Today, cryptocurrencies are invading the global trading market. Everyone we see around us is making a transaction in the world of cryptocurrencies. But there are still people who do not know the terms used in this field. If you are one of these people, we have prepared this article for you. Join the Reza Shirazi Digital Currency Academy to learn the terms of digital currency.
List of the Most Important Terms for Digital Currencies
Anyone who is planning to enter the world of digital currencies must know the most important terms in this field. There are countless words and terms in the world of cryptocurrencies. In order to become familiar with all these words and terms, it is necessary to take training courses. One of the best courses to help you master any digital currency terminology is the First Step course. However, below we will explain a list of the most important ones.
Currency: Currency is a colloquial term used in place of digital currency.
Altcoin: In the world of cryptocurrencies, any currency other than Bitcoin is called an altcoin.
Meme Coin: Any coin that has humorous characteristics or originated from an internet meme is considered a meme coin. Dogecoin, for example, is considered a meme coin.
Bitcoin: The most famous, largest, and most important cryptocurrency in the world is Bitcoin, which you have probably heard of.
Satoshi Nakamoto – The person who wrote the original white paper on Bitcoin. Satoshi Nakamoto is the nickname of this person.
Whitepaper: A whitepaper is the basic document of a currency that explains how it works.
Satoshi: The smallest unit of Bitcoin is called a Satoshi. One Satoshi is approximately equal to 0.00000001 Bitcoin.
Blockchain: One of the most important terms in digital currencies is blockchain. The technology behind all digital currencies is called blockchain. To increase transparency, each coin has a blockchain that records its transactions.
Digital Currency: Digital currency or crypto currency is the asset you own in cryptographic form.
Cryptography: A secure way to represent your assets in secret, undetectable codes. Decryption is required to read this information.
Exchange: An exchange is a website or program that can be used to buy and sell cryptocurrencies.
Ether (ETH): The native token of the Ethereum platform is called Ether.
Ethereum: After Bitcoin, Ethereum is the largest digital currency in the world.
Encryption: Converting users' digital information into a code that prevents unauthorized access.
Wallet: A wallet is a secure, digital place to store your cryptocurrencies. Wallets are divided into two types: hot and cold (online and offline).
Cold Wallet: Any device, such as a hard drive or flash memory, used to store your assets is called a cold or offline wallet.
Hot Wallet: Online storage of assets in a wallet by an exchange or by the individual himself is called a hot wallet.
Fiat Currency: All traditional currencies, including dollars, euros, pounds sterling, etc., are called fiat currencies.
ICO: This word corresponds to the initial offering of a coin. When a new coin is introduced, the developers usually publish it on the first market.
Market Value: This term is one of the most important terms in digital currencies and refers to the total market value of a coin.
Mining: Mining is the process of using computer hardware to mine Bitcoin.
Tether (USDC): Tether is considered a stablecoin whose value is always equal to one US dollar.
Stablecoin: A digital currency that is meant to regulate the market and whose value is always fixed is called a stablecoin. Tether is considered the largest stablecoin.
NFT: Another digital currency term that we often hear is NFT. The NFT or non-fungible token is something unique and cannot be traded.
Volatility: A market situation in which currency prices rise and fall unpredictably.
Yield: The return on investment, usually expressed as a percentage.
Node: A node or node is a group of computers that come together for a specific purpose, such as exchanging information or validating transactions.
Ledger: A platform that stores information about each transaction, including the time, date, sender, and recipient, is called a ledger.
Zero Confirmation: A transaction that has not yet been confirmed on the blockchain and is not considered part of it is called a zero confirmation.
On-Chain: A transaction that has been confirmed and is part of the blockchain is called on-chain.
P2P: Another common term for cryptocurrencies is peer-to-peer or P2P. This term refers to a transaction between two people without an intermediary.
Private Key: This term refers to a physical password that no one can guess. This very long number is used to access personal assets.
Public Key: This key is the public address of your wallet, which you can share with others to receive funds. This public key is associated with a private key, but you should not give your private key to anyone.
Volume: This term refers to the amount of currencies traded on the exchange market at any given time. For digital currencies, this value is usually measured once per hour.
A final word on digital currency terminology
Cryptocurrencies, like any other trading market, have their own terms and words. These terms are countless and are increasing every day. Getting familiar with these terms will make it easier for you to enter the world of cryptocurrencies and avoid the occurrence of certain problems. Therefore, in this article, we have tried to cover some of the most important terms in digital currency that will surely be useful to you.
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