Know your crypto terms

 Do you know your crypto terms?

Or you get confused when you hear people use terms like "DYOR, HODL, Rugpull". In this article, I have done some research for you and I'll be enlightening you on some crypto terms and their meanings.

Did you read my last article about STEPN? If you haven't, click here to read.

Let's get rolling!

Below I have listed some important terms mostly used in the crypto space and what they mean.

• Altcoins

Altcoins are coins other than bitcoin. Ethereum is the most popular altcoin. However some people think do no see Ethereum as an altcoin, and see altcoins as coins other than bitcoin and ethereum.

• Bitcoin

Bitcoin is the world's first and most valuable cryptocurrency. It was created by Satoshi Nakomoto in 2009. It has a market cap of about 457 billion dollars.

• Blockchain

A blockchain is a distributed ledger. Cryptocurrencies operate on blockchain technology, blocks of data are verified by members on the blockchain and stringed together in the form of a chain.

• Cryptocurrency

A digital decentralised currency.

• Coin

A coin is a representative store of digital value that lives on a blockchain network.

Some blockchain use same names for the coin and the network (e.g Bitcoin), others have different names for the coin and the network (e.g Ethereum)

• Decentralisation

This means without a centralised entity. Decentralisation is one of the basis of blockchain technology and cryptocurrency. 

• Decentralised Finance

Through decentralisation, this is the ability to carry out financial activities without a central institution or authority overseeing it. 

Cryptocurrency transactions are carried out without the need of a bank or financial institution.

• Decentralised Applications

Decentralised Finance transactions are carried out on Decentralised Applications also known as dApps.

These are applications that can support financial transactions without the need of an intermediary.

• DYOR

This means "Do Your Own Research". It is a term used to encourage new investors in the crypto space to carry out their own research before making an investment choice. Don't forget to DYOR.

• Exchange

An Exchange is a platform where cryptocurrencies can be bought, sold, or swapped. Examples include Binance, FTX, Luna, Roqqu.

• Fork

Changes in the rules of a blockchain network decided by the users will result in two kinds of new paths in the blockchain. This is known as a Fork.

There are two kinds of Fork. A Hot Fork and a Cold Fork.

• Gas

These are fees that users have to pay to be able to carry out transactions on the blockchain network.

• HODL

Serendipity. The term was actually derived from a typo by a user in a bitcoin forum in 2013.

It means "Hold On for Dear Life", it is a situation where crypto users by a cryptocurrency and hold on to it without trading it, with the hopes that it increases in value.

• Peer to Peer

Two users on a blockchain network interacting without the need of an intermediary.

• Private key

A private key is the code that gives you access to your cryptocurrency wallet. 

This is synonymous to your bank app password.

• Public key

When you need to receive cryptocurrency from another user, you send them your public key. 

This is your wallet address and it is synonymous with your bank account number. 

"Make I send address?"....haha!

• Rugpull

This is a kind of scam in the cryptocurrency space. A developer attracts investors to a new project and then suddenly pulls out before the project hits the market.

• Smart contract

A smart contract is a program that automatically executes the terms of a contract. 

I'll explain a bit.

If Tunde is supposed to send 100 dollars to Bisi and Bisi in return, is supposed to send an NFT worth the same amount to Tunde. A smart contract automatically programs Bisi's wallet to send an NFT worth 100 dollars once the 100 dollars from Tunde enters her wallet. 

It's a smart contract, you can trust it.

• Wallet

This is an app that allows users to store and retrieve their cryptocurrency.

I hope you are now familiar with some cryptocurrency terms and their meanings. You can also DYOR to find out more. When you do, let me hear about them in the comments section, I can also learn from you.

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