20 Crypto terms beginners NEED To know
20 Crypto terms beginners need to know - View the slideshow
Any coin or token other than Bitcoin.
The first and most popular cryptocurrency based on distributed ledger technology (DLT) developed from a whitepaper written by Satoshi Nakamoto in 2008.
A group of transactions entered into a blockchain; comparable to a page of a ledger or record book.
A mathematical structure for storing digital transactions or data in an immutable, distributed, decentralized digital ledger consisting of blocks that are linked via cryptographic signature that is nearly impossible to fake, hack or disrupt.
Digital money that uses encryption and consensus algorithms to regulate the generation of coins/tokens and transfer of funds. Cryptocurrencies are generally decentralized, operating independently of central authorities.
DeFi is a system by which financial products become available on a public decentralized blockchain network. This type of system allows for anyone to use it, forgoing the use of banks or brokerages.
‘Diamond hands’ is an expression that refers to someone who has a high-risk tolerance for high volatility stocks or assets that they own.
Legal tender, the value for which is backed by a government or governmental body (e.g., U.S. dollars, European euros, South Korean wones)
It is a popular term amongst cryptocurrency enthusiasts that stands for “fear, uncertainty, and doubt.” FUD is generally a strategy to influence perception by disseminating negative and false information and a manifestation of the appeal to fear.
It is a term that originated from a post to the Bitcoin Forum in 2013 in which a user misspelled “hold” in reference to buy-and-hold strategies. HODL also stands for “hold on for dear life.”
A maximalist, in the cryptocurrency community, is someone who believes that Bitcoin is the only digital asset that will be needed in the future. Maximalists believe that all other digital currencies are inferior to Bitcoin.
Stocks that see dramatic price increases, mostly fueled by influencers on social media (primarily Twitter, Reddit and TikTok). These types of stocks rarely have company fundamentals that back the rise in price and are often highly volatile.
In a public blockchain, it is the process of verifying a transaction and writing it to the blockchain for which the successful miner is rewarded in the cryptocurrency of the blockchain.
In the world of cryptocurrency, a minnow refers to someone who owns a relatively small amount of digital assets. When they buy or sell their cryptocurrencies, it’s unlikely to have a substantial impact on the rest of the market.
NFT stands for “non-fungible token.” The word “non-fungible” means unique and irreplaceable and, in this context, is a form of digital art (e.g., drawings, music, GIFs, etc.) that is stored in the Ethereum blockchain.
A computer that holds a copy of the blockchain ledger.
The pseudonym used by the presumed person or entity who developed Bitcoin, authored the Bitcoin whitepaper, and created and deployed Bitcoin’s original reference implementation. As part of the implementation, Nakamoto also devised the first blockchain database.
Self-executing computer code deployed on a blockchain to perform the function of documenting legally relevant events and actions according to the terms of a contract or an agreement between a buyer and seller.
A digital file that holds coins and tokens held by the owner. The wallet also has a blockchain address to which transactions can be sent.
In the world of cryptocurrency, a whale refers to someone who owns a relatively large amount of digital assets. When they buy or sell their cryptocurrencies, it’s likely to have a substantial impact on the rest of the market.
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