Crypto has been a popular mode of gaining wealth. It has existed for decades, and many are still gaining some basic knowledge about this form of making money. It was in the mid-2010s when cryptocurrency became a household name, and some of its terminology is still being confused or interchanged.
Let’s discuss some of the most popular Cryptocurrency terms and their meanings to help you understand them better. These words are the most used and misused by some beginners in the industry.
Term #1: Cryptocurrency or Crypto
This generation’s “digital gold,” which is all the rave for many, is the money made using cryptography. With high security, this type of financial alternative for gold reserves is still unstable in its value unless tied to a tangible asset. Currently, many crypto coins are switching to tangible assets to stabilize their value and developing new ways to appeal to many countries.
Term #2: Bitcoin
Satoshi Nakamoto released Bitcoin at the tail end of the 2000s. The poster child of electronic financing, anyone who knows little about crypto knows Bitcoin. The trailblazer in cryptocurrency and many crypto companies were inspired by it. Since its launch in 2009, Bitcoin is still standing tall in the crypto mountain as one of the most successful companies in the industry.
Term #3: Ether and Ethereum
Many people mistook these two, the network and the coin. Developed in 2013, Ethereum is a decentralized blockchain conceived by Vitalik Buterin. It is purely decentralized, but the value of its currency, Ether, is now rising after plummeting in 2020. The demand for Ether tokens is still high with almost a decade of existence, Ethereum is one of the best decentralized blockchains in the market, and its coin Ether is one of the highest in value.
Term #4: Blockchain in Crypto
Developed in the early 80s, blockchain security is a tamper-proof program that secures information like transaction records in a continuous chain of data encryption. It is the foundation of cryptography and cryptocurrency as we know it.
Term #5: Digital Wallets and Exchange
Digital wallets are programs where you store your cryptocurrency. Digital exchange is the process of acquiring cryptocurrency. These are some of the tools for managing your digital assets. Now it all depends on these platforms to determine where you can trade your digital assets. The value of your crypto coins also defines how diverse a marketplace you can make an exchange.
Term #6: Data Mining and Miners
If digital finance is the new frontier, cryptocurrency is the electronic gold. Data mining is the new gold rush, and every data miner is not some old prospector with a beard and shabby clothes they are more sophisticated, using the latest technology to solve complex math problems and add to the blockchain, and it is converted to cryptocurrency.