Hey everyone, welcome back to the Apprentice Justin series on TheCryptoGarage.com. Today we are going to go over some important cryptocurrency terms in the glossary below! Throughout your cryptocurrency learning, you’ll come across a number of terms that will require some more explanation and understanding before you can clearly navigate the whole world of cryptocurrency.
During my learning exercise here on TheCryptoGarage.com, I encountered dozens of new words that needed further research.
The following is a useful glossary of cryptocurrency terms that I’ve put together that you’ll often encounter and, their explanations.
Glossary of Cryptocurrency Terms
A Smart Contract is a computer program. It automatically executes the contract’s pre-defined rules so that a transaction is processed properly.
Non-fungible tokens. These can come in the form of many different and ever-growing types. For instance, If it is a digital document of any kind, it can be turned into an NFT.
When you see the term FUD, it is referring to “fear, uncertainty, and doubt.
Decentralization is a process to remove corporate power by removing the need to rely on their centralized system of doing business thus giving the power to all and not just a select few.
There are 4 different types of blockchains – public, private, consortium, and hybrid. Blockchain technology can be used in different ways. The last three are used by businesses to secure their data in a way that is only accessible from within that company, sort of like an intranet.
By utilizing the proof-of-stake model. User can transfer their cryptocurrency to an exchange which will allow them to monetize their holdings instead of just having them sit idle in their wallet. Rewards can come in many forms from more of the same currency to NFTs and other currency rewards.
Mining is the process of using specially built computers to run specific software that allows the user to interact with the blockchain and contribute to the computing power needed to facilitate the transfer of cryptocurrency. Users that are successful are rewarded in cryptocurrency.
Memecoins are currencies that lack any sort of utility and exist only for speculative reasons. For example, Dogecoin is considered a meme coin because it was created as a joke without any other utility or purpose.
A cryptocurrency wallet is a piece of software or a device that stores your private crypto keys. There are a few different forms of wallets and they all provide varying levels of security.
Crypto in cryptocurrency is referring to the process of cryptography. Cryptography is the study of secure communications techniques. These techniques allow only the sender and the intended recipient of a message to view its contents.
The term you’ll see is used every time you transfer cryptocurrency from one wallet to another to describe the fee that will be associated with your transaction. This gas fee will be in addition to the value of the cryptocurrency that you intend to transfer.
The term DeFi represents a sector of finance that is designed so that the need for a middleman to transfer value is removed. Customers and businesses can now make transactions directly with one another, without the need for a financial institution.
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