There is probably not a single person today that hasn’t heard the term “crypto” in some context.
Even though the idea of crypto emerged in 1983, it wasn’t until 2008 that cryptos startled the financial world. From then onward, the definition and functions around crypto have evolved tremendously while also managing to amass a huge following.
Some even predict that the annual growth rate of Bitcoin alone will be 56.4% from 2019 to 2025.
With this huge rise naturally came many words that nobody previously knew. So, what are the top terms every beginner in crypto trading should know? Follow this article to find out!
Must-Know Crypto Terms
It’s probably safe to say that every third piece of financial information today is about crypto. Plus, as the world grows fonder of digital assets, it’s best if you stay on top of the most recent crypto news on Fastbull
NFTs, blockchain, Bitcoin, etc. – the terms go on and on, and if you’re thinking of being part of the crypto world, here’s a shortlist of the most important crypto lingo to know in 2022.
Bitcoin
We can’t start talking about crypto without mentioning Bitcoin.
Those who have no clue what Bitcoin is have probably not read the news or browse the internet – it’s all over the place!
To simplify, Bitcoin is a digital asset, a cryptocurrency that saw the light of day in 2009, but the world is still unsure of who created it. There are speculations of a single person behind the asset, and some believe a group of programmers designed the “digital gold” of today’s exchange market.
One name, in particular, is associated with Bitcoin – Satoshi Nakamoto.
What differentiates Bitcoin from traditional papers of value is that banks or governments do not control it – it’s a decentralized asset.
Ethereum
The fancy-sounding term translates to a global software platform for decentralized digital assets powered by blockchain-based technology. Ethereum is the platform for trading Ether, a cryptocurrency like Bitcoin.
Mining
Mining is yet another term closely related to crypto. It stands for the complex process of new “coins” up for grabs. Mining is conducted by high-performance computers that decipher complex mathematical enigmas and use a lot of electricity.
If you want to mine, you’d need a powerful PC that can withhold mining hardware and software.
NFTs
NFT, or longer, non-fungible tokens, are bits of digital content that are part of the blockchain.
The fancy “non-fungible” term means being unique, like no other, and that can’t be replaced. Each NFT comes at a different value, and there are many forms, i.e., they occur as diverse forms of digital assets.
Simply put, NFTs convert digital works of art and other collectibles into unique, supportable assets.
Blockchain
Blockchain is an inseparable part of cryptocurrency. It’s a bit complex to understand, but it doesn’t essentially mean you can’t.
At its core, blockchain is the technology behind crypto, NFTs, and the rest of the one-of-a-kind digital assets.
Blockchain technology is designed to store different types of information, but today, it’s mostly used to keep track of cryptocurrency transactions.
When this transaction is made, the information is recorded on the blockchain, which is handled by a worldwide peer-to-peer network.
Coinbase
Coinbase is your NYSE for crypto. It’s the place of business for crypto traders – a crypto exchange platform that went public in April this year.
A fun fact about Coinbase is that it operates 100% remotely – the platform holds no physical headquarters, yet it employs over 3,700 people!
FUD
Here’s another acronym frequently used in crypto: “fear, uncertainty, doubt.”
FUD is used when the cryptocurrency community wants to convey a piece of rather negative information about a blockchain-based currency or a digital asset of any kind.
It’s not uncommon to see online comments like, “People should stop spreading FUD about Bitcoin!”
Crypto Wallet
The term is self-explanatory – it’s a virtual wallet for your cryptocurrencies. Crypto wallets come as internal (hot wallets) or external (cold wallets).
They can only be accessed via passwords, so if you own one, make sure you remember your password and hold on to it.
Metaverse
The Metaverse can be described as an alternate, digital reality that blends different elements of social media, online gaming, AR (Augmented Reality), and crypto.
Cryptocurrencies are used in the Metaverse to pay for services and goods.
Key Takeaway
If you’re considering becoming part of the exciting crypto world, you must know a few terms and phrases to keep up with the trends.
From mining to blockchain to crypto wallets, there’s a plethora of lingo to get familiar with.
It might start like too much and overwhelm you, but give it some time – step by step, and you’ll be in the crypto waters in no time!
