1. Blockchain: A distributed digital ledger that stores all transactions of a cryptocurrency. Imagine a huge virtual ledger, accessible to everyone, but immutable once the information has been recorded.
2. Digital wallet: A tool for storing your cryptocurrency assets. They are classified into "hot wallets" (connected to the network) and "cold wallets" (offline, considered more secure).
3. HODL: Long-term investment strategy in the crypto world. It comes from a misspelling of "HOLD" (keep) and refers to holding onto your cryptocurrencies regardless of market fluctuations.
4. Alternative cryptocurrency: Any digital currency that is not Bitcoin. Some examples are Ethereum (ETH), Cardano (ADA), and Polkadot (DOT).
5. Token: Similar to a cryptocurrency, but with additional functionalities. It can represent voting rights in a project, access to specific services, or even tangible assets.
6. Staking: The process of locking your cryptocurrencies in a network to contribute to transaction validation, receiving rewards in the form of more cryptocurrencies in return.
7. Network fees: Costs associated with carrying out transactions on a blockchain. For example, on the Ethereum network, these fees are paid to transfer funds or interact with smart contracts.
8. Smart contract: A digital agreement that automatically executes when certain pre-established conditions are met. It does not require intermediaries, as the entire process is programmed.
9. Decentralized exchange platform: A cryptocurrency trading system that operates without a central controlling entity. All transactions are managed through smart contracts, as seen with SushiSwap or Curve.
10. Non-fungible token: A unique and non-reproducible digital asset that represents ownership of a digital or physical item. Unlike conventional cryptocurrencies, it is not interchangeable on a 1:1 basis, as each one possesses distinctive characteristics, as is the case with digital artworks or virtual collectibles.
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📘 Essential terms you should understand:
1. Blockchain: A distributed digital ledger that stores all transactions of a cryptocurrency. Imagine a huge virtual ledger, accessible to everyone, but immutable once the information has been recorded.
2. Digital wallet: A tool for storing your cryptocurrency assets. They are classified into "hot wallets" (connected to the network) and "cold wallets" (offline, considered more secure).
3. HODL: Long-term investment strategy in the crypto world. It comes from a misspelling of "HOLD" (keep) and refers to holding onto your cryptocurrencies regardless of market fluctuations.
4. Alternative cryptocurrency: Any digital currency that is not Bitcoin. Some examples are Ethereum (ETH), Cardano (ADA), and Polkadot (DOT).
5. Token: Similar to a cryptocurrency, but with additional functionalities. It can represent voting rights in a project, access to specific services, or even tangible assets.
6. Staking: The process of locking your cryptocurrencies in a network to contribute to transaction validation, receiving rewards in the form of more cryptocurrencies in return.
7. Network fees: Costs associated with carrying out transactions on a blockchain. For example, on the Ethereum network, these fees are paid to transfer funds or interact with smart contracts.
8. Smart contract: A digital agreement that automatically executes when certain pre-established conditions are met. It does not require intermediaries, as the entire process is programmed.
9. Decentralized exchange platform: A cryptocurrency trading system that operates without a central controlling entity. All transactions are managed through smart contracts, as seen with SushiSwap or Curve.
10. Non-fungible token: A unique and non-reproducible digital asset that represents ownership of a digital or physical item. Unlike conventional cryptocurrencies, it is not interchangeable on a 1:1 basis, as each one possesses distinctive characteristics, as is the case with digital artworks or virtual collectibles.