11 Cryptocurrency Terms You Need To Learn Before Getting Into Crypto

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Cryptocurrency Terminology

We all know the feeling, developing a genuine interest in cryptocurrencies and the benefits they can reap to society and being completely discouraged by the vast amount of terminology, either legitimate terminology or terminology used by cryptocurrency enthusiasts. In order for you not to be discouraged by the mass amount of terminology used in cryptocurrency forums, we have compiled a list of the most common terms that are used when speaking about cryptocurrency and related topics.

Exchange

Websites where you can buy and sell cryptocurrencies, such as Coinbase. You can also trade between one coin and another.

FIAT

A currency issued by the government such as the Euro.

HODL

Hodl is a slang term and Internet meme that is used in the cryptocurrency community when referring to holding the cryptocurrency rather than selling it.

Altcoins

A combination of two words: “alt” and “coin”; alt signifying ‘alternative’ and coin signifying ‘cryptocurrency.’ Thus together they imply a category of cryptocurrency that is alternative to the digital currency Bitcoin.

Fork

This is when the blockchain splits into two separate chains. Forks usually happen when new governance rules are built into the blockchain’s code.

Hash Rate

The speed at which a block is discovered, meaning the speed or the rate at which the math problem is solved. The faster the miners can solve the algorithms of each transaction, the faster the rate will be.

Public Key

This is used to create a message that can be seen by everyone, but a private key is needed to see the network. The public key is a set of invites, essentially to an invite-only party. Whereas your invite is your key to enter the party and mingle in it.

Bullish

This term is owed to the world of finance. The term indicates a set of securities or currencies – investment products that are set to be traded at a higher price. The rising demand curve action makes these products bullish.

Smart Contract

Code that is deployed onto the Ethereum blockchain, this often directly interacts with how money flows. “A normal transaction allows you to send money from A to B. Smart contracts allow you to send money from A to B, on the condition that C happens.”

51% Attack

A situation where more than half of the computing power on a network is operated b a single individual or concentrated group, which gives them complete and total control over a network. An entity which has 51% of the computing power can: stop all mining, stop and manipulate all interpersonal transactions and use singular coins over and over.

ICO

Initial coin offering. An unregulated means by which funds are raised for a new cryptocurrency venture. This is used by startups to bypass the rigorous and regulated capital raising process required by venture capitalists or banks.

Token

In general, a token is usually a stand-in for something else, this also applies to cryptocurrencies. You can read all about tokens by clicking here.

Did we answer all your questions? Feel free to ask about other terms used in cryptocurrencies in the comments below or send an email to [email protected]

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