Cryptocurrency refers to any digital currency that is not Bitcoin. Bitcoin, often referred to as “digital gold,” is the first and most well-known cryptocurrency. Blockchain is a decentralized ledger that records all transactions in a secure and transparent manner.
One way to increase the value of cryptocurrency is through burning, which involves permanently removing some coins from circulation. Another way to secure crypto coins for extra security is with cold wallets, such as Ledger Nano or NGRAVE Zero. Consensus mechanisms determine how a network reaches agreement on the validity of transactions, such as Proof of Work or Proof of Stake.
Cryptography is essential for ensuring secure transactions in the crypto market. Decentralized applications (DApps) run on decentralized networks like Ethereum, while DeFi offers financial services without traditional intermediaries such as banks. Ethereum is a platform for decentralized applications and smart contracts and is the second largest cryptocurrency.
Exchanges are platforms where you can buy and sell crypto coins, while fiat refers to traditional money issued by a government, such as euros or dollars. FOMO, or Fear Of Missing Out, can lead to impulsive purchases in the crypto market due to fear of missing profit opportunities. Gas fees are transaction fees on the Ethereum network, and halving occurs every four years when the reward for mining new blocks is halved.
HODL means holding onto your crypto for the long term despite price fluctuations, while hot wallets are connected to the internet for easier access to your crypto coins. ICOs are crowdfunding methods used by new crypto projects seeking funding from investors. KYC verifies the identity of users on cryptocurrency exchanges and market cap refers to the total market value of a cryptocurrency. NFTs represent unique digital assets that prove ownership and authenticity in blockchain technology.
Staking involves temporarily locking up crypto coins to support the network and earn rewards, while wallets provide digital storage for your crypto coins
