đ The words of the day - Crypto glossary #2
Understanding crypto is also about speaking the right language. Here are 7 new essential words to better navigate the crypto ecosystem:
- Token: A digital token issued on a blockchain, often used in specific projects or platforms. Ex: UNI, LINK, MATIC.
- DApp (Decentralized Application): Decentralized application running on a blockchain, without a central authority. Example: Uniswap or Aave.
- Gas Fees: Transaction fees paid to execute an operation on blockchains like Ethereum.
- Halving: A regular event on Bitcoin that halves mining rewards. This often impacts the price of BTC.
- Staking: Locking up your crypto to secure a network (Proof of Stake) and earn passive rewards.
- Liquidity Pool: Reserve of tokens locked in a smart contract to facilitate the exchange of crypto in DeFi.
- Bear Market: Prolonged bearish market where prices decline sustainably. The opposite of a bull market.
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