Cryptocurrency understanding: beginner guidelines for cryptography, garbage copies, bears and circulatory delivery
The cryptocurrency world has become increasingly popular in recent years and attracts investors from all over the world. As a newcomer to the market, it can be enormous to understand different terms and concepts that regulate the cryptographic landscape. In this article we will share the main participants: Crypto money (digital currency), dump (a dealer who sells his coins at an inflated price), bears (retailers who are bearing for a specific cryptocurrency) and a circulating supply (the number The number of circulating offers (the number of new coins in circulation).
Crypto: digital currency
Cryptocurrencies such as Bitcoin, Ethereum and Litecoin are decentralized digital currencies that use cryptography for safe financial transactions. They work independently of central banks and governments so that users can send and receive funds without intermediaries such as banks. Cryptocurrencies are created by a process called “mining”, in which powerful computer solve complex mathematical problems that exchange black coins.
Dump: A dealer who sells his coins for a bloated price
The cryptocurrency dump occurs when the dealer sells his coins at an inflated price, often due to hype or speculation. This can happen if a certain cryptocurrency gains popularity and is sold in the online exchange, which leads to the prices increase quickly. With increasing demand for coins, some retailers sell their participation and are waiting for further price increases.
Bears: dealers who are bearish in cryptocurrency
Bears are traders who believe that the value of a certain cryptocurrency will decrease in the future. They often have long positions, which means that they buy coins to sell them at a bloated price. Bears can also apply a variety of strategies to limit interest rates against possible losses.
Circulating delivery: Number of new coins in circulation
The circulating delivery refers to the total number of new coins in circulation. This is important to understand the dynamics of a certain cryptocurrency requirement and offerings. If more people are invested in a coin, the price tends to increase due to the demand for growth, which leads to a higher circulating delivery.
Why is it important to understand cryptocurrency terms
Although this may seem complicated, the basics of cryptographic terminology are very important for anyone who wants to participate in the market or understand the market. Here are some reasons why understanding these terms is essential:
* Market membership
: The difference between cryptocurrency and its underlying asset (e.g. Bitcoin against Ethereum) can help to determine opportunities and risks.
* Investment strategy : Understanding the provision of cryptography, bear and circulating delivery can influence your investment decisions and risk management tactics.
* Market analysis
: By knowing these terms, you can analyze market trends, identify potential areas of interest and make sound more sound decisions.
In summary, the world of cryptocurrency is difficult, but by understanding the main actors such as crypto, dumps, bears and circulating delivery, they are better equipped to move in the landscape. Remember that investments in cryptocurrencies are characteristic risks. It is therefore important to carry out your own research, to determine realistic goals and always prioritize the precautions for trade.