XBT, BTC or OTC? What is this? Check crypto glossary

btc xbt otc

What is XBT?

XBT is interchangeably used with BTC. Often you can meet the question “Is there any difference between BTC and XBT?”. There is no. Both abbreviations refer to Bitcoin. BTC marking is more popular, however on some stock exchanges (Kraken, Coinfloor) there is an XBT designation. The XBT comes from an International Standards Organization (ISO) that keeps a list of currencies. If a currency is not associated with a country then it starts with an “X.”

What is BTC?

Bitcoin is called by two different abbreviated names: BTC and XBT because there is no one in charge to set naming standards. Bitcoin is called BTC because it makes logical sense. BTC conflicts with Bhutan’s currency which is BTN (Bhutanese Ngultrum). That’s why some use the alternative ticker name “XBT”. Some exchanges use XBT, but not all. Also, most merchants are still referring to Bitcoin as BTC.

What is OTC?

This offer is for people with a thick wallet. If someone has, for example, $ 100,000 and would like to buy Bitcoins for it at one time, it may be difficult to implement. Such transactions are possible, but usually take place outside the Exchange Services, not in front of all users. You should contact stock managers and set business terms with them. The main reason for shifting is OTC trading is how to exchange the needs of cryptocurrency whales.

It would be useful to have a glossary of all the terms you may come across. The first time getting into cryptocurrenices can be OVERWHELMING

Other short crypto related terms

  • ICO – Initial Coin Offering, somewhat similar to an IPO in the non-crypto world. Startups issue their own token in exchange for ether. This is essentially crowdfunding on the ethereum platform.
  • FUD – Fear, Uncertainty, and Doubt. Baseless negativity spread intentionally by someone that wants the price of something to drop.
  • ROI – Return on Investment. The percentage of how much money has been made compared to an initial investment. (i.e., 100% ROI means someone doubled their money).
  • GAS – A measurement of how much processing is required by the ethereum network to process a transaction. Simple transactions, like sending ether to another address, typically do not require much gas. More complex transactions, like deploying a smart contract, require more gas.
  • KYC – Know Your Customer. This is an acronym, but also a bank regulation (mostly US) to verify identity of their customers.
  • POS – Proof of Stake is a different way to validate transactions. The block is chosen and mined based on how much wealth it has or “stake”. When it is processed there is no reward, but the “foragers” (similar to miners) take the transaction fee instead.