Knowing some of the top cryptocurrency terms are essential for cryptocurrency traders to trade seamlessly. With the emergence of new terms, we have shortlisted a list of 35 words that must be added to your vocabulary if you seek to survive Web 3.0.
Probably, one of the most frequently heard terms in the crypto realm is blockchain which explains the technology used for keeping cryptocurrency systems secure.
Centralised means the cryptocurrency is attached to a centralised network point. This is not liked by traders usually since they are prone to malicious activities.
Decentralised means when cryptocurrency is not associated with any central network point but spread over various nodes or series of users.
Every block comes within series of transactions and forms a blockchain.
5. Fiat currencies
Most of the currencies traded today are Fiat currency which is actually a government-issued currency un-backed by physical existence.
6. Soft Fork
Soft-fork is opposite to hard fork and is a backward compatible change occurring in a blockchain protocol.
7. Hard fork
A hard fork is a change made to exiting blockchain protocol at the request of blockchain users.
8. Proof of Stake
Also known as PoS, they are algorithm which requires users to stake their crypto coins to validate a transaction.
9. Proof of Work
PoW is another algorithm that requires crypto miners to mine crypto coins to validate transactions.
A decentralised application is also known as dApps which works on the top of a blockchain and is not centralised.
11. Smart contracts
Digital smart contracts are executed on a blockchain and traded between different parties.
Mining is a process through which a block is validated to get a block reward.
13. Public keys and private keys
The key shared by the public to receive crypto coins is called public keys and the one used to store in a wallet is the private key. Private key access is not shared by the public.
14. Mining rig
A mining rig is a place where cryptocurrency mining tools are stored.
A wallet is a place where you keep your crypto coins securely.
16. Paper wallet
A paper wallet is another form of cold storage where private and public keys are printed on paper.
17. Cold storage
Cold storage which is offline and detached from the internet is called cold storage.
18. Hardware wallet
A physical device where you can store your cryptocurrency securely.
19. Distributed ledger
A distributed ledger is a place where all the transactions are published publicly making malicious transactions harder.
Also known as fungibility, it is something that can be interchanged with the other. For example, a coin is fungible if it is valued the same as the other one.
21. White paper
A document that highlights cryptocurrency role and how it can be acquired.
Alternative coin or altcoin is every cryptocurrency listed on an exchange that is not Bitcoin.
ICO full form is Initial Coin Offering where some new cryptocurrency gives free or discounted coins while purchasing the other to back up project finance.
Initial Exchange Offering or IEO is a fundraising activity in which users purchase crypto coins that can be traded on an exchange.
The smallest denomination of a Bitcoin is called Satoshi is named after its creator Satoshi Nakamoto which is equal to the 100th billionth of a Bitcoin.
The token is a digital asset used for making new transactions or ay for any digital function. they are also called coins.
A place where cryptocurrency is bought or sold.
The function thorough which information can be decrypted and used by miners to mine blocks. With hashing power, you can mine more blocks and earn block rewards.
29. Transactions per second
Tps or transaction per second means the number of transactions handled by a cryptocurrency.
30. Stable coin
A stable coin is a cryptocurrency that is associated with a value like a dollar which makes it stable and less volatile in terms of price fluctuations.
31. Block reward
The reward received by miners during block mining is called a block reward.
32. Pump and dump
When creators having a large number of coins encourage others to buy a coin so that cryptocurrency value can be pumped high. When a point is met, the owners or the scammers sell them off and the price plummets subsequently.
Rekt is nothing but a slang used among cryptocurrency traders which means losing a lot of money while trading in crypto coins.
Going to the moon in the crypto world means that people believe the price of the coin will rise extremely.
35. Peer to peer
Peer to peer is a connection between computers or nodes. No middlemen are involved in the peer-to-peer transaction in nodes or blockchain.