Hello everyone 👋 If you are a newbie or an amateur in the world of cryptocurrencies and feel lost among all these unclear words, then this post is for you! Let's understand the most important terms in simple language, without abstruseness and complex formulas.

Blockchain:

Imagine a huge ledger where all cryptocurrency transactions are recorded. This book consists of blocks (pages) that are connected to each other like a chain. Each block contains information about transactions, and it is almost impossible to change this information.

It’s like a notebook where they write down all the paths from where, where it came from and encrypted, then the sheet ends, they take it and collect it (bend it), so that no one can open it.

Bitcoin (BTC):

It is the first and most famous cryptocurrency, a kind of digital “gold standard”. Bitcoins can be used to pay for goods and services, as well as for investments.

Bitcoin is gold only in the world of cryptocurrencies. It doesn't cost anything, but everyone has it and that's why it's so expensive.

Altcoins:

All cryptocurrencies except Bitcoin are called altcoins. There are thousands of them, and each has its own characteristics and advantages.

These can be said to be small cryptocurrencies compared to Bitcoin $BTC which is the largest and most popular, they all have their creators and their own meaning.

Mining:

This is the process of creating new blocks in the blockchain and receiving a reward for this in the form of cryptocurrency. Miners use powerful computers to solve complex mathematical problems.

It’s like electricity for your computer or phone to work, so in cryptocurrency you need power that will process transactions, transfers and other operations on the blockchain.

Wallet:

This is a program or device that allows you to store, send and receive cryptocurrency. There are different types of wallets: hardware, software, online and paper.

It's like a bank card, only more secure and in crypto.

Keys:

These are secret codes that give access to your wallet and cryptocurrency. Never give your keys to anyone!

Like a password for social networks, only much more secure.

Exchange:

This is a platform where you can buy and sell cryptocurrency with regular money or other cryptocurrencies.

Binance is, by the way, the largest exchange and it has its own coin $BNB

HODL:

This is a slang word that means to “hold” a cryptocurrency for the long term, despite price fluctuations.

For example, now everyone wants to hold $NOT , they talk a lot about different news and offer to hold - this means buy now and wait 1 year or half a year “for a long time.”

FOMO:

It is the fear of missing out that often pushes beginners to make rash cryptocurrency purchases.

Imagine that you bought a coin for 50 dollars and it began to rise sharply, and you have another 50 dollars, and you think “f*** it’s going to fly” and you invest another 50 dollars and it begins to stand still, and here you are with your Fomo you are already a loser.

DEAR:

It's an acronym for "Do Your Own Research."

Don't believe everything they write on the Internet, check information from different sources.

I hope this small dictionary will help you better navigate the world of cryptocurrencies. Don't be afraid to ask questions and learn new things! 😉

My telegram channel is @allyouneedcrypto.