Crypto definitions
Crypto definitions
In today's article, I thought I would quickly go over cryptocurrency definitions for all the newbs out there in cryptocurrency or those that have been in cryptocurrency for a while but just haven't learned the terms yet. Because I know a good mixture of both in real life and I'm sure a good amount of my following and readers are in the same categories. I'm going to cover the most used words in cryptocurrency and even some of the lesser know words and definitions. These are all very important to remember so make sure you take notes or save this article to study. This is because as you use cryptocurrency more you going to see and hear these terms more. So it's best to start learning and picking up these definitions now before you are even more confused. With that being said let's get into the definitions.
Altcoin
An altcoin is a crypto that’s not Bitcoin or Ethereum. Altcoins can be anything from the shit coins like baby doge to useful financial coins like Fantom or Uniswap. Their value all depends on the market they are targeting, How good the crypto is, and how much of an ROI ( return on investment) investors get.
Block
A block is a set of data on a blockchain. In crypto, blockchain blocks are made up of transactions as users buy, sell, or transfer coins. Each block can only hold a certain amount of information. Once that limit is reached, a new block is formed on the chain. On most cryptos, you can track each and every block that is made on the blockchain.
Blockchain
A blockchain is a digital form of record keeping and is the underlying technology behind cryptos and cryptocurrencies. The blockchain is a result of blocks building upon each other to create a permanent and unchangeable ledger. That's exactly what makes cryptocurrencies so special.
Cold Wallet
Cold wallets are the securest method of storing your cryptocurrency offline on the internet where a wallet is open to a possible hack. Many cold wallets (also known as hardware wallets) are physical devices that tend to look very similar to USB drives. These kinds of wallets can help protect your crypto from hacks and thefts. Though it does also come with its risks as well such as losing it which means losing all of your cryptos.
Hot Wallet
Hot wallets are software-based crypto wallets that are connected to the Internet. Hot wallets are more useful for doing things on the internet with your cryptocurrency. Such as staking, farming liquidity, or swamping coins. They are also more convenient for users who don't have money for cold wallets or for those who are just getting into cryptocurrencies. However, these wallets are more susceptible to hacking and cybersecurity attacks than offline cold wallets.
Decentralized Finance (DeFi)
DeFi or Decentralized finance are Financial activities conducted without the involvement of another entity like a bank, the government, or other financial institutions. This makes financial transactions directly peer-to-peer digitally. This is where most of the crypto market is concentrated for now.
Decentralized Applications (DApps)
Dapps are designed by developers and deployed on a blockchain to carry out actions without any intermediaries. Most Decentralized finance activities are often completed using Dapps. This allows users to save on transaction fees and any other hidden fees centralized exchanges might add to a transaction.
Fork
A fork is when a blockchain developers make changes to its main code. These changes to the protocol resulted in two coins being created. One has the old code of the old blockchain and the new blockchain has the new code.
Halving
Halving is a feature written into Bitcoin’s code in which after a certain number of blocks are mined which typically happens every four years the amount of new bitcoin entering circulation gets halved. This halving typically has a positive impact on the cryptocurrency market.
Gas
Gas is essentially just a transaction fee that users of the Ethereum blockchain have to pay to the Ethereum network to use the blockchain. This fee is paid in Ethereum. Although other blockchains have gas fees some just call it either a transaction fee or some other sort of name they have come up with.
HODL
Standing for “Hold On for Dear Life” is just another word for holding onto your cryptocurrencies for the long term.
Initial Coin Offering (ICO)
An ICO is a way for crypto teams to get funds for a project. They are raised usually through early special investors. Although some newer cryptocurrency projects have started to make them more public.
Non-fungible Tokens (NFTs)
NFTs also known as non-fungible tokens are units of value that are used to represent the ownership of unique digital items like a piece of art or some sort of collectible. These verify that you are essentially the only owner of this digital object.
Smart Contract
Smart contracts are algorithmic programs that enact the terms of a contract automatically based on the code held within the contract. Most of the useful financial cryptos or gaming cryptos have smart contracts.
My Final Words
If you enjoyed the blog leave a like and share it on social media. Leave me some feedback with your comments to let me know how I did. Let me know what you liked and what you didn’t so I can improve the blog. All your likes and comments are deeply appreciated. They motivate me to write more and better blogs and help me expand and help spread the word. Make sure to follow the blog to stay up to date. You can also follow the blog’s Instagram where I post daily content as well as letting people know when my new blog post drops and I also give out my crypto trades on there. Then there’s also my website where you can put in a submission form to let me know what topics you want me to cover along with other things such as referral codes and affiliate links. Thanks for reading hope you enjoyed it.
Follow The Blogs Instagram
Link To My Website