Every time you go online, you will be bombarded by words associated with cryptocurrencies. More and more people, companies, and governments are moving beyond the negativity or skepticism associated with digitized currency. It is witnessing a wider acceptance. If you want to step into the world of cryptocurrencies, you need to first acquaint yourself with all the different terminologies commonly used in that realm.
With the proper knowledge of common cryptocurrency terminologies, you will be able to trade like a professional in any Bitcoin or other cryptocurrency exchange. Even if it seems daunting at first, it will be straightforward for you to grasp the various cryptocurrency terminologies. Some of these terms have originated from the Tech World. At the same time, some have even evolved from even popular slang terms to adjust phrases used by cryptocurrency enthusiasts.
The Most Common Cryptocurrency Terminologies that you have to know
Also referred to as cryptography, this term denotes the process of keeping cryptocurrency secure by solving or even creating codes.
The tangible money you generally use, which your country’s government has issued, is Fiat currency. Most currencies in the world are Fiat currencies, and some common examples of this are the US Dollar, the Euro, Indian Rupees, etc.
Blockchain is one term that you will definitely hear in the cryptocurrency world. Blockchain is the fundamental technology that powers cryptocurrencies, and it is through this, digitized transactions can take place securely.
You will often come across the word decentralized with reference to cryptocurrencies. This indicates that the cryptocurrency is not regulated by one group that holds power.
Cryptocurrency mining is how transactions for different kinds of cryptocurrencies are verified and then put in the digital blockchain ledger.
In the cryptocurrency environment, you cannot escape the term Bitcoin. If you haven’t heard about this cryptocurrency, you have most definitely been living under a massive rock as it is the most famous e-currency. This flagship digital money has been revolutionizing the Crypto world, and it is one of the main reasons that cryptocurrencies are becoming mainstream in society.
The tiniest unit of any bitcoin is referred to as a Satoshi. This name has been derived from the enigmatic anonymous identity of Satoshi Nakamoto, who is none other than the creator of Bitcoin.
It is essentially an intangible wallet where you would store your cryptocurrencies. It works as software that will let you send and receive digital currencies through blockchain technology.
This is one term that you should be well versed with if you are entering the cryptocurrency world as a trader. Market cap or market capitalization is the rank of the size or value of any assets. This terminology will help you understand how a particular cryptocurrency is valued at any moment, as it can be easily discerned by multiplying the latest price of an e-coin by its total number.
It is a cryptocurrency trading method where you hold onto your e-currency for an extended period and use its volatile nature to earn profits.
An exchange is an online platform that provides individuals a place where they can trade cryptocurrency safely and securely. However, not all exchanges that you will find online are verified. Unscrupulous websites can steal your personal information and money; therefore, trust only verified official exchanges.
Make yourself well acquainted with these words. Once you are confident enough, you use your theoretical knowledge in practice by going to official trading websites to register. Do not worry if the words seem confusing at first. Give yourself time to properly understand all these words associated with cryptocurrency so that you can perform well at an exchange.
Always keep in mind that in the fast-paced world of cryptocurrency, you need to continually update yourself with the many new terminologies that may adapt yourself to meet the demands of the e-currency market without any hassle.