7 Common Terms Every Crypto Trader Should Know
As you’ve probably noticed, the word “cryptocurrency” has become increasingly popular in the past few years. It’s not surprising to see this since the technology behind cryptocurrencies is increasingly mainstream. For example, you can purchase an Apple Watch that lets you trade cryptocurrency without leaving your wrist. You can even use it to pay for Uber rides.
It’s not enough to simply know what cryptocurrencies are or even understand how they’re traded. You should also know what terms are associated with cryptocurrency trading, and why. If you’re new to the crypto-space, here are some common terms that everyone should know, so you can keep up with the news.
If you’re a crypto trader, you know that the market is volatile and that it can be hard to stay on top of all the terminology. You’ve got to know the lingo, and you’ve got to know it well. The following section will provide you with a basic vocabulary of terms you should know as a trader. It will also help you identify which words to avoid, so you don’t get caught up in the hype and fake news.
ROI is a term that is applied to investments and is used to measure the return of an investment over time. It is also used to measure the profitability of an investment or the effectiveness of an investment in improving the net asset value of an investment. ROI measures the return on investment, meaning the rate of return. For ROI, the rate of return is determined by the amount of money invested, the amount of time invested, and whether the investment was profitable.
An all-time high (ATH) is a cryptocurrency term that refers to a point at which a cryptocurrency has reached its highest point in time, and therefore its valuation is stable, and the price is unlikely to drop. When you see a cryptocurrency’s price hitting its all-time high, this also means that its stability is ensured, and the cryptocurrency is unlikely to give up its value and crash once again.
The term “All-time Low” is commonly utilized in the cryptocurrency world to describe the lowest point of a given coin. The phrase originated when the cryptocoin market was just starting to take off in late 2017. Since then, the term has been used to refer to when a coin has reached its lowest point and when it is destined to climb back to the highest point in the future when the market is bullish again.
KYC, the process of verifying a customer, verifying information provided by a customer, or verifying a customer’s identity for a purpose, originated in the banking industry. In the industry, KYC is a process, a series of steps a customer must complete to complete a transaction or a set of checks that verify a customer’s identity or other information.
FOMO stands for Fear Of Missing Out—it’s becoming a common term in the blockchain community, used to describe the fear of missing out on an upcoming crypto event or an upcoming crypto fund. The term is derived from FOMO, or fear of missing out, which happens when you’re not at the big concert, party, or sporting event everyone is talking about. FOMO helps you avoid missing out.
Due Diligence (DD), or the process of verifying an investment (such as cryptocurrency) before it is purchased, is one of the most important steps in any investment. DD is the process of verifying the investment to ensure no hidden flaws are present. Due to the anonymity of cryptocurrency, it is very easy for someone to hide the true nature of their investment. Cryptocurrency is not an investment you can easily verify. There is very little information available in the public domain about the background of cryptocurrency investments
In a world that has seen a significant rise in the number of cryptocurrencies being traded, money laundering, terrorism financing, and other illegal activities have been a major concern for governments. To combat these activities, Anti-Money Laundering (AML) regulations have been introduced in the financial industry. This blog post will look at how cryptocurrency exchanges can effectively combat these regulations and provide a risk-based approach to compliance.