Bitcoin Terms That You Should Be Familiar With

Bitcoin Terms

Bitcoin trading has never been more popular. Due to the fact that the price of this cryptocurrency has risen significantly in the recent period, thousands of people are very fond of the idea of signing up to this network and thus, start their journey towards making money.

Plus, some reports state that there may be as many as 100,000 millionaires in the world who became rich by trading with this cryptocurrency. Novice traders do have a lot of things to catch up on when registering at this network, with Bitcoin terms being among the things that they need to learn. We decided to weigh in on this topic and name several terms that they should definitely be aware of.

Satoshi

Satoshi comes with two meanings. The first one signifies the creator – Satoshi Nakamoto, and the second one is used to describe a Bitcoin subunit. 1 Satoshi equals 1/100,000,000 Bitcoins. An interesting fact about its creator is that it is one of the biggest mysteries that surround Bitcoin. To this day, only a handful of global authorities know this individual’s real identity. As for us, the ordinary people, we don’t even know if Satoshi is male or female, what’s his/her age, or nationality.

Volatility

Volatility is often mentioned whenever Bitcoin is the main topic of the conversation. The volatility rate signifies Bitcoin’s fluctuations in value. As you may know, this cryptocurrency is subject to daily changes in its value. That means that the volatility rate is high. Dealing with the volatility rate is one of the biggest problems that traders face in this business.

Trading Sites

Next up, we have trading sites. These are the platforms that let you buy and sell Bitcoins. To gain access to their services, all you have to do is register and make a deposit. The process of registration is very fast and lasts just a minute. You are required to fill out an online application form with some basic information about yourself.

The official site of a reputable trading site will even help you deal with Bitcoin’s volatility. It features an advanced AI system that analyzes the market and makes accurate predictions on Bitcoin’s future fluctuations. The results are shared with every registered trader who has intel on when’s the best time to sell their assets and maximize their profits. These types of services are the reason why trading sites became so popular.

Hash Rate

Bitcoin’s hash rate measures how effective is Bitcoin in completing calculations each second. Its combined value is the average of all individual mining machines in the network. The more stable it is, the better the computing power of this cryptocurrency is.

Halving

Halving events take place every 4 years and their purpose is to control the flow of Bitcoins in the network. During this period, mining becomes extremely hard, which is why these events always lead to price surges. So far, there have been 3 events of this type – 2012, 2016, and 2020. The next three are scheduled to be in 2024, 2028, and 2032. It is expected that by 2032, around 99% of all Bitcoins will be mined, but it will take another 100 years for that number to reach 100%.

Mining

Speaking of mining, this is a process that powers Bitcoin’s network. Mining is actually recording Bitcoin transactions. Each Bitcoin user can do this and it is completely free. Miners are required to solve various puzzles. Each puzzle that they solve is a verified transaction. These transactions become known as blocks and are integrated into Bitcoin’s blockchain, which is the log that has all Bitcoin transactions made in history.

FOMO

Finally, FOMO is a psychological phenomenon connected to trading with Bitcoin. The Fear of Missing Out comes out when traders are presented with what seems to be a golden opportunity to invest in Bitcoin. Out of fear of missing out on a chance, they put all their money in Bitcoin, only to see the price fall in the next couple of days. FOMO is usually present with novice traders as they are anxious to make money and look for the smallest indicators to invest in.