Cryptocurrency crashes dominated the headlines in late 2022, when companies such as FTX and Terraform Labs got embroiled in financial trouble. The Monetary Authority of Singapore has warned against treating cryptocurrency as a form of money or investment asset due to its “extreme price volatility”.
With greater interest in financial technology (fintech) and new services in finance, here are some terms to know to keep up with conversations, and avoid any potential risks.
What Coin?
You might have heard of Bitcoin, a digital or virtual currency that uses cryptography. It is a type of cryptocurrency that can be used for secure transactions without a central authority that issues or regulates it.
What about the lesser-known terms altcoin and stablecoin?
Due to the massive popularity and influence of Bitcoin, the term “altcoin” (short for alternative coin) was coined – heh! – to refer to any other cryptocurrency that is not a Bitcoin.
One of the most well-known altcoins is Ethereum. As the second-most popular cryptocurrency, it runs on its own platform, uses a different protocol for verifying transactions, and can be used to power smart contracts on the blockchain.