Glossary - 10 terms to know about cryptocurrencies
Altcoin
An Altcoin is any kind of cryptocurrency that is not a Bitcoin.
Cryptocurrency exchange
A cryptocurrency exchange is a digital marketplace that makes it possible to buy and sell cryptocurrencies.
Crypto wallet
A crypto wallet holds the private keys you need to access your cryptocurrency holdings. They can be hardware wallets or software wallets.
Ethereum
Ethereum is the second highest traded cryptocurrency, preceded only by Bitcoin. It is currently created using the Proof of Work (PoW) method.
Initial Coin Offering (ICO)
ICOs are ways to garner the funds needed for a new cryptocurrency project. They are just like Initial Public Offerings for equity stocks.
Mining
Mining is the process of creating new cryptocurrencies by verifying the transactions on a blockchain. The miner is rewarded in cryptocurrencies.
Node
A node is a computer that is connected to the blockchain.
Smart contracts
Smart contracts are programs that run on algorithms. They are stored on a blockchain and they run when the predetermined conditions are satisfied. The parties involved in the contracts can access and approve of the program before they accept the terms and conditions.
Token
A token is a denomination of a cryptocurrency.
Whale
The most valuable Bitcoin addresses, which hold large amounts of the cryptocurrency, are called whales. Currently, there are around 2,000 whale addresses, three of which hold more than 1 lakh Bitcoins.
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