Cryptocurrency in simple language: a glossary of terms for beginners

But gladly, if you have just immersed yourself in the world of crypto and your head already hurts from unfamiliar words – we understand you. Let's break down the most important terms without any twists.

Blockchain is your ledger

Imagine an accounting book that records every transaction in cryptocurrency. But not just like that – the information is broken into blocks, each of which is linked to the previous one, like a chain. And no matter how much you want to change something within this chain – it won't work. The math doesn't forgive.

Bitcoin – the queen of crypto

The first and most famous cryptocurrency. You could say it's the digital “gold standard.” People buy it as an investment, pay for goods with it, or just hold it in their wallets. Expensive? Yes, it is. But it's popular – that's why it's so expensive.

Altcoins – everything else

Everything that is not Bitcoin is altcoins. There are thousands of them. Ethereum, Solana, some new meme coin – all of these are altcoins. Each with its own history, purpose, and creators.

Mining – cryptocurrency does not arise by itself

Someone has to process all these transactions in the blockchain, solving complex mathematical problems. This is done by miners on powerful computers. For their work, they receive new coins. Essentially, it's electricity that is converted into cryptocurrency.

Wallet – your door lock

A program or device for storing crypto. Hardware, software, online, paper – the choice is yours. The main thing is that with a wallet you control your funds, without intermediaries.

Private keys – a sacred sanctuary

These are the codes that grant access to your wallet. If someone finds them out – your crypto is no longer yours. Never, ever, ever share your keys with anyone.

Exchange – a marketplace for crypto

Platforms where you can buy, sell, and trade cryptocurrency for fiat money or other coins. With their own fees, their own rules, and their own security levels.

HODL – when you just sit and wait

Slang that means “to hold” cryptocurrency long-term. Don't trade, don't panic during downturns – just hold and wait.

FOMO – the enemies of smart decisions

Fear of missing out on profit. The entire crypto community is talking about some coin, it pumps up by 50% – and suddenly you have an uncontrollable urge to liquidate all your savings. Often, this ends in tears.

DYOR – do your own research

Don't believe everything at face value. Verify information from different sources. Don't listen to random people on the Internet, even if they promise you a 1000% profit in a month.

Here's the situation. Crypto is a complex world, but you can understand the basics. The main thing is to not rush, not to believe the hype, and always do your own research before investing.