Our last article in this cryptocurrency series covered NFTs and its investment insurance possibilities for the future. So remember that the NFT are tokens or tokens which are also developed by the technology of the blockchain. The NFT is not a cryptocurrency, for the simple reason that these NFTs are not fungible, meaning that one NFT is not equal to another NFT. He displays proof of authenticity and signatures of a unique identifier, a unique creator or even unique content.
On the other hand, NFTs are digital assets which have a monetary value on which it is possible to invest and make profits. At the same time it is necessary know that NFTs do not limit their use to this area of investment uniquely. They also have applications in different fields such as art, gaming and other sectors which are numerous.
In this article we will look at the vocabulary that must be remembered to getting started with cryptocurrencies. To better understand the world of crypto- currencies you need to know bitcoin first. It is the very first cryptocurrency which became known to the world in 2008. Bitcoin is the leader of crypto- currencies. Bitcoin alone represents 45% of the capitalization of the entire all cryptocurrencies combined. It is the engine of the entire market and this the latter remains sensitive to bitcoin fluctuations. It is at the stock market price of Tesla stock that the price of bitcoin has been pegged since around 2020.
What you need to know next is blockchain. It is a technology that allows group all the blocks in the transaction chain of a cryptocurrency. There blockchain makes it possible to store and transmit information necessary for transactions in transparency and security, without intervention of any other control institution. To put it simply, it is a register of public, anonymous and tamper-proof accounting.
Also comes cryptography which is a branch of mathematics which deals to solve very complicated mathematical problems that require rely on the verification and security of transactions carried out on a blockchain.
There is the acronym DeFi for Decentralized Finance, which names an ecosystem of financial services thanks to the blockchain without any other financial intermediary. DeFi serves a purpose of creating an independent monetary and financial system that does not use traditional financial institutions. The best known of its applications are obviously crypto-currencies but also borrowing and ready.
The Exchange platform is a platform allowing the exchange of cryptocurrencies among themselves on the one hand and also buy or sell them by a currency that has legal tender. Some exchange platforms, such as Coinbase also allows you to keep your cryptos active.
A fork born from a split after a disagreement within a community on the way to use blockchain technology. This split then led to a new cryptocurrency from an old one. The two cryptocurrencies coexist very well without the new one taking precedence over the first. most known to Fork is the one that generated Bitcoin Cash in 2017, without it fails to establish itself as a real alternative to Bitcoin.
FIAT is a currency created by a central bank and which has legal tender in one or more countries such as the Euro, the dollar, the Ruble…
ICO is an innovative way for any company to raise capital in issuing tokens instead of issuing shares.
Mining is also a term to remember in the jargon of the crypto world. currencies. It comes from the verb mine. And that actually means a provision of power of your computer in order to validate and increase transactions on the blockchain. In exchange the miner earns through tokens.
PSAN, PSANs are digital asset service providers. In others words they are financial subcontractors offering different services relating to investing in crypto-assets. This is at least according to AMF which created this status in order to to better regulate the activities of purchasing and/or selling and storing crypto-assets. There are two levels of PSAN to distinguish: Registration which is compulsory and approval which is optional.
The registration of all PSANs is therefore obligatory because they practice or more of these activities:
-Hold digital assets on behalf of third parties
-The purchase/sale of digital assets against a currency having legal tender or against other digital assets (brokerage).
-Operate a digital asset trading platform (stock market).
-Finally other services on digital assets such as reception and transmission orders on behalf of third parties, portfolio management on behalf of third parties, advice, underwriting, guaranteed or unguaranteed placement.
This vocabulary is not exhaustive. There are still a few more keywords left We will have to explain in our future articles if the editorial team deems it necessary.
