The Best Basics lingo and terms of Cryptocurrency that all investors must know
Crypto Lingo and Terms – What do we mean by crypto lingo? How does it work? And what are some of the most important terms to understand when investing in cryptocurrency? well in this post will break it down for all cryptocurrency beginners, you’ll never have to worry about jargon again when investing in cryptocurrencies. no matter where you in the world
Bitcoin
The first and most valuable cryptocurrency launched on Jan. 3rd, 2009, that uses peer-to-peer technology to send instant payments digitally.
Altcoin
An altcoin is any coin that’s not Bitcoin. When it comes to alt coins most investors stick to large mainstream cryptocurrencies as an investment.
Blockchain
Record keeping in a digital form for cryptocurrency technology. It is the result of sequential blocks that build upon one another to create a permanent and unchangeable ledger of transactions
Coin
A coin represents a store of value that lives on a given blockchain or cryptocurrency network. Sometimes blockchains have the same name for both the network and the coin such as BITCOIN.
Cold Wallet / Cold Storage
A very secure method of storing crypto COMPLETELY offline. Also known as hardware wallets they often resemble a USB drive. These devices can help protect your crypto from theft.
Cryptocurrency
Currency that is decentralized and digital. Often called crypto for short it’s used to buy and sell things. Also used as a store of value like BITCOIN.
Decentralization
When power is distributed away from a central hub. Blockchains are decentralized when there is a requirement of majority approval from ALL users to operate or make changes, rather than a central authority
Decentralized Finance (DeFi)
Financial activities that exclude that involvement of centralized banks, government, or other financial institutions.
Decentralized Apps (DApps)
When developers deploy applications on the blockchain to carry out actions without intermediaries they are called Dapps. These applications are used to complete decentralized finance transactions.
Exchange
A cryptocurrency exchange is a digital marketplace where you can buy and sell cryptocurrency.
Gas Fees
Fees paid by users on networks like Ethereum to compensate for the computing energy required to process and validate transactions.
HODL
NOW stands for “Hold on for Dear Life” though the term originated from a user typo of “HOLD” on a Bitcoin forum in 2013.
FOMO
FEAR OF MISSING OUT – This is what novice investors do when they see HUGE run ups in the market. STAY AWAY from FOMO in crypto
Halving
Code written into Bitcoin’s DNA that halves the amount of NEW Bitcoin entering circulation after a certain number of blocks are mined. (Usually every FOUR years). NOTE: Usually has a DRAMATIC impact on Bitcoin’s price to the upside
Hot Wallet
A software cryptocurrency wallet connected to the internet through cellphone apps or computer browsers. While convenient for crypto access they are more susceptible to hacks and cyber-attacks on your digital assets
Initial Coin Offering (ICO)
A way that funds are raised for a new cryptocurrency project. ICOs are similar to Initial Public Offerings (IPOs) of stocks
Market Cap
The total value of all the coins mined. By multiplying the current number of coins by the current value of the coins you can calculate a crypto’s market cap.
Mining
Mining is the process that Bitcoin and several other cryptocurrencies use to generate new coins and verify new transactions. Often involves vast, decentralized networks of computers around the world that verify
and secure blockchains.
Token
A type of cryptocurrency that represents an asset or specific use and reside on their own blockchain.
Public Key
Your cryptocurrency wallet address, similar to a bank account number. Sharing your public wallet key allows for people and institutions to send you money.
Private Key
The encrypted code that allows direct access to your cryptocurrency. Like a bank account password NEVER SHARE YOUR PRIVATE KEY.
Satoshi Nakomoto
The pseudonymous creator of Bitcoin. No one knows the true identity of Nakamoto — or if it’s more than one person. (WHOA!!!!)
Smart Contract
Programs stored on a blockchain that run when predetermined conditions are met. Often used to automate the execution of an agreement so all participants can be immediately certain of the outcome.
Stablecoin
A stablecoin is a cryptocurrency with a fixed value. Major stablecoins peg their values to major world currencies like dollars, euros, pounds, and other fiat currencies.
Wallet
A place to store your cryptocurrency holdings. Many exchanges offer digital wallets. Wallets may be hot (online, software-based) or cold (offline, usually on a device).
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