If you are new to cryptocurrency, then it could be intimidating, but very exciting. There are so many terms and phrases that will get thrown your way, which can often leave you feeling overly confused. Cryptocurrency is one of those worlds that could disrupt and even change the way things function for you, so it isn’t any surprise that it has gotten a bit of momentum since last year. Take a moment and check out these main terms that you will find in the cryptocurrency world.
This is a list of records that is consistently updated and secured using cryptography. Every block will have a timestamp as well as transaction data. It will also link back to the previous block which then creates a chain that canít be changed without changing all the blocks that are behind it. These are public and open ledgers, so all transactions are transparent between the parties. This allows them to be verified and recorded permanently.
This is a currency form that has a specific value, like legal tender that is made by governmental decree.
This is a platform that will let you trade your cryptocurrencies for other cryptocurrencies or assets like fiat money.
This is a term that can be used to define systems that are operated and held accountable by peers instead of a single person or a central body.
This is one of the very first decentralized cryptocurrencies that was invented. All of the transactions go through a peer to peer network. The transactions are then recorded on the blockchain, which is a public open ledger.
This is a term that is used to define any alternative currencies that are not Bitcoin, which is the very first successful peer to peer currency. There are some that are found to be better than Bitcoin.
This is a type of cryptography that will provide access to cryptocurrency. Even though any person can deposit cryptocurrencies into an address, only the person who has a private key will be able to access and even used those funds.
This is the name of the person who actually invented Bitcoin. Even though it is just a pseudo-name, and there have been leads, the actual identity of Satoshi Nakamoto is still unknown as of this moment.
This is term that can be used to define when a person stores cryptocurrency offline and away from internet access. This lowers the risk of hackers and malicious software on your system.
Initial Coin Offering or ICO
This is very similar to an IPO or initial public offering. The ICO is a method that will be used by cryptocurrency companies to raise funds. Whoever invests will get a percentage of the tokens or coins that are in circulation based on how much they invested, and the startup is often the funds that are raised as capital.
Just like with other technologies, there is going to be a learning curve. Think about it, not too long ago we were all trying to figure out smartphones and apps and before that the internet. We have all been there. Hopefully these terms can get a small understanding of what is in this world.