertainty, and Doubt
FUDsterPerson spreading FUD
H&SHead and Shoulders chart pattern
Halving/halveningReference to the reduction in the mining supply, which occurs every four years
HodlHolding coins long term rather than trading regularly. Typo for hold
ICOInitial Coin Offering
KYCKnow Your Customer laws
lamboCar that stands for getting rich in crypto
Lightning NetworkA low latency, off chain P2P system for making micropayments of cryptocurrencies
LongBuy, typically on margin
MACDMoving Average Convergence Divergence
Market CapTotal value held in a crypto-currency
MiningUsing processing power
MooningPrice goind up astronomical
NodeA computer that has a copy of the blockchain
P/L, P&L, PNLProfit and Loss
P&DPump and Dump
Rekt / wreckedIn a losing trade
ROIReturn on Investment
Satoshi0.00000001 BTC. The smallest unit of a Bitcoin
Satoshi NakamotoCreator(s) of Bitcoin
Segregated Witness (SegWit)Increased block size limit by removing digital signature data and moving it to the end of a transaction to free up capacity
shardingScaling solution for blockchains
ShillingPromoting a coin
ShortSell on margin
StopStop-loss order
TATechnical Analysis
TokensTokens are a representation of a particular asset or utility, that usually resides on top of another blockchain
WhaleA single entity either selling or buying large sums
WhitepaperA document that describes the philosophy, objectives and technology of a project

Learn trading Cryptocurrency for beginners

Learn how to trade cryptocurrencies with technical analysis. The Japanese began using TA (technical analysis) to trade rice in the 17th century using candlesticks. A candlestick is a visual representation of some data that happens in between a given time frame.

How to read candlesticks? The wick, line below and above the body, represents the complete price movement within a certain time. The body represents the open and closing price within a certain time. If the closing price is lower than the opening price, the candle is bearish (red / decrease in value) and if the closing price is higher than the opening price the candle is bullish (green / increase in value).

The patterns described in the candlestick cheat sheet below can help you identify price movements.

Tone Vays explains candlesticks, bullish and bearish patterns on his website