Bitcoin is on everyone's lips, but getting started can be confusing with a variety of technical terms. Here are the 20 most important terms that beginners should know:
1. Blockchain: A decentralized and distributed database that stores transactions securely and transparently.
2. Cryptocurrency: A digital or virtual currency that uses cryptographic techniques for its security.
3. Bitcoin: The first and most famous cryptocurrency, introduced by Satoshi Nakamoto in 2009. Also the only decentralized cryptocurrency.
4. Altcoin: Any cryptocurrency other than Bitcoin, such as Ethereum, Ripple and Litecoin. Altcoins represent centralized or distributed networks, which, however, do not fulfill the aspect of decentralization, as a central entity always manages the network.
5. Bitcoin Wallet: A digital wallet that allows storing, sending and receiving Bitcoin.
6. Bitcoin Mining: The process in which, on the one hand, the Bitcoin network is secured and, on the other hand, new Bitcoin are created by applying energy.
7. Hash: A cryptographic function that converts data into a specified string and is used to secure information on the blockchain.
8. Smart Contracts: Self-executing contracts based on the blockchain that are automatically executed when certain conditions are met.
9. ICO (Initial Coin Offering): A financing method in which new cryptocurrencies are introduced by selling tokens to investors.
10. Fork: The fork of an existing blockchain that leads to a new version, such as hard forks and soft forks (example Bitcoin Cash)
11. Private Key: A secret key that allows one to access their cryptocurrencies and authorize transactions.
12. Public Key: A public key that allows others to send cryptocurrencies to a specific wallet.
13. Exchange: A platform where cryptocurrencies can be bought, sold or exchanged.
14. All-time high: All-time high of the price of a cryptocurrency in fiat currencies.
15. Stacking Sats: Regular saving in Bitcoin, e.g. in the form of a weekly or monthly savings plan.
16. Bitcoin Whale: An individual or group that owns a significant amount of Bitcoin and can thereby exert an influence on the price.
17. FOMO (Fear of Missing Out): The fear of missing out on a lucrative opportunity, which often leads to impulsive investment decisions.
18. Market Cap: The total value of all units of a cryptocurrency in circulation.
19. Fiat currencies: The current government-run inflationary currencies such as the dollar or euro.
20. Hardware wallet: A wallet that is not connected to the Internet and is therefore protected from hacker attacks (e.g. the Bitbox).
With these basic concepts you will be better equipped to dive into the fascinating world of Bitcoin.
