A cryptocurrency (or “crypto”) is a digital asset that can circulate without the need for a central monetary authority such as a government or bank. Instead, cryptocurrencies are created using cryptographic techniques that enable people to buy, sell or trade them securely.

When purchasing cryptocurrencies from a crypto exchange, you’ll need some sort of crypto wallet to hold your digital assets. Also, a crypto wallet is essential for interacting with blockchains and executing orders. Crypto wallets provide users with a unique address. This wallet address is an identifier that directs funds to and from the correct place whenever you interact with the blockchain and helps investors to see where their funds are.

Coins are any cryptocurrency that has a stand along independent blockchain. A few examples are Bitcoin, Ethereum and Litecoin. Tokens are cryptocurrencies that are built on existing blockchains. They live on other blockchains to benefit from the technologies that each blockchain offer.

A stable coin Is a crypto asset that is pegged to an asset that has a stable price, such as fiat currency or precious metal. They are designed to avoid the high volatility in the cryptocurrency market.

An online service, usually website or mobile app, that facilitates for a fee, the exchange of fiat currencies for cryptocurrencies, or the exchange between different cryptocurrencies. There are two exchange models: Centralized and Decentralized.

DeFi stands for Decentralised Finance using Blockchain Smart Contracts a person can send and receive Cryptocurrencies any interaction of intermediate banks, brokers, exchanges or financial institutes.

A Smart Contract is an application or program that runs on a blockchain. A digital agreement – it works by a specific set of rules that are enforced. These rules are predefined by computer code.

Abbreviation for Know Your Customer/Client, generally relates to the information new customers must provide to open an account with an exchange and prove their identity. A Centralized Exchanges (CEX) is required by local regulation to collect KYC whereas a DEX isn’t bound by the law of any specific location.

The Dollar Cost Averaging (DCA) method of purchasing involves buying a set value of a cryptocurrency at regularly scheduled intervals. It could be once a week, once a month or every day. This method contrasts quite differently to throwing all your funds in at once and waiting impatiently for instant profits. An example of DCA buying would be to purchase $10 in bitcoin per week, for a three-year or longer period of time. Buying in this manner is considerably less of a strain on your emotions and financially it’s far less risky as well.