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- Published: March 23, 2022 14:11
New Delhi: Most of us are familiar with investments in stock and bonds. However, the world of cryptocurrency is very different from the traditional market. It is always recommended to understand exactly what you are investing in before you start.
Given the popularity of investment in cryptocurrencies, we decided to explain to you some of the terms and phrases related to crypto investment.
Before we dive into details, we must tell you that cryptocurrencies are highly volatile and you should only ever put into crypto what you are willing to lose.
The key terms in the language of cryptocurrency are available below:
1.Altcoin
The most famous term in the crypto world is Bitcoin which is the first and most valuable cryptocurrency. Except for Bitcoin, any coin can be said altcoin. It means the second most popular coin Ethereum to any of the thousands of coins can be called altcoins.
2.Block
The transactions in cryptocurrecny are completed through blockchain technology. The details of the transaction are stored in blocks. Each block can only hold a certain amount of details.
3.Blockchain
The word blockchain is mostly used in cryptocurrencies. The blockchain system records the information of the transaction in blocks, making it difficult for anyone to change, hack or cheat the system. Basically, it is a digital ledger of transactions.
4.Coin
The native to a blockchain is called a coin. Crypto coin helps to trade, store value. Coin helps distinguish one blockchain to another blockchain.
5. Coinbase
Coinbase is centralised cryptocurrency exchange. The exchange also anyone to sell, buy, transfer and store cryptocurrency. It is also the first cryptocurrency exchange that made an entry on the Nasdaq.
6. Decentralisation
Decentralisation means cryptocurrencies are not controlled by any central authority; rather, it requires majority approval from all users to operate and makes changes. Cryptocurrencies are also decentralized finance (DeFi) as their financial activities are not dependent on any banks, governments, or other financial institutions.