Cryptocurrency has become very popular since the introduction of Bitcoin in 2009. Every year, more and more people have engaged in this industry, hoping to earn or increase their profits. Along with the millions of traders, investors and crypto enthusiasts, business people and programmers have also tried their luck in creating crypto platforms, waiting to be noticed by the crypto community. For newbies, the cryptocurrency field can be highly complicated – aside from the strategies and tips needed to absorb, countless terms need to be understood. Whether you are new to this industry or have been here for quite some time, it’s good to brush up on some names you encounter daily. Read on to know the seven must-know crypto terms.
Cryptocurrencies have seen significant growth throughout the years – from essential digital assets, they have become one venture showing great potential. Despite the list of crypto billionaires, we can’t deny that some traders and investors also lost considerable money. The reason for these is its volatile nature and other factors that cause cryptocurrency crashes.
With all these possibilities, it’s safe to say that cryptocurrency is an extremely challenging industry. While the crypto community have come up with tips and strategies for crypto, sometimes it can be challenging to learn on your own. This is why some traders engage in platforms like https://immediate-edge.io/, as it links them to expert and trusted brokers in the market. These professionals have access to advanced tools and are equipped with the proper knowledge and skills to navigate the need for higher chances of earning.
Before you enter the world of cryptocurrency and invest all that you have, make sure to understand what you’re getting into. Understand that cryptocurrency is still a developing industry, and there are a lot of factors that could affect the flow of the market. To learn how to handle and approach it, do extensive research online about cryptocurrencies and all you need to know about them; it’s also good to develop or enhance your skills, such as reading crypto price charts.
Before diving deeper into the crypto-verse, it’s good to familiarise yourself with the standard terms used in this industry. Here are some of the seven words you must know when entering crypto.
If you’ve heard of Bitcoin, the first cryptocurrency, you probably have read the term Altcoin at least once. Altcoins refer to cryptocurrencies that are not Bitcoin or alternative coins to Bitcoin. After the development of Bitcoin, people were inspired to create more cryptocurrencies, which millions of crypto enthusiasts are enjoying today. Hundreds of altcoins are in the market, and more have started to emerge every year.
Some popular altcoins include Ethereum, Litecoin, Cardano, Dogecoin, and Binance. Each altcoin has different advantages, so browse them before choosing one that suits your goals and missions.
2. Crypto Exchange
An exchange, also known as a cryptocurrency platform, is a digital place where you perform transactions such as buying, selling or trading. Here, you can also check the available coins that you can purchase and where you can set up your coins that are for sale. Different platforms allow using certain coins for transactions, so choose a platform with the cash you plan to trade.
Cryptocurrency exchanges offer different benefits that may be useful for your career. Also, it’s essential to know the factors when choosing a crypto platform and incorporate them before immediately investing in it.
Another term that you should know if you plan on being a crypto trader is blockchain. You may have read this term everywhere; not everyone on the crypto verse has a complete understanding of what it is. Blockchain is a digital ledger that stores and records all your cryptocurrency transactions. Since cryptocurrency is not associated with the government or bank, all the records of every transaction can be found here.
Some blockchains have set a fixed amount of cryptocurrency transactions daily, while others have unlimited block capacity.
4. Crypto Wallet
Whenever you see the word wallet, what comes to your mind? We immediately think of our physical wallets where we store our cash, right? There’s also no safer way to keep your digital assets in the cryptocurrency industry than in a wallet. Your wallet is locked with a private key, a combination of random characters only you know. Make sure to put your private key in a safe place and don’t share it with others.
There are two types of wallets in cryptocurrency: Hot and cold wallets. A hot wallet is a type of online storage which allows you to access your coins faster; however, it’s more susceptible to hacks since it’s stored online. On the other hand, cold wallets are considered safer since your funds are kept offline, away from the hackers online.
Over the years, people have come up with different methods to earn in cryptocurrency besides trading and investment. Cryptomining is one of those methods – it refers to obtaining cryptocurrencies by solving complex problems and equations using high-powered computers.
The process of earning through mining involves gathering and verifying many transactions. How cryptocurrency is achieved is through completing the verification with the fastest time limit.
6. Crypto Address
On the blockchain, cryptocurrencies are identified through their unique addresses. You can think of the blockchain as a navigation system and your cryptocurrency address as the specific mailing address. No coin can be stored without an address, and the blockchain cannot confirm its existence. Due to this, you won’t be able to acquire a currency unless you possess a working bitcoin address.
7. Non-fungible tokens (NFTs)
NFTs or non-fungible tokens can be anything: music, art, videos, articles, logos or pictures. In simpler words, these are collectables that can be sold on the crypto market. There are different kinds of non-fungible tokens in games, tweets or metaverse. What makes them a hit is that they have irreplaceable specified addresses. If you’re interested, have a look at our list of the best metaverse blockchain games available.
No matter how long or short you have been exploring the world of cryptocurrency, there’s a good chance that you will encounter these terms again and again. The words above are just some of the long list of crypto terms you must learn and understand, although you might meet those terms daily while doing transactions. Since the crypto industry is still developing, it wouldn’t be a surprise if the list continues to grow even longer.