Remember when we said you need some knowledge to perform better at the Bitcoin trading market? Turns out you need to know other things as well apart from the market and strategies.
One of the most important things you must know is the terminology and the abbreviations associated with Bitcoin trading. You will not be able to understand what people are talking about or other fuss if you don’t keep yourself updated with all the terms related to it.
So to make it easier for you we have enlisted all the important terms one must know to understand everything better related to Bitcoin. So without wasting any more time let’s see below.
Top 17 Bitcoin Related Abbreviations and Terms Investors Should Know
The miner can be any person willing to contribute a little to the blockchain network. These contributions include computing power, electricity, and mining software.
2. Mining Pool
In continuation to miners, a mining pool is a place where all the miners work together under the same blockchain network.
3. ASIC Processor/Miner
ASIC processors are the processors that are specially designed to solve a particular type of calculation. Every single processor has a chip inside of it. They hold the power of solving bitcoin-related problems using a hashing algorithm called the SHA256.
Hashing is the action of outputting data. This action is needed to confirm and process Bitcoin transactions smoothly.
Hashrate is the unit by which the performance of a mining computer is addressed. It is usually expressed in hashes/second.
An altcoin is an alternative cryptocurrency apart from Bitcoin. Such as Litecoin, Ethereum, Dogecoin, etc.
7. Bitcoin ATM
Bitcoin ATM is like a regular ATM Bitcoin traders are provided with after depositing physical currencies for investment.
8. Bitcoin Whitepaper
Bitcoin Whitepaper is the original draft written by Satoshi Nakamoto in the year 2008 which has all the rules, regulations, plans, and protocols related to Bitcoin trading.
Blockchain is the listed name of every block that has been mined since the beginning of Bitcoin.
10. Bitcoin Price Index
BPI or Bitcoin price index is the price of Bitcoin against all the other types of cryptocurrencies or other currencies.
11. Bitcoin Improvement Proposal
BIP or Bitcoin Improvement Proposal is a theory that anyone can propose that will bring a positive change in the ever-evolving trading market.
12. LN or Lightning Network
Lightning Network is an independent second-layer network that allows Bitcoin traders to send or receive small payments easily without any hassle or high fees. After a certain period, all these payments start to build up under the blockchain.
mBTC is the unit to measure 1 thousand Bitcoin.
As the name suggests Microtransactions are all about paying for something in a very little amount. Kudos to the fact that currently, the smallest amount you can pay using Bitcoin is 8 decimal.
Microtransactions are essentially important for casinos and bars where they have regular gamblers gambling and paying small or huge amounts of sums.
15. Mixing Services
Mixing services is the technique of associating bitcoin with different users by switching up their addresses. This can be done for two purposes. One is for privacy and security and the other is money laundering.
Namecoin is another type of altcoin that lets people purchase domain names in exchange for namecoin.
17. Paper Wallet
Printed on paper versions of Bitcoin that are more secure according to some people because of them being offline.
We have curated a bunch of terms related to Bitcoin for you to learn. Hoping this would help you grow better and for more bitcoin-related info, visit https://bit-trader.io/.