10 DeFi Terms You Should Know | Part 1 – 🌐 Biswap News Portal

Hi, Biswappers!

Robi prepared the most common crypto terms to use during daily conversations with like-minded people and to search for the information correctly. Ready to boost your knowledge? Let’s start!

#1 DeFi

DeFi is an abbreviation of the term decentralized finance. In simple words, DeFi is an ecosystem of various cryptocurrency services and applications that use blockchain technology. Thus, users can receive services without the participation of centralized intermediaries such as banks, exchanges and brokers. All you need is access to the Internet.

#2 Token

It is a digital asset launched by the blockchain and acts as a means of payment. Thanks to tokens, users gain access to goods and services. Tokens can be compared to amusement park tickets. By purchasing a ticket, a visitor can ride a roller coaster and buy popcorn and a drink, but outside the park, the token is no longer valid. It is the same in the crypto world: a token is a ticket, and a project is an amusement park.

#3 Altcoins

Altcoins are any cryptocurrency that is not Bitcoin and stands for alternative coin. Each altcoin is an attempt to improve Bitcoin with new features and capabilities. The most famous altcoins are Ethereum, Litecoin, Ripple, Tether etc.

#4 Paper wallet

Paper wallets (a piece of paper) are the type of wallets where people print the keys of a cryptocurrency address. Most often displayed in the form of QR codes. This type is also called “cold storage” because it is not exposed to scammers.

#5 Hash rate

A unit of measurement that shows how many calculations per second the Bitcoin network can perform: 1 tera — 1 trillion calculations in one second.

#6 All-time high / all-time low

It means the highest or lowest price the asset has ever had. Bitcoin had an all-time high of over $68 000, and an all-time low was $0,0025.

#7 Fork

The process during which the rules of the network are changed, and the blockchain is divided. There are two types of forks: soft and hard.

As a result of the hard fork, a new cryptocurrency is formed, as innovations divide the chain into two parts that cannot interact with each other. This is how Bitcoin Cash, Bitcoin Gold, and Ethereum Classic appeared.

A soft fork distributes the chain so that the two parts can interact. In this case, a new cryptocurrency is not formed.

#8 Fiat

Fiat — the currency we use daily (dollar, euro, etc.)

#9 Halving

The process of halving the remuneration for miners for adding a new block to the blockchain. It happens every 210,000 blocks (once every four years). There have been three halvings, and the reward is 6.25 BTC per block.

#10 FUD

Fear, Uncertainty, Doubt. A method of manipulating investors and traders in the crypto market in order to set a pessimistic mood.

Closing Words

Robi hopes now the crypto language is more clear for you! The second part is soon!