Basics of Trading and Finance (Part 29) : Trading and Finance Terminology : I (131-140)
Intro
IntroAs a moderator of the Tron Fan Club community, I regularly write various tutorials on crypto blockchain and Tron related matters. The main purpose of these tutorials is to make our new users aware of these topics. In continuation of that I am writing tutorials on trading and finance. Hope you can easily learn some details of trading and finance through this tutorial series.
Trading is not so easy but not so tough as well. If you don't know much about it, don’t worry. I bring you simple tutorials to help you understand trading basics step by step. In this part I shall define some important trading terms starting with the letter "I."
- IBO (Initial Bounty Offering)
IBO is a way to promote a crypto project. This is offered by a crypto project to grow faster. The project gives free tokens to users. Users complete small tasks to earn them. Tasks can be sharing posts or joining groups. It helps marketing grow fast. It also builds a community early. Example: You share a project on social media. You get some free tokens as a reward.
- ICO (Initial Coin Offering)
ICO is a fundraising method in crypto. A project sells its tokens to investors. This is like as IPO offered by stock market. But here this is coin. People buy early at a low price. The project uses the money to build its system. It is similar to crowdfunding. Example: A new blockchain sells tokens before launch. Buyers hope the price will rise later.
- Immutable
Immutable means something cannot be changed. In blockchain, data once added cannot be edited. This is immutable system. That’s why people find trust on it. This gives strong security and trust. No one can cheat easily. Example: A transaction recorded on blockchain stays forever. It cannot be altered later.
- Index
An index shows the performance of a group. Any index will show you the overall scenario of the transactions. In crypto or finance, it tracks prices of many assets. It gives an overall idea of the market. Example: A crypto index may track top 10 coins. If the index goes up, most coins are rising.
- Inflation
Inflation means prices go up over time. Money loses value slowly. This is very popular financial term. People use it commonly. Due to printing of fiat, inflation normally happens to a currency of a country. You can buy less with the same amount. It affects savings and spending. Example: A product costs $1 today. Next year it costs $1.10. That increase is inflation.
- Insider Trading
Insider trading is using secret information for profit. It is often illegal. This is one kind of illegal benefit as you are hiding the message to mass people but you are getting the benefits of it. A person trades before news becomes public. This gives unfair advantage. Example: An employee knows a coin will rise. He buys early before the news is out.
- Interest Rate
Interest rate is the percentage used to calculate interest. The percentage of interest is called interest rate. It shows how much you earn or pay. It can change over time. Example: A bank offers 5% interest rate. If you save $100, you earn $5 in one year.
- Intrinsic Value
Intrinsic value is the real worth of an asset. For any product it should have some potential physical value. This is called so. Like gold has an intrinsic value form the history of mankind. It is based on its true use or strength. It is not based on hype. Example: A coin with strong technology has good intrinsic value. Even if price drops, its real value remains.
- Investment
Investment means putting money into something for profit. It can be crypto, stocks, or business. The goal is to grow money over time. Example: You buy a coin at a low price. You wait and sell when the price goes higher.
- IPO (Initial Public Offering)
IPO is when a company sells shares to the public first time. This is related to share market. It happens in stock markets. It helps the company raise funds. Example: A company launches its shares. People buy them and become part owners.
These were some important terms in trading and crypto starting with "I." Learning them will help you trade more confidently. See you in next post with some terms starting with “J”. Thanks.
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