Home General Investments CRYPTO 101: These are the terms anyone investing in crypto should know

CRYPTO 101: These are the terms anyone investing in crypto should know


Cryptocurrency is one of the most revolutionary inventions of this century.

The current state of cryptocurrency could be bearish and is in a “crypto winter”. This time can be useful to clear up all your confusion around this new currency that has been talked about.

As people get into it, as developers and companies continue to produce products and services, the terms can get confusing. With that, here are some of the most basic crypto terms you always hear, described in the simplest of terms.


According Forbes, cryptocurrency is a digital currency intended to function as a true fiat currency. However, what makes cryptocurrency different is that it is decentralized, unlike true public paper money which is controlled by a governing body.

Cryptocurrency exists online and virtually and can also be used to pay for goods and services.

Cryptography is used to authenticate transactions and record their details. It is possible for anyone, anywhere to send and receive money in real time using this technology.


Blockchain is a new technology that is now more commonly used by many. One of the contributors to its popularity is the creation and formation of cryptocurrency.

A blockchain is a publicly distributed database or ledger. It stores information electronically in digital format.

Due to the nature and design of how it works, the blockchain is an almost impossible database to counterfeit. This makes the information, or any data or asset you store there, extremely safe and secure.


Decentralization is a term you will hear or read about often in this space. Decentralization refers to the principle that most founders and users are moving towards. It is the transfer of power from a governing body directly to a group of people or a distributed network; it is giving and distributing power to the greatest number.

He opposes centralization. An example of a centralized governing entity is the bank, government, individual, private sector, or exclusive group.


Besides decentralization, DeFi is another cryptocurrency term that you will come across most often. DeFi is a popularized term and shorthand meaning “decentralized finance”.

The main goal of DeFi is to eliminate the use of third-party services. This is accomplished through the use of smart contracts which are stored on a blockchain.

Centralized finance can be quite expensive and slow. However, decentralized finance aims to provide a better experience for anyone in the world to use by making it faster and more affordable.


A stablecoin is a cryptocurrency that is backed by something other than cryptocurrency. Some cryptocurrencies are stablecoins, meaning they can be backed by real money or bitcoin.

Stablecoin, in principle, must be stable. This usually equates to one stablecoin for one US dollar. A die stablecoin examples is Tether and USD Coins.

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In news and magazines you can often hear and read the word “altcoin” in cryptographic terms. It may be confusing, but “altcoin” stands for cryptocurrency. “Altcoin” refers to other cryptocurrencies other than the two most popular, Bitcoin and Ethereum.


Bitcoin is by far one of the most popular cryptocurrencies ever created. Bitcoin was made public in 2009 by an anonymous entity known as Satoshi Nakamoto.

Like any cryptocurrency, it is designed to work like cash. The thing that separates Bitcoin from the many cryptocurrencies on the market is its current value.

For a long time in the heyday of crypto, it was valued at $60,000. Some people view holding this cryptocurrency as an investment, and in some cases, those who were early in the game have already seen a return on their investment.


Next to Bitcoin, Ethereum is the second most popular and popular cryptocurrency. Ethereum was co-founded by Vitalik Buterin.

Ethereum works the same way as other cryptocurrencies; it has a native token called ETH. However, what makes Ethereum different and unique is that besides its native coin, several applications are also built on top of its own blockchain, the Ethereum network.

Market capitalization

You can often hear this term used in real, tangible businesses, describing their value. This same concept is also true in cryptocurrency.

Market capitalization will often be used as “market capitalization”. It is an indicator used to measure the market value of a certain available and circulating cryptocurrency.


Crypto marketing can be very different and can present itself in unique ways. One such unique way is the common use of “airdropping” an NFT or crypto project when it first launches.

According CoinMarketCapairdrop is definitely on the list of crypto terms you need to be familiar with.

A airdrop is one of the most common marketing strategies to promote and advertise upcoming cryptocurrencies. Crypto marketing can be very different and can present itself in unique ways.

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