Published On: Thu, Feb 25th, 2021

Terms should be known by you before entering into the crypto market

Cryptocurrency, this term is widely talked about these days. And with the market’s big names getting into this business is encouraging lot’s new investors to enter the market. Recently, the CEO of Tesla and SpaceX, Elon Musk have promoted bitcoins through his Twitter bio. After this many new investors have shown interest in the market.

But then the problem arises of the jargons, that new investors couldn’t understand.
Due diligence is important when looking into any asset class. However, doing one’s homework maybe even more important when it comes to investing.

This article will guide you to certain important as well as commonly used crypto terms of the market.

1 ETF
The full form is Exchange Traded Funds. This is a tradable product (security) that follows the price of an underlying asset. Examples are an equity index, a basket of certain securities, bonds, and commodities. There are several applications for a Bitcoin ETF, but none of these have yet been approved by the SEC in the United States of America. Recently, Hong Kong was the first country to approve ETFs based on cryptocurrency.

2 ICO
It stands for Initial Coin Offering. It is a bit similar to the term IPO. Investors get an opportunity to invest in a certain coin for the first time. The difference with the stock market however is that a company has to meet all kinds of requirements before the IPO can take place. The market of ICO’s is much less regulated.

3 Portfolio
This term is the most common one and I think the meaning of this is known by many. Still, I will tell you. A cryptocurrency portfolio is the total holdings of your crypto assets in one place.

4 Private key
A private key in the crypto space can be defined as the combination of letters and numbers that corresponds to a specific public key. The private key can be used to gain access to the assets on that public key, also known as the wallet address. Once you share your private key with somebody, store it on your computer in plain text or type it in a website or app, you risk losing all your funds stored on its corresponding public address.

5 Public Key
A public key in the crypto space can be defined as a combination of letters and numbers and forms the address to which the cryptocurrencies or tokens can be sent to. Everybody who knows the public key of somebody can see the assets stored on that address. Only the owner of the corresponding private key can send those assets out.

This article has explored the more popular terms and phrases relevant to cryptocurrencies, providing a strong foundation for those interested in exploring this innovative asset class. And if someone wants to learn more about cryptocurrency, then he/she can follow CryptoEmotions, they have all the latest updates of the crypto market and a section of education as well to educate its readers about the basics.

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