š„Are you new to Binance and see everyone talking about Trading, Staking, or Tokens and don't understand what it means?š¤
āØHere I show you the meaning of several terms necessary for you to build your path in Binance!š
1. Blockchainš
"Chain of blocks", securely stores information where each block contains data such as transactions or other operations and is connected to the previous one.
2. Walletš°
It's like a bank account where you store and have control over all the cryptocurrencies you own.
3. Token/Coinšµ
A token is a digital unit CREATED on an existing blockchain, it can represent value, utility, or ownership. There are different types of tokens:
- Utility Tokens
- Governance Tokens
- Security Tokens
- Stablecoins
- NFTs
šDifference with Coin:
It is a cryptocurrency that operates on its own Blockchain, mainly used as a means of payment. (Ex: BTC, ETH, BNB).
4. Stakingā
It is a process where you lock your cryptocurrencies to support the security and functioning of a Blockchain and in return receive rewards.
5. Tradingš»
It consists of buying and selling cryptocurrencies with the aim of making profits by taking advantage of price variations (when it goes up or down). There are different types of trading:
- Scalping
- Day Trading
- Swing Trading
6. Airdropš
They are free rewards distributed in the form of tokens for supporting projects, signing up, completing tasks, etc.
7. HODLš
It originated from a misspelling of "HOLD" on a forum, it consists of holding your cryptocurrencies without selling them, trusting that their value will increase in the long term.
šThere are still many terms missing! Comment "Second part" to continue with this glossary or comment the term you don't know so it can appear in another post.
Good luck on your journey in Binance!šŖ
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