in ,

Bitcoins Glossary – Know the Different Terms

You can trade bitcoin without any intervention from the government and bank, but you need to know the different terms used for BTC trading before you open your crypto account. It is a virtual token that can be used for buying goods and services, and is a completely decentralized currency based on the P2P network. Here, you can find some basic terms used for bitcoin trading and mining: 

  • Encryption: Ciphering technology is used for the encryption of Bitcoin data, and it means that you cannot access certain data without entering your password or safety code. For example, BTC wallets and accounts are encrypted with password and you can enable two factor authentication to keep your wallet safer. 
  • Cryptocurrency: It is a well know term and people know about cryptocurrency. Digital or virtual currencies like tokens, coins and contracts are known as crypto currencies, which are similar to fiat currency, but available in virtual form only. 
  • Blockchain: It is a public ledger used to store the records of Bitcoin transactions. All transactions stored in this ledger is open for public and anyone can see such transactions. 
  • Nodes: Machines used to keep your bitcoin network running and operational is known as nodes. Transactions made with BTC is stored in these nodes or blocks. Each node has a capacity and once it is filled with data, a new node or block will be added to the network automatically. 
  • Private key: You cannot make a transaction with bitcoin and transfer your coin from your wallet to another wallet without entering your private key. It is a secret key that you should not disclose or share with anyone, and it is a series of random digits available on your BTC wallet. 
  • Bid: You need to sell your coins to keep your funds safe and you must place a bid to sell your coins. 
  • Public keys: It is a series of random digit available on your wallet and you can share your public key with another user to receive funds. He or she can use your public key to transfer funds from his or her wallet to your wallet. 
  • QR code: You can find a QR code on your wallet and you can use it to receive funds from another user. Apart from that, you can use this QR code on a Bitcoin ATM to access your account. 
  • BTM: BTM means Bitcoin ATM. Bitcoin ATMs are available in limited cities and you can buy or sell your coins through these ATMs. But one has to pay some fees for using the same. 

Key terms of crypto ecosystem

Everything in bitcoin network is run on software and bitcoin network is open for 24×7, 365 days. You cannot invest or trade stocks after office hours, but your can invest and trade bitcoin anytime from anywhere. Here you can find some common terms that you need to consider while you mine or trade BTC: 

Cryptography: It is a software program that is used to maintain the blockchain network of BTC. People can transfer bitcoin through online and all these transactions are validated and encrypted through cryptography. It is a mathematical approach that can be solved by nodes or machines, and it is a program that can safeguard your investment made on BTC. 

Hardware: Miners can use different types of advanced hardware to mine such coins, and CPU or GPU is required to mine bitcoin. You cannot mine BTC with your Smartphone and PC, and you need to invest a huge amount as power consumption cost every month to run such advanced machines and hardware. 

 Miners: Miners are the trained professionals who are working on the bitcoin network to validate the transactions with bitcoin and they can add a new block by validating such transactions. But they have to solve some complex math problems to validate a transaction. Now, group of miners are working on the same network to mine such coins. Once they successfully min such coins, they will get a reward of BTC. It is based on proof of work system. 

Closing thoughts

So, now you can understand the different terms used in bitcoin trading, and you can start your trading through bitcoin-champion.

What do you think?

Written by MSM Riham

Leave a Reply

GIPHY App Key not set. Please check settings

    Is Bitcoins Secure?

    5 Aspects in Favor of Bitcoin Investments