Cryptocurrency

Common Crypto Terms You Should Know

If you want to get more involved with the world of cryptocurrency, it could certainly be a good idea to educate yourself on some of the popular terms that are commonly used. While there are several different words and phrases, it shouldn’t be too hard to learn a few of the main ones.

Here are a few of the key crypto terms in the cryptocurrency language.

Altcoin

For the most part, ‘altcoin’ is a term used for any cryptocurrency that isn’t Bitcoin. While you’re likely to hear it in reference to newly-emerging cryptos, it does still apply to more popular ones too; from Ethereum, to Ripple.

Blockchain

The blockchain is the underlying technology of cryptocurrency. In simple terms, it’s a digital method of recording and storing data, creating blocks of information (a compilation of transaction records added by date), which allows for a permanent and unchangeable library of crypto transactions.

Cold wallet

Also commonly called hardware wallets, cold storage is generally known for being a secure method of storing crypto, typically in physical devices similar in appearance to USB drives. Because these wallets aren’t based online, they are generally less susceptible to being stolen by hackers, making them popular for holding larger amounts of crypto.

Read more: Best crypto signals

Crypto exchange

Exchanges are often the ideal places to trade crypto. There are plenty of these digital marketplaces, and they can help to make it incredibly easy for users to get started in cryptocurrency without having to mine it themselves.

Decentralization

The word ‘decentralized’ pops up a lot with cryptocurrency, meaning to distribute power away from a central point (i.e., a central authority). While there are benefits to having a centralized authority at times, there are also many benefits that come with the decentralized nature of crypto; from transparency, to lower fees.

Digital gold

The term digital gold is generally used to describe currencies that are similar to real gold in the sense that they can store value just like the precious metal. As you may be able to imagine, popular coins like Bitcoin are more commonly referred to as digital gold.

HODL

This stands for Hold On for Dear Life, and it’s usually used to describe the popular strategy of holding onto crypto for a longer period of time without trading in the hopes of being able to sell it at a point in the future when the value is significantly higher.

Hot wallet

Like a cold wallet, these are a place to store your crypto, except hot wallets are consistently connected to the internet.

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