8 Important words about cryptocurrencies in the crypto-tionary

While it seems like cryptocurrencies are one of the most valuable forms of currency in the world, it is easy to get caught in between the cryptocurrency jargon. And that seems to be one of the few problems keeping the general public from understanding the concepts of cryptocurrency. Here is a list of commonly used, important terms to help understand the subject better.

1. Cryptocurrency

Let’s start from the most basic term – cryptocurrency. A cryptocurrency is a digital or a virtual currency that uses cryptography for its transactions and payments. It is designed in such a way that they are anonymous as well as secure. Because of that, it is not only completely decentralized, but also relies on a public ledger (blockchain).

2. Blockchain

A blockchain is a public ledger for all Bitcoin transactions. It allows the distribution of information, for the sake of accountability. However, it is not copied for the sake of anonymity and security. Since the database isn’t stored in a particular centralized location, there is no room for hacking.

3. Bitcoin

Created in 2009, by a mysterious and unknown person, Satoshi Nakamoto, Bitcoins are one of the most popular and frequently traded cryptocurrency till today.

4. Altcoins

Any type of cryptocurrency that isn’t Bitcoin is considered as an Altcoin. The words ‘alternative’ and ‘bitcoin’ have been blended together to what is called the Altcoin.

5. Fork

A Fork is a phenomenon when a single cryptocurrency splits into two. It usually occurs when the codebases of an existing cryptocurrency changes, resulting in its old and new versions.

6. Mining

Unlike mining gold, mining related to Bitcoin or any such cryptocurrency is associated with solving an incredibly difficult puzzle in order to obtain the cryptocurrency. Any person that has access to the internet as well as good hardware can mine.

7. Exchange

Exchanges are websites were one can buy and sell cryptocurrencies. For example: Unocoin.

8. Whale

A whale, in the cryptocurrency language, is referred to anyone who owns a ridiculous amount of cryptocurrency!

Now that you have understood these words, the next time you can also sound smart and learn more about cryptocurrencies with a good vocabulary!