Making Your First Crypto Steps?

Cryptocurrency is the new black

by Pavel Velichkov
23 February • 3 min
In News

As the rapid development and popularity growth of cryptocurrencies continues, more and more people all over the world are joining in.

Even though the term cryptocurrency has nowadays turned into a global phenomenon recognized by many, there is also a considerable amount of people still encountering it for the first time.

We can all agree that, in the beginning, the world of cryptocurrencies seems frustratingly vast and complex, so jumping into it without any basic preparation would be like jumping in the ocean without knowing how to swim.

Learning the ropes

One of the things anyone starting their own crypto-journey should be aware of is the terminology used in this world. This is only a short list of some very popular terms and phrases you will inevitably encounter in your experience with cryptocurrencies.

Address – this is a sequence of numbers and letters. Just like in real life, to send something to someone you need their address. This virtual address is where people can send cryptocurrencies to you, and where you send cryptocurrencies from.

Altcoin – Altcoin (alternative coin) is one of the many alternatives to Bitcoin. Alternative cryptocurrencies are Litecoin, Ethereum, Dogecoin and XRP (also known as Ripple) among thousands more.

Blockchain – cryptocurrencies use an online, decentralized system that keeps track of and saves the information (called blocks) for all crypto transactions around the world. This peer-to-peer network is known as blockchain.

Coinbase – this is the Amazon of cryptocurrencies. You can buy and sell cryptocurrencies on their website or their app.

Cold storage – usually cryptocurrencies are kept online. Sometimes though, people choose to take them offline for security reasons. This means they keep them in a cold storage. You can keep your cold storage private key on a piece of paper, a USB flash drive – all of these options hold many different risks (paper being thrown out, USB stick – lost).

DYOR – successfully investing in cryptocurrencies is a very complex thing. To do that you need to be ready for the worst (losing all that you’ve invested), and first and foremost – to have Done Your Own Research. People should not rely on their luck in this world.

Fiat currency – currencies that are supported by a government or a group. The value of a fiat currency depends on the people, who invest in it (the public) and their trust in the government, which supports it. Unlike many well-known currencies such as USD or EUR, cryptocurrencies are not supported by any government. The value of cryptocurrencies is determined by the people who invest in them and their belief that the value will go up in time.

FOMO – this is something you do not want. This is the Fear Of Missing Out on buying while prices are going up. FOMO can make you act irrationally!

FUDFear, Uncertainty and Doubt can make you do the same thing as FOMO.

FUDsterthose are the people who spread FUD.

ICO – very similar to the Initial Public Offering (IPO), the Initial Coin Offering happens when someone starts selling a new type of coin, initially called token.

Mining – when you participate in the blockchain, you basically create blocks (verify and save information for other transactions). The process is called mining.

mooning

Mooning – a rapid increase in the value of a coin is called mooning.

Satoshithis is a 0.00000001 of Bitcoin. The smallest unit, named after Satoshi Nakamoto – the father of Bitcoin.

Tank – that is the opposite of mooning.

Wallet – the place where you keep your cryptocurrencies private keys safe.