10 Terms in Cryptocurrency You Must Know

Terms in Cryptocurrency – It may be very common to talk about cryptocurrencies, which are currently popular as an investment tool among various groups.

However, if asked about crypto terms such as blockchain, altcoin, and others, you might still feel confused and unfamiliar.

Therefore, we will introduce you to various crypto terms that investors and traders must know, as quoted from Indodax media.

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10 Terms in Cryptocurrency You Must Know

Before discussing crypto terms in depth, we want to inform you about what cryptocurrency is.

If the question arises about what cryptocurrency is, the answer is that it is a digital currency used as an investment tool in the digital era.

To invest in cryptocurrencies, you need to understand various crypto terms, which we have summarized in the points below.

1. Blockchain

Blockchain is one of the terms in cryptocurrency that refers to the fundamental technology behind cryptocurrencies.

This crypto term, called Blockchain, is a data recording system distributed across many computers, allowing transactions to proceed securely, transparently, and without intermediaries.

2. Bitcoin

Bitcoin is the first and most well-known cryptocurrency in the world and is considered one of the essential crypto terms for investors and traders.

Created in 2009 by an individual or group under the pseudonym Satoshi Nakamoto, Bitcoin is often the answer to the question of what cryptocurrency is.

3. Altcoin

Altcoin is a crypto term used for all cryptocurrencies other than Bitcoin. Examples include Ethereum, Litecoin, Ripple, and other coins frequently mentioned in crypto trading terminology.

4. Wallet (Digital Wallet)

Wallet, or digital wallet, is a term in cryptocurrency that refers to the place where you store your cryptocurrency.

A wallet can be in the form of software or hardware.

5. Mining

Mining is a crypto term that refers to the process of verifying cryptocurrency transactions on the blockchain network.

Another definition of this crypto term, called Mining, is when miners use computer devices to solve complex mathematical problems to add new blocks to the blockchain and receive rewards in the form of cryptocurrency.

6. Token

Token is a term in crypto trading that refers to a unit of value issued by a specific blockchain project and used for particular purposes within its ecosystem.

An example is tokens on the Ethereum platform, often used in smart contracts.

7. Exchange

Exchange is one of the terms in cryptocurrency that means a platform where you can buy, sell, or trade cryptocurrencies with other cryptocurrencies or fiat currencies such as dollars or rupiah.

8. HODL

HODL is a crypto term derived from a misspelling of the word “hold.”

This crypto term is often used in the cryptocurrency community to describe the strategy of holding cryptocurrency for the long term, regardless of price fluctuations.

9. Smart Contract

Smart contract is a crypto term that means a digital contract that is automatically executed based on program code.

This contract is carried out without requiring third parties and is often used in blockchains such as Ethereum.

10. Decentralized Finance (DeFi)

DeFi is a term in cryptocurrency that refers to a financial ecosystem built on blockchain that enables financial services such as loans and insurance without intermediaries like banks.

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Get to Know Cryptocurrency Terms Before Trading and Investing

There are many crypto terms that all investors and traders need to know to strategize and gain more profit.

By understanding the crypto terms we have summarized above, you can start trading or investing in cryptocurrency.

However, keep in mind that knowing various cryptocurrency terms does not guarantee that you will avoid losses.

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