5 Bitcoin Terms Everyone Should Know

With these terms understand the news around Bitcoin and cryptocurrency a lot better. Nothing wrong with a bit of explanation!

In the general news it is not that bad, but if you go into it a little deeper you will inevitably come across all kinds of terms related to crypto sooner or later. You have probably read a term where you have no idea what it is about. But you’re also too lazy to bother to google that term. In this article we give you 5 important Bitcoin terms so that you at least understand the basics!

HODL

Perhaps the most famous term. At least for an investor. HODL stands for the English word hold. In other words, hold on. This term is used when, among other things, a price decline has occurred. Selling at a loss is not so smart, in that case HODL, or holding your position, is more sensible. Hoping for an increase.

wallet

When you buy Bitcoins or other crypto, they are sent to a wallet. This is a virtual wallet where your crypto is kept safe. You have a wallet in all kinds of forms. Directly via an exchange, for example, but also having an offline hardware wallet is possible. The latter is recommended if you have a significant wealth in crypto.

Exchange

The term has already been mentioned above. Exchange is the trading office of cryptocurrency. A place where you can purchase Bitcoin, Ethereum and often other cryptocurrency.

Bear and Bull

You will also encounter the terms Bear and Bull very often. It represents the current market sentiment. A Bull market means that there is an observable upward trend. A bear market is actually a downward trend. In a bear market it is interesting to buy positions. In a Bull market, you should be selling for a profit.

spot

Buy spot. You will also hear regularly. When you are going to trade in cryptocurrency, you should never do that with one large purchase. Then it is just like a slot machine and it can go both ways. By buying the right small tufts you increase the chance of profit in the long term. With spot buying you choose to purchase the instrument directly on an exchange. Doesn’t have to be just crypto. Also possible with stocks, bonds and so on. You are the owner of what you have purchased. That’s mockery.