Ethereum, dApps, HODL…
No no, these terms aren’t something that you’ll find in a dictionary of alien language. They’re something related to Cryptocurrency – yes, that Bitcoin thingie and all, you know.
But, why are we talking about them here?
Well, it’s 2022 and Cryptocurrency has already become a huge thing amongst the tech as well as the Gen-Z community. And, most of them want to get their hands on it.
However, before you do that, it’ll be important for you to learn all the related terms first. Or else, it’ll be impossible to get into the world of Crypto, let alone investing in it.
So, let’s get started!
7 Must-Know Cryptocurrency Terms
In this section, we’ll talk about some basic and intermediate terms that you need to know, So, without any further ado, let’s begin our journey.
Term – 1: Altcoin
An altcoin (or, alternative coin) is any Cryptocurrency that’s not named Bitcoin. Hence, yes, something like Ether or Dogecoin, can be considered as an altcoin here. If you want, you may also trade them on a platform like Bit Profit App, as you usually do with Bitcoin.
Term – 2: HODL
HODL, in the world of Cryptocurrency, refers to the action of buying Crypto and holding the same in your account for a while. It’s an excellent strategy if you’re investing into a popular option, like Bitcoin. By holding it for a long time, you can earn quite a lot of money.
Term – 3: Blockchain
Blockchain is the technology that has helped create the world of Cryptocurrency. Everything, including Crypto wallets and trading platforms, have been made with the same. The name of the technology derives from “blocks” that it creates to store the transactional data and more.
Term – 4: Cold And Hot Wallet
A cold wallet, in essence, is a type of Crypto wallet, which cannot be accessed online. Hence, the security stature of the same tends to be quite high. But, you can trade with it right away.
On the other hand, a hot wallet can be used and accessed through the internet. Thus, you can trade Crypto with it whenever possible. However, it might not be as secure as the former.
Term – 5: Decentralisation
Decentralisation is the core principle of distributing power far away from a central point. It’s ideal for keeping the trade related data personal to the user and user only.
And, due to the decentralised feature, the government cannot handle or look over anything at all. Hence, if you end up losing your data, you won’t be able to turn back to anyone else.
Term – 6: Ethereum
Ethereum, in truth, is a software platform and a Crypto network system, which can assist you in creating new applications and smart contracts.
The associated currency of the same is known as Ether. It’s the second most popular Crypto in the world and has a value of around 1400.00 GBP.
Term – 7: Gas
If you are operating in the Ethereum network, you’ll have to pay a small amount of charge to use it properly. This is known as Gas and will be required whenever you are paying a person with Ether. The more Gas you have in your account, the better your transaction speed will be.
Term – 8: ICO Or Initial Coin Offering
It’s a type of fundraising strategy for a Cryptocurrency project.
In this regard, you’ll have to launch an NFT or Cryptocurrency from your organisation’s base and ask your audience to buy it accordingly. Once your business has started blooming, the token holders can get whatever they want from you by using the Crypto they bought before.
It’s usually used by an SME to build their fund and improve a facet of their business.
The Final Say
So, there you go.
We have tried to cover up the basics as much as we could through this article.
Nonetheless, if you need any other information or want to know about something else, don’t forget to tell us all about it.
Also, if you feel like we have made a mistake or should have added another term, comment it down now. We’ll include it while updating our article next time.
Have a good day ahead, then!