Monday, June 8, 2020

Cryptocurrency Terms You Need to Know Part 1

https://preview.redd.it/lr264c0hms351.jpg?width=1280&format=pjpg&auto=webp&s=2ea1af59c0bcc97965300211a6c1979668fab302

On our previous blog posts, we’ve talked and introduced Bitcoin, wallets, blockchains, financial technology, and the like to our readers. For sure, some are confused as they just encountered these words for the first time. In this article, we’ve jotted down the common words or phrases that the readers will frequently encounter upon entering the world of cryptocurrency.

Airdrop — an event or process where a project distributes a cryptocurrency to different wallet addresses for free

Altcoin — or alternative coin. Any type of cryptocurrency other than Bitcoin. These coins run its own blockchain network and operate separately and differently from Bitcoin.

Bitcoin — the first successful type of cryptocurrency launched

Blockchain — a digital public ledger that allows users to securely store and send information and currency. Read our article about Blockchain here: https://sw.pe/blogblockchain

Circulating Supply — number of cryptocurrencies that are available and circulating in the market

Cryptocurrency — a virtual or digital currency (example Bitcoin, Litecoin, Swipe Token)

Cryptography — is a mathematical practice of encoding and decoding data or codes

Decentralization — a system or process powered by a group of people or team and not by any central power or authority

Delisting — a process where either a cryptocurrency requests to remove its assets on an exchange or the removal of the crypto by the exchange authority

Double-spending — a type of deceit where an amount of money is spent more than once.

Exchange — a place (website or app) where people can buy and sell cryptocurrencies (examples are Bithumb, Bilaxy, and Bittrex)

Fiat — is a currency issued by the country’s central bank (local currency)

Halving — an event where the usual block reward is reduced by half. Read our article about Bitcoin Halving here: https://medium.com/swipe/what-you-need-to-know-about-bitcoin-halving-58c39db2a487

Initial Coin Offering (ICO) — a method where a new type of cryptocurrency is being offered to the public to invest in for the first time

Know Your Customer — or KYC is a procedure in the financial industry where companies ask for identification details to verify the identity of the customers

Listing — a process where an exchange adds a new cryptocurrency on their system

Mining — a process of validating the information and create a new block in the blockchain.

Node — a computer that participates in building and maintaining the blockchain network.

Peer-to-Peer Network — or P2P a process where two or more computers are connected to share information or data directly

Private Key — a series of random words or mnemonic phrase that serves as the password to access your cryptocurrencies

Public Keys — an alphanumeric code which can be shared publicly to send cryptocurrency transactions

Roadmap — shows the short-term and long-term business goals of a certain company

Satoshi Nakamoto — an unidentified person or group who founded and created Bitcoin

Staking — the act of holding cryptocurrency in a wallet for a period of time to receive a reward

Token — a type of cryptocurrency that does not have its own blockchain.

Wallets — a device, application, or website where people can manage their cryptocurrency assets. Read our article about wallets here: https://sw.pe/blogcryptowallet

Whitepaper — a document that explains the detailed plan and strategy of a certain project. It is created to generate interest and educate people about the concept that the person (or company) is trying to introduce

These are the terminologies that will surely be helpful when familiarizing yourselves in cryptocurrencies. In the second part of this blog, we will be sharing with you more complex words that you will encounter once you fully entered the industry.

---

This blog article is also posted at: https://sw.pe/blogcryptoterms1


No comments:

Post a Comment