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What are the basic terms I need to know in crypto?

Here are some basic terms you'll encounter when diving into the world of cryptocurrency:

  1. Blockchain: A decentralized, distributed ledger that records all transactions across a network of computers. Each "block" in the chain contains transaction data, and each is linked to the previous one, making it secure and transparent.

  2. Cryptocurrency: A digital or virtual form of currency that uses cryptography for security. Examples include Bitcoin, Ethereum, and many others.

  3. Wallet: A digital tool used to store, send, and receive cryptocurrencies. There are "hot wallets" (connected to the internet) and "cold wallets" (offline, more secure).

  4. Private Key: A secret number used to access and manage your cryptocurrency. It’s like a password — if someone has access to your private key, they can control your funds.

  5. Public Key: A cryptographic code that allows others to send cryptocurrency to your wallet. It's like an account number.

  6. Mining: The process of validating transactions and adding them to the blockchain. Miners use powerful computers to solve complex puzzles, earning cryptocurrency as a reward.

  7. Token: A type of cryptocurrency that represents an asset or a utility. For example, Ethereum-based tokens (like USDT or Chainlink) represent assets or services within the Ethereum network.

  8. Altcoin: Any cryptocurrency that isn’t Bitcoin. Examples include Ethereum, Litecoin, and Ripple.

  9. DeFi (Decentralized Finance): A set of financial services (lending, borrowing, trading) that are built on blockchain technology, removing the need for traditional financial institutions.

  10. Smart Contract: A self-executing contract with the terms of the agreement directly written into code. They automatically carry out actions when predefined conditions are met.

  11. Exchange: A platform that allows you to buy, sell, or trade cryptocurrencies. Some popular exchanges include Binance, Coinbase, and Kraken.

  12. ICO (Initial Coin Offering): A method of fundraising for new cryptocurrencies or tokens, where investors can buy early access to a coin or token before it's listed on exchanges.

  13. HODL: A term that means "hold" (with a misspelling). It's used to describe the strategy of holding onto your cryptocurrency instead of selling, even during market fluctuations.

  14. FOMO (Fear of Missing Out): The anxiety of missing out on a potential profitable opportunity in the crypto market, often leading to impulsive buying.

  15. Gas Fees: Transaction fees that are required to execute operations, like sending tokens or using smart contracts, on certain blockchains (e.g., Ethereum).

  16. Staking: The process of locking up cryptocurrency to help secure a blockchain network. In return, participants earn rewards.

  17. NFT (Non-Fungible Token): A type of digital asset that represents ownership or proof of authenticity of a unique item, like artwork, music, or collectibles, on a blockchain.

These terms are just the beginning, but they should give you a solid foundation as you start exploring the crypto space! Let me know if you want to dive deeper into any of these concepts.