1. Blockchain: It is a decentralized digital ledger that stores all transactions of a cryptocurrency. Imagine a gigantic digital ledger, visible to everyone, but unalterable once the information is recorded.
2. Digital wallet: It is a device or application where cryptocurrencies are stored. There are two main types: "hot wallets" (connected to the internet) and "cold wallets" (offline, considered to be more secure).
3. HODL: This term, originating from a misspelling of "HOLD" (to keep), has become an investment strategy. It consists of holding cryptocurrencies for the long term, regardless of market fluctuations.
4. Alternative cryptocurrency: Any digital currency that is not Bitcoin. Some examples include Ethereum (ETH), Cardano (ADA), and Polkadot (DOT).
5. Token: Similar to a cryptocurrency, but with additional functionalities. It can represent governance rights in a project, access to specific services, or even real-world assets.
6. Participation: It is the process of locking up cryptocurrencies on a network to contribute to the validation of transactions. In return, participants receive rewards in the form of additional cryptocurrencies.
7. Network fees: These are the costs associated with conducting transactions on a blockchain network. For example, on networks like Ethereum, these fees are paid to transfer funds or interact with smart contracts.
8. Smart contract: It is a digital agreement that automatically executes when certain predefined conditions are met. It does not require intermediaries, as all the logic is programmed into the contract.
9. Decentralized exchange: It is a cryptocurrency exchange platform that operates without a central controlling entity. All transactions are managed through smart contracts, such as in the case of SushiSwap or Curve.
10. Non-fungible token: It is a unique digital asset that represents ownership of a specific digital or physical good. Unlike conventional cryptocurrencies, it is not interchangeable on a one-to-one basis, as each token has unique characteristics, such as digital artworks or virtual collectibles.
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📘 10 fundamental terms you should know:
1. Blockchain: It is a decentralized digital ledger that stores all transactions of a cryptocurrency. Imagine a gigantic digital ledger, visible to everyone, but unalterable once the information is recorded.
2. Digital wallet: It is a device or application where cryptocurrencies are stored. There are two main types: "hot wallets" (connected to the internet) and "cold wallets" (offline, considered to be more secure).
3. HODL: This term, originating from a misspelling of "HOLD" (to keep), has become an investment strategy. It consists of holding cryptocurrencies for the long term, regardless of market fluctuations.
4. Alternative cryptocurrency: Any digital currency that is not Bitcoin. Some examples include Ethereum (ETH), Cardano (ADA), and Polkadot (DOT).
5. Token: Similar to a cryptocurrency, but with additional functionalities. It can represent governance rights in a project, access to specific services, or even real-world assets.
6. Participation: It is the process of locking up cryptocurrencies on a network to contribute to the validation of transactions. In return, participants receive rewards in the form of additional cryptocurrencies.
7. Network fees: These are the costs associated with conducting transactions on a blockchain network. For example, on networks like Ethereum, these fees are paid to transfer funds or interact with smart contracts.
8. Smart contract: It is a digital agreement that automatically executes when certain predefined conditions are met. It does not require intermediaries, as all the logic is programmed into the contract.
9. Decentralized exchange: It is a cryptocurrency exchange platform that operates without a central controlling entity. All transactions are managed through smart contracts, such as in the case of SushiSwap or Curve.
10. Non-fungible token: It is a unique digital asset that represents ownership of a specific digital or physical good. Unlike conventional cryptocurrencies, it is not interchangeable on a one-to-one basis, as each token has unique characteristics, such as digital artworks or virtual collectibles.