So far, we’ve mentioned a lot of crypto terms on the blog. As a matter of fact, I’m still trying to figure out all of the terminology used in the cryptocurrency sphere. Lets take a deeper dive into some of these terms.
1. Cryptocurrency – At its core, cryptocurrency is a currency or asset that is digital, decentralized, and secured by cryptography.
2. Bitcoin – This term has many meanings for different people. In the context of this blog however, Bitcoin is a type of cryptocurrency. Unlike a gold coin, there isn’t a physical bitcoin that you can touch. Bitcoin and transactions are digitally stored on a public blockchain and is verified every 10 minutes. Bitcoin is made up of a smaller unit called Satoshi’s. 100,000,000 Satoshi’s equal one Bitcoin.
3.Blockchain – Think of blockchain as a type of ledger. First, imagine an old school accounting book or check register people use to balance check books. Then put that on a grander scale and you have blockchain. All Bitcoin transactions occur within a block. Advanced cryptography chains the blocks together every ten minutes.
4. Cryptocurrency Wallet – A cryptocurrency wallet gives the ability to safely secure your crypto private keys on either a USB device or a mobile app. Bitcoin transactions are on a public blockchain. For this reason, cryptography secures your private value through your private keys. Remember, not your keys not your coins. For example, see the Ledger wallet.
5. Hodl – This is something you will hear a lot in Bitcoin because this is a slang term for a buy and hold strategy. You buy bitcoin and you hold it. Hodl.
As can be seen, there are many crypto terms in this space. Stick around for more. Out.