The most important concepts every trader in the world of cryptocurrencies should know
The crypto world is filled with terms that may seem obscure at first, but understanding them is essential for anyone who wants to trade consciously. Here is a simplified explanation of the most commonly traded terms:
Altcoin: Any cryptocurrency other than Bitcoin ($BTC ). For example, Ethereum, Cardano, and Solana. These coins often offer additional features related to speed, smart contracts, or scalability.
Stablecoin: Stable cryptocurrencies, such as USDT $USDC , which are linked to the value of real assets like the dollar or gold. They are used in trading to preserve value and reduce volatility.
Meme Coin: Coins that started as jokes, like $DOGE and PEPE, but gained wide popularity due to community interaction, and are often highly volatile.
NFTs (Non-Fungible Tokens): Unique digital assets representing ownership of digital items such as images, videos, or collectibles within games. They are bought and sold via blockchain and are used in digital art and virtual real estate.
DeFi: Short for "Decentralized Finance," meaning providing financial services such as lending, borrowing, and trading without the need for traditional intermediaries.
Understanding these concepts is the first step to building an effective and secure trading strategy on accredited platforms.
