If you plan on profiting in such a volatile market as cryptocurrency, it’s important that you keep track of how much you are investing. Especially if you are using dollar cost averaging (DCA) as a way to gain from the market.
Owning cryptocurrency is unlike owning customary currency, a person in no way will be able to hold a Bitcoin in their hand. Cryptocurrency is not ever tangible, however, it is instead a group of codes. Cryptocurrency is kept on the blockchain with a special address. What is called a public key, permits additional users to send you crypto. Initially, a private key reveals your crypto to you. A cryptocurrency wallet is comparable to a customary wallet in a sense that you use it to keep your funds secure.
How Do Cryptocurrency Wallets Work?
Opposite to general belief, crypto wallets do not really store cryptocurrencies. What they do is provide the means necessary to work together with a blockchain. Wallets can produce the essential information to send and receive cryptocurrency by blockchain transactions.
The 5 Different Types Of Crypto Wallets
1. Mobile Wallets Mobile wallets are ones that run as apps on phones, tablets and other mobile devices. Transacting is made easy as funds can be sent to other wallet addresses that can sometimes be represented by QR codes. They are great for travel and accessibility, but they are considered the least secure. There is the possibility of your mobile crypto wallet getting hacked, and if someone steals your device (or you misplace it) they could also take your coins.
2. Desktop Wallets Desktop wallets are unconnected devices that keep your cryptocurrency, that you attach to an internet-connected device when you want to trade or access your coins. A desktop wallet is an address that you can send and receive cryptocurrency. How they are protected is that the owner holds specifics of the private key that is used to retrieve it. Having the choice of detaching your desktop wallet from the internet and keeping them offline reduces the danger that your funds can be hacked into.
3. Paper Wallets A paper wallet is exactly how it sounds, a piece of paper that contains your private key and public address, usually printed in the form of a QR code. Paper wallets are different from the other types of wallets, unlike online wallets, this form of cryptocurrency storing is entirely offline and tangible. Being a tangible method of storage, this requires that you take additional steps to safeguard the paper. Options to keep your paper wallets secure is to laminate the paper (this protects it from water damage), and place it in a in home vault.
4. Hardware Wallets Hardware wallets are considered a key component of the blockchain network. As they deliver security and functionality when interacting with blockchain ledgers. Hardware wallets keep your coins secure even when the computer you’re using isn’t protected. Hardware wallets provide users with an additional level of defense from online attacks, phishing websites, and malicious software. A hardware wallet can communicate with several blockchains concurrently. All of them can be backed up easily with a single recovery phrase. Frequently a pocket-sized plug-in gadget, a hardware wallet, is a key to access your cryptocurrency safely and from anywhere.
5. Web Wallets A web wallet is an online service that can send and hold cryptocurrency on your behalf. The main advantage of web wallets is that they can be accessed anywhere, from any device. Unfortunately, security is the main concern with web wallets. In addition to the risk of hacking used to steal a user’s passwords, many crypto users have signed on to web wallets, only to find out that their coins have disappeared and the service providers couldn’t help.
When it comes to storing your cryptocurrency think about the method that will make you most comfortable, and always do your research.
Coinbase breaks down 11 of the most popular pieces of crypto lingo.
If you’ve spent any time reading crypto Reddit or Twitter, there’s a 100 percent chance you’ve encountered — and were potentially baffled – by a dense thicket of acronyms, misspelled words, gamer memes, and more. From FOMO and FUD to laser eyes and whales, get crypto-literate with this beginner’s guide to eleven of the most common pieces of slang.
Or as Elon Musk put it in a May tweet: 💎🙌. Diamond hands is a meme popularized by crypto and stock traders on Reddit. It connotes a hardcore adherence to the HODL philosophy (see below) — and is often used by online groups that have banded together to try to drive up the price of a memecoin or other asset. (The related-but-derogatory term for skittish traders? “Paper hands”/🧻🤲. )
Stands for “fear of missing out” — and is generally most intense when markets are rising fast. FOMO can lead to emotional trading and bad decision making — it’s dangerous because hindsight is 20/20, making it all too easy to regret the gains you would have made if you had only timed all your trades perfectly. (Nobody times all of their trades perfectly.)
A good way to reduce FOMO is to have a strategy and stick to it, especially if you believe that the asset you’re investing in will rise in value over the longer term. One popular option is dollar-cost averaging (or DCA), in which you invest the same amount every week or month without worrying about what the market is doing.
Stands for “fear, uncertainty, and doubt.” It’s a classic public relations and propaganda tactic. The idea is to warp public perception about a product, technology, or candidate by strategically releasing misinformation designed to create a negative emotional response.
Mainframe-computer architect and entrepreneur Gene Amdahl is often credited with popularizing the term in the 1980s. He used it to describe the way IBM salespeople of the era worked to delegitimize competitors’ products, painting them as unreliable and untrustworthy.
In the crypto space, FUD often refers to general skepticism around the technology (from the media or from traditional-finance analysts), but the idea can also be used by proponents of a specific token or protocol in an attempt to disarm criticism.
What should you do when faced with FUD? Embrace another popular crypto acronym, and DYOR. Do your own research.
The flippening is a hypothetical event in which Ethereum’s market cap will one day eclipse Bitcoin’s. It can also be used to describe any similar situation where a smaller or less-established token or protocol might overtake a larger rival.
HODL is probably the most prevalent piece of crypto slang. It originally came from a drunken typo in the subject line of a 2013 Bitcoin forum post: “I AM HODLING”. (It should have read “holding.”)
HODL — usually pronounced “hoddle” — simply means to buy and hold for the long term, no matter what the market is doing. Bitcoin fans have even retroactively turned it into an acronym that stands for “hold on for dear life.”
The original forum post is riddled with typos, but the underlying message was prescient. At the time, Bitcoin’s value had plummeted from $1242 to $480 in a month. Panicked traders were bailing out, but GameKyuuubi — real name Mike, a programmer — wasn’t selling: “In a zero-sum game such as this,” he wrote, “traders can only take your money if you sell.”
The sentiment soon spread throughout the Bitcoin community and countless memes ensued. Crypto has experienced multiple bull and bear cycles, but so far at least, HODL has been good advice — with Bitcoin emerging as one of the best-performing assets of the last decade. (As mentioned in the FOMO entry above, one good way to HODL is via DCA.)
In 2021, avid Bitcoin proponents began signalling their support for the cryptocurrency by adding “laser eyes” to their Twitter photo. NFL superstar Tom Brady, Paris Hilton, Elon Musk, Wyoming senator Cynthia Lummis, and MicroStrategy CEO Michael Saylor are a few of the famous names who have taken part. The meme is often associated with the hashtag #LaserRayUntil100K — indicating support for the cryptocurrency’s potential to break the $100,000 mark.
Dogecoin (DOGE) is the original memecoin — it’s literally a cryptocurrency based on a meme that was popular around the time it was invented. But in 2021, when Dogecoin dramatically rose in value, a huge wave of other tokens with absurd names emerged (in part made possible by decentralized exchanges like Sushiswap, which allow anyone to easily list a token). In May 2021, Ethereum cofounder Vitalik Buterin donated more than $1 billion in DOGE-inspired memecoins like AKITA, SHIB, and Dogelon Mars (ELON) towards COVID-relief efforts in India and other causes. The coins had been deposited in Buterin’s crypto wallet in an attempt to make traders believe he was an investor.
Moon (or mooning)
When a cryptocurrency is seeing strong upward momentum, traders tend to describe it as going “to the moon” or “mooning.”
Pump and dump
A coordinated effort to artificially inflate the price of an asset and cash out before it tumbles back to earth. Cryptocurrencies with smaller market caps are particularly vulnerable to pump and dump schemes. A group of traders will work together to drive up the price of a specific small-cap altcoin. As prices rise, the schemers will promote the opportunity on Twitter, Reddit, Discord, Facebook, YouTube comments, and elsewhere, attracting more investors and driving the price up further. When the asset hit their target value, the original group will cash out — taking big profits and leaving everyone else “holding the bag” as the token collapses.
What happens if you get swept up by FOMO and end up becoming the victim of a pump and dump? You get rekt. Getting rekt in its original gaming context means to lose badly, and the definition is pretty much the same in crypto.
The biggest holders of crypto are known as whales. For Bitcoin, anyone with more than 1000 BTC is generally considered a whale. Unlike the vast majority of crypto traders, whales have the potential to move markets with their trades. As of mid-May 2021, the top 100 Bitcoin addresses (out of more than 800,000 active addresses) held more than 20 percent of all BTC according to bitinfocharts.com.
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