Cryptocurrency Terms to Know Before You Invest – Superstorer

Crypto Currency

Crypto currency is a type of digital currency which can also be said as internet money that cannot be touched physically and is purely based on online computer based cryptographic technologies.

Cryptography

it is the conversion of data in a language or code that only related and concerned individual can read and understand the information, i.e. coding the information that can be decoded and read only by the concerned authority and not by everyone is called cryptography.

Altcoin

Bitcoin is the most popular crypto currency among all the crypto currencies thus other than bitcoin all the crypto currencies are called alternative coins or altcoins.

Address

it is the place from where or to where any bitcoin could be sent or received in form of numbers or letters.

Block Chain

it is digital system of recording and storing information and distributing them all across the computers connected in that particular chain. New blocks or codes are added to this chain when a new crypto coin is introduced. This inter connectivity in the block chain makes the system highly secure.

DeFi

decentralized finance market refers to the crypto market that is out of control of any government authority or regulatory body. The trading of bitcoin or any other crypto currency does not involve any middle regulatory authority. It is just peer-to-peer service.

Exchange

the process in which a user can buy a crypto using fiat currency and can also generate fiat currency on selling of crypto is called exchange. It is thus online trading of crypto in exchange of bank currencies.

Gas price

It is the small amount that I paid to the miner for the processing the transaction involving ethereum block chain. The gas price is decided on the basis of supply and demand of the crypto and the transactions taking place.

Wallet

Like the term suggests the wallet is like any other digital wallet is a place where crypto currency are kept or stored. It is a kind of digital wallet and is used as a storage address to keep digital money.

Cold wallet

these are hardware devices that are used to store crypto offline i.e. not connected to internet. This are devises that look like USB drive and are used to store crypto just like any other offline information. This prevents the crypto from hackers and theft.

Hot wallet

The software digital wallet that are used to store crypto and are connected to internet that can be used for online trading, which are in use as an when required are called hot wallets. They can be under the threat of hackers.

Crypto Debit Card

it is just like a normal debit card that is used to pay online in terms of crypto. This card allows the owner to pay for any commodity or service using crypto currency.

Capitulation

the prices of crypto fluctuates in the market regularly. When due to some or the other reasons a person sells its crypto at a significant loss due to fear of further decrease in prices and may not increase again is called capitulation.

Fiat Currency

The regular currencies like bank notes and coins that are backed by banks and other precious metals like gold that are not backed by banks, which are used as a medium of exchange are called fiat currencies.

Mining

it is the process in which a miner solves a complicated puzzle or calculation and if solved the miner is rewarded the respective crypto currency for which problem was being solved. In other words it is the process by which a new block is added to the block chain and thus new bitcoins or other crypto is created.

Market Capitalization

The total number of a specific crypto coins in the market multiplied to the current market value of that coin is called market capitalization of that particular coin. It is used to determine the relative percentage of market occupied by each coin and determine the major and minor players.

Whale

The person or institution or organization that holds a large number of any crypto currencies is called whale. They become the major player and their collective decision may influence the value of the crypto.

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