Do you find crypto terms hard to understand?
If your answer is yes, then this series is for you. Crypto Terminology: A to Z helps you decipher the alphabet soup of crypto terms and definitions, arranged in 26 bite-sized portions for you to chew on easily.
Let’s start with the letter A.
If you have been trading crypto for a while, you may have noticed the price differences offered by different crypto exchanges.
Arbitrage is a trading technique that helps traders make money from the crypto market inefficiencies. For example, you can buy BTC on Exchange A at $10,000 and sell BTC on Exchange B for 10,100, netting $100 profit.
Is there another way you can get benefits? You might want to take free coins or tokens from an airdrop.
In the crypto world, we often see many exchanges distribute free tokens to the wallets of certain users. This is called Airdrops, and it works like companies holding promotional activities and distributing free samples to promote their products.
A good crypto airdrop would literally be free money handed over to you!
Pro tip: When you are airdropping, learn to verify it in multiple ways to prevent possible deception.
Some Altcoin teams will regularly conduct airdrops to allow potential traders and those keen on cryptocurrencies to obtain information about their new crypto projects.
In case you haven’t heard of this term…
Put simply, they are alternatives to Bitcoin. Some of the largest altcoins you may know well include ETH (Ethereum), XRP (Ripple), LTC (Litecoin), BCH (Bitcoin Cash).
Here’s a trivia, if you’d like: Which altcoin is largest by market capitalization?
Head on to our social media platforms and make your guess.
(P.S. We’ll also reveal the answer in our next Crypto Terminology piece. ‘Til then!)