Using crypto might be challenging if you are not familiar with the so-called crypto language. As a matter of fact, some users are even attending crypto seminars to understand what digital cash is all about.
Now that we have everything on the internet, here is a quick guide about all the crypto terms explained in simple terms.
It is described as digital money that operates on blockchain technology. Unlike your traditional currency, it is decentralized or not controlled by the government or any financial institution.
It is basically any other digital currency other than Bitcoin. It is also referred to as alternatives to Bitcoin. In fact, there are more than 5,000 cryptocurrencies in the market right now. Some of these altcoins are:
It is described as a distributed ledger system consisting of blocks. These blocks contain all of the verified transactions. What’s amazing about it is that aside from being decentralized, it is also immutable. It simply means that entries included in the blockchain cannot be erased or edited easily.
Think of it as your home address but replace it with random numbers and letters. Just like your home address, it determines the destination of any crypto payment. This is also used every time you deposit or withdraw your winnings in any casino site.
It is a process wherein miners create and verify cryptocurrency. Mining also involves complex mathematical problems. The best thing about mining is that it is profitable.
It is basically the process of encoding and decoding information using complicated codes. It is also a way to secure all means of communication from malicious third-parties or hackers lurking in the dark. There are three types of cryptography, these are:
Secret Key Cryptography (SKC)
It is a single key for both encryption and decryption. It is the sender’s and the receiver’s key.
Public Key Cryptography (PKC)
This key is mostly used for authentication, non-repudiation, and key exchange. Unlike SKC, there are two keys. One for encryption while the other is for decryption.
This is the type of cryptography that does not use any keys. Once it is transferred, it is not recoverable.
It is a change in currency’s rules or protocol. It can either be a hard fork or a soft fork. Forking also means a split in the blockchain network.
In the blockchain fork, anyone can propose improvements and change the code.
It is the movement of crypto’s value in the market. It can also increase and decrease at any time.
Initial Coin Offering (ICO)
This represents the organizations that offer digital tokens to the public to raise money. For instance, if you can mine a specific number of blocks, an organization will reward you with tokens.
It refers to storing your coins away from the web. It can be in a flash drive or an offline Bitcoin wallet.
It is your crypto wallet that is connected to the internet. It is also encrypted with random numbers and letters to protect your funds from hackers.
It refers to any currency issued by the government or any banking institution. It can be dollars, pesos, rupees, riyals, and many more.
Pump and Dump
It is described as a form of market manipulation by traders who artificially inflate prices and leave the market. This is also the reason why there is a sudden drop in the coin’s value.
This is a platform used to exchange fiat to cryptocurrencies. It is like a forex trading platform but for cryptos.
Andrew is a writer that does most of his work on cryptocurrency-related topics. While he’s primarily interested in Bitcoin, he also follows major altcoins and the innovative ideas that new cryptocurrency and blockchain projects are bringing to the table.