8 Cryptocurrency Terms You Need To Know
If you’ve ever wandered into a Telegram group or Twitter space and heard the big crypto bosses throwing around words like Blockchain, NFT, or Altcoin, and wondered if they were speaking a whole new language, then this article is for you. The internet is moving quickly, and monetization is moving with it. If you’re going to keep up, here are 8 terms you absolutely need to understand:
1. Altcoin: In the beginning, there was Bitcoin. All the coins that came after are what we refer to as Altcoin (alternative coin). An altcoin is any digital currency other than Bitcoin. Cryptocurrencies like Ethereum, Dogecoin, and $WNT are altcoins.
2. Blockchain: A blockchain, also called Distributed Ledger Technology (DLT), is a type of database. It stores information in groups known as blocks. When one block is full, another is opened, and the previous block is linked to it. This chain of blocks is what we know as the blockchain. Blockchain technology is what cryptocurrency is hinged on and where crypto coins live.
3. Coin: Just like a dollar note represents some value, so does a coin. Coin here refers to a digital unit that represents some value on a blockchain network. For example, Wicrypt’s blockchain network uses a coin called Wicrypt Network Token ($WNT).
4. Decentralization: You’ve probably heard this term chanted over and over by people trying to convince you to buy crypto. It’s true though — cryptocurrency espouses a principle of decentralization. Decentralization simply means that power is taken from central big powers like banks and governments, and put back in the hands of the people. Blockchain technology works such that any changes to it require approval from all users, rather than a single authority.
5. Fiat currency: This is the kind of currency most people are used to. Fiat currency is money issued by the government and decreed as legal tender. The US Dollar and Nigerian Naira are examples of fiat currencies. Note that it is possible for fiat currencies to be digital. For example, the eNaira is a digital fiat currency.
6. Mining: To mine cryptocurrency, you need a special type of computer. This computer, sometimes called a node or mining rig, solves cryptographic mathematical equations, validates blockchain transactions for a specific coin, and receives a mining reward for this effort. Crypto mining is a game of equations and can be quite complicated and expensive. However, with Wicrypt’s hotspot hubs, you can mine cryptocurrency without bothering your head with the complex mathematical equations or the high cost of purchasing a mining rig. You mine $WNT by simply sharing your internet with our hotspot hubs.
7. NFT: An NFT is a Non-Fungible Token. Like cryptocurrencies, it is stored on a blockchain. However, unlike cryptocurrencies, it is non-fungible, which means it is not interchangeable. Fungibility means that two identical items have identical value and can be substituted for each other. An NFT is a digital ledger that acts as proof of ownership of a digital file it represents. This means similar NFTs may in fact represent different assets and have different values. Anything can be minted as an NFT, including our hotspot hubs.
8. Wallet: Just like with a physical wallet, a wallet in cryptocurrency refers to a place where you store your crypto assets. A crypto wallet is more secure than a physical wallet because it can’t be stolen or lost, unless you forget your password. Most coins have official wallets, but some wallets allow you to hold different types of currencies in one place. The Wicrypt app comes with an embedded wallet for you to keep your $WNT.
Cryptocurrency — and the Web 3.0 in general — can seem quite hard to understand, but we want to set you on the easy path. Understanding these cryptocurrency terms will help you get into the crypto-world. If you want to get started with cryptocurrency, a Wicrypt hotspot hub is a great low-risk way to earn and spend cryptocurrencies, and it’s super easy for a beginner to understand.
