Silvana Saldisuri
08/31/2021 6:01 AM
Clarín.com
Services
Updated 08/31/2021 6:01 AM
In recent months, the number of Argentines who choose to buy cryptocurrencies as a form of savings has grown notably, and they are not only demanding Bitcoin (BTC) but also other digital currencies and investment vehicles that are part of
blockchain technology.
The combination of a greater offer of mobile applications for investment management, the leap towards digital that forced the pandemic and economic instability, added to the limits for the purchase of dollars, encouraged a part of the population to search in the
crypto world
new investment options.
However, there is a vast majority who still do not know in detail what the
universe of cryptocurrencies is about
.
If you are just beginning to evaluate the possibility of starting to invest in virtual currencies,
becoming
familiar with the
digital jargon
should be the first step.
Today there are
more than 10,000 cryptocurrencies
in the world and new ones are born every day.
The variety is very wide and they need to be classified into groups by at least one quality in common in order to guide investors and those who have just entered them to move in that universe.
Familiarizing yourself with digital lingo is the first step to start investing in cryptocurrencies.
Photo: Reuters
“Technology is present in our lives and now, also, in the world of business and finance.
This new reality also brought a
new way of communicating
and relating.
Knowing and understanding the new words and terms used is fundamental in the work of language teaching, ”said
David Marín
, Senior Linguist at Babbel, a language learning application.
Here is a glossary of the
10
most important
key terms
to incorporate before you start
investing in cryptocurrencies.
1. Cryptocurrencies
Also called cryptocurrency or
crypto assets, they
are totally digital currencies.
By their nature they use cryptographic methods (derived from the Greek "kryptos" which means hidden, and "graphia", which means writing), to secure their financial transactions, control the creation of new units and verify the transfer of assets safely.
Although its purpose is to be a means of exchange, today it stands out as a
store of value
.
2. Bitcoin
Also abbreviated as BTC XBT or ฿ and in plural bitcoins, it is a neologism that comes from English.
It is the origin and
the
supreme
representative
of cryptocurrencies
in the world.
Its creator in 2008 was Satoshi Nakamoto, an entity whose real identity is unknown.
Interestingly, its initial development was only known to technology experts due to an open source protocol and peer-to-peer networking, but it was basically useless and worthless.
Today, the value of 1 Bitcoin is around US $ 40,000, and it is the basis for understanding how cryptocurrencies were born.
Bitcoin is the supreme representative of cryptocurrencies in the world.
Photo: AFP
3. Altcoin
It is an acronym that comes from the English words alternative (alternative) and coin (currency) and means
any other cryptocurrency that is not Bitcoin
and that groups cryptocurrencies and tokens in the same term.
It is usually a simple term used to emphasize that other cryptocurrencies are allowed, accepted or supported in addition to bitcoin.
4. Stablecoin
The jumps in the prices of the crypto (Bitcoin) created by the enigmatic Satoshi Nakamoto gave rise to the name of "stablecoins" or stablecoins, examples of which can be Tether and TrueCoin, both
backed by the
US
dollar
, which were gestated to try to reduce the volatility of traditional virtual currencies.
5. Token
The world of rankings does not end, however, with bitcoin, altcoins, and stablecoins.
The trend towards the
digitization of finance
and the economy describes a broader universe where it is necessary to internalize about another classification in which, as in a game of Chinese boxes, one category surrounds another.
This is the case of
tokens
, among whose different species are crypto assets that, in turn, contain within themselves cryptocurrencies, which are a special class of them.
Thus, tokens can be understood as a
cryptographic token that represents a unit of value
within a blockchain and that can be acquired in it in order to later be used to obtain goods and services.
A token can be used, among other things, to grant a right, pay for work done or to be executed, transfer data, or as an incentive or gateway to related services or functional improvements.
Cryptocurrency mining.
Photo: Shutterstock
6. Blockchain or chain of blocks
It can be defined as a
mathematical structure to store data
in a way that is almost impossible to falsify, lose, modify or delete.
It is a public electronic book that can be shared openly among users, without intermediaries or central authority, and that creates an unchangeable record of your transactions.
Its best known use is for
transactions with cryptocurrencies
, however, multiple applications are envisaged in the health industry, commerce, food, education, etc.
7. Dogecoin
It is a digital currency that can be bought and sold as an investment and spent as money.
It emerged as a joke coin
in 2013 and has a very active online community that is dedicated to raising money for charitable causes.
It is represented by a dog of the Japanese Shiba Inu breed that arose from the Internet meme 'Doge'.
Ironically, it
reached values of millions of dollars
due to the public support it has received from celebrities such as
Elon Musk
, the musician Snoop Dog or Gene Simmons of Kiss.
Dogecoin emerged as a joke coin in 2013. Photo: Reuters
8. Staking or bet
This is the name given to a way of
making a profit by saving cryptocurrencies
.
It is gaining in importance among various groups of financial investors.
It represents a
simpler and less arduous alternative
to crypto mining.
Investors see in Staking the possibility of using their cryptocurrencies to generate additional income.
An attractive proposition that
allows
them
to generate extraordinary income
while maintaining the ownership of their crypto assets.
In addition, it remains independent of the possible increase in the price of the coin or token.
9. GreenBond Meter coin
It is the first cryptocurrency
designed to finance the protection of the environment
, which aims to turn investors who acquire it into partners of a venture that seeks to take care of the planet.
GBM is, in this way,
a particular kind of stablecoin
since, in addition to its stable condition being inscribed in its design and objectives, it ties its stability to what is called “natural capital”, that is, its price is inflated. as this natural capital, the basis of any economic activity, becomes scarcer due to the worsening of environmental problems.
In GreenBond Meter they see their crypto as more suitable for staking, that is, to keep it in a wallet (wallet or virtual account) in order to receive profits or a reward.
10. Wallet
Its literal translation is
wallet
or purse.
Like its common version, wallets in the world of cryptocurrencies allow you to store your coins.
A wallet is a software that
stores public and private keys
, within which bitcoin and other cryptocurrencies can be sent or received.
There are more than 10,000 cryptocurrencies in the world and new ones are born every day.
Photo: Shutterstock
What needs to be done before opening an account to trade cryptocurrencies?
First of all, you have to
choose which trading platform you are going to operate with
.
These are sites that function as a kind of cryptocurrency "exchange houses": they allow you to open a kind of virtual account or wallet through which you can buy, sell or save bitcoins.
In Argentina there are several companies that offer this service.
Among the best known platforms are
Ripio, Satoshi Tango, CryptoMarket, SeSocio, Bitso, Bitex, ArgenBTC and Buenbit
.
How to open an account to trade "crypto"?
As a first step, the sites will ask to register by entering the main personal data.
They can then demand to verify the reported identity by sending a photo of the DNI and then taking a selfie.
"That account generates a unique stablecoin address that is a personal identification of the account, as if it were a bank CBU," explains SeSocio Blockchain and Cryptocurrencies specialist Lucas Marincovich.
After this, the wallet or wallet is created.
LN
Look also
Cryptocurrencies: how to open an account to start trading and how much does it cost to maintain it
Cryptocurrencies: 7 short and online courses for beginners
DAI, the stable cryptocurrency that goes hand in hand with the dollar and is recommended for those who start investing
Financial influencers: who to follow online to learn how to save and invest better
