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Seven vital terms to know before you trade Crypto

by , 13 May 2021
Seven vital terms to know before you trade Crypto
Q. I read one of Timon's articles about his prediction that gold is about to rally again. I would like to ask if the drop in value of the US dollar and bonds will also help with gold's run-up? Hennie…”

Absolutely Hennie!
 
In March, we saw both the 10-year US Treasury yields drop, along with the US dollar falling over 0.2%.
 
Now economically speaking, when the US dollar falls – mainly two things happen.
 
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First, the prices of goods and services go up for American consumers.
 
That’s because of inflation. Similar to when the rand weakens, prices of pretty much everything goes up.
 
Second, investors confidence drops because they exit from their US dollar positions. And when you sell the USD against other currencies, the price of the US dollar drops.
 
Investors then move their money into safer havens gold, precious metals and even crypto-currencies.
 
Here’s a quote that just sums up everything in one sentence.
 
Tai Wong ‘head of materials derivatives trading at BMO Capital Markets’ told Bloomberg.
 
“Gold finally trades above recent highs behind a cocktail of lower yields, a soft dollar and a weaker-than-expected industrial production and capacity-utilization report,”
 
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Not only is this one of the easiest ways to trade the markets, it’s so quick you could have ‘pick-pocketed’ your first profit in the short time it’s taken you to read this far!
 
As soon as I spot an opportunity, I’ll slide open my mobile and text you the details of a trade idea that will take no more than a couple of minutes to action. (I’ll show you how quick it is in a moment.)
 
Really, this isn’t one of those things that are quick if you’ve been doing it for years but takes ages if you’re just starting out...
 
By the second time you do this yourself, you’ll be able to react to my text in a matter of minutes, which is amazing really, when you consider in that brief time you could pickpocket a profit of R14,050, R6,250 or even R5,450...
 
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Q. “I recently read the Crypto-Revolution book from Sam Volkering as well as from other crypto experts. I must say there were a couple of Crypto terms that went over my head. Could you define in in just one line (in your words) some of the crypto terms I’ve been reading over the last few weeks? Thank you…
 
Altcoin, NODE, KYC, Satoshi, GAS, BTC and Cold Wallet.”
 
A. Sure I’ll do my best…
 
Altcoin – It stands for the Alternative coin. Basically, an altcoin is any crypto coin that is not Bitcoin.
 
Node – This is just a fancy term for any computer that validates crypto-currencies. So if you own Bitcoin and someone else buys another Bitcoin, your computer is considered a node as it will validate the transactions that took place.
 
KYC – It stands for ‘Know Your Customer’. And basically, it refers to the verification process that customers go through to verify their identity and link it to a crypto-currency wallet. Then this information is gathered by exchanges and determines whether the customer complies with the legal nature and the laws.
 
Satoshi – This is the smallest unit of a bitcoin. Out of interest, there are 100 million Satoshis to 1 Bitcoin. The name comes from the pseudonym of the ‘so called’ person (Satoshi Nakamoto) who created Bitcoin.
 
GAS – A fee that is paid to execute an Ethereum transaction. For example, when I create an NFT (Non-Fungible-Token) on the Blockchain – I have to pay a GAS fee around $100 to put it onto the NFT market place.
 
BTC – This is the ticker symbol to Bitcoin.
 
Cold Wallet – This is an offline wallet. Basically, where you can hold your private and public key with your information and crypto-currencies in an offline manner.
 
Trade well, 
 
Timon Rossolimos,
Analyst, Red Hot Storm Trader 


Seven vital terms to know before you trade Crypto
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