Tokencan Cryptocurrency Encyclopedia Part.1- Basic Coin Terminology
A lot of content and information have been uploaded to the Tokencan blog and social media.
However, there are some difficult terms or contents for those who are new to virtual assets or exchanges, so today we are going to organize basic virtual asset (or coin) terminology.
First, let’s look at ‘currency’ commonly used in exchanges.
KRW is the currency used in Korea. And it means a market that is traded in won on the exchange. Since most Korean investors trade in the won market, there is an advantage that there is no significant delay in selling or buying when trading in Korea.
BTC means a market that can be traded with Bitcoin. Since the BTC market trades with Bitcoin as the key currency, it is necessary to check the market price of Bitcoin.
USDT is pegged to the dollar. The BTC market, which is fixed at 1 dollar per 1 USDT and fluctuates, is advantageous when the value rises, but there is also anxiety that it may fall. In comparison, USDT has the advantage of being stable as it is hardly affected by the market price.
TMETA, introduced in the previous post, is a stable coin of Tokencan. In Tokencan Exchange, the TMETA market, which allows trading of other virtual assets through TMETA, is active.
Tokencan created TMETA for transaction convenience, rapid transfer, and stable value.
The exchange conducts transactions through the representative coins as above. Among the four above, the Tokencan Exchange has active BTC, USDT, and TMETA markets, expanding the range of choices for many investors and providing convenience to the service.
In addition to the above trading means, various terms are used in virtual assets.
1. Split trading
What is Split Trading? In other words, buying and selling is not done at once, but divided over a period of time. Split trading is a method used to sell and buy in large quantities without significantly increasing or decreasing the market price of the corresponding virtual asset.
It is an investment strategy that draws borrowed capital (debt) to purchase assets to increase returns from investment.
Coin swap refers to an exchange between coins based on different blockchains or a token based on another blockchain for a coin based on their own blockchain.
At this time, there are two main reasons why a coin swap or swap transaction occurs.
- In case of upgrading from token to coin
- When a coin undergoes a significant update and the blockchain needs to change
4. Difference between coin and token
Coins and tokens are divided according to the blockchain base.
A coin is called a coin when it owns its own independent blockchain network (mainnet).
Conversely, a token is called a token if it is derived and created through another mainnet without owning its own mainnet.
5. Buy monthly or sell monthly
As a term used in the stock or virtual asset market, a ‘wall’ is a part where the quantity is particularly concentrated compared to other prices in order to buy or sell at that amount in the market.
A buying wall is a thick layer of buyers who are waiting for the price to drop further due to the quantity of the product they have on hand to purchase at that amount.
Conversely, the selling wall refers to a thick selling layer that is waiting to prevent the market price from rising further due to the quantity caught to sell at the corresponding amount.
6. Listing Favors
It means that when a new project (item) is listed on the exchange, it is seen as a good news and the price rises.
In the virtual asset market, new coins or existing coins are paid free of charge according to the investment ratio to people who have specific virtual assets, and the payment conditions and quantity differ for each coin. Most of the time, when airdrops are conducted, they often act as a favorable factor.
It refers to backing up data on how many coins an individual owns on an exchange for an airdrop.
9. Block Deal
Coins or stocks are sold in bulk at a low price through an agreement between the seller and the buyer, and when a block deal is made, the price of the item usually falls.
It is like depositing your virtual assets in a blockchain network, participating in operation and verification on an exchange or deposit platform, and receiving virtual assets as compensation, like receiving interest on your deposit like a bank.
All coins other than Bitcoin (BTC) are called ‘altcoins’.
12. Bitcoin Dominance
Bitcoin dominance refers to the percentage of Bitcoin in the global virtual asset market. In simple terms, it refers to the dominance that Bitcoin has in the virtual asset market. Bitcoin dominance will send clear signals about how the market is behaving. High Bitcoin dominance means that Bitcoin’s market cap is higher relative to altcoins, while Bitcoin’s low dominance is a sign that Bitcoin’s market cap is getting lower, or that the average price of altcoins is lower than Bitcoin’s. This means that it is rising at a faster rate.
13. Stable Coin
Stable Coin means a cryptocurrency with extremely low volatility that can be used to trade against the overall market. A “stable coin” is a cryptocurrency that is often pegged to another stable asset, like silver, gold or a fiat currency such as US dollar. It’s a currency that’s global, but not tied to a central bank and has a lower volatility than other cryptos. Examples of stable coins on the market today are: (i) Havven, (ii) MakerDao, (iii) Basis, and (iv) Tether.
Today, we posted only basic terms for early investors who are new to virtual assets.
In the future, the Tokencan blog will deal with all the knowledge of virtual assets in detail.
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