If you are new to the world of cryptocurrency, it can sometimes seem intimidating. One way in which to help you to fully understand your investment, is to get your head around all of the acronyms.
Here is a handy guide of some of the most popular acronyms and what they mean.
This stands for ‘Over The Counter’ and refers to the method of trading that bypasses an exchange service. If you buy OTC, you agree upon an exchange rate for a set amount of currency, more often than not with the help of a third party.
This refers to an ‘all time high’, and is the maximum price that a coin has attained.
DEX refers to Decentralised exchanges, and refers to the future of cryptocurrency trading. A lot of the cryptocurrency community is looking into DEX solutions as a way of fixing perpetual issues. The buyers and sellers will maintain an ownership of their funds.
‘Fear, uncertainty and doubt’. This refers to the bad practices that are used to drive the price of a coin down. It can take the form of incorrect news that has been shared in order to convince holders of a virtual currency, to sell their holdings.
ICO is one of the most commonly used acronyms in the cryptocurrency world, and it stands for Initial Coin Offering, and is quite simply, the crowdfunding approach that takes place before a new cryptocurrency is launched. The ICO is very important, and the future success can be determined by how successful the ICO is. They have managed to get rid of some of the negative connotations that once surrounded the term, and the overwhelming use now overshadows the criticism.
This stands for ‘Do Your Own Research’, and is one of the most important terms to remember, especially if you are new to cryptocurrency investing. If you see this anywhere, it usually means that’s any financial decisions that you make should only be made after you have carried out extensive research.
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