Introduction to Cryptocurrency Terms
Welcome to the fascinating world of cryptocurrency!
This digital landscape is full of unique concepts and technologies. To help you navigate through it, here's an easy-to-understand guide to some key terms.
ADA
ADA is the native cryptocurrency of the Cardano blockchain platform. Cardano is a decentralized platform that aims to provide a more secure and scalable infrastructure for the development of smart contracts and decentralized applications (DApps). ADA serves as the fuel for transactions and other operations on the Cardano network.
BCH
BCH stands for Bitcoin Cash, which is a cryptocurrency that was created as a result of a hard fork from the original Bitcoin blockchain in August 2017. The fork occurred due to disagreements within the Bitcoin community regarding the scalability of the Bitcoin network and how best to address it.
Bitcoin Cash was created to increase the block size limit of the Bitcoin blockchain, allowing for more transactions to be processed per block and improving transaction throughput. The larger block size was intended to reduce transaction fees and improve transaction confirmation times, making Bitcoin Cash more suitable for everyday transactions.
BTC
BTC stands for Bitcoin, which is the first and most well-known cryptocurrency. It was created by an anonymous person or group of people using the pseudonym Satoshi Nakamoto and was introduced in a whitepaper titled "Bitcoin: A Peer-to-Peer Electronic Cash System" published in 2008.
Bitcoin operates on a decentralized network of computers, known as nodes, which collectively maintain a public ledger called the blockchain. The blockchain records all transactions made with Bitcoin, allowing for transparency and immutability.
Cryptocurrency
Digital or virtual money that uses cryptography for security and operates independently of a central authority, such as a government or bank. Examples include Bitcoin, Ethereum, and Ripple.
Cryptocurrency Exchange
A cryptocurrency exchange is a digital platform where users can buy, sell, and trade various cryptocurrencies, such as Bitcoin, Ethereum, and others, using fiat currency or other cryptocurrencies.
Deposit
Crediting of your account with cryptocurrency funds coming from your crypto exchange or different crypto vendor.
Dogecoin (DOGE)
Dogecoin (DOGE) is a cryptocurrency that started as a joke or meme in December 2013. It was created by software engineers Billy Markus and Jackson Palmer, inspired by the popular "Doge" meme featuring a Shiba Inu dog with humorous captions in broken English. Despite its origins as a joke, Dogecoin has developed a strong and active community and has gained significant popularity and adoption over the years.
It is accessible through most Crypto Currency exchanges. Bombastic customers like it mostly due to low sender's fees.
ERC-20
ERC-20 stands for Ethereum Request for Comment 20, which is a standard interface for fungible tokens on the Ethereum blockchain. Fungible tokens are digital assets that are interchangeable with each other, meaning one token can be exchanged for another token of the same type and value. The ERC-20 standard defines a set of rules and functions that Ethereum-based tokens must follow to facilitate interoperability between different tokens and allow them to work seamlessly with various decentralized applications (DApps), exchanges, and wallets.
One of the cryptocurrencies at Bombastic on ERC-20 is Thether (displayed as USDTE in Bombastic cashier, where E defines ERC-20 standard).
Other examples of tokens that adhere to the ERC-20 standard include popular cryptocurrencies such as Chainlink (LINK), USD Coin (USDC).
Fiat currency
Money that's not backed by anything physical like gold or silver. Its value comes from people trusting the government that issues it. Examples include the US dollar, Euro, and many others.
Network
A cryptocurrency network refers to the underlying infrastructure that facilitates the transfer, storage, and verification of transactions involving cryptocurrencies. It is a decentralized network of computers (nodes) that work together to maintain the integrity and security of the cryptocurrency system.
On many websites, you will find a field Network or Protocol. The field is most likely defining the technical standard. It is a very important field determining the type of assets that can be sent to that address. Some examples of the standards to demystify the field that you will find on your Cryptocurrency vendor Receiving infrastructure:
ERC-721: Also known as the Non-Fungible Token (NFT) standard on Ethereum, ERC-721 defines a set of rules for creating unique, indivisible tokens. These tokens are used to represent ownership of digital assets such as collectibles, digital art, and virtual real estate.
BEP-20: BEP-20 is a technical standard used on the Binance Smart Chain (BSC), similar to ERC-20 on Ethereum. It defines rules for creating fungible tokens on the Binance Smart Chain, enabling compatibility with BSC-based applications and wallets.
TRC-20: TRC-20 is a technical standard used on the TRON blockchain, analogous to ERC-20 on Ethereum and BEP-20 on Binance Smart Chain. It defines rules for 4creating and interacting with fungible tokens on the TRON network.
XRC-20: XRC-20 is a technical standard used on the XinFin blockchain, which is a hybrid blockchain platform. Similar to ERC-20, XRC-20 defines rules for creating and interacting with fungible tokens on the XinFin network.
AVM (Avalanche Virtual Machine) Assets: Avalanche is a blockchain platform that uses the Avalanche Consensus Protocol. AVM Assets are tokens created and managed on the Avalanche network, which adhere to the specifications of the Avalanche Virtual Machine (AVM).
Onramping
"Onramping" refers to the process of converting traditional fiat currency (such as US dollars, euros, etc.) into cryptocurrency. It involves using various methods such as bank transfers, credit/debit card purchases, or other payment methods to acquire cryptocurrency. Onramping is typically the first step for individuals who want to enter the world of cryptocurrency trading or investing.
Receiving infrastructure
Receiving infrastructure involves the mechanisms used to receive and manage incoming cryptocurrency transactions. As a Bombastic customer Deposit field is part of yours and Bombastic's receiving infrastructure. As a customer of Coinbase, for example, your Receive button contains your and Coinbase receiving infrastructure.
In both cases, you have:
Wallet - containing all cryptocurrency addresses.
Addresses - to which the coins are to be sent.
QR codes - that are a visual representation of an address, usually to allow you to copy it with a phone camera.
Sender's fee
The sender fee in cryptocurrency transactions refers to the cost incurred by the sender for initiating and processing a transaction on a blockchain network. The sender fee can vary depending on several factors, including network congestion, the size of the transaction (in bytes), and the urgency of the transaction. Different cryptocurrencies and blockchain networks have different fee structures and mechanisms for determining fees.
Depending on cryptocurrency and the overall situation on the market, you will find currencies with great volatility of the fee cost as well as the ones that managed to overcome the volatile fee cost during a bull market. Most Cryptocurrency Exchanges display the fee cost before sending money or even before purchasing the coin you're interested in. It makes sense to check it before you choose the currency and how much you will pay for the cryptocurrency sent. Low-fee currencies are LTC, XRP, DOGE
or USDT on Trc-20.
Target ID
In the context of Ripple (XRP) transactions, the term "target ID" usually refers to the Destination Tag. The Destination Tag is a unique identifier used in Ripple transactions to specify the recipient of XRP when sending funds to exchanges or services that use a single wallet address for multiple users.
When sending XRP to an exchange or service that requires a Destination Tag, you need to include this tag along with the recipient's wallet address. This helps the exchange or service identify which user account the XRP should be credited to.
At Bombastic we provide you with Target ID to your designated Bombastic account. In most cases, when you send/withdraw XRP from Bombastic, your Cryptocurrency Exchange will require one as well.
TRC-20
TRC-20 is a technical standard used for tokens on the TRON blockchain. Similar to ERC-20 on Ethereum, TRC-20 defines a set of rules and functions that tokens on the TRON network must adhere to to ensure interoperability and compatibility with various wallets, exchanges, and decentralized applications (DApps) built on the TRON blockchain.
Examples of tokens that adhere to the TRC-20 standard include TRON's native token, TRX, as well as various other tokens issued on the TRON blockchain. At Bombastic, we also offer USDTT (where T stands for TRC-20 standard). USDTT gains more popularity due to lower fees than Ethereum-based USDT).
USDTE
USDT, or Tether, is a type of cryptocurrency known as a stablecoin. It is designed to maintain a stable value relative to a fiat currency, typically the US dollar (USD). Each USDT token is intended to be backed by one US dollar held in reserve by the issuer.
At Bombastic, in our cashier, we add E to the USDT on ERC-20 network.
USDTT
USDT TRC-20 tokens are issued and managed on the TRON blockchain, allowing users to transact USDT with lower fees and faster transaction times compared to USDT tokens on other blockchains, such as Omni (Bitcoin) or Ethereum. TRC-20 tokens also benefit from the TRON network's scalability and high throughput, making them a popular choice for users looking to trade or use USDT within the TRON ecosystem.
At Bombastic, in our cashier, we add T to the USDT on TRC-20 network.