Cryptocurrency Words

For many of us, the world of cryptocurrency is still a stranger. There may already be a lot of things that you know about it, but you’ll always end up finding more and more new discoveries. As you get to know cryptocurrency in a deeper sense, let this article guide you and teach you about the most common cryptocurrency words that you must definitely learn.

  • Blockchain Vs. Cryptocurrency - Many people, especially those that have just entered the world of crypto trading and that of Bitmex trading, develop a sense of confusion between these two terms. Oftentimes, this is caused by how people have come to use them. In a word, blockchain came from the term “chain of blocks” while cryptocurrency came from a combination of “cryptographic currency”. However, the previous sentence can’t really fully satisfy the minds of those who are hungry for learning. Hence, let’s talk about the difference between blockchain and cryptocurrency further in this article.
  • Blockchain - Back when the only blockchain that existed was Bitcoin, the terms seemed to have been used interchangeably. Now that a lot of blockchains have emerged, the uses of the terms have quickly diverged. A blockchain is a ledger technology that creates a “chain of blocks” which carry a bundle of verified data and information. These blocks are validated and looped onto the chain of information and transactions in the previous blocks. As they become blocks of transactions, they get permanently recorded in the blockchain – the distributed ledger.
  • Cryptocurrency - Cryptocurrency is a lot different from blockchain and Crypto Trading Signals are just the tip of this ice berg The former is a tool on a network of blockchain. It is more about how the tokens are used on the ledger technology. In a nutshell, cryptocurrency, from the word itself, is a kind of digital currency created and based on cryptography – the art of writing or solving codes.
  • More Terms You Should Know - The world of cryptocurrency is an enormous world, and assuming you’re a newbie, there are still a lot of things that you should know about this very deep and seemingly mysterious industry. Let’s learn more below.
  • Bitcoin - In the year 2008, Satoshi Nakamoto founded the world’s first cryptocurrency. According to sources, the founder did not intend to invent a new currency system. He simply wanted to create an electronic cash system without third-party entities. Still, he ended up giving an impactful contribution to the world. The most essential contribution of Bitcoin is the concept of the decentralized digital cash system.
  • Mining - Mining is arguably the most important word associated with cryptocurrencies like Bitcoin. Bitcoin mining is different from gold mining, and the latter might be the easier choice. Bitcoin mining is the process of adding new money to the ledger. Anyone who has an internet connection and the necessary hardware can do bitcoin mining.
  • Hashing - Hashing is a term used for a computer program that receives information and transforms it into a series of letters and numbers. This program is used to make information storage quicker since hashes are shorter and thus are much easier to find.

Conclusion

There are a lot of things one must learn in the world of cryptocurrency. If you want to venture in this industry, it’s important for you to learn all the necessary information.