14 Cryptocurrency Terms That Novice Investors Need to Know

The cryptocurrency market has had a lot of buzz in the recent era. Digital currencies keep attracting the business world and academia. This newfound currency has touched new heights and getting higher and higher day by day. It has made many investors skate big on digital currencies and big companies to start accepting chosen cryptocurrencies as a mode of payments.

This post comprises a cryptocurrency glossary to help you ease in this landscape and learn the terms used regularly in the crypto world. 

Altcoin 

Cryptocurrencies other than bitcoin are altcoins. They can be anything from Ethereum to any of the available coins with the minimum price value. It is usually wise to invest in known and more mainstream cryptocurrencies and play safe. 

Bitcoin 

Bitcoin is the most valuable digital currency. After its launch in 2009, bitcoin did not look back and has climbed steadily in value since then, although it has gone through fluctuations.

Bitcoin Cash 

Bitcoin cash is a peer-to-peer online cash system. It emerged from a fork of the original bitcoin with the purpose of better optimization for transactions. 

Block

It is a group of data within on cryptocurrency blockchain. Blocks consist of transaction records as users buy or sell crypto coins. Every block can hold a specific amount of information. Once every reaches the preset limit, it forms a new block to keep the chain going on. 

Coinbase

Coinbase is a centralized cryptocurrency exchange that is known for its high-quality performance. It is the first digital currency exchange to go into the public. 

Cold Wallet 

Also known as cold storage, it is a secure method to store your digital assets entirely offline. Most cold wallets are hardware-based that look like a USB drive. This kind of digital wallet is handy in protecting your cryptocurrency from theft and hacking. But it does have several risks, such as losing your crypto.

Blockchain 

The blockchain refers to a digital way of record keeping. It is also known as the fundamental technology and the digital ledger behind digital currency transactions. The blockchain is like a spreadsheet that can get into multiple copies to be shared among numerous different computers on a network. It is a decentralized database that no hacker can corrupt, though every record is public. 

Peer-to-peer

The term peer-to-peer means two users who interact directly without involving an intermediary or third party.

Public Key

Public key refers to your cryptocurrency wallet’s address. It serves as your bank account number, which you can share with individuals or organizations. It allows these entities to send or receive money from your account.

Private Key 

A private key is an encrypted code that enables you to get direct access to your digital currency. It works like a bank account password, which you need to keep confidential and secret to you only. 

Token

Tokens are value units on a blockchain with other value propositions. It also works like a coin or transfer of value. 

Crypto or Digital Wallet

It is an online or offline place to store your digital assets, such as bitcoin and altcoin. You can also find crypto or digital wallet on many crypto exchanges. Online or hot wallets are software-based, while cold digital wallets are usually offline and on a device. 

Decentralization 

Decentralization is the distribution of power from a central point. Blockchains require approval from all crypto users to operate and do modifications without a central authority. 

Decentralized Applications

DApps are Decentralized applications designed by developers and used on blockchain to execute the necessary transactions without intermediaries.

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