BITCOIN AND CRYPTOCURRENCY TRADING FOR BEGINNERS: Everything You need to Know to Start Making Money Online Today and Grow a Deeper Knowledge of Crypto Trading. by Gorpale Trading Academy

BITCOIN AND CRYPTOCURRENCY TRADING FOR BEGINNERS: Everything You need to Know to Start Making Money Online Today and Grow a Deeper Knowledge of Crypto Trading. by Gorpale Trading Academy

Chapter 1: Terminology to Know
Here is a list of most commonly used term in cryptocurrency and its
meaning.
Bitcoin. Bitcoin is a digital currency that's not tied to any national
government and enables faster, cheaper payments to anyone
worldwide. Bitcoin can also be traded like you would trade stocks.
Bitcoin was the first blockchain coin, which means it's probably the
most popular one around at this point.
Blockchain. The blockchain is a community record of all Bitcoin
transactions that have ever been executed. It also serves as a
distributed database of that information, making it decentralized.
Cryptocurrency. Cryptocurrencies are digital currencies that are
encrypted for security or otherwise resist counterfeiting. The first and
most popular cryptocurrency is Bitcoin. Other popular
cryptocurrencies include Ethereum, Litecoin, Ripple, and Dash.
Mining. Mining is securing transactions in a particular cryptocurrency
by solving mathematical puzzles. This process will also generate new
crypto coins that can be saved for future use or traded with other users
for goods or services offered through that blockchain platform.
Fiat currency. Fiat currencies are regulated by government bodies
such as the Federal Reserve System in the US, which issues dollars
and requires commercial banks to follow its rules (including
providing dollars when required). This is different from decentralized
digital currencies like bitcoin issued through mining processes (see
below).
Transaction fee/miner fees/transaction costs. The cost to make a
transaction in a particular cryptocurrency is called the transaction fee
or miner fee. These fees are paid to the miners who use their
computer power to approve and record transactions on the blockchain.
They are expected to verify whether the funds' sender has that much
money available in his/her account.
Decentralized/Centralized. Decentralization means there is no central
authority that controls a particular currency. All the processing is done
by users or nodes on that network, which means there are no
centralized points of failure (i.e., no one can shut down your system).
Ledger/Blockchain/Digital ledger. The blockchain is a digital ledger
of recorded transactions chronologically and publicly.
Tokens/Coins. Platform-specific cryptocurrencies created by a
blockchain project team in the form of an ICO (Initial Coin Offering).
For example, if you invested in Ethereum's ICO, you got Ether tokens
in exchange.
Assets and cryptocurrency values. Cryptocurrency values are closely
linked to asset classes like stocks, bonds, real estate, etc., which have
been developed as a means to invest and store value for many years
now. Cryptocurrencies are still in their infancy, but already have
shown to be a more volatile investment than stocks.
Wallet/Blockchain Wallet/Digital Wallets: A cryptocurrency wallet is
a piece of software that stores your private and public keys. Private
keys are like the PIN to withdraw cash from your bank account.
Without them, you can't access your money (in this case,
cryptocurrency). As such, you must keep them protected. Others
utilize public keys to direct funds or by yourself when sending funds.
Cold storage/Hot wallet/Cold storage wallet: This is the safest method
of storing your cryptocurrency. Typically, you'll use a paper wallet in

BITCOIN AND CRYPTOCURRENCY TRADING FOR BEGINNERS: Everything You need to Know to Start Making Money Online Today and Grow a Deeper Knowledge of Crypto Trading. by Gorpale Trading Academy