Despite the advent of Bitcoin in 2009, it’s only in recent times that you can not turn off the news or surf the internet without any news on digital currency. One such big event in the crypto space presently is the news of the crypto ban in India. So it is important for you to understand some of the most searched crypto terms in India presently.
Recently, there has been a lot of hype in the Indian market regarding the crypto ban. The government may put forward a new crypto bill in this winter parliament session that will set many regulations on digital currency use in the country. In this respect, we will have a look at the most searched crypto terms in India and also understand their meaning.
10 Most Searched Crypto Terms In India
There are many who are still not used to the crypto world and they tend to get out of the track while reading any news on crypto. So this article will not give you any news or any financial advice, instead, it will help you to know the most searched crypto terms which you will need in your daily crypto knowledge. You will get many cryptocurrency terminology pdfs on the internet. Bitcoin is the most searched cryptocurrency on google this week. We have mentioned just the ten most important among them.
The first most searched crypto term is the blockchain network. Every transaction in digital currency is processed, verified, and is recorded on a digital ledger that is known as the blockchain. When someone purchases or sells using digital currencies like Bitcoin or any other altcoins another entry is done on the digital ledger.
You can think of blockchain as a series of boxcars of a train. When any digital currency transaction is made, another boxcar is added to the train. The b blockchain network is completely decentralized which implies that it is not stored on any particular machine or even throughout one network. Instead, it prevails on computers all over the globe that can be accessed because of the internet.
Companies and people help to verify each transaction that is added to the blockchain using the processing power of their own computer on a peer to peer network that is completely decentralized. Every transaction is timestamped, cannot be reversed, and is individually encrypted. Yes, you read it right. Digital currency transactions cannot be reversed.
Here are the second most searched crypto terms explained. Fiat currency is the currency that is issued by the government of any nation. If you are residing in the United States then your fiat currency is the U.S Dollars. On the other hand, digital currency is a virtual currency.
Cryptocurrencies are not backed by the government or any other standards that are used with the traditional currency. Each crypto “token” represents the value that is owned by you.
The worth of each token differs based on the present value of the market. One day it increases and the next day it decreases. With digital currencies, price fluctuations can take place faster and more extreme – both negative and positive. There are many websites that will help you to check the present price of all cryptos.
This is an easy cryptocurrency term to remember. Any crypto which is not Bitcoin is Altcoin. There are more than thousands of digital currencies in the crypto space and more are added with each passing day. Bitcoin and Ethereum are the most googled cryptocurrency 2021. At the time of writing this, the top 10 digital currencies as per CoinMarketCap are:
- Bitcoin – $55,269.00
- MMS Cash Token – $1.00
- Ethereum – $4,115.78
- Binance Coin – $573.71
- Tether – $1.01
- Solana – $191.53
- Cardano – $1.54
- XRP – $0.95
- Polkadot – $35.59
- USD Coin – $1.00
To purchase digital currency, you need to begin with an exchange. Think of a crypto exchange to be a crypto middleman. It is an online service that enables you to exchange your fiat or traditional currency into fiat currency. If you are accustomed to traditional investing, a cryptocurrency exchange functions as a brokerage. A user can deposit their money via a bank, through debit card, by wire, and other standard methods of deposit. You will have to pay a fee for most of the transaction.
You can also purchase digital currencies through applications that you already may be using like Cash App, Robinhood, Venmo, etc.
In general terms, a digital currency wallet is a physical storage device or an app that enables you to store and retrieve your cryptocurrency. Wallets can hold numerous cryptos, so you are not limited to just BTC, for instance.
Whether you avail of an app or a physical wallet, it is crucial to note that the currency itself isn’t stored there. Rather, crypto wallets store your currency’s location on the blockchain.
Wallets are divided into two primary categories: Hot and cold. A hot or online wallet is, by definition, linked to the internet. The most secure process to store your digital currency is with a cold wallet which is the one that is not connected to the internet.
Physical wallets come in varied types but are mainly specially created USB drives that directly store your digital currency for later use. These wallets offer you the most protection from hackers.
Two famous cold wallets are the Trezor Model One and Ledger Nano X. Of the two, we recommend the Ledger Nano X as it supports 23 varied types of digital currencies and has additional features.
You have probably come across this term that is linked with Bitcoin, which is formulated by mining. Computers can mine coins by solving complicated math problems. The more powerful the computer is, the faster it can “think.”
Now, if your own computer is the fastest one to solve the complex problem, bingo – you win one unit of whatever digital currency you are mining.
While there are a few digital currencies out they are with an infinite supply, most have a limit. In the case of Bitcoin, that limit is 21 million. The last coin will be successfully mined in 2140 or sooner.
Here’s another simple one. DeFi stands for decentralized finance. This cryptocurrency term implies financial transactions that happen without a “middleman,” like a bank, the government, or another financial institution.
You have heard of them: Non Fungible tokens. Among the many cryptocurrency terms mentioned, this is a very important one. That is a fancy way of saying, “This digital item is one of a kind and irreplaceable.” It is applicable to anything that you can imagine, from online artwork to songs, articles, viral videos, text logos, and GIFs.
Some people collect wines, vintage cars, famous art, and baseball cards. Now, any digital commodity also can be changed into a collectible. They also operate as status symbols online.
The only way to purchase an NFT is by using digital currency. You can purchase an NFT through a platform of the auction, secondary marketplace, or by taking part in a mint.
Minting is how a file, like a GIF or JPEG, is recorded to a blockchain. After there is a mint of an NFT, it can be traded or sold. If you are taking part in a mint, that implies you are the first person to purchase that work from its creator. You can sell it, hold it, or even trade it.
During the process of minting, the creator mentions the royalties they get from future sales. This works as commission if the work alters hands in the future and is a big attraction for artists who are searching to go digital. If you sell an NFT on a subsidiary marketplace, it likely receives a cut of the sale as well.
This is among the cryptocurrency terms you may see on social media. HODL denotes “hold on for dear life.” Some assert that it originated as a misprint of the word “hold” on a BTC forum way back, but now it is everyday slang. The concept behind it is simple: If you think a currency or a project will receive more value, just “hodl” even via dips in the market.
Hope by now you have understood some of the crypto terminology and it will be easier for you to keep a track of the news that is happening globally. We have discussed some of the cryptocurrency terms for beginners as well. Digital currency is a hot topic in the financial market presently. Many countries are trying to regulate while some are banning it completely. Many global authorities are investing in famous digital currencies while some countries are stopping to receive payments in digital currencies. Apart from the terms that we have mentioned above, there are many other crypto terms – Fomo, satoshi, crypto trading. It is a volatile industry and so it is required for you to keep yourself updated about this topic regularly.
One such big event in this industry is the crypto ban in India. India soon may ban all private cryptocurrencies and may issue their own digital currency that is known as the Central bank Digital Currency. In this respect, we have noted the most searched crypto terms on the internet that you should also know.