INTRODUCTION TO CRYPTO CURRENCY
We have been hearing about Bitcoin, Ethereum, Binance ,Bloockchain,NFT, but what do these things
mean? Are they just words or is there really a power concept to them? Well, lets find out…..
It is important to note that the concept of Crypto Currency is all virtual. It is a digital money that runs on
the blockchain technology and can be used to pay for both physical and online services. It was first
introduced in 2013 by satochi.
Crypto Currency is seen by most people as the most convenient era of exchange ever.
Crypto Currencies are
Decentralized : which means they do not require a central authority to run them. Instead, there is a
ledger of all financial transactions done on or with that crypto currency and every user has a
copy of it.
This is known as the system technology of blockchain.
No paper work is necessary and you really don’t need the banks anymore. You can send money
locally and internationally through crypto currencies with very little to no transaction fees.
Crypto currencies are secured by a science of cryptography which is the science of hiding information
hence the word “Crypto” in Crypto Currency.
A lot of people are converting their local currencies like Dollar, RMB, Naira for crypto currencies
because they believe it is going to be the next big thing. One of the most invested coins in crypto is
Bitcoin because of it’s trust and popularity. Then Etherum for their block chain technology and faster
transactions, BNB for their excellent working crypto exchange Binance, Cardano for their superior
technology ,Litecoin for their newer algorithim.
CONS WITH CRYPTO CURRENCIES
Volatility: The prices of crypto currencies are not stable. They are tied to speculation, information and
Crypto is not yet a widely accepted form of money. Yes you can pay for services with crypto like
book flights, pay for trips and buy groceries in some parts of the world but it is not a globally
accepted form of payment yet.
TERMINOLOGIES IN CRYPTO CURRENCY
So there are many terminologies and words used specifically in crypto currency and trading. Just like all
fields and professions like law, medicine, agriculture have their words, crypto has that too.
Bullish: This is a term used by a crypto trader when he feels the price of a crypto assert will increase
Bearish: This is a term use by a crypto trader when they feel that the price of a crypto assert will
decrease or fall.
Wallet address: This is a place or digital wallet where crypto currencies can be sent and received.
TP: take profit
SL: Stop loss
Mooning: This is a term used when there is a spike or a sharp increase in the price of a crypto assert.
Leverage: This is simply an upper hand in trading .The use of leverage just like in futures trading
gives you the opportunity to earn more with the same capital ,in the same trade, but be mindful as
this also means more risk is involved.