What are the basic concepts and terms in the cryptocurrency industry? A must-have guide for beginners!

As digital currencies continue to evolve, more and more investors are entering the crypto space. For beginners, understanding the basics and common terminology of cryptocurrency is the first step. This article will introduce the key concepts in the crypto market to help new users quickly grasp the essentials of trading and investing.

What is Coin Trading?

Coin trading involves buying and selling digital currencies that are issued using blockchain technology, similar to stock or forex trading. Bitcoin, as the first blockchain-based cryptocurrency, was followed by many others such as Litecoin and Ethereum. These cryptocurrencies are traded because their prices fluctuate, allowing investors to buy low and sell high to earn profit.

What is an Exchange?

An exchange is a platform for buying and selling digital currencies, similar to a stock market. It provides a secure and convenient environment for users to make transactions at market or set prices. Popular exchanges include Binance, OKEx, and Huobi. Choosing a secure and reputable platform is critical for safety.

What is USDT?

USDT is a stablecoin that is pegged 1:1 to the value of the U.S. dollar. On many exchanges, USDT is used as a trading pair, such as BTC/USDT. Investors often buy USDT with fiat money, then use it to trade for other digital currencies. USDT is commonly used as a "digital fiat currency" in the crypto world.

Mainstream Coins vs. Altcoins

With the surge in Bitcoin's price, many new digital currencies have emerged. Mainstream coins are cryptocurrencies with large market caps and high market acceptance, like Bitcoin, Ethereum, and Ripple. Other smaller coins that are less widely accepted are referred to as altcoins. Mainstream coins tend to have mature technology and widespread market applications, while altcoins often come with higher risks.

What is Crypto Candy?

Crypto candy (or airdrops) refers to free tokens distributed by blockchain project teams to early supporters or community members. These tokens can be traded or converted into cash, but not all tokens have real value. Airdrops are typically used to attract more attention to a project and expand the community.

The Role of Fiat in Crypto

Fiat currency refers to money that is legally authorized and circulated by a government, like RMB or USD. In cryptocurrency trading, fiat currencies often serve as the intermediary for trading digital currencies. For example, investors purchase USDT using fiat money, then use USDT to buy other cryptocurrencies.

Major Trading Platforms

Major cryptocurrency exchanges include Binance, OKEx, and Huobi. These platforms offer a variety of trading pairs and high security. Choosing a large platform can help avoid scams and ensure the safety of funds.

Conclusion

Understanding the basic concepts and terminology of cryptocurrency is the foundation for every beginner entering the crypto space. As technology and markets mature, digital currencies will play an increasingly important role in the future financial system. Newcomers should be cautious when investing, understand market fluctuations and risks, and choose reliable platforms while continuously learning and improving investment skills.