There’s no better time than right now to start nailing down important crypto terms…

The barrier to entry for crypto is high. There’s a lot of technical, confusing language surrounding the niche. It’s important to understand what all these terms mean.

So I’m here to help. I want to help lower the barrier to entry. You don’t have to search the internet far and wide for this crucial information. Just read on!

And take notes. These terms will come in handy as you navigate the volatile, intriguing world of crypto.

By the way … I’ll be talking about some crazy crypto opportunities in thorough detail TONIGHT. 

>> Click here to register for my LIVE Crypto Moon Jumps Webinar at 8 p.m. Eastern! <<

Now let’s dive in.

Essential Terms for Crypto Traders

Address: A digital address is kind of like a home address. Just like you get mail sent to your home address, you can have crypto sent to your digital address. Digital addresses are long strings of letters and numbers.

Altcoin: Altcoins are the penny stocks of the crypto world. The market caps are small, and most of them fail. But the ones that go supernova deliver some of the biggest gains ever (just google SHIB or DOGE).

Blockchain: It’s called a blockchain for a reason — it’s a chain of blocks. These blocks are made up of different transactions which use cryptography to maximize their security. (I know, it’s complicated). See the cryptography definition below.

Crypto Derivatives: Crypto derivatives are just like options contracts on underlying stocks. But instead of stocks, the underlying security is crypto.

Crypto Exchange: Exchanges are the platforms on which cryptocurrencies trade. Just like stocks have the New York Stock Exchange and Nasdaq, crypto has exchanges as well (like Coinbase and Binance).

Cryptography: Cryptography is the practice used to keep crypto transactions secure. By definition, it’s the study of secure communication techniques that allow only the sender and the recipient to see the message. 

Crypto White Paper: A white paper is like a blueprint for a crypto project’s overall plans, goals, and ambitions. It’s usually a long document detailing the technical and fundamental applications of what the specific token does.

Decentralized Finance (DeFi): DeFi is the whole idea that crypto’s based upon. The idea is this: we don’t need centralized financial institutions to control our money. Through the security of blockchains, we can exchange our digital assets directly, peer-to-peer. 

Direct Acrylic Graph (DAG): DAGs provide an alternative to blockchains as a place to store cryptocurrency transaction data. As opposed to using blocks, DAGs use vertices that are then stored on top of one another.

Gate.io: Gate.io is a well-known altcoin exchange. If you’re looking to trade speculative coins (for example, SHIB) that aren’t hosted on major exchanges like Coinbase, Gate.io is your place.

Hash: Hashes are unique, complex algorithms used to secure the blocks and connect them. The complicated nature of this process is what makes the blockchain so secure. 

MainNet: A MainNet is an independent blockchain running its own network with its own technology. They’re what makes it possible to send and receive cryptocurrencies — the primary goal of most blockchain projects.

PancakeSwap: PancakeSwap is like the Wild West of crypto exchanges. It’s a completely decentralized, secure finance protocol with no order books, bid/ask system, or limit/market orders.

Rosetta: Rosetta is a middleware application developed by Coinbase with the goal of making blockchain integration easy and accessible on its platform. 

Simple Agreement for Future Tokens (SAFT): SAFTs are deals offered by cryptocurrency developers to potential investors. Usually, the investors agree to finance the developers’ projects in exchange for discounted crypto tokens at a future date.

Smart Contracts: Smart contracts are programs that are built to trigger when certain conditions are met. They’re used so that everyone involved in an agreement can be confident in the execution. 

Staking: To stake, you must commit your crypto assets to support a blockchain network and confirm transactions. In exchange, you receive interest payments on your assets. Blockchains need these assets to function, so staking is a mutually beneficial process. 

Swap Instrument: A swap is an agreement between an investor and a prime broker, wherein by agreeing, the investor is granted risk exposure to a portfolio of stocks or other risk assets in exchange for a fee. Swaps exist for both stocks and crypto.

Testnet: Testnets are like blockchains with training wheels. They’re used to test the potential of blockchain projects by using separate and distinct coins, which avoids the possibility of endangering the primary network.

Token: Tokens are the actual currency part of cryptocurrency. They can be used for many purposes — like storing value, making purchases, or proving work. 

Token Burning: Token burning is when coins are sent to a wallet with no address, effectively making them disappear. This causes the overall supply to shrink (and often demand to rise).

Token Use Case: A “use case” is an application that cryptocurrency can potentially be useful for. There’s a nearly endless list of potential use cases — which is a big reason why crypto prices are soaring. 

Uniswap: Uniswap is a crypto exchange built on a network of DeFi apps. It runs automated transactions between cryptocurrencies on the Ethereum blockchain by using smart contracts.

The Must-Know Crypto Terms Wrap

Feel smarter yet?

It’s OK if it hasn’t all sunk in yet. There’s a lot of crypto terminology to understand. But come back to this post as needed to help make sense of it all.

But I hope this list of key terms helps you fill in some knowledge gaps. 

There’s no denying that crypto is SIZZLING hot right now … That means opportunities galore. 

Don’t know what they are? Register for my NO-COST Crypto Moon Jumps LIVE Training tonight at 8 p.m. Eastern if you haven’t already. I’ll teach you everything I know about catching these huge leaps!

>>> Click here to RSVP to tonight’s Crypto Moon Jumps event — it won’t cost a dime!

To the moon!

Matt Monaco