General

What Are Alt Coins (Alts)?

Altcoins are cryptocurrencies other than Bitcoin. They share characteristics with Bitcoin but are also different from them in other ways. For example, some altcoins use a different consensus mechanism to produce blocks or validate transactions.

What is FUD?

FUD is short for FEAR UNCERTAINTY and DOUBT and its another term used in other investing contexts, it was adopted by the crypto community to denounce what supporters see as the intentional spread of misinformation.

In other words FUD is generally a strategy to influence perception by disseminating negative and dubious or false information and a manifestation of the appeal to fear.

Example: “If someone tells you bitcoin is a bubble, they just have FUD.”

What is Bitcoin Dominance (BTC.d)?

Bitcoin Dominance is used to calculate the percentage of Bitcoin using against the total market-cap, or in other word Bitcoin against Alt coins. When BTC.d increases it means Alt Coins in general is losing value against Bitcoin and when it decreases it means Bitcoin is losing value against Alt coins.

What is a scammer? And how to spot/avoid one?

A scammer is a person who commits fraud and tries to eventually deceive the victim to provide information that will lead into the scammer taking their money/tokens/coins. With that being said, in most cases its easy to spot a scammer.

Anyone who just wants to give you money, reaches out to you about a profitable investment, wants to trade for you, or wants to invest for you, etc. is 99.9% fraud

Anyone who asks you to send them crypto so that they will give you back more is 100% fraud.

Anyone who just randomly texts you and gives you a link to install a wallet/exchange app is 100% fraud

Basically anyone who reaches out to you out of nowhere and claim that they wanna help you in any way in crypto world is 100% fraud. Nobody will just give out money. Nobody will make your money 2x – 5x for you in anyway. 

What is Telegram?

Telegram is a messaging and communication app that is similar to other messaging apps (Whatsapp, Signal, messenger, …Etc) yet unique in its features such as private groups, public channels, bots and other features which makes it adaptable and suitable for the crypto community.
Telegram is compatible with most devices, for more information you can visit their main website https://telegram.org/

What is cryptocurrency?

Cryptocurrency is digital money designed to be used over the internet. Bitcoin, which launched in 2008, was the first cryptocurrency, and it remains by far the biggest, most influential, and best-known. In the decade since, Bitcoin and other cryptocurrencies like Ethereum have grown as digital alternatives to money issued by governments.

Cryptocurrency makes it possible to transfer value online without the need for a middleman like a bank or payment processor, allowing value to transfer globally, near-instantly, 24/7, for low fees.
Cryptocurrencies are usually not issued or controlled by any government or other central authority. They’re managed by peer-to-peer networks of computers running free, open-source software. Generally, anyone who wants to participate is able to.

What is Bitcoin?

Bitcoin is a cryptocurrency, often referred to as a virtual currency or digital currency, used as a method of exchange or store of wealth. On a very basic level, it is a piece of code. There are no physical coins to speak of, rather, there are UTXOs (unspent transaction outputs) that make up the balance in your wallet.

Bitcoin was created following the financial crash of 2008 as a solution to government and central bank manipulation of money and the economy.

What is a Blockchain?

Blockchain is a system of recording information in a way that makes it difficult or impossible to change, hack, or cheat the system.
A blockchain is essentially a digital ledger of transactions that is duplicated and distributed across the entire network of computer systems on the blockchain. Each block in the chain contains a number of transactions, and every time a new transaction occurs on the blockchain, a record of that transaction is added to every participant’s ledger. The decentralised database managed by multiple participants is known as Distributed Ledger Technology (DLT).

Blockchain is a type of DLT in which transactions are recorded with an immutable cryptographic signature called a hash.
This means if one block in one chain was changed, it would be immediately apparent it had been tampered with. If hackers wanted to corrupt a blockchain system, they would have to change every block in the chain, across all of the distributed versions of the chain.
Blockchains such as Bitcoinand Ethereum are constantly and continually growing as blocks are being added to the chain, which significantly adds to the security of the ledger.

What is Decentralized Finance (DeFi)?

In its simplest form, decentralized finance is a system by which financial products become available on a public decentralized blockchain network, making them open to anyone to use, rather than going through middlemen like banks or brokerages. Unlike a bank or brokerage account, a government-issued ID, Social Security number, or proof of address are not necessary to use DeFi. More specifically, DeFi refers to a system by which software written on blockchains makes it possible for buyers, sellers, lenders, and borrowers to interact peer to peer or with a strictly software-based middleman rather than a company or institution facilitating a transaction.

What is Market Capitalization (market cap)?

Within the blockchain industry, the term market capitalization (or market cap) refers to a metric that measures the relative size of a cryptocurrency.
It is calculated by multiplying the current market price of a particular coin or token with the total number of coins in circulation.
Market Cap = Current Price x Circulating Supply
For example, if each unit of a cryptocurrency is being traded at $10.00, and the circulating supply is equal to 50,000,000 coins, the market capitalization for this cryptocurrency would be $500,000,000.
While the market cap may offer some insights about the size and performance of a company or cryptocurrency project, it is important to note that it is not the same as money inflow. So, it does not represent how much money is in the market. This is a common misconception because the calculation of market cap is directly dependent on price, but in fact, a relatively small variation in price may affect the market cap significantly.

What is a bull market?

A bull market, or bull run, is defined as a period of time where the majority of investors are buying, demand outweighs supply, market confidence is at a high, and prices are rising. If, in a given market, you see prices quickly trending upwards, this could be a sign that the majority of investors are becoming optimistic or “bullish” about the price increasing further, and may mean that you’re looking at the start of a bull market. Investors who believe that prices will increase over time are known as “bulls.”  As investor confidence rises, a positive feedback loop emerges, which tends to draw in further investment, causing prices to continue to rise.

What is a bear market?

Bear markets are defined as a period of time where supply is greater than demand, confidence is low, and prices are falling. Pessimistic investors who believe prices will continue to fall are, therefore, referred to as “bears.” Bear markets can be difficult to trade in — particularly for inexperienced traders.
It’s notoriously difficult to predict when the bear market might end and when the bottom price has been reached — as rebounding is usually a slow and unpredictable process that can be influenced by many external factors such as economic growth, investor psychology, and world news or events.

What are Stablecoins?

A stablecoin is a digital currency that is pegged to a “stable” reserve asset like the U.S. dollar or gold. Stablecoins are designed to reduce volatility relative to unpegged cryptocurrencies like Bitcoin.
Examples of stablecoins include;
– Tether (USDT)
– USD Coin (USDC)
– Binance USD (BUSD)
– Dai (DAI)
– TrueUSD (TUSD)

What can you do with stablecoins?

Minimize volatility. The value of cryptocurrencies like Bitcoin and Ether fluctuates a lot — sometimes by the minute. An asset that’s pegged to a more stable currency can give buyers and sellers certainty that the value of their tokens won’t rise or crash unpredictably in the near future. 

Trade or save assets. You don’t need a bank account to hold stablecoins, and they’re easy to transfer. Stablecoins’ value can be sent easily around the globe, including to places where the U.S. dollar may be hard to obtain or where the local currency is unstable. 

Earn interest. There are easy ways to earn interest (typically higher than what a bank would offer) on a stablecoin investment.

Transfer money cheaply. People have sent as much as a million dollars worth of USDC with transfer fees of less than a dollar.

Send internationally. Fast processing and low transaction fees make stablecoins like USDC a good choice for sending money anywhere in the world.

What is Proof-of-Stake (PoS)?

Proof-of-stake is a method of maintaining the integrity of a cryptocurrency, preventing users from printing extra coins they didn’t earn. The Proof of Stake process is certified by ‘validators’ who have an equity stake in the platform. To qualify as a validator, the operator must have a ‘minimum amount of tokens, ‘staked’ or locked into the exchange for a specific period of time. validators are almost guaranteed rewards as they earn a transaction fee on transaction.

Trading

What is a Trading-Bot?

Crypto trading bots are a set of programs designed to automate cryptocurrency trading on your behalf. Typically, The investor/trader will have to pay attention to market statistics that play a crucial role in practicing trading and then pick which cryptocurrency to buy/sell and at what time. Crypto trading bots can easily automate the analysis and interpretation of market statistics. They can gather market data, interpret it, calculate the potential market risk, and execute buying/selling cryptocurrency assets.

What are Long and Short positions?

In a nutshell, long and short positions reflect the two possible directions of a price required to generate a profit. In a long position, the crypto trader hopes that the price will increase from a given point. In this case, we say that the trader “goes long,” or buys the cryptocurrency. Consequently, in a short position, the crypto trader expects the price to decline from a given point — i.e., the trader “goes short,” or sells the cryptocurrency.

What is Futures Trading?

In the futures market, you are trading contracts that represent the value of a specific cryptocurrency. When you purchase a futures contract, you do not own the underlying cryptocurrency. Instead, you own a contract with an agreement to buy or sell a specific cryptocurrency at a future date. As such, ownership of a futures contract does not reward you with any economic benefits such as voting and staking.
Crypto futures contracts offer protection against volatility and adverse price movements on their underlying asset. Also, it is a proxy tool for traders to speculate on the future prices of a specific cryptocurrency.
With futures contracts, you can take advantage of price volatility. Regardless of whether prices rise or fall, futures contracts enable you to participate in a cryptocurrency’s movements with ease. In other words, you can speculate on a cryptocurrency’s price rather than buying the underlying asset itself.
If you expect the value of an asset to go up, you will buy a futures contract to go long, and if you expect it to fall, you will sell to go short. Your profit or loss will depend on the outcome of your prediction.

Investing

What is staking?

At a very basic level, “staking” means locking your crypto assets in a proof-of-stake (PoS) blockchain for a certain period of time. These locked assets are used to achieve consensus, which is required to secure the network and ensure the validity of every new transaction to be written to the blockchain. Those who stake their coins in a PoS blockchain are usually called “validators.” For locking their assets and providing services to the blockchain, validators are rewarded with new coins from the network.

What is ICO?

An Initial Coin Offering (ICO) is basically the same as what an IPO is for industry.
It is a way to raise funds for the development of a new app or product. When we talk about an ICO it is a fundraising where the project does the fund raising on it’s of platform thus being responsible for all transactions and operations on their inner platform.
In general there are 3 phases in en (ICO).
– Private sale
– Pre-sale
– Public sale

What is IEO?

Is in general the same as an ICO, except the platform that hosts the fundraising is different.
When we speak of an IEO, the platform organizing is a centralized exchange who hosts the ICO.

What is IDO?

An IDO is the ICO and IEO both in one but the centralized exchange is replaced with a decentralized liquidity Exchange.
Swapping tokens, crypto coins through an asset exchange that depends on a liquidity pool.  An IDO has a great advantage on IEO since it is the synonym of decentralization. Instead of exchanges, the community members are the ones who vet projects and tokens.