Cryptocurrencies are digital units that do not have a physical form and are used for making online transactions, as well as for profit.
The first cryptocurrency that was ever invented was Bitcoin, which was established in 2008. After the success of Bitcoin, many people started diving into this world, which is why there are around 2,000 of these digital units today.
Their profitability and superiority to regular payment methods is the reason why thousands of new people register to their respective networks.
Many more are also keen on finding out how they operate and that is the topic that we wanted to discuss today. We are going to list some crypto terms that you should know as they will help you understand the network better. Let’s start.
Blocks and Blockchain
A block is one transaction that has been verified and recorded. To record and verify transactions, users mine cryptocurrencies. That involves solving complex puzzles. Each solved puzzle is a new transaction that has been verified. Once they are recorded, these transactions become blocks and they are updated into the blockchain of the specific cryptocurrency.
A blockchain is a log that contains every single transaction made with that respective cryptocurrency. Thanks to the blockchain, cryptocurrencies are self-sustainable and highly decentralized, meaning that they are not under the control of banks. Every user takes part in maintaining stability.
Trading is the process through which crypto users make a profit. It is conducted on marketplaces called trading sites. To gain access to these platforms/marketplaces, you need to register and verify your account.
Considering the fact that they utilize the latest security systems, every trader is well-protected as he or she connects with other traders in the world.
A perfect example of a reputable and reliable trading site is Bitcoin Digital. Not only does this platform is very secure and allows you to connect with traders from every part of the world, but it is also optimized for mobile use, which means that you can access it at any time and place. Additionally, it utilizes advanced AI systems that will increase your chances of making a profit.
As the name of the term itself suggests, an e-wallet stores your cryptocurrencies. Based on the type of e-wallet, your cryptocurrencies can be stored online or offline. There are also numerous types of these storage units.
They differ based on the fact whether they are suitable for beginners or experienced traders, whether they are for Bitcoin or other cryptocurrencies, etc.
Halving is an event that takes place every 4 years. Bitcoin is well-known for these events as they often lead to massive spikes in its value. The purpose of halving events is to control the flow of cryptocurrencies that are released into the network via mining.
How? It’s simple – it just makes mining much more difficult.
Satoshi is the creator of Bitcoin and what makes this name so popular is the fact that we know absolutely nothing about the creator. In fact, we don’t know if Satoshi is one person or a group of people.
Bitcoin also has a sub-unit which is called Satoshi. (1 Satoshi = 1/100,000,000 Bitcoin).
Cryptocurrencies have two types of keys; private and public. Private keys are top secret as they are used to access e-wallets and they should always be kept a secret. On the other hand, public keys are used so that you can connect with other traders and thus, make a transaction.
This is not the obvious thing that you think of. On certain crypto transactions, you will be asked to pay a fee. That fee is known as gas. The faster the transaction you want it to be, the more gas you will have to ‘spend’.