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The crypto investments market can be complex, especially for beginners. For example, terms can take on different meanings depending on the context in which they are used, consequently increasing confusion. Advanced traders are also encouraged to keep abreast with the latest technology as new programs are continually developed (forewarned is forearmed).
The following terms are commonly used and worth memorising:
The abbreviation ‘App’ stands for the word: ‘application’. An application is a software program designed to perform a specific function for the user or, in some cases, for another application. Mobile apps are also known as ‘web apps’, ‘online apps’, ‘iOS apps’, and ‘smartphone apps’.
A brokerage (broker) is an organisation that facilitates the buying and selling of cryptocurrencies.
FP Markets is well placed in the Forex and CFD industry. It’s a fully regulated broker with years of experience and recognised as a one-stop destination to trade crypto CFDs, as well as offering consistently low trading fees and superior customer support.
Payment methods (funding): credit cards or debit cards (Visa and Mastercard) can be used with most brokers; PayPal is another method.
Withdrawal methods: most brokers offer various methods to withdraw funds directly to your bank account, via Visa and MasterCard, Skrill, and many other withdrawal choices. Many also offer no withdrawal fees, but the service you use may apply charges.
Any other coin than Bitcoin (BTC).
- Fiat Currency:
These are forms of money deemed legal currency due to a decree or fiat issued by the government. The phrase is typically reserved for paper money (or coins) with face values and is accepted as legal currency.
Blockchain records information, making it difficult to modify or hack.
- Exchange Platform:
Cryptocurrency exchanges provide a platform to facilitate the trade of cryptocurrencies and other assets, such as digital and fiat currencies.
Considering compounding interest, the annual percentage yield (APY) represents the real rate of return on investment. Market participants should research APY and decide if it affects them. Users may also exchange their cryptocurrency for other cryptocurrencies, with some exchanges permitting users to earn interest on assets held in their exchange accounts.
Takers are usually large investment firms looking to buy or sell large blocks of stocks.
- Custodial Wallet and Non-Custodial Wallet:
Custodial Wallet: A third party has control over your funds. Permission from the wallet owner is needed to send or receive funds.
Non-Custodial Wallet: The funds in your non-custodial wallet are under the owner’s complete control.
- Crypto Wallets:
A crypto wallet is a piece of software or hardware. Software wallets are connected to the internet and are normally called hot wallets. Hardware wallets are not connected to the internet and are called cold wallets and are more secure.
Your assets are stored on the blockchain, and they can only be accessed with a private key. Your keys validate your ownership of the digital currency and enable you to conduct transactions.
Crypto Pro, Block Fi, Binance, Kraken, Coinbase, Robinhood, Crypto.com, Dogecoin, Stablecoin, and Litecoin are more crypto wallets you may consider.
Top 10 Suggested Apps
Which are the best crypto exchanges and best cryptocurrency apps? The simple answer depends on your personal trading approach.
- Hot Wallet
A hot wallet is an online-accessible virtual currency wallet that facilitates transactions between the owner and end-users. Various cryptocurrencies, including Bitcoin, are stored and sent using a collection of private keys on an internet-connected program.
- Cold Storage Wallet
The easiest description of a cold wallet is one that is not connected to the internet and therefore lessens the risk of being hacked or compromised. These wallets are known by a variety of names, including offline wallets, hardware wallets, and software wallets. Cold wallets are a recommended method of securing digital assets.
- Coinbase Wallet
The Coinbase Wallet is user-friendly and one of the best crypto apps for beginners. It is a self-custody wallet that gives you full control over your cryptocurrency.
Only supports Bitcoin. However, it provides sophisticated features, such as compatibility with hardware wallets for extremely secure cold storage.
- Mycelium – Ideal for mobile applications
Even if a wallet is non-custodial, the Mycelium website claims it may not be secure. Only reproducible wallets are completely secure. Mycelium is among them and is one of the most popular. Mycelium is one of the oldest and most popular Bitcoin wallets accessible only for mobile platforms, introduced for Android in 2013 before later being imported to iOS as well.
- Ledger Nano X Offline Crypto Wallet
Offline wallets are among the most secure havens for your crypto assets; Ledger Nano offers various products. Above are just some of the wallets available. Ultimately, it is up to the trader or investor to research the best wallet suited to your crypto trading and the safety of your precious crypto.
- Coinbase Platforms
Coinbase provides a user-friendly and secure platform where you can buy Bitcoin, Binance, Hotcoin, and more. Coinbase Pro, another cryptocurrency platform, also functions as an exchange where users may purchase and sell, and trade bitcoin.
- Gemini (Good for Beginners)
Gemini sells Ethereum for minting NFTs. Non-fungible tokens (NFTs) are blockchain-based tokens of collectables or art. NFTs verify digital ownership and authenticity on blockchain for rapid verification. They are also not replicable cryptographic tokens on a blockchain.
- MetaTrader 4 (MT4) and MetaTrader 5 (MT5)
MT4 and MT5 are the preferred choices for many brokers and crypto traders. These trading platforms bring together traders and brokers in one place, with clear and concise charts available.
- Mobile Apps
You can now trade foreign exchange (Forex) and Contract for Differences (CFDs) across shares, indices, commodities, futures, and cryptocurrencies from the palm of your hand.
The FP Markets Mobile App lets you control your trading cryptocurrencies on the go and is feature-rich, incorporating many of the desktop tools, including access to various order types. The mobile exchange platform is accessible on iOS and Android devices.
Advantages and Disadvantages of Cryptocurrency Exchanges
Cryptocurrency exchanges serve as intermediaries between buyers and sellers and generate revenue through transaction fees and commissions
In addition to providing quick access to account and balance information, cryptocurrency exchanges are also a marketplace to sell and buy cryptocurrencies.
One disadvantage of an exchange is the security concern. If a user loses access to the exchange, they will no longer have access to the cryptocurrency. It would be best if you did not leave your cryptocurrency on a cryptocurrency exchange, as it could be the victim of an attempted hack, and the coins could be stolen if you do.