Making sense of the cryptocurrency lingo being used today is no easy feat. Many terms are thrown around by “people in the know”; it is complex to make sense of everything. Thankfully, there are a few glossaries that can help novices make sense of it all.
The Cryptocurrency Lingo Challenge
For those who are unfamiliar with cryptocurrency terms, the industry can seem rather daunting. A lot of these words and phrases might not make much sense at first. In fact, even to advanced users, they may not make too much sense at first either. New lingo comes around every week, and it can be challenging to keep tabs on everything.
However, the majority of phrases and terms will not change overnight either. Terms like “blockchain”, ‘smart contracts”, “private key” and “fungibility” will always remain relevant to this industry. They are all essential terms which both neophyte and advanced users need to know about and take to heart.
Cryptocurrencies are designed to empower the user and improve overall financial inclusion. As such, all users need to take certain aspects into consideration and act upon them as well. That includes knowing the importance of a private key and how to protect it best.
Moreover, as this industry grows and evolves, smart contracts will play an increasing role of importance. Understanding their potential is not essential, but it can help people get a bit more excited about what the future may hold, either as a neophyte or advanced user.
Expanding Your Horizons
Once a firm grip of the basics has been established, it becomes worthwhile to dive a bit deeper into blockchain and cryptocurrency concepts. Learning the difference between Proof-of-Work, Proof-of-Stake, and Delegated Proof-of-Stake is one option to explore. All of these consensus algorithms are essential in the broader industry, and they all have meaning.
Security-wise, there are many different forms of ingo to explore. Knowing the importance of paper wallets, hardware wallets, and cold storage is essential for any long-term investor. Keeping one’s cryptocurrency assets safe from harm requires some effort, but once you get the hang of it, there is little or no maintenance to speak of.
Even if you are not inclined to invest in crypto-assets or own them right now, it is still advisable to explore all of these concepts sooner or later. More and more people have conversations about cryptocurrency and its underpinning technology these days. Holding your own in a conversation requires a basic understanding of how things work.
There is a lot more to the cryptocurrency and blockchain industry than just concepts like Bitcoin and Ethereum, Understanding why these aspects matter and how they can transform society’s future is not mandatory, but learning about new things is never a bad idea. Moreover, now is an excellent time to begin investing in cryptocurrencies, as they continue to gain broader mainstream appeal globally.
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