Hello, prospective crypto investors! 💡 Before diving into the world of cryptocurrency, there are several important terms you need to understand so you don't feel confused like driving a car without a license. Don't worry, we'll discuss it in a casual and easy-to-understand language. Let's go through the following 5 key terms!
1. Blockchain (Digital Ledger)
What is it? Blockchain is the technology behind cryptocurrency—like a digital notebook that can't be tampered with carelessly.
Analogy: Imagine a Google Sheet that can be accessed by everyone, but once the data is entered, it cannot be deleted or changed. Transparent and secure!
Interesting Fact: According to Statista, 90% of the world's central banks are researching blockchain for their financial systems.
2. Wallet (Digital Wallet)
What is it? A place to store crypto assets, like a physical wallet but in digital form. There are two types: hot wallet (internet-connected) and cold wallet (offline, more secure).
Tip: If you hold a large amount of crypto, it's better to use a cold wallet like Ledger or Trezor.
3. Volatility (Rapid Price Fluctuation)
What is it? Crypto prices can skyrocket or plummet in a short time. For example: Bitcoin once dropped 50% in a month, but it could also rise 300% a year later.
Expert Words: "Investing in crypto is like riding a roller coaster—it requires mental strength and a long-term strategy." – Crypto Analyst.
4. HODL (Hold, Don't Panic Sell!)
What is it? A popular term in the crypto community meaning to hold your assets even when the price drops.
Origin: This word originated from a typo of "hold" in the crypto forum, but it turned into a motivational jargon!
5. FOMO & FUD (Market Psychology)
FOMO (Fear of Missing Out): Fear of missing trends, buy when the price is high.
FUD (Fear, Uncertainty, Doubt): Negative news causes panic selling.
Case Example: When Elon Musk tweets about Dogecoin, many FOMO buy, then the price drops and FUD appears.
Conclusion
Now, you already know the basic terms before starting to invest in crypto. Remember, learn first then buy, so you don't make a wrong move!
💬 Comment below if you're still confused!
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