Blockchain Glossary For Beginners

The interesting world of Blockchain has revolutionized the way we think about money. And, while it may be easy for some to comprehend, most of us have many questions.

It makes total sense since we got introduced to a whole new glossary that seems complicated to “not so technical” a few of us.

As such, in our efforts to help you learn more about Blockchain, Bitcoin and everything related to cryptocurrency, we created a list of frequently asked questions. 

We answer those in an easy-to-understand way, in order to help all new investors improve their knowledge.

So go ahead and clear up any doubts, by clicking on the question you’d like to know the answer to.

What is Blockchain – A Short Description on How it Works

what is blockchain

Everything in the crypto world is possible and achievable thanks to the blockchain. But what exactly is this technology and how does it work?

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What Is a Private Key And What Is Its Use?

what is a private key

Private keys play a very important role when it comes to the safety and usability of cryptocurrency transactions.

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What is a Public Address And What Is Its Use?

Blockchain Addresses are an important component when it comes to understanding cryptocurrencies. What is a public address, the one crypto term that you have seen a few too many times? 

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What is an Airdrop and What You Should Know About It

What is an airdrop

After the increased popularity of ICOs, airdrops gained in popularity as an alternative method of token distribution.

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What Are Mining Rewards?

what are mining rewards

Mining rewards are very important for cryptocurrency miners. If you want to learn more about the process and its benefits – click on “Read More”

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What is a Mining Pool and What Are Its Benefits?

what is a mining pool?

Mining pools are increasing in popularity not only to save on costs but also to increase one’s chances for mining rewards. People started using them after individual mining became less profitable and required more upfront costs. But what is a mining pool exactly?

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What is Mining Difficulty?

Mining difficulty is one of the most important aspects when it comes to cryptocurrency mining. Some cryptocurrencies are harder to mine than others. Bellow, we will explain what causes such difficulty.

what is mining difficulty

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What are Smart Contracts And Why Are They Important?

What are smart contracts?In the context of cryptocurrency, when one hears about Smart contracts, Ethereum is usually the first thing that comes to mind. But what exactly are those contracts and how do they help cryptocurrencies become a viable payment method worldwide?

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What Are Transaction Blocks? 

what aretransaction blocks

Do you want to know more about transaction blocks, what kind of information they can store in them and what they mean to the crypto world?

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What Does “Buy the Dip” Mean? 

how does buy the dip work

If you bought the dip you probably made a profitable trade. Find out what buy the dip stands for.

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What is a Bear Market And How Does It Affect Crypto?

After going through a bear market for more than a year, during that last few days of 2017 and in 2018, you most likely know how this one affects cryptocurrencies. Nonetheless, here is the detailed definition of the term.

what is a bear market

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What is a Bull Market And Are We Currently In One?

You keep hearing the term everywhere. Everyone hopes and believes a new bull market is underway. But what does the term stand for?

what is a bull market?

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What is Hash Rate?

what is hash rate

Cryptocurrency miners often use the term hash rate when discussing their mining equipment. If you are interested in cryptocurrency mining you should definitely know what the term stands for and how it works.

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What is PoS And How Does PoS Work?

pos coins

Do you want to know what is PoS and how one can conclude that a coin has a Proof of Stake protocol? Then read our explanation below.

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What Is PoW And What Are The Best PoW Coins?

what is pow

Do you want to know more about Proof of Work and get a better insight into what Pow is? Read further to find out.

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What is SHA-256 and How Does it Relate to Bitcoin Mining?

what is sha-256

What is SHA-256 encryption algorithm and why is it so popular in the cryptocurrency world? Below we explain the reasons why.

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What is Double Spending and is it a Threat to Crypto?

what is double spending

Cryptocurrencies are solving a problem that is most commonly known as double-spending.

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What is DAO and How is it a Revolutionary Business Model?

what is DAO

The revolutionary idea of Bitcoin contributor Mike Hearn could help develop leaderless organizations 30-or-so years into the future.

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What is Cold Storage in the Context of Cryptocurrency?

what is cold storage?

Store your cryptocurrency where hackers can’t get their hands on – the cold storage.

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What is a Hardware Wallet and How Does it Work?

what is a hardware walletStoring cryptocurrency is easy to do. But not all wallets are secure and even less are impenetrable. Hardware wallets, in this case, offer the best security for your coins.

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What is a Buy Order in the Context of Cryptocurrency?

what is a buy order

Did you know that you don’t necessarily need to buy Bitcoin on the spot? You can also set a buy order for it.

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What is a Hardcap and what happens when it’s reached?

what is a hardcap

The one thing all cryptocurrency startups hope to reach through their initial coin offerings. Let’s explore what is a hardcap in further detail.

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What is a Shitcoin and which coins are labeled as such?

what is a shitcoin

Ever came across this term on social media conversations or crypto-related forums? Well, you will now know what the term stands for.

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What is a Softcap and what happens if its not reached?

what is a softcap

You often see this term circulating around ICOs and IEOs. What is a softcap stand and what happens if a company cannot reach it?

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What is a Store of Value in the context of cryptocurrency?

what is a store of value

Terms like this one can often be confusing since they can be applied to a broad range of financial markets. For that reason, we will explain what is a store of value in the context of cryptocurrency.

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What is a Transaction Fee and who receives it?

what is a transaction fee

Every time you send your Bitcoin, you pay a transaction fee. Here’s where these fees go.

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What is an IEO and how is it different from an ICO?

what is an ieo

After the rise and fall of ICOs, a safer model for token sales is coming to reward early investors of new crypto projects.

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What is DYOR and why it is important for all investors?

what is dyor

The term has been circulating in cryptocurrency and blockchain communities for a while now. But what is DYOR?

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What is HODL and why has it grown in popularity?

what is hodl

The crypto-vocabulary is rich and contains many unusual words you won’t hear elsewhere. “Hodl” or “hodling” is a widespread term that every crypto investor should know.

 

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What are Masternodes and how are they different from mining?

what are masternodes

You’ve heard about them, and they usually are more expensive compared to traditional mining. But what are masternodes?

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What is a Bitcoin whale and how do they affect the crypto market?

what is a bitcoin whale

You often hear about whales selling or stocking up on Bitcoin and other cryptocurrencies. In this article, we explain the term and what makes one qualify as one.

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What is a Digital Asset and is it different from cryptos?

what is a digital asset

You’ve seen this term mentioned multiple times within the context of cryptocurrencies. But what exactly is a digital asset and how is it different from a cryptocurrency?

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What is an ATH (All-Time High) and when is the next?

what is an ath

The moment everyone is ecstatic about their profits. When your favorite crypto coin does the unexpected. It is the moment of a new All-Time High.

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What is Crypto Arbitrage and is it worth doing it?

what is crypto arbitrage

Arbitrage trading is very common amongst traders of financial markets. But how does it work?

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What is FIAT money and can you use it to buy Bitcoin?

what is fiat

In many cryptocurrency forums and Social Media groups, you will see the term FIAT money being mentioned. But what exactly does the term stand for?

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What is FUD, who uses it and why is it popular in crypto?

what is fud

A term that is very common in cryptocurrency-related forums and online communities. What does it stand for and what is its aim?

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What is Hashcash and how is it connected to Bitcoin?

what is hashcash

Hashcash is an important part of what is today known as Bitcoin mining. But what does that term mean?

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What is KYC and why it is a requirement for exchanges?

what is kyc

In the context of cryptocurrency, most exchanges will require you to go through a KYC process before buying and selling any Bitcoin or other cryptocurrencies. The process of doing so is pretty straightforward.

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What is Libra Coin – Facebook’s very own digital currency

what is libra coin

Facebook recently made a statement regarding the release of their very own digital currency. 

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What is REKT And How Did the Term Grow in Popularity?

what is rekt

With the introduction of Bitcoin margin trading, the term REKT rose in popularity. But what exactly does it stand for?

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What is dApp and how is it changing the world as we know it?

what is dApp

If you’ve been into crypto long enough, you’ve probably come across the term dApp. But what is dApp and how is it important for the future?

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What is Consensus and How is it Relevant to Crypto?

The world of cryptocurrency is governed by complicated processes that ensure the dynamic function and growth of the space. One such process is commonly known as “consensus”.

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What is a DEX and why you should know about it?

what is a dex

Decentralized exchanges are leading the crypto-world into a state of less fake trading volumes, and price manipulation. Here is what you should know.

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What is the Genesis Block and why should you know about it?

what is the genesis block

The “birth” block of Bitcoin signalized the beginning of the world of crypto. But what is the genesis block exactly?

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What is P2P and how does the term relate to Bitcoin?

what is p2p

Exchanging items from one person to another has been around since barter trade times. Now, Bitcoin proudly wears the same label. But what is P2P exactly?

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What is a stablecoin and is it a good investment?

what is a stablecoin

In the volatile world of crypto, stablecoins are the safehouse to “lock” one’s profits. But what is a stablecoin exactly and is it inherently a good concept?

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What is a whitepaper and why do new crypto projects need it?

what is a whitepaper

New companies always present their idea to investors using a compact business plan. Most often, that is a paper that explains the idea in detail and gives information regarding their future plans. So, what is a whitepaper and how is it similar to this?

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What is a Coin Burn and how does it affect cryptocurrencies?

what is coin burn

Many cryptocurrencies have applied this model to their design in order to increase in value over time. Others do it manually. But what is a coinburn and how does it affect these cryptocurrencies?

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What is a bull trap and how does it affect crypto-traders?

what is a bull trap

When you buy Bitcoin after a short upward price movement, you feel like everything will soon be going to the “moon”. Only… reality is a little different. After you buy, you realize you fell for a trap and you are now losing money. So, what is a bull trap and how does it affect cryptocurrency traders?

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What is 2FA and Why do You Need to Know About it?

what is 2fa

2FA has been used by millions of people over the years, in order to protect their personal information and maintain full control of their accounts. So, what is 2fa, how does it protect your account and how can you set it up for yourself?

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