Crypto traders encounter ticker symbols all the time – read on to find out which function they perform.
What Is A Ticker?
A ticker symbol is the short combination of letters widely used to refer to a stock, asset, or crypto token on exchanges, swapping services, and other DeFi platforms.
What You Need To Know About Tickers
Now that you know the ticker definition, let’s talk about its implementation. Every cryptocurrency token has a unique ticker symbol. It usually consists of three letters, but due to the rise in different altcoins, it is not uncommon to also encounter combinations of four or even five letters.
Here are some examples of ticker symbols:
- BTC – Bitcoin
- ETH – Ethereum
- LTC – Litecoin
- USDT – Tether
- DOGE – Dogecoin
- MATIC – Polygon
As you can see, while the ticker symbol often resembles the asset’s name, it is not always the case. Such distinctions turn out to be a helpful feature in the rapidly developing world of cryptocurrencies, where emerging tokens may be called similar to existing ones.
For instance, when someone new to the crypto world wants to purchase Bitcoin, they can mistakenly invest in Bitcoin Cash due to the resemblance in names. Looking at the ticker symbols (BTC and BCH) would help to differentiate these two cryptocurrencies.
The use of ticker symbols means not only easier navigation in the cryptocurrency universe but also improved fraud prevention. Scam tokens often have names that are nearly identical to those of established cryptocurrencies to fool investors. However, the ticker symbols can never be the same, so relying on them is a surefire way to avoid dishonest players.
Note that, unlike other cryptocurrencies, Bitcoin has two tickers – BTC and XBT, the latter being a new abbreviation that was assigned to it by ISO, the International Organisation for Standardization. This means that Bitcoin is growing its legitimacy as an international currency.
