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10 advanced crypto terms you need to know in 2022

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The world of cryptocurrency is moving in leaps and bounds with constant developments and new terms being added on a constant basis. While you may understand the basics, it is important to go over and understand some of the more advanced coding terms. This will not only enhance your knowledge but will also help you make better investment decisions in the future.

With that in mind, here are 10 advanced crypto assets you need to know about in 2022.

1 – scalping

At its simplest, scalping is cryptocurrency what day trading is to stock market investors. The basic idea in scalping is that collecting small but consistent profits on a daily basis is better than waiting for a large payout for your investment in cryptocurrency. Also, cryptocurrency scalpers as they are called, mainly rely on technical analysis of coins and companies rather than fundamental techniques as used by day traders. Be ready to dive in and learn about candlestick chart patterns, read charts and understand support and resistance levels if you want to make profits from being a cryptocurrency scalper.

2 – High Frequency Trading

High Frequency Trading, or HFT as it is called, is a form of trading that takes advantage of the power of advanced computer systems to handle large orders within seconds. These systems use software with complex algorithms that analyze multiple markets and execute orders based on market conditions. There are pros and cons to using this trading method which you can learn more about once you delve deeper into this topic.

3 – Nunis

Nonce is short for “number used only once”. a nonce is a number that is used once for certain encryption operations. Digging deeper, you’ll also come across terms like ‘header hash’ and ‘gold nonce’ that have to do with mining a block and adding it to the blockchain. In fact, understanding the nonce and how it works is an essential requirement if you want to become a cryptocurrency miner.

4 – Hard fork and soft fork

In programming terms, fork refers to the modification of open source code. In the crypto world, a hard fork is usually used to define a fundamental change in a blockchain system. The change also renders old versions invalid to avoid confusion and errors. On the other hand, Soft fork is used to indicate changes to the blockchain that also remain compatible with older versions. These are mostly related to adding small functionality or cosmetic changes to the blockchain.

5 – DEX

DEX stands for decentralized exchanges that allow users to exchange coins and tokens by making use of smart contracts and blockchain technologies without a central middleman. This allows you as the owner of crypto assets to hold your funds and private keys in the manner you decide is best for your investment goals. DEXs are also less vulnerable to hacking than centralized brokers.

6 – Average True Range

Average True Range (ATR) attempts to solve one of the biggest challenges facing cryptocurrency holders by helping them measure volatility and help find the right markets to maximize profits. The ATR does not reflect buy or sell signals and simply measures volatility in cryptocurrency trading in the same way it is used in forex and stock trading. Essentially, the ATR provides information about how much an asset can move in a given period. This information can be used to manage open positions as well as trigger stop-losses, depending on the crypto-asset in question.

7 – Trilemma scalability

Scalability Trilemma was coined by Ethereum creator Vitalik Buterin and it points out the trade-offs that developers have to make while maximizing certain features of the blockchain. The trilemma refers to a triangle with three key attributes of the blockchain at each point – scalability, decentralization and security and the trade-offs needed to make each component work as crypto assets undergo more and more complex changes.

8 – FUD

FUD is an acronym for “Fear, Uncertainty, and Doubt” which are the primary emotions that affect investors and traders. Some parties have been known to manipulate the behavior of these individuals and take advantage of their biases to make a quick buck. For crypto users, FUD is usually spoken of when malicious individuals depreciate specific cryptocurrencies or even the entire crypto market in exchange for a quick buck by manipulating real investors’ FUD responses.

9 – MEMBOL

The collection of blockchain transactions, each waiting to be added to a block is referred to as a Mempool. The word is basically an acronym for Memory Pool and refers to the process of validating and verifying nodes before they are successfully added to the blockchain.

10 – Symbolology

Moving on to economics, there is now Tokenomics, which is a combination of “tokens” and “economics” that refers to the study of digital assets, especially cryptocurrencies and their value. This broad field includes the study of token creators, allocation and distribution methods, market capitalization, business models, legal status, and the various ways in which different tokens operate in the broader economic ecosystem as crypto gains more and more acceptance.

It will be difficult to follow all of these terms if you are not already using tokens and crypto assets. It is best to get in the game by learning the basics of this new investment class and choosing a reliable and secure crypto-asset exchange like ZebPay to get started. We recommend ZebPay For its extensive list of crypto assets, long history in the field of cryptography and strong security mechanisms. Open your account over here.

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