Digital Asset Glossary
A
A is for - Alternative coins or, as they are more popularly called altcoins.
Any cryptocurrency other than Bitcoin is known as an altcoin, and
altcoins are significantly riskier than BITCOIN, ranging from well-established to scam coins.
Sometimes, the term is applied to stable coins.
B
Binance:
Binance is one of the world's largest cryptocurrency exchanges. In 2022 it began strategically acquiring regulated businesses to force heightened competition in regulated companies. Found in 2016 by Changpeng Zhao, it claims not to have headquarters; however, strictly, it is a centralised exchange (CEX). Never leave your digital assets on any exchange.
Bitcoin:
The OG and market leader launched the entire industry in 2009 after the 2008 financial crash. The creator(s) are known as Satoshi Nakamoto, but no one knows their/his/hers identity. Bitcoin is a peer-to-peer electronic cash system.
BNB coin:
In 2017 Binance launched its very own cryptocurrency, BNB. With only 200million tokens ever to be in existence, Binance, every quarter, uses a fifth of its profits to destroy existing coins. This model increases scarcity and value. The token utility is to pay for Binance services, to pay trading fees, or transactions on the blockchain, and BNB is often cheaper to use than Bitcoin and Ethereum.
Blockchain:
A type of distributed ledger, written on open-source software. It is a growing database of time-stamped transactions that are unchangeable. Each new transaction is verified by a network of computers and added as a "block" to the chain. The Bitcoin blockchain renews every 10 minutes but other blockchains vary. Blockchain technology uses hash functions for tamper resistance and integrity.
Burning coins:
As inflation devalues fiat currency, so does it to cryptocurrencies; therefore, as opposed to minting new coins, many cryptocurrencies burn coins, creating scarcity, supply, and demand. In the instance of stablecoins, burning is an important mechanism to maintain equality between the token supply and the asset to which they are backed.
C
Cardano:
Founded by Charles Hoskinson who was also one of the founders of Ethereum, Cardano is a blockchain network that can facilitate peer-to-peer transactions with its own digital currency. Using a proof of stake protocol, it promises to use less energy than Bitcoin or Ethereum.
Central Bank Digital Currencies (CBDCs):
CBDCs need to be on everyone's radar from yesterday. Instead of using the current cash-based system, these would be digital-based currencies run by central banks rather than created by private companies. Many governments are researching and developing CBDCs using the same blockchain technology. Central institutes and banks are concerned about losing control of the world currencies. Often the purported narrative is one of fear regarding instability. However, CBDCs would give centralised powers more power, control and sovereignty over our wealth. Imagine if your purchases can be easily monitored and restricted depending on whether or not the central bank or government agree. We are not fans of CBDCs here at Minted.
Coin:
A cryptocurrency native to its independent blockchain such as Bitcoin, Ether and ADA. A coin is distinct from a token.
Coinbase:
The first crypto company to list on the NY Stock exchange and the largest exchange for US crypto enthusiasts. Coinbase is an excellent entry-level exchange, and Coinbase Pro is better if customers are used to equivalent trading platforms. Fees are higher on Coinbase than Coinbase pro accounting for the ease of use. Customers can deposit crypto assets with Coinbase to lend and earn interest rates higher than traditional banks.
Cold storage:
The most secure way to hold your crypto assets. Cold storage is a computer disconnected from the internet, which acts as a secure vault. This storage option takes a little more technical learning, depending on one's ability.
D
DApp:
DAO stands for Decentralised Autonomous Organisation, and an organisation run on consensus among its members. In contrast to centralised, traditional companies where power lies with a few executives, the power is distributed among community members. DAOs are more challenging to regulate and govern, but they are also slower to make progress due to the consensus mechanism.
Decentralised Finance (DeFi):
DeFi is essentially the opposite of CeFi, centralised finance. Centralised finance is everything we experience in the known world, such as banks, credit cards, mortgages and government bonds. DeFi does away with a centralised intermediary using DApps to execute regular services like lending, savings accounts and trading coins. DeFi is a strong step in the direction of financial autonomy.
Decentralised trading protocol:
Otherwise known as a decentralised exchange, or DEX. DEX allow peer to peer trading, bypassing intermediaries fees. Using smart contracts, automated market makers can trade 24hrs a day, 7 days a week. Uniswap, Sushiswap and Pyth are just 3 DEXs available.
Digital currency group:
A venture capital firm that has funded many projects in the digital asset space, such as Grayscale, Coinbase and eToro, to name a few.
Distributed Ledger:
It is similar to a blockchain, but it does not need to have its data structured in blocks. Nor does it need to use proof of work to mine tokens. A distributed ledger is a public record of deals disseminated and copied by a network of computers. They operate together to verify transactions, make an immutable ledger, and do away with the requirement for a central authority.
Dogecoin:
An altcoin that initially began as a joke to highlight the speculative nature of cryptocurrencies in 2013. It uses a Japanese Shiba Inu dog as its mascot and has surged in popularity and value despite its beginnings. Dogecoin's profile peaked in 2021 when Elon Musk started tweeting about his involvement. In Bitcoin maximalist circles, Dogecoin and all altcoins are labelled as shitcoins. Although a few whales have promised to hodle their coins if sold, the price will plummet.