10 Crypto terms every beginner must know
July 4, 2022
For complete newcomers in the cryptocurrency space, navigating through all the complex terminologies could be challenging, especially with strange terms flying at you from every platform.
Let’s consider these quick terms to jump start your crypto journey.
Blockchain is a digital ledger where transactions are recorded in a way that makes it difficult or impossible to change, hack, or cheat the system. It is the technology that powers cryptocurrencies. While blockchains are generally distributed, some are decentralized and some are not
Decentralization in blockchain means that no one entity or person is in control of your transactions or data. This means that the digital ledger is distributed among a network of computers commonly known as nodes and these nodes will have to verify your transaction for it to be recorded on the blockchain.
Cryptocurrencies are digital currencies that run on a technology called blockchain technology, and just like your traditional currencies such as the Nigerian Naira or Ghanaian Cedis, they can be used as a medium of exchange to buy goods and services and also send funds across borders.
Fiat is a government-issued currency such as the US dollar or Nigerian Naira and it is controlled by a central authority or institution like the bank.
Bitcoin was the first cryptocurrency that was introduced in 2009 by a man known as Satoshi Nakomoto. It is a digital currency that you can buy, sell and exchange without the involvement of a government or bank. The smallest unit of Bitcoin is called Satoshi.
Altcoins also known as alternative coins is a term that is used to refer to all other cryptocurrencies except Bitcoin.
Some top alt coins are
- Binance coin
An exchange is a marketplace or online service that allows you to exchange your traditional currencies(Fiat) for crypto and vice versa. There are two types of exchanges
- Centralized exchanges such as Binance, Kucoin etc
- Decentralized exchanges such as Pancakeswap and Paintswap
A cryptocurrency wallet is an app or physical wallet that you can use to store and retrieve your digital currency.
- Private Key
A private key is a unique identifier for your wallet and should only be accessible by you because anyone with access to the key can access the funds in your wallet.
- Public Key
A public key is a long string of characters that is generated along with your private key and it is used to produce your wallet address.
These are some of the basic terms that you are likely to come across on your first day in the cryptocurrency world as a beginner.
There is so much more that we will cover in subsequent articles, but we hope this helps you begin your crypto journey.
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Keywords: Cryptocurrency, bitcoin, blockchain