August 23, 2021

6 Cryptocurrency Terms You Need to Know

I remember years ago when I was in high school, and I visited my local Waves Coffee Shop.

For those of you who don’t know, the very first Bitcoin ATM was located beside a Waves. I had no idea what Bitcoin was, but I know that if I had invested in it that many years ago, I would be a millionaire or a billionaire today.

It’s still possible. Other cryptocurrencies are gaining traction, and if you don’t want to miss out, then it’s in your best interest to learn about them as much as you can!

Read on to find out about 7 key cryptocurrency terms.

Key Cryptocurrency Terms

The following are the key cryptocurrency terms you should know. There are many popular terms that you could review, but we have gathered some of the most important ones here.

1. Bitcoin Cash

Bitcoin Cash is what is known as a “fork” of Bitcoin in 2017. It allowed transactions to be scaled up significantly in terms of blocks.

This just means it allows more transactions in a single block in comparison to Bitcoin.

2. Blockchain

This technology is what underlies all of the cryptocurrency and what keeps it secure. Essentially, it is a growing ledger of blocks that are all linked together with cryptography.

A block consists of a series of transactions, a cryptographic hash linking it to the previous block, and a timestamp.

3. Cold Wallet

These are safe ways to store your cryptocurrency. This essentially means that you are storing your private keys offline so that they won’t get stolen online.

You could also use a paper wallet to this effect. This is just your keys printed out on paper.

4. Decentralized Finance

This is a financial system that operates without traditional centralized institutions like banks or reserves.

People say it is more secure and transparent.

It is commonly abbreviated as DeFi in the crypto world. The blockchain eliminates the need for other financial intermediaries like banks and or global exchange.

It may be faster and more efficient, and even more secure. Programmers can create automated code in place of banks that efficiently carry out transactions while retaining security for users.

5. Digital Gold

Digital gold is used to refer to Bitcoin. As of now, Bitcoin’s market value is over $1 trillion, and 1 Bitcoin costs nearly $50,000 US Dollars.

If it is a safe-haven asset, then it could be an investment portfolio alternative to gold.

Some investors view bitcoin as a hedge against inflation and an alternative to a depreciating dollar, again giving it the properties that gold normally has in financial markets.

6. Cryptocurrency Card

A cryptocurrency card is essentially a crypto-linked credit card. They source funds using digital currency like Bitcoin, and are backed by big companies like Visa and MasterCard.

Many cryptocurrency cards are compatible with a range of different cryptocurrencies. The monthly fee is minimal, and they have unique rewards, as is the case with most credit cards.

Crypto Decoded

Hopefully, you have walked away with an increased understanding of the cryptocurrency terms you need to know. Good luck to you and your wallet!

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About the author 

Peter Hatch

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