Cryptocurrency is on the lips of investors, customers, developers, regulators and ordinary people on the street. If you encounter some terms and slang used in cryptocurrency for the first time, it may be troublesome. In this article, we will guide you through 20 crypto slang words that every crypto enthusiast should know.
Let’s jump in directly.
No one knows who Satoshi Nakamoto is, but what we do know is that he is the one who wrote the white paper for Bitcoin. He was praised for creating Bitcoin, and it is estimated that Satoshi Nakamoto will be worth billions of dollars.
Decentralized applications (dApps)
Decentralized applications are not controlled by any single institution. DApp is a digital application that runs or exists on the Peer2Peer computer network on the blockchain.
Initial token issuance
Initial coin issuance or otherwise known as initial coin issuance is a financing tool that uses cryptocurrency. They are the most popular crowdfunding activities, however, private ICOs can obtain funds without the need for the public.
The private key is a secure password that allows you to access your cryptocurrency funds. It can consist of a string of numbers or letters and should be kept safe at all times.
Decentralized Finance (DeFi)
Decentralized finance is a form of finance based on blockchain. They do not rely on central financial intermediaries such as brokers, banks and exchanges. They use smart contracts on the blockchain, and the most commonly used blockchain is Ethereum.
Simply put, the blockchain is a system for recording information, it is almost impossible to crack, change or deceive the system. Essentially, the blockchain is a transaction ledger that is replicated and distributed through the network.
An encrypted wallet is a program or physical hardware wallet that stores your private keys. It is also used to digitally sign transactions.
Gas is a word often used on the Ethereum network. It refers to the computational work required to perform certain operations on the Ethereum network.
Mining is a way for different cryptocurrencies to enter the market. It is also an important part of the maintenance and development of the blockchain ledger. These mining processes use enhanced computers to solve complex computational problems.
The seed phrase is a list of words needed to recover Bitcoin funds on the chain.
Digital currency can be defined as any currency or currency-like assets stored or exchanged on the Internet or digital computer systems.
Know your customer (KYC)
KYC is a method of verifying or verifying that someone is who they say they are.
Altcoins are any other cryptocurrency except the famous Bitcoin.
Fiat is simply a currency established by the government. They have neither intrinsic value nor use value.
Non-fungible token (NFT)
A non-fungible token is a unique token and cannot be interchanged with another token.
Proof of Work (PoW)
PoW is when one party proves to the other party that a certain amount of work has been completed.
Proof of Stake (PoS)
These PoS protocols are a type of consensus mechanism of the blockchain. Their way of working is to select validators in proportion to the holdings of a particular cryptocurrency.
The public ledger is a record book system that contains your specific cryptocurrency transactions.
Smart contracts are automatically executed transaction agreements. They also control or record related events and actions on the blockchain in accordance with the terms of the contract or agreement between the two parties.
Hodl is a slang term that means “stick to my dear life”, which is a way to encourage cryptocurrency traders not to sell their cryptocurrency assets when the market is down or improving.
Wrap things up
Now that you have completed our list, you may have a better understanding of the basic concepts and terminology of cryptocurrency. However, this is not an exhaustive list. To better understand the world of cryptocurrency and blockchain technology, you should learn more phrases.