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Getting Started with the Tech for Making Money; Blockchain and Cryptocurrency

by Emmanuel O.April 8th, 2022

Too Long; Didn't Read

The crypto space is still very young at this period even with a market capitalization of about $1.7 Trillion. More than 1500 cryptocurrencies are currently on coinmarketcap.com as well as plenty of exchanges, and tech layers whose operations need to be known. As a crypto enthusiast and a newbie, there are certain terms you should get yourself acquainted with during your learning process so as not to get lost amid experienced colleagues. The terms “Blockchain & Cryptocurrency” are often mistaken for “Bitcoin” especially among newbies and traders with shallow knowledge.

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After some time doing a 9–5 job and making some $$$, you have taken it upon yourself to look for a way to diversify and possibly grow your money — You think pushing that hard-earned $$$ into cryptocurrency is the next big thing, right?

You probably have friends that are into it already and you’re wowed about the kind of luxurious lifestyle they live after a few years of starting. It’s not magic, they took the right step, otherwise, you should be the one feeding them by now. Can you even start without any money? Yes!

Of course, it’s never too late because the crypto space is still very young at this period even with a market capitalization of about $1.7 Trillion. More than 1,500 cryptocurrencies are currently on coinmarketcap.com as well as plenty of exchanges, and tech layers whose operations need to be known. Considering the plenty of things you need to wrap your head around as a newbie, truly, the crypto space isn’t for the shallow-minded as it requires a lot of research to prevent avoidable mistakes.

In this article, I will try as much as possible to explain complex things in their simplest terms to avoid complications.

Understanding Blockchain and Cryptocurrencies

The terms “Blockchain & Cryptocurrency” are often mistaken for “Bitcoin” especially among newbies and traders with shallow knowledge. While Bitcoin/Cryptocurrency is a subset of the Blockchain, Blockchain is a subset of technology.

Cryptocurrencies are digital/virtual currencies that serve as a means of exchange. How do you safeguard & keep track of transactions with this? A computerized database called ledger makes this possible. However, it uses a combination of strong codes referred to as Cryptography in securing the records, creating more coins (minting), and verifying the transfer of coin ownership. Examples of cryptocurrencies are Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Bitcoin Cash (BCH), etc.

Blockchain technology, on the other hand, contains a series of blocks on which transactions are recorded. The definition of blockchain technology, however, is not complete without talking about these two terms “Decentralization and Distribution”. Hence, it is a distributed ledger as well as a decentralized system!

Being a distributed ledger and decentralized system, it permits the recording of your transactions and does not give any person or group of persons control over your money (i.e your crypto assets. Basically, you have the sole power over what belongs to you here. Of course, there are several examples of blockchain with the major ones being Bitcoin and Ethereum Networks. Others include; Binance Smart Chain (BSC) Network, Tron Network, etc.

Well, as a crypto enthusiast and a newbie, there are certain terms you should get yourself acquainted with during your learning process so as not to get lost amid experienced colleagues. Let’s talk about those terminologies…

Common Terminologies Used In The Crypto Universe

Public address, Private key, Alts or Altcoin, Blocks, Fiats, Moon, Whale, ATH, FOMO, FUD, YOLO, ICO, Volatility, Pump & Dump, Mining, Halving, IMO, HODL, Confirmation, Long & Short, DCA.

1. Address: This is just like your bank account number with which you receive money. It’s usually between 26 and 36 characters. However, it is your unique wallet ID on the blockchain and no one can steal your money with your public address. Examples are…

1. 36Hhm5vf9maSvrZBG3JKYizMTvJpQ4Vxgk

2. 3DmWurRWJ8xABar6xjEEDM9xv9CLk5CYDF

You might want to check if they are working. Just send any amount of BTC to the first address and I will help you confirm.

It should, however, be noted that any alteration to these characters will lead to the eternal loss of funds. Also, sending ETH to a BTC address is wrong because you will lose your money.

2. Private Key: Also known as your seed phrase. Think of it as your ATM card pin which anyone can use to access your wallet and execute a fraudulent act. It should always be kept private, however, if lost, you won’t be able to access your wallet again.

Do you want me to share this? I’m sorry I can’t share mine

Remember- your private key is meant to be kept private and safe because you will use it to access your money when your phone is lost/stolen. Without it, your money is gone forever.

3. Alts or Altcoins: This implies “Alternative coins.” They are coins other than BTC. Examples are Ether, Ripple, Bitcoin Cash, and many others you can find in the market.

4. FOMO: Means “Fear of missing out.” This term is used mostly when the price of coin rallies and a trader thinks it might go higher, so he buys some of the coins. But unfortunately, most people will buy the top and eventually lose in the trade.

5. FUD: Fear, Uncertainty, and doubt. It’s common to see false news flying across the media consequently influencing the emotions and behaviors of some traders. Oftentimes, this drives the crypto market.

A recent example of this was when Elon Musk tweeted about buying Bitcoin and Doge which consequently drove the price of these coins.

6. HODL: Hold On to your Dear Life. A slang usually used by crypto investors that they shouldn’t sell even though they are losing money. You will hear this mostly when the market dumps heavily.

7. Long & Short: If you hear a trader saying he’s going long on BTC, it means he’s interested in buying BTC. To go short, on the other hand, means he’s interested in selling BTC. You will often see this in the futures market.

8. Confirmations: Since the Blockchain is made up of blocks and every time transactions are made, they pass through them. Hence, it’s a measure of blocks passed after the transactions are initiated.

9. Volatility: Volatility is the measure of the price movements of an underlying asset within a period. Without this, money cannot be made in the crypto market and you need to leverage this.

10. DCA: Dollar Cost Averaging is a risk management method usually applied when buying a cryptocurrency especially when the price is dropping.

For example, if you buy a coin at $9, $8, and $7 respectively when the price drops from say $10, the average price you’ve bought is $8. However, you will be in profit if the future price crosses $8.

Find out what other terminologies are on the list, and if possible, add to it.

Dear reader, so as not to bombard you with a lot of information, let’s stop here and you can take your time to do your own research and simple things discussed in this post.

But do you think there are ways money can be made from Cryptocurrencies & Blockchain as a whole?

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