Basics of Trading and Finance (Part 28) : Trading and Finance Terminology : H (121-130)
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 "H."
121 Hacking
Hacking is when someone illegally accesses a system to steal data or money. In crypto, hackers target wallets and exchanges. Some hackers steal funds. Some hackers are different while they test security for companies. If a hacker breaks into an exchange and steals Bitcoin, that’s hacking.
122 Halving
Halving is when the reward for mining a cryptocurrency is cut in half. This happens every few years in Bitcoin. It reduces new coin supply and can increase prices. In 2020, Bitcoin miners got 6.25 BTC per block after halving, down from 12.5 BTC. This is very important factor to cut down the supply of the coin for maintaining the price.
123 Hash Rate
Hash rate measures how powerful a blockchain’s mining network is. A higher hash rate means stronger security and faster transactions. When Bitcoin’s hash rate increases, it means more miners are securing the network.
124 Hashing Power
Hashing power is the speed at which a mining device solves complex problems. More hashing power increases the chance of earning rewards. A miner with higher hashing power can mine Bitcoin faster than one with lower power.
125 Hedge
Hedging is a strategy to protect against price drops. Traders use it to reduce risk by investing in opposite positions. If a trader owns Bitcoin, they might short BTC futures as a hedge.
126 Highest Bid
If you just look at the order book then you can easily find the highest bid price of a coin. The highest bid is the most money a buyer is willing to pay for an asset. It changes in real time in trading markets. For example, a buyer offers $55,000 for Bitcoin and others offer less, $55,000 is the highest bid.
127 HODL
HODL means holding onto crypto for a long time instead of selling. It started as a misspelling of "hold" but became a popular term. A Bitcoin investor in 2013 who didn’t sell is a true HODLer.
128 Hosting
Hosting in crypto means storing blockchain data on servers. It helps websites, nodes, and mining rigs run smoothly. Exchanges use hosting services to keep their platforms online 24/7.
129 Hot Wallet
A hot wallet is an online crypto wallet. It is connected to the internet, making transactions easy but more vulnerable to hacking. MetaMask and Trust Wallet are hot wallets.
130 Hyperinflation
Hyperinflation is when prices rise very fast, making money lose value. It happens when too much money is printed. In Venezuela, hyperinflation made bread cost millions of bolivars.
These were some important terms in trading and crypto starting with "H." Learning them will help you trade more confidently. See you in next post with some terms starting with “I”. Thanks.
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