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.

Last updated: March 3, 2018 at 16:02 pm

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.

Address String of alphanumeric characters that is used to do transactions between wallets
Alt Coins Any cryptocurrency other than bitcoin
AML Anti-Money Laundering laws
Arbitrage Taking advantage of a price differences of the same coin on different exchanges
ASIC Application Specific Integrated Circuit. Chip used in mining
ATH All Time High
Bagholder Person holding an altcoin after a pump and dump
BBS Battered Bull Syndrome
Bearish Expectat decrease in price
BFX, Finex BitFinex
Block Height Block height is the number of blocks preceding the genesis block (first block) on the chain
Block Reward Reward for solving the mathematical equation related to a block
blockchain Distributed ledgers, secured by cryptography
Bollinger Band A margin around the price of a crypto that helps indicate when a coin is overbought or oversold
BTFD Buy the Fucking Dip
Bullish Expectat increase in price
C&H Cup and Handle chart pattern
CB Coinbase
Circulating supply The number of coins or tokens that are circulating in the market
cold storage Offline wallet
Core Bitcoin developers
DCA Dollar Cost Averaging
Decentralized A state where there is no central contro to infrastructure
Distributed consensus Collective agreement by various computers in a network
Exchange Websites where you can buy and sell crypto-currencies
FIAT Government-issued currency
Fib Fibonacci retracement
FOMO Fear of Missing Out
FOMO Fear Of Missing Out
Fork Blockchain split into two separate chains
FUD Fear, Uncertainty, and Doubt
FUDster Person spreading FUD
H&S Head and Shoulders chart pattern
Halving/halvening Reference to the reduction in the mining supply, which occurs every four years
Hodl Holding coins long term rather than trading regularly. Typo for hold
ICO Initial Coin Offering
KYC Know Your Customer laws
lambo Car that stands for getting rich in crypto
Lightning Network A low latency, off chain P2P system for making micropayments of cryptocurrencies
Long Buy, typically on margin
MACD Moving Average Convergence Divergence
Market Cap Total value held in a crypto-currency
Mining Using processing power
Mooning Price goind up astronomical
Node A computer that has a copy of the blockchain
P/L, P&L, PNL Profit and Loss
P&D Pump and Dump
Polo Poloniex
PoS Proof-of-stake
PoW Proof-of-work
Rekt / wrecked In a losing trade
ROI Return on Investment
Satoshi 0.00000001 BTC. The smallest unit of a Bitcoin
Satoshi Nakamoto Creator(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
sharding Scaling solution for blockchains
Shilling Promoting a coin
Short Sell on margin
Stamp BitStamp
Stop Stop-loss order
TA Technical Analysis
Tokens Tokens are a representation of a particular asset or utility, that usually resides on top of another blockchain
TX Transaction
Whale A single entity either selling or buying large sums
Whitepaper A 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 Liberty Life Trail.

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