Cryptocurrency Basics: Essential Knowledge for Novices in the Crypto World

For beginners entering the world of cryptocurrency, understanding key terms and operations is the first step to success. Today, we’ll introduce some common cryptocurrency concepts to help you get started on the right foot.

What is Coin Trading?

Coin trading is similar to stock or forex trading, involving the buying and selling of virtual digital currencies based on blockchain technology. Bitcoin was the first blockchain digital currency, followed by many others like Litecoin, EOS, and Ethereum. The price fluctuations of these coins provide opportunities for investors to profit from buying low and selling high.

What is a Cryptocurrency Exchange?

A cryptocurrency exchange is a platform for buying and selling various digital currencies. It functions like a stock market exchange, providing a secure and convenient trading environment, allowing users to set buy and sell orders at market prices or specified prices, helping them make smarter investment decisions.

What is USDT?

USDT is a "stablecoin" in the cryptocurrency market, pegged 1:1 to the US dollar. Many exchanges use USDT as a base trading pair, such as BTC/USDT, meaning you buy Bitcoin using USDT. Its stability makes it one of the most commonly used fiat tools in the crypto world.

What Are Mainstream Currencies?

With the surge in Bitcoin’s price, many other digital currencies have emerged. Mainstream currencies are those with large market capitalization, strong consensus, and good liquidity, like Bitcoin, Ethereum, and Ripple. Others are referred to as "altcoins."

What is Crypto Candy?

Crypto candy refers to tokens distributed by blockchain project teams through airdrops to early supporters. These tokens can be traded and converted into cash, although not all are exchangeable. Airdrop events aim to attract more users to the project and expand the community.

What Does Fiat Currency Mean in Crypto?

Fiat currency is money that is officially recognized and circulated by a government, such as the RMB or USD. These currencies are legally guaranteed and play an important role in national economic systems.

What Are the Main Cryptocurrency Exchanges?

Currently, major cryptocurrency exchanges include Binance, OKEx, and Huobi. These platforms offer a variety of trading pairs and a secure trading environment, making them suitable for beginners to engage in cryptocurrency trading.

Conclusion

With these basic concepts, you can better navigate the cryptocurrency market and avoid common risks and pitfalls. Whether trading coins, choosing an exchange, or understanding mainstream currencies, the right knowledge and strategy are key to successful investing.