While surfing the social network site, or the news feed every day, you may go through some strange languages such as – crypto currency, ether, altcoins, encryption, DApp, and many more. However, not all of us know the terms and what they actually mean.
Well, these are all a part of the bigger subject called – the cryptocurrency. Bitcoin is the first ever digital coin which is almost 13 years old. Apart from bitcoin, there are also thousands of other cryptocurrencies which are known by the name of altcoins. Here we have collected all the basic crypto terms and jargons which will help you understand this domain in a clear way.
Bitcoin: Bitcoin is the first digital currency that took place in 2009. It is the first cryptocurrency which is 13 years old and is the biggest crypto in the world.
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Altcoin: altcoins are the coins apart from bitcoin. It refers to almost 18,000 cryptos. Altcoin stands for alternative coins; it means, these are coins other than bitcoin.
Bitcoin cash: it is the system of using peer-to-peer for sending currency. It is the original bitcoin which is accepted to be volatile.
Bitcoin wallet: Digital wallets are for digital currencies. You need to use a wallet to store your coins. There are different types of coins available such as hot wallet, cold wallet and paper wallet.
Bitcoin exchange: bitcoin exchange is the platform where one can trade in fiat money, crypto and bitcoin. You can buy bitcoin from exchanges. In this case, you can use the Bitcoin Era. It is a reliable platform trusted by investors.
Block: blocks are usually the data or to be specific the group of data. It tracks and records all the transactions which means everything is recorded in the block. Miners can add a new block to the blockchain of a crypto currency after validating a transaction successfully.
Blockchain: blockchain is the technology in which the blocks are stored. It is the digital ledger of transactions happening with bitcoin. It is a chain of blocks which are situated on one another.
Cold storage: cold storage is the offline storage which does not include internet connection. These are considered to be the safer kind of storage.
Hot storage: hot storages are those that constantly need internet connection. These types of wallets are mainly used for transactional purposes.
Paper wallet: paper wallet is a type of cold storage. One can imprint their saved private and public keys on a paper and keep it in a safe place.
Hardware wallet: hardware wallets are when you use an external device to store your bitcoins or cryptos. It does not have an internet connection which is why it is referred to as one of the safest forms of crypto storage.
Web Wallet: web wallets are also exchange wallets. The wallet you get when you register to an exchange is called the web wallet. Traders keep a minimal amount of crypto in this wallet for everyday trading only.
Mobile Wallets: mobile wallets are similar to desktop wallets. Only, these are the software versions made for your smartphone.
Decentralization: decentralization means that there is no central authority or central power to control anything. The cryptocurrencies are decentralized in nature.
Bitcoin mining: bitcoin mining is the process in which a miner solves many mathematical problems in their computer. Every time a puzzle is solved, the miner gets one bitcoin as a mining reward. And it gets added to the blockchain.
Ethereum: Ethereum is also a technology like blockchain and its currency is Ether. It was invented as an improvised version of bitcoin which does not have adequate speed while making any transactions.
Digital gold: cryptos are the digital currency as bitcoin is the most expensive of them. Just like gold has high value, bitcoin too. That is why bitcoin is referred to as digital gold.
Public key: it is the address using which one can send you some cryptocurrency. You can take it as your email address.
Private keys: private key is the pin which you need to use while you transfer your coins to another account.
Stablecoin: stablecoins are those altcoins which are pegged by the fiatcurrency in order to handle the volatility as much as possible. It is usually pegged with a 1:1 ratio.
Memecoin: memecoins were light in nature. They were introduced for fun purposes only. However, they are showing great potential lately.
Satoshi Nakamoto: it is the pseudonym of the person or group of people who invented it.