Change is constant.
It is fascinating how humans are able to change one thing at a time and be able to share new knowledge and experiences.
The internet, also created by humans, plays largely the role of changing one’s point of view, and even becoming a mediator for us to acquire new learning. Speaking of new learning, the term “cryptocurrency” is not alien to us, as it has been circulating the world for more than a decade now, but many others are still not familiar with it.
Cryptocurrency is defined as digital money that takes in a form of tokens or “coins”. Cryptocurrency is more than just an investment option, it represents a whole new world, in digital, altogether.
Here are some of the terms that will surely help beginners to better understand the world of Cryptocurrency:
Altcoin
An altcoin is not a Bitcoin. Altcoins can be anything, sometimes an Ethereum or any other coins with minimal value.
Bitcoin
Bitcoin is the first and most valuable cryptocurrency. It’s a decentralized digital currency that you can buy, sell and exchange directly without intermediaries.
Bitcoin Cash
Peer-to-Peer electronic cash system that formed from a fork of Bitcoin. It is designed to be better optimized for transactions.
Block
Made up of information such as transaction records as users buy or sell coins. Once it reaches its limits, a new block is created to continue the chain.
Blockchain
A digital form of record keeping, and technology behind cryptocurrency. It is the result of sequential blocks that build after one another, creating a permanent, unchangeable ledger of transactions or data.
Coin
A representation of digital value that lives on a given blockchain or cryptocurrency network.
Coinbase
Popular centralized cryptocurrency exchange.
Cold wallet / Cold storage
A secure way of storing your cryptocurrency offline.
Cryptocurrency
The type of currency that is digital and decentralized can be used to buy and sell things or as a long-term store of value.
Decentralization
The transfer or distribution of control and decision-making from a central point.
Decentralized Finance (DeFi)
Financial activities are conducted without the help of intermediaries such as banks or other financial institutions.
Ethereum
The second largest cryptocurrency.
Exchange
A digital marketplace where you can buy and sell cryptocurrencies.
Fork
When blockchain makes changes to its rules.
Hot wallet
Software-based cryptocurrency wallet connected to the internet
Mining
The process where new cryptocurrencies are made available and the log of transactions between users is maintained.
Node
A computer that connects to a blockchain network.
Non-fungible Token (NFT)
Units of value which is used to represent the ownership of unique digital items like arts, collectibles, etc.
Peer-to-Peer
Two users interact directly without an intermediary involved.
Public Key
Your wallet’s address. Similar to a bank account.
Private Key
It is the encrypted code that allows you direct access to your cryptocurrencies. Similar to a bank account password, you can’s share your private key.
Token
A unit of value on a blockchain.
Wallet
A place to store your cryptocurrency. It can be hot (online, software-based) or cold (offline, usually on a device)
These terms are just the basics you might want to know if you really want to dive deeper into Cryptocurrencies, or the Metaverse.
Is it important?
Well, we might not know what the future will look like, but it is undeniably impossible to not expect the massive effect of these innovations in our future. Change starts one step at a time, and so do our adaptation.
Reference
“Crypto Terms You Should Know If You Want to Invest | Nextadvisor with Time.” Time, Time, May 3, 2022, https://time.com/nextadvisor/investing/cryptocurrency/crypto-terms-you-should-know-before-investing/.
A Beginners Guide to Cryptocurrency Terms: One step to the future was originally published in Piccopay Pte. Ltd. on Medium, where people are continuing the conversation by highlighting and responding to this story.
