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Explaining Top 8 Crypto Terminologies

Crypto Terminologies

Cryptocurrency is often viewed as the effective alternative to traditional currencies. Moreover, it has become a massive trend on the internet. Cryptocurrency is still relatively new, with some gray areas that most people do not know about and are unaware of.

For many, cryptocurrency is the best investment for them to gain massive profits. Many people treat cryptocurrencies as assets they can own instead of regular physical assets.

One of the most famous terminologies around the internet is crypto mining. A decade ago, a decent PC would have been enough for mining bitcoin, but now it requires 12 trillion times more computational power as the blockchain has evolved.

There is a lot of ground to cover here regarding crypto currency terminologies, explaining what crypto mining is, and giving a blockchain glossary, so let’s begin.

What is crypto terminology?

Crypto terminology, short for Cryptocurrency terminology, refers to the body of terms used with respect to cryptocurrency. Crypto is the shortened slang often used for cryptocurrency. It is an amalgamation 

The fabled cryptocurrency gets its name because of the cryptography process used to secure its transactions. Apart from being secure and fast, all transactions related to cryptocurrency are stored on the blockchain. Let us delve deeper and have a look at the most used terms in the world of cryptocurrency.

What are the terms used in cryptocurrency?

There are many crypto terminologies that exist online. While still relatively new, people use many crypto terms interchangeably from time to time.

Cryptocurrency in simple words, is crypto coins, and they can be used as a medium of exchange. Crypto coins are different from Crypto tokens, but more on this further into the blog.

Moreover, crypto exchange platforms are privately owned that are used to facilitate the trading of cryptocurrencies or NFTs. Cryptocurrency exchange platforms are sometimes referred to as DCE or digital currency exchange.

A cryptocurrency wallet is used to store public and private keys for making transactions. Firstly, a private key is generated according to the requirements and algorithms set by the cryptocurrency’s blockchain.

By using the private key, a public key is generated using cryptographic algorithms. Users then can share this public key to the public for receiving cryptocurrency. The private key is then stored in the wallet and used to make transactions.

The private and public key is not stored on the blockchain, as it only contains the transactions made. It further protects your crypto assets even more if your wallet stays secure with proper authentication protocols.

8 Crypto Terms You Should Know

Cryptocurrency is made up of some breakthrough technologies. A proper understanding of what they are is crucial for anyone investing in or trading cryptocurrencies.


Blockchain is a shared or distributed ledger. It contains blocks connected, and every block contains transactions verified by the users contributing to the network. Blockchain is also called a “digital database” among the nodes of a peer-to-peer network.

The blockchain is very secure. It is also why the cryptocurrency is decentralized because the network’s active hosts verify a record’s security and fidelity. Once one block is full of data, it is linked to a new block, and the process continues, making blockchain an irreversible data timeline.


Bitcoin is the most valuable, influential, and first cryptocurrency ever. An anonymous user, Satoshi Nakamoto, introduced it to the public in 2009. Bitcoin is one of the most well-known cryptocurrencies in the world.

Bitcoin has inspired many other cryptocurrencies to be developed. It is still a little over a decade old, but its value has seen some exciting ups and downs throughout its history. Nowadays, one bitcoin costs around $20,000.


Altcoins are cryptocurrencies that are not bitcoin. Because bitcoin is the first cryptocurrency to exist, every other cryptocurrency, from the second most popular one to the end of the list, is an altcoin.

Not all altcoins are promising, and you should always stick to the well-known and mainstream ones. The future of altcoins is impossible to predict, but if their blockchain continues to be used and developed, then altcoins will continue to exist.

Crypto Coins

A crypto coin is a form of digital currency native to its blockchain. It acts as a medium of exchange and stores value. Coins can be mined through proof of work (POW) or earned through proof of stake (POS).

The bitcoin blockchain coin is BTC. Similarly, the Ethereum blockchain coin is ETH. Coins are similar to traditional currencies, and crypto coins are often referred to as cryptocurrencies. Generally, crypto coins are significantly different from crypto tokens.

Crypto Tokens

Crypto tokens are designed on blockchain technology, just like crypto coins; however, crypto tokens are not native to the blockchain. Cryptographic tokens are not meant to be used as a medium of exchange.

A real-world example would be that crypto tokens are coupons or vouchers, while crypto coins are cash. Cryptographic tokens are built to fulfill a variety of purposes. They can represent ownership of a digital product and more.

Cold and Hot Wallets

Cold wallets are the most secure way of protecting your crypto assets, and a cold wallet or hardware wallet is a storage device that is a USB. Cold storage would keep your crypto assets physically away from the internet and any online attacks.

Meanwhile, a “hot wallet,” often referred to as a “web wallet,” is always online. Hot wallets are the least secure. Their only significant advantage is that they are portable, as you can access them from almost any electronic gadget that can use the internet and open websites.

Crypto Mining

Crypto mining is generating new coins and verifying transactions on the blockchain. A vast number of decentralized networks of computers are involved in this process to verify and secure the blockchain.

In return, the users are often rewarded with new coins for their contributions to the network. The coins provide an incentive to the miners, and they keep on running their systems to verify the blockchain, and the cycle stays in motion.


NFTs are non-fungible tokens. NFTs are considered assets and contain unique identification codes and metadata that distinguish them from the rest. NFTs can represent digital and even physical items like artwork and more.

The current NFT market revolves around collectibles such as digital artwork, rarities, and more. Cryptocurrencies are fungible; their value is the same as the next coin. However, NFTs shift the market by being unique and irreplaceable.


Cryptocurrency still poses as a strange concept for many, but millennials are now making long-term crypto investment. But even after knowing the most, some still get the terms wrong or need help understanding them correctly.

Some of the best cryptocurrency to invest 2022 are bitcoin, ether, and ripple, but there is plenty more crypto for long-term investment. As with any investment, proper research and understanding of the risks involved are critical, along with protecting your precious crypto assets.

Nonetheless, as users around the globe are starting to realize the potential of cryptocurrencies, more and more investments are on the cards. Therefore, it becomes critical to understand the basic crypto terminology to have a better understanding.

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