Interested in investing in crypto, but are in a rush every now and then, it is very important for you to understand the language of the crypto world. In this article, we are telling about some such important words that you will definitely hear in the journey of crypto investment.
Cryptocurrency has become a well-known medium of investment. Especially the youth are very much attracted towards it. However, the words of the crypto world i.e. Cryptocurrency Jargons can be a bit awkward and heavy, such as – what is a gas, what is a whale, or what is the difference between bitcoin or blockchain? If you know the meaning of these words, then the world of crypto will become a little easier. If you're interested in investing in crypto, but you're in the lurch now-a-days, it's important for you to understand the language of the crypto world. In this article, we are telling about some such important words that you will definitely hear in the journey of crypto investment.
1. Mining
The term mining can be a bit confusing as the word mining means mining and is seen in association with coal mining or mining of any other similar mineral. But crypto mining means generating new digital coins. And this work is done by solving complex cryptographic equations ie equations in very excellent computers. After solving the equation, the user gets coins as a reward, from here it is either sold directly to a buyer or it is traded on the exchange.
However, it is not necessary that every investor does crypto mining. Most of the investors trade in the already existing coins or tokens in the market, they do not mine them themselves. They can exchange crypto with others, just like you would with any investment tool.
2. Whale
Such accounts, which hold a large number of coins and because of this they have the ability to influence the market on their own, are called whale accounts. There are many whales of most of the popular crypto coins, who hold a big position in the market. There are even some separate sites that keep tracking these whales accounts so that there is transparency in the market. This can also give an idea of how the market is going to be. Many whale accounts either belong to large large funds, or to investors who have been investing in crypto since its inception.
3. Wallet
Investors have to keep their crypto coins in a digital wallet. It is cryptographically secure and if you ever forget your password, you lose access to this wallet. Cryptocurrencies work on a decentralized distribution system. That is, it has no main focus, no regulation, so investors have to be careful about their passwords.
Please tell that these wallets are of two types - hot and cold. Hot wallet is always connected to the internet and online trading is done, whereas cold wallet is like an offline safe in which you keep your coins safe.
4. Blockchain
Cryptocurrency trading broadly works through peer-to-peer networks i.e. direct networking between two or more parties. Blockchain is a kind of digital ledger, on which the details of each crypto exchange are stored. Since there is no central database and anyone can access the blockchain from anywhere, there is no risk of information being hacked or corrupted by hacking.
5. Gas
Gas is called that fee, then one has to pay for doing cryptocurrency transactions. This fee covers the expenses of the miner i.e. the person who generates the coin. Miners solve complex mathematical equations on hi-fi computers, in return for which they receive coins as a reward. How much the fees will be depends on how quickly the investor wants the cryptocurrency from the miner.
6. Address
Address refers to the particular address, account, or platform where crypto is being sent. It is similar to a bank account, but it only contains cryptocurrency. Each address consists of alphanumeric characters and is used to keep crypto assets in high security. At the same time, if the receiver receiving crypto has to prove his ownership on it, then these addresses come in handy.
7. Flat
Mostly this term should be used for comparison with our traditional, government currency, flat currency has got government support and legal validity. Due to the government currency, it gives good control over the economy to the central banks. But there is nothing like this in cryptocurrencies.
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