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A Guide to Monero (XMR) and Cryptocurrency Terms for Beginners

Cryptocurrency experts advise beginners to research carefully before deciding on which coins to get, the exchange to use, wallet to purchase, and so much more. As you read through resources, terms unique to crypto may overwhelm you. This is a glossary of terms you’ll often come across as you educate yourself.

Address

A crypto address is a set of characters corresponding to a wallet where you can send or receive crypto. A Monero public address is a string of 95 characters starting with 4.

Altcoin

Alternative coins or altcoins are coins other than Bitcoin.

ASIC

Application-Specific Integrated Circuit (ASIC) is an expensive device with a strong computing power often used to mine crypto.

ASIC-resistant

Developers of Monero took measures to make sure that mining for XMR is incompatible with ASIC equipment. This makes Monero ASIC-resistant, unlike other crypto.

Block

A block holds transaction data. When a block is filled, it is closed and linked to a previously filled block. This link of filled blocks forms the blockchain. Blocks are created through mining.

Blockchain

It is a huge file of information which lists all transactions that were ever made. It’s essentially an immense digital ledger that is like a physical ledger that a bank uses to record transactions.

Bulletproofs

Bulletproofs are a new mathematical system in Monero that guarantees a transaction occurred without disclosing the value.

Cryptography

It’s a system that cryptocurrencies use to make information about transactions secret and secure.

Exchange

A crypto exchange is a platform on a website or app where you can get coins.

Fees

It’s a certain amount that miners earn from completed transactions collected by crypto exchanges.

Fiat

Fiat money or fiat is a legal tender issued by a government, such as the US dollar, the British pound, or Philippine peso.

Fork

Blockchains are decentralized. A fork happens when the community behind a blockchain applies a change to the protocol or rules. Implementing forks can improve or update the blockchain to add functionality or increase security.

Fungibility

Fungibility is the interchangeability of a crypto. Each coin is equivalent to another. Monero uses privacy technologies that make each XMR truly indistinguishable and doesn’t suffer from the possibility of being tainted or blacklisted, unlike other cryptos.

Market Cap

Market capitalization or market cap is the total value of all the coins that have been mined.

Mnemonic Seed

A 13 or 25-word phrase, which serves as a backup of a Monero account. Users need the seed phrase to access their accounts and view, spend, or send XMR.

Node

A node is a computer connected to a crypto network. The node supports the network by validating transactions, keeping the network safe, and relaying information.

P2P

Peer-to-peer or P2P refers to a direct exchange between traders without a third party.

Private Key

A private key is an encrypted password to your crypto. It is a string of letters and numbers that proves ownership and allows you to access and manage your digital funds.

Public Key

Public keys are used to send crypto into a wallet. They are like mailing addresses, which you can give out and other people can mail you letters or packages. In crypto, you provide a public key where senders can deposit crypto, but they don’t have access to your account.

Proof of Work

Proof of work or PoW is a cryptographic method, which cryptocurrencies use through mining to verify the authenticity of transactions added on the blockchain. Examples of coins that use PoW are Monero, Bitcoin, and Dogecoin.

Proof of Stake

Proof of stake or PoS is an alternative to PoW. Instead of reaching a consensus by using the computing power of miners, validators must stake coins to forge new coins rather than mine. Cardano, Polkadot, and Solano are some of the crypto that uses PoS.

RingCT

RingCT or ring confidential transactions conceal the amount of XMR in a transaction.

Ring Signatures

Monero uses this technology to maintain a sender’s privacy.

Stealth Addresses

Stealth addresses keep the privacy or a recipient.

Wallet

This is where you store, send, and receive crypto, just like what your wallet does in real life. You use a hot wallet online and it makes transactions convenient. A cold wallet is offline storage for your crypto, which is safer but less convenient than a hot wallet. Experts recommend all crypto owners to have both.

If you have Monero (XMR) in your digital portfolio, make sure you store it in XMRWallet where you can send and receive Monero instantly on the blockchain while remaining in complete control of your coins and your keys. Create your XMRWallet now!

White Paper

White paper or whitepaper is a document released by the developers of a crypto. It explains the technologies they used, the purpose of the project, and a coin’s functions.

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