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Cryptocurrency Terminology

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Written by   130
2 years ago

The rise of cryptocurrency is making a huge influence towards different businesses, companies or even simple individuals that supports the use of it in exchange of service, products, investments, etc.

Number of users increases seemingly. However, beginners often get confused with the jargons, known only in the said network. In this article, I will be sharing basic terms that exists in cryptocurrency world:

Cryptocurrency - is an internet-based, digital/virtual form of currency that is secured by cryptography (which makes it almost impossible to counterfeit) and operates independently from central bank. These include Bitcoin, Bitcoin Cash, Etherium, Ripple, Litecoin, etc.

Cryptography - process of securing communication and data in various electronic transactions (such as account name, account number, amount, digital signature, etc.) by converting plain texts to unintelligible texts and vice versa. It is also be utilized for user authentication.

Blockchain - refers to a growing list of record or the digital information (blocks) stored in public database (chain).

Wallet - or software wallet, is where you “store” your cryptocurrency. It is basically a digital program/system/site/app that store public and/or private keys used to track ownership and transactions of your cryptocurrency. Example: Coinbase, Trust Wallet, Exodus Crypto Wallet, Coins.ph, Binance Wallet, etc.

Wallet Address - is a destination associated with the software wallet where a user sends and receives cryptocurrency. Usually include a long series of letters and numbers. Example: qz8wlltmrj83mj2waw6rgaw9wtzqywuc5s3xqm67g7

Fiat Money - a currency that has actual value maintained; established as money; and backed up by the government. Example: US Dollar, British Pound, Philippine Peso, Japanese Yen, Euro, etc.

Altcoin - or "alts"; refers to any cryptocurrency other than Bitcoin.

ATH (All-time High) - it's when a cryptocurrency breaks its previous record price.

FOMO (Fear of Missing Out) - refers to the strong urge or need to purchase a cryptocurrency when the price starts increasing rapidly.

Mining - process of validation of transactions such as computers trying to solve blocks in a blockchain. Thus rewarding new cryptocurrency to successful user (miner). However, mining scams are rampant nowadays. Miners are always reminded not to provide private keys, deposits, etc to avoid these frauds.

FUD (Fear, Uncertainty and Doubt) - this is the greatest risk for investors; A state of mind that often influence when and how crypto-enthusiasts make trades, purchase or hold onto their coins thus affects greatly in the actual prices/convertion rate of cryptocurrency.

DeFi - short term for "decentralized finance" which includes digital assets, protocols, smart contracts, and dApps; is a financial software built on the blockchain that can be pieced together like Money Legos. Etherium is the primary choice for DeFi Application.

Stablecoin - refers to a class of cryptocurrency that attempts to stabilize coin prices, backed by reserve assets.

Reserve Assets - financial assets denominated in foreign currencies, held by central banks; must be readily available for monetization and/or must be an external physical asset. Example: US Dollars, Gold.

That's all for now, I hope this information might help especially beginners who still lack knowledge regarding these terms. Continue supporting #Cryptocurrency and #ReadCash! #READCASHFTW

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Written by   130
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Comments

We may also include FUD, DeFi, Stablecoin, since they are highly popular in these days 😌😌

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2 years ago

Thanks, lemme add that on the list

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2 years ago

I think it's perfect now 😎

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2 years ago

thankyou

$ 0.00
2 years ago

Thanks! Now I know what those words or acronyms mean. I often encounter these terms since I joined read.cash using your link.

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User's avatar Ace
2 years ago

You can just ask me personally! Lol

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2 years ago

This is a good terminology. I would add proof of work, proof of stake etc.

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2 years ago

Noted! thanks I'll add that on the list

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2 years ago

A good post of common cryptocurrency terms. Keep it up!

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2 years ago

thanks dude

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2 years ago

I will be saving this article. I'm one oglf those really confused about Cryptocurrencies.

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2 years ago

Feel free, they're very useful especially we're dealing with CC

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2 years ago

I like that you added the meaning of reserve assets as well. This is something not discussed a lot in the crypto community. Reserve assets offer governments the ability to print more of their currency having a strong backing. If reserve assets are low and new money keeps printed it has a chance to create hyperinflation.

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2 years ago

thanks for the additional info zenthereum 😊😊😊

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2 years ago

I love cryptocurrency It's changing the world Lovely article

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2 years ago

Yes, I agree. By the way thanks for appreciating my article

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2 years ago

Thank you, this would be a great help for those people who are new to this.

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2 years ago

Thanks @cash

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2 years ago