How to Speak Crypto Financial Lingo Like a Pro

There is already a bit of jargon surrounding cryptocurrencies, thanks to the popularity of Bitcoin, Dogecoin, and Elon Musk, and his constant tweets about them. To help any cryptocurrency enthusiasts understand the lingo around this financial system, here is a list of lingos used in this system of transactions.

Types of Lingos used in cryptocurrency

Blockchain

As a decentralized ledger, a blockchain stores blocks of data or information in a verifiable, immutable and logged way.

Altcoins

Altcoins are cryptocurrencies other than Bitcoin.

Stablecoins

A stablecoin is a cryptocurrency that aims to be stable and low in volatility. Pegged to a commodity or currency like gold, stablecoins can help stabilize a currency.

Wallet

You can use this as a digital wallet to retrieve, store and use your cryptos

NFT

According to CoinDesk, non-fungible tokens represent a huge range of different physical and intangible resources, from virtual real estate to collectible sports cards or even digital sneakers. The transactions are recorded on a blockchain, a distributed ledger that is decentralized, verifiable, and immutable. Christie’s made the first sale of an NFT-based artwork by a digital artist called Mike Winkelmann, or better known as Beeple, which attracted the sum of $69.34 million in March 2021.

Satoshi

The smallest unit of Bitcoin is the satoshi (SAT), equal to 0.00000001 BTC.

Bitcoin Pizza

As early as May 2010, programmer Laszlo Hanyecz spent 10,000 bitcoins on two Papa John’s pizzas in the early days of bitcoins. As of today, the price of both pizzas is approximately $365 million. Bitcoin Pizza Day is now an annual event in May and also owns its personalized Twitter handle known as @bitcoin_pizza.

ERC-20

Fabian Vogelsteller proposed Ethereum Request for Comments 20 in November 2015 as a highlight to implement and issue Ethereum tokens.

Fiat

A fiat currency is a currency issued by a government.

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ICO

Initial Coin Offerings (ICOs) are a method of raising funds using digital currency. Their popularity soared in 2017.

Block

Blocks are data groups within a blockchain. As users buy or sell coins, blocks on cryptocurrency blockchains contain transaction records. The amount of information each block can contain is limited. To continue the chain, a new block is created as soon as the chain reaches that limit.

Decentralization

Decentralization is distributing power in a way that keeps it away from a central point. Traditionally, blockchains are decentralized because they need a majority of approval from their users to make changes and operate rather than from a central authority.

Decentralized Finance

These are the activities of a bank, a government agency, or other financial institution that do not involve an intermediary.

Decentralized Apps

The creation and deployment of applications by developers using a blockchain to perform actions without intermediaries. Many financial activities are carried out using decentralized applications. Ethereum is the primary network that supports these activities.

Digital Gold

Certain cryptocurrencies are sometimes compared to real gold due to the way they can store and increase in value. Cryptocurrencies such as bitcoin are sometimes referred to as digital gold.

Fork

Blockchain rules can be changed when its users have that feeling. In these cases, a blockchain protocol is changed, resulting in two new paths – one following the old rules and the other breaking away from the previous blockchain. For example, Bitcoin Cash was created by a fork of Bitcoin.

Conclusion

Here are certain linguae you would come across every day in your use and involvement with cryptocurrency. With these, you can quickly understand certain terms when they’re used.