Bitcoin Terms That Everyone Should Know – Guide
Cryptocurrencies are a new form of digital currency that uses cryptography to secure transactions and to control the creation of new units. Cryptocurrencies are decentralized, meaning they are not subject to government or financial institution control. Bitcoin, the first and most well-known cryptocurrency, was created in 2009. ..
Cryptocurrency is a new investment option that has many different aspects from traditional stocks and bonds. It can be difficult to understand for seasoned investors, but it is important to understand what you are investing in before starting. Cryptocurrency is still in its early stages and there are many unknown acronyms, emerging technologies, and memes surrounding it. ..
Bitcoin Terms You Should Know
altcoin
Bitcoin is the most popular cryptocurrency and experts say that you should largely stick to it as an investment. However, there are other cryptocurrencies that can be very profitable, depending on the coin. For example, Ethereum is a very popular cryptocurrency with a very high market cap. If you want to invest in Ethereum, you should do so based on its popularity and not its value relative to Bitcoin.
Bitcoin
Bitcoin is a digital asset and a payment system invented by Satoshi Nakamoto. Transactions are verified by network nodes through cryptography and recorded in a public distributed ledger called a blockchain. Bitcoin is unique in that there are a finite number of them: 21 million. Bitcoin is decentralized, meaning that there is no single administrator or governing body for the currency. Bitcoin can be used to purchase goods and services online, but its value also depends on the supply and demand of the currency.
Bitcoin Cash
Bitcoin Cash is a new, peer-to-peer electronic cash system that was formed from a fork of the original Bitcoin. Bitcoin Cash is designed to be better optimized for transactions, as it is more stable and has lower volatility.
Blockchain
Cryptocurrencies are digital forms of registration and the underlying technology behind them. A blockchain is the result of sequential blocks building on top of each other, creating a permanent, immutable record of transactions (or other data).
Coin
A digital store of value that lives on a particular blockchain or cryptocurrency network. Some blockchains have the same name for both the network and the currency, such as Bitcoin. Others may have different names for each, such as the Stellar blockchain, which has a native currency called Lumen.
Cold Wallet/Cold Storage
A physical device that helps store your cryptocurrency securely offline. This type of wallet can help protect your cryptocurrency from hackers and theft, although it also has its own risks – like losing it, along with your cryptocurrency. ..
decentralization
A blockchain is a distributed database that uses cryptography to secure its transactions and to control the creation of new units. The principle of distributing power away from a central point is what makes blockchains unique. ..
digital gold
Cryptocurrencies such as Bitcoin are often compared to real gold based on their ability to store value and increase in value. Bitcoin is commonly referred to as digital gold. ..
Ethereum
Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of fraud or third party interference. Ethereum is often used to create new markets and products, and to create an online marketplace for goods and services.
Fork
When users of a blockchain make changes to its rules, they can create two new chains – one that follows the old rules and one that separates from the old one.
cryptocurrency
Cryptocurrencies are a new form of digital and decentralized currency that can be used to buy and sell things or as a long-term store of value.
HODL
The phrase “Hold On for Dear Life” originated on a Bitcoin forum in 2013, when a user typo referred to the strategy as “HODL.” The phrase has since become synonymous with passive investment in cryptocurrencies, and is often used to describe the philosophy behind the strategy.
Final note
Bitcoin is a digital asset and a payment system invented by Satoshi Nakamoto. Transactions are verified by network nodes through cryptography and recorded in a public dispersed ledger called a blockchain. Bitcoin is unique in that there are a finite number of them: 21 million. This guide provides an overview of some of the most common terms used with Bitcoin and explains their significance. ..
