Top 10 words you must know in the world of crypto.
Top 10 words you must know in the world of crypto. Blockchain, DEX, CEX, Wallet, Coin, Token, Crypto, Ledger, ICO, Liquidity Pool explained.
Cryptocurrency has taken the world by storm in recent years. With the increasing popularity and adoption of digital currencies, it's important to have a basic understanding of the language and terminology used in the world of crypto. Here are the top 10 words you must know in the world of crypto:
Blockchain
A blockchain is a decentralized, digital ledger that records all cryptocurrency transactions. It is essentially a chain of blocks that store and validate transactions.
DEX
A decentralized exchange (DEX) is a cryptocurrency exchange that operates on a decentralized blockchain network. It allows users to trade cryptocurrencies without the need for intermediaries.
CEX
A centralized exchange (CEX) is a cryptocurrency exchange that operates on a centralized server. It is a traditional exchange that connects buyers and sellers of cryptocurrencies.
Wallet
A cryptocurrency wallet is a digital wallet that stores private keys and public addresses. It allows users to store, send, and receive cryptocurrencies.
Coin
A coin is a cryptocurrency that operates on its own blockchain network. Examples include Bitcoin, Litecoin, and Ethereum.
Token
A token is a digital asset that operates on an existing blockchain network. It is usually used to represent an asset, utility, or security. Examples include Tether, Binance Coin, and Uniswap.
Crypto
Cryptocurrency is a digital or virtual currency that uses cryptography for security. It operates independently of a central bank and is decentralized.
Ledger
A digital record of all transactions that have taken place on a particular blockchain network.
ICO
An initial coin offering (ICO) is a fundraising method used by startups to raise funds through the sale of tokens. It is similar to an initial public offering (IPO) in traditional finance.
Liquidity Pool
A liquidity pool is a pool of funds used to facilitate trading on decentralized exchanges. It allows users to trade cryptocurrencies without the need for an order book.
In conclusion, these are the top 10 words you must know in the world of crypto. Having a basic understanding of these terms is crucial for anyone looking to invest, trade, or use cryptocurrencies.
