Back
2021-11-16 09:52:49
THE BASICS OF CRYPTO MARKET

1. What is Crypto?

Crypto, also known as cryptocurrency, is a type of cryptocurrency that is applied through Blockchain transaction data. Besides, crypto also has other names such as electronic money, cryptocurrency, digital currency, etc. Many people call crypto virtual money, but this phrase is not completely accurate with crypto. Because virtual money is not real value (For example; money in-game). The value of crypto alone is very real and can be converted into assets or exchanged, bought/sold.

 

2. What are Bitcoin and Altcoins in cryptocurrency?

Bitcoin (abbreviated as BTC) is a cryptocurrency, issued through open-source software. The founder of this virtual currency is a programmer or a group of programmers operating under the alias Satoshi Nakamoto. Later, Nakamoto ceded development rights to Gavin Adressen.

Altcoin is the collective name for cryptocurrencies other than Bitcoin. Most Altcoins are improved versions of Bitcoin. Altcoins were born after the success of Bitcoin in 2009. In short, this is an alternative to Bitcoin because it improves and solves the shortcomings of Bitcoin's protocol, and is the currency created for Bitcoin’s alternative destination. The success of the P2P peer-to-peer digital currency Bitcoin is the premise that creates today's Altcoins. The word “Altcoin” stands for “Bitcoin alternative”, so it describes all cryptocurrencies except Bitcoin. Altcoins are called Bitcoin alternatives because at least to some extent most Altcoins hope to replace or improve at least one component of Bitcoin.

 

3. Where to trade and buy and sell?

Currently, in the world, there are many reputable and long-standing cryptocurrency exchanges that are used by many people, but not all users in Vietnam know. These exchanges are divided into 2 types, including centralized exchanges (CEX) and decentralized exchanges (DEX).

Compare centralized exchange and decentralized exchange

 

4. What is a Cryptocurrency Wallet?

Simply put, a crypto wallet is a place to store your crypto assets, it is used to send and receive funds and keep track of balances. A cryptocurrency wallet is software that stores private and public keys. If you want to use Bitcoin or any other cryptocurrency, you need a wallet to hold it.

The wallet can be used to store multiple coins (Coins) or tokens at the same time. However, most wallets will only support one or certain cryptocurrencies for various reasons. They are like a key to open a blockchain vault, without the key it is impossible to open the vault. And without a crypto wallet, there is no way for you to prove ownership of your crypto assets.

 

5. What is the market cap?

Market Capitalization is a metric that measures the relative value of a token/coin in the crypto market. This is considered one of the most important indicators to help investors choose a coin worth investing in among cryptocurrencies.

According to the calculation formula: Market capitalization = Current coin value X Total number of coins in circulation in the market.

Monitor market cap with Neko Wallet


 

6. What is P&L?

P&L stands for the English phrase "Profit and loss" to refer to the problem of profit and loss. This term is understood in the business field as a statement of the profit status of an enterprise in business. In a nutshell, it is a report on whether the business is currently making a profit or a loss.

Besides, P&L is also used to refer to the profit or loss of a cryptocurrency investor.

Track P&L with Neko Wallet


 

7. What is the Average Price?

Average Price (AP) is the average price of an asset or security over a given period. In the cryptocurrency market, Average Price is also used to refer to the average price of a digital currency. The average price is an extremely important parameter when buying cryptocurrencies and investors use it to see how profitable that coin is.

Track Average buy Price with Neko Wallet


 

8. What is Blockchain Explorer?

Blockchain Explorer is an application of the Blockchain network that allows users to look up information about activities taking place on a certain Blockchain network such as transaction data and other important information on the Blockchain. This means that you can only use Bitcoin's Blockchain Explorer to look up Bitcoin's information, not to look up information about Ethereum or Litecoin transactions; ... and vice versa.

Track transaction history with Neko Wallet

 

9. What is Coin?

Coin (commonly known as Altcoin or replaced by the name Cryptocurrency Coin) is a form of digital money, created by cryptographic techniques, storing value over time. Basically, Coin is equivalent to currency. Bitcoin is the best example, Bitcoin is based on Blockchain is public and distributed with a common ledger on which all transactions are transparently public. Data is stored jointly and shared among participants on the Blockchain network.

 

10. What are tokens?

Tokens are digital assets issued by projects, which can be used as a payment method within that project's ecosystem, performing the same functions as Coins, but the main difference is it allows holders of these tokens to participate in the network. It represents the function of the digital asset, represents the capital of the company, gives access to the functionality of the project and much more.

The same Tokens are most used in a given project. Token represents an asset or a Utility (application), so Security and Utility are two distinct forms of Token. Security Token is designed to share company assets, while Utility Token has several use cases within that project.

 

11. What is Swap Token?

Token Swap is a term used to refer to the conversion of cryptographic tokens from one blockchain to another. This happens mainly when projects use a Blockchain to raise funds, such as the Ethereum network, and then move the tokens onto the private Blockchain once the project's mainnet is launched. In addition, some Blockchains participate in token swaps when these projects, for some reason, want to change to another Blockchain network.

Swap Tokens with Neko Wallet

 

12. What is Private Key and Seed Phrase (Pass Phrase)?

Private Key: is a string format for connecting to an account, quite similar to a bank account's password.

Example of the format of a Private Key:

1a243vhj234hb64bh4hdbj27hj34bhjasdf6d2a138f657ahjsxzaf291064e11b7c.

Passphrase is a string of 12-24 characters that is used to encode information.

Example format of a passphrase:

hello goodbye book leaf house elephant wall proof world blue football ocean

Generate Private Key and Seed Phrase (Pass Phrase) with Neko Wallet

 

13. What is DeFi?

Decentralized Finance (DeFi) or decentralized finance can be considered a revolution aimed at creating a new financial system. The system is open to everyone and does not require trusted intermediaries like banks. To achieve that, it mainly relies on encryption, blockchain and smart contracts. In DeFi always comes with "Non-Custodial", i.e. no trust. Thanks to this feature, DeFi is often referred to by users as Open Finance or open finance.

Use Neko Wallet to Join the Defi Market

 

14. What is CeFi?

Centralized Finance (CeFi) is also known as Centralized Finance, where factors such as institutions, trading markets or instruments are centrally managed. The most important feature of CeFi can be summed up in the word "custodial", which means trust and fiduciary. In a centralized transaction, all financial assets, products and services are entrusted to an intermediary. In particular, all components such as currencies, exchanges, payment gateways, insurance companies, etc. work and interact with each other through third parties.

 

15. What is Slippage?

Slippage is a gap between the price paid and the actual price, also known as the gap. Slippage often occurs when the market has strong price fluctuations, lack of liquidity and a large difference in volume between buyers and sellers.

 

If there are any questions, please feel free to join our community for further discussions about Crypto/Neko Wallet with our team and other members!