▎🔖Crypto Terms for Beginners You Must Understand
▎🚩Technical Terms You Need to Know
🔥 Blockchain: Like a digital ledger, all transactions are recorded in it, and no one can cheat because it is distributed across the network. Think of it as a public and secure record. 📖
🔥 Transaction (TX - Transaction): When you transfer coins from your wallet to another wallet, that’s the transaction, and it gets recorded on the blockchain. 🔄
🔥 Wallet: A program or device that stores your private keys which control your coins. There are two types:
🔥 Hot Wallet: Connected to the internet, like mobile apps.
🔥 Cold Wallet: Not connected, like a USB device (such as Ledger). 📧
🔥 Smart Contract: A program that runs automatically on the blockchain when certain conditions are met, meaning for example it transfers money without the need for an intermediary. 🤖
🔥 DApp: Decentralized application, meaning it is not affiliated with a specific company, like trading platforms or even games on the blockchain. 🎮
▎ 🚩. Investment and Money Terms
✅ DeFi (Decentralized Finance): A financial system without banks or intermediaries, entirely on the blockchain. You can borrow, sell, buy, invest, everything is decentralized. 💰
✅ Staking: When you lock your coins on a specific network, you help keep the network secure and earn interest on them periodically. 🌱
• ✅ (LSD - Liquid Staking Derivatives): A token that represents the coins you have staked, you can sell them or use them in DeFi without unlocking them. 🗝
