So, after hearing all the buzz regarding crypto and cryptocurrency in general, you’ve now decided to dive deeper into what it is and how you can earn from it. The problem is, that you don’t exactly know where to start.
Well, clovr has got you covered! We’ve rounded up THE must-know crypto terms to get you started on your crypto journey. From the basic, foundational concepts to the more technical and nitty-gritty, we guarantee that you’ll be on your way to becoming one of the finest crypto casino players.
For more guides, tips, and reviews on anything related to both crypto and bitcoin casinos, be sure to check out clovr.com!
It is a digital currency that foregoes a central monetary authority (such as banks or a government) and serves as a medium for transactions through a decentralized computer network. An evolution from coins and banknotes, cryptocurrency is akin to having money as entries on a spreadsheet and is maintained or stored using cryptography.
In literal terms, cryptography means secret or concealed writing. As it relates to cryptocurrencies, cryptography ensures that each transaction is secure and verified through the use of mathematics and computer science. It is similar in nature to the process of encryption to allow for the secure back and forth between two or more parties.
One of the most popular forms of cryptocurrency, Bitcoin is a digital currency that was originally established in 2008. While it is one of the more widely-known examples of such, Bitcoin is not the only cryptocurrency in the market.
These are any crypto coins that are not the highly-popular Bitcoin. Other digital currencies include Ethereum, Litecoin, and Cardano.
Basically, this is a database containing transactions. This is how cryptocurrencies keep their records. This maintains the anonymous identities of participants, all transactions they enter into, as well as their respective crypto balances.
Blocks are data structures or groups of data within a particular blockchain. They contain important information regarding all transaction records while participants buy or sell crypto coins.
Serving as one of the backbones of cryptocurrency, a blockchain is a distributed ledger system that stores and maintains a list of transaction records formed by the abovementioned “blocks.” These blocks are then chained together, with each block containing a hash of the current block (serving as its digital fingerprint), a timestamp, and a data hash of a previous transaction (or block).
To better understand it, a simple analogy was introduced by Fabricio Santos of Cointelegraph. He described a blockchain as a series of glass boxes with content or items that everyone can see, verify, and cannot alter or change.
This system allows for a system of exchange that is easily verifiable and less prone to tampering, because of the transparent nature of the transactions.
This is a particular and unique string of numbers and letters that are used to distinguish and identify blocks in a blockchain. Hashes allow blocks to be linked to crypto sellers and buyers.
HODL is a typographical error or misspelled version of “HOLD.” It describes when a crypto participant HOLDS or avoids selling his or her coins, despite the volatility of current prices. It is also conventionally used as an acronym for “Hold On for Dear Life,” somehow referring to the same strategy. The term was first used by an investor in a crypto forum back in 2013.
Digital currencies that come natively from a particular blockchain that houses a particular value. Some of the most popular examples of crypto coins, as mentioned above, are Bitcoin and Ethereum.
Often interchanged with crypto coins, tokens and coins are actually different. Crypto tokens, while they are a denomination of a cryptocurrency, are usually built or created by platforms and applications on top of a blockchain. Tokens feature platform-specific characteristics.
One of the most appealing characteristics of cryptocurrencies describes how the record of crypto transactions has numerous copies worldwide and is not just stored by a single monetary authority. This allows for transactions that are open, traceable, and less likely to be tampered with. It also describes the people-centered approach to cryptocurrencies.
Gas or Gas Price
This is the fee that is paid for every transaction made on a blockchain. Paying higher gas prices nets you faster transactions; paying lower gas fees will yield slower transaction speeds.
Non Fungible Tokens (NFTs)
Essentially, NFTs are unique digital assets that ties ownership to distinct digital physical items such as music, photos, works of art, or collectibles. These assets are found on a blockchain that cannot be replicated or exchanged equivalently. They also have specific and distinctive identification codes that separate them from each other.
This is the term used to describe a computer that connects to a particular blockchain.
In simple terms, this is the process wherein new cryptocurrencies (such as new bitcoins or litecoins) are created and entered into the market. Aside from generating new coins, crypto mining also validates or verifies new crypto transactions. Mining is set up with massive amounts of network computers worldwide that validate, verify, and secure these blockchains. This is another showcase of the decentralized nature of cryptocurrencies. In exchange for the processing power and computation that these computers do, they are awarded new coins as compensation.
Just like a conventional wallet, a crypto wallet is software that stores your crypto, particularly your public and private cryptocurrency keys, and gives you the ability to manage your coins and various crypto balances.
There we have it — 17 must-know crypto terms to get you started on your crypto journey. We will be posting an updated list on clovr.com so be sure to keep updated with the latest crypto content and guides posted there. For now, great luck to you and your budding crypto career!