Beginner's Guide to the Language of Cryptocurrencies

These are the most relevant cryptocurrencies 1:07

New York (CNN Business) -

Investing in cryptocurrencies requires an appetite for risk and a whole new vocabulary.

This is a beginner's guide to the basics of words that are used in this world.

Bitcoin

Bitcoin is a cryptocurrency that was created in 2009 by an unknown person (or persons) with the alias of Satoshi Nakamoto.

Unlike traditional currencies, such as the US dollar, bitcoin is not controlled by a bank or a government.

This is by far the most valuable and popular cryptocurrency in use today.

Blockchain: chain of blocks, in Spanish

Blockchain refers to the digital ledger and the key technology that most cryptocurrencies are based on, non-fungible tokens (which we'll talk about later), and other unique digital items.

The blockchain can be used to store all kinds of information.

However, its most common use so far is the recording of cryptocurrency transactions.

When a transaction is made, it is entered into that public ledger, which is managed by a global network of peers.

That is, millions of computers, in the case of bitcoin.

The blockchain technology revolution 1:46

The blockchain is key to bitcoin's appeal: Being a decentralized database, no one person or group can control it.

Precisely, unlike a fiat currency like the US dollar, which is managed by a central bank.

Buy the f **** ing dip (BTFD): buy low

A rallying cry in the crypto market, urging investors to buy when prices drop.

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Coinbase

The leading cryptocurrency exchange platform.

The company went public last April, which many saw as a turning point in the arrival of cryptocurrencies to the mainstream market.

Cryptocurrencies

Fully digital monetary system, made up of "coins" or "tokens" that are controlled by a decentralized ledger.

Dogecoin

The crypto family weirdo started out as a joke based on the 2013 'doge' meme. But, as cryptocurrencies gained interest in traditional arenas, dogecoin has emerged as an unexpected hit.

• What is dogecoin, the prank cryptocurrency that became more attractive than bitcoin?

It now has a market capitalization of more than $ 30 billion and is up more than 5,000% so far this year.

Also, unlike its more popular siblings, a single dogecoin is still cheap - it hit an all-time high of about 45 cents in April.

It is not yet known if it is a smart investment.

Elon musk

The CEO of Tesla, whose tweets are known to unleash increases in the value of cryptocurrencies like bitcoin and dogecoin.

Elon Musk says he will send dogecoin to the moon 0:39

Ethereum

An open source software based on the blockchain that controls the cryptocurrency Ether.

This is the second largest digital currency by market capitalization, with almost $ 300 billion.

FUD

It comes from the English "fear, uncertainty, doubt", which means fear, uncertainty and doubt, respectively.

In cryptocurrency parlance, FUD refers to negative information that weighs on the value of an asset.

HODL

Depending on who you ask, this is either a popular typo, or the abbreviation of the phrase "hold on for dear life" used by bitcoin bulls in response to FUD.

The legend of the bug dates back to a 2013 post on the bitcointalk forum titled "I AM HODLING."

In it, an apparently drunk bitcoin investor spoke angrily about holding onto the cryptocurrency despite its drastic fall.

Memes were created and the term became an abbreviation for an investment strategy.

Mining: mining

The complex process through which new bitcoins are put into circulation.

Mining is not for hobbyists: it requires high-powered computers solving complex mathematical puzzles to create a new 'block' in the blockchain.

This process consumes a lot of computing power and electricity, which has raised concerns about the environmental impact of bitcoin.

Bitcoin mining in China could threaten the environment 0:31

NFT: non-fungible tokens

Non-fungible tokens (NFTs) are pieces of digital content tied to the Ethereum blockchain.

"Non-expendable" essentially means unique, something that cannot be replaced, unlike, for example, a dollar bill that can be substituted for any other dollar bill.

• What are NFTs?

  See here everything you need to know

In simple terms, NFTs transform digital artworks and other collectibles into unique and verifiable assets.

Satoshi Nakamoto

Pseudonym that refers to the person (or people) who invented bitcoin.

His true identity remains unknown.

Satoshis, aka "Sats"

The smallest unit of bitcoin registered on the blockchain, equivalent to one millionth of a bitcoin.

Wallet: wallet / wallet

Like the physical object in which you carry your money and your cards, a purse (or wallet) in the world of cryptocurrencies is a place to store digital currency.

The main thing to know about this is that you should never, ever, lose or forget your password.

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