Cryptocurrency is on the lips of investors, customers, developers, regulators, and everyday people on the street. Some of the terms and slang used in cryptocurrency can be troublesome if you coming across them for the first time. In this article, we will guide you through 20 crypto slangs every crypto enthusiast should know.
Let’s jump right in.
No one knows who Satoshi Nakamoto is, but what we do know is that he is the one that penned the white paper for bitcoin. He is credited with creating bitcoin, and it is estimated that Satoshi Nakamoto would be worth billions.
Decentralized apps (dApps)
Decentralized Apps are outside of the control of any single authority. DApps are digital applications that run or exist on a Peer2Peer network of computers on a blockchain.
Initial Coin Offering
Initial coin offering or otherwise known as initial currency offering is a type of funding instrument that uses cryptocurrency. They are the most popularly crowdfunding campaigns, however, a private ICO can source funds without the need of the public.
A private key is a secure password that enables you to access your cryptocurrency funds. That can consist of a string of numbers or letters and should always be kept safe.
Decentralized finance (DeFi)
Decentralized finance is a blockchain-based form of finance. They do not rely on central financial intermediaries like brokerages, banks, and exchanges. They utilize smart contracts on blockchains, and the most common blockchain used is Ethereum.
In simple terms, blockchain is a system that is used to record information and makes it virtually impossible to hack, change or cheat the system. In essence, blockchain is a ledger of transactions that are duplicated and distributed over a network.
A crypto wallet is a program or physical hardware wallet that stores your private keys. It is also used to digitally sign transactions.
Gas is a word that is frequently used on the Ethereum network. It refers to the computational efforts required to perform certain operations on the Ethereum network.
Mining is a way for different cryptocurrencies to enter the market. It is also a crucial component in the maintenance and development of the blockchain ledger. These mining processes use enhanced computers for complex computational problems.
A Seed phrase
The seed phrase is a list of words that are needed to recover bitcoin funds on-chain.
Digital currency can be defined as any money or money-like asset that is stored or exchanged on the internet or a digital computer system.
Know Your Customer (KYC)
KYC is a way to verify or validate that someone is who they say they are.
Altcoins are any other cryptocurrency other than the famous Bitcoin.
Fiat simply put is a currency established by the government. They don’t pose intrinsic value nor use-value.
Non-fungible tokens (NFTs)
A non-fungible token is a unique token that can’t be interchanged for another.
Proof of Work (PoW)
PoW is when one party proves to the others that a certain computational amount of work has been done.
Proof of Stake (PoS)
These PoS protocols are a class of consensus mechanisms for the blockchain. They work by selecting validators in proportion to their quantity of holding in a specific cryptocurrency.
A public ledger is a record book system that has your specific cryptocurrency transactions.
Smart contracts are transaction protocols that are automatically executed. They also control or document relevant events on a blockchain and the actions according to the terms of a contract or an agreement between two parties.
Hodl is a slang term that means ‘HOLD ON TO DEAR LIFE’ it is a way to encourage cryptocurrency traders to not sell their cryptocurrencies assets once there is a downturn or upturn in the market.
To wrap things up
Now that you have finished our list, you probably have a better understanding of the basic concepts and terms around cryptocurrencies. However, this is not an exhausted list, and there are more phrases that you should learn to better understand cryptocurrency and the world of blockchain technology.