HODL means holding on to your digital money, not

spending or selling it, even if others do. It's like

keeping your favorite toy, even when other people want

to trade theirs. A private key is like a secret password

that lets you open your digital piggy bank. Only you know

the password and it keeps your digital money safe.

Crypto mining. Well, mining is like solving a

puzzle. When someone solves it, they get a reward in

digital money. When you think about crypto or Bitcoin mining,

essentially, it's computers solving mathematical

problems. And that, in turn, creates the

Bitcoin. A lot of celebrities jumped on the bandwagon, including people

like Justin Bieber, bought these NFTs. So be very,

very careful when... I'm Matthew Fraser, and this is

Crypto Collective. After making millions with Amazon and e-commerce,

I realized that if I was starting again today, crypto would

be my first choice. I'm here to help you take your first

steps and build real wealth. Ready to set yourself up

for life? Let's go. Hey, welcome

to the podcast. My name is Matthew Fraser, and in today's episode, we're

going to discuss Bitcoin terminology that even

a five-year-old can understand. Guys, I totally understand. Bitcoin,

crypto, all the terminology around it can be really confusing.

And when you first start out, it doesn't make much sense. So I'm

going to break it down, the main terms in

cryptocurrency. And that in itself is a term. But I'm

going to break it down so that you can understand what it all means.

All right, the first one is blockchain. Now, imagine you

and your friends have a special notebook where you write down every

trade, which is where you buy and sell your crypto, or important

things you do together. And no one can erase it.

Now, this way, everyone knows exactly what's happening and

no one can change it. So blockchain is essentially a

digital version of the notebook where you can record your

buys and sells of cryptocurrency which have to be verified and

of course Bitcoin is verified through the blockchain. Number

two, decentralized. Now imagine you and your

friends played a game where no one was the boss Everyone

had a say and you all worked together without one

person in charge. That's kind of like a decentralized system.

Now that being said, decentralized is where no one is in charge. So

Bitcoin, for example, and the reason why Bitcoin is so powerful is

because Bitcoin is decentralized, meaning no

government, no CEO, no agency actually

owns or controls Bitcoin as opposed

to a centralized system like a bank where

there is a CEO, there's a governing body, there's a bunch

of branches and it's all centralized within one ecosystem of

the banking sector. Number three, cryptocurrency. Think

of it like digital money. Instead of using coins or

dollar bills, it's money that can exist on computers.

Now that said, not everything as a cryptocurrency is

money. Some things are utilities or other types of

things. So just remember that. So where this would be most

relevant is Bitcoin would be considered a type of cryptocurrency and

money. Although these days, it's really seen as two. One, as digital money,

particularly in places like El Salvador, where they actually do use Bitcoin as

legal tender. And secondly, as a store of value, much

like digital gold. Number four, Bitcoin, or

known as BTC. Bitcoin is like the very

first digital coin ever made. It's the original digital

money that started it all. All right, number five, altcoin. What

on earth is an altcoin? Also standing for alternative

coins, meaning alternative to Bitcoin. So altcoins

are other types of digital money, kind of like different

flavors of candy. Bitcoin was the first, but

then other types like Ethereum or Litecoin were

created too. Number six, like staking, like a stake in the ground. Staking

is like saving up for tokens in a piggy bank. The

longer you keep them there, the more extra tokens you

might get as a reward for helping out. Now, staking as

the adult way to think about it would be similar to like a term deposit.

You put your money into a term deposit and you get interest. With

cryptocurrency, you put your crypto into a

staking account and you get extra or interest on

top of your crypto. Hey, just quickly, if you're ready to dive deeper into

crypto and Bitcoin and build real wealth, join my

free crypto collective community. It's where I share exclusive insights

and strategies and live discussions to help you succeed, whether

you're a beginner or scaling your portfolio. Click on the

link in the description and join us today. Now back to the episode. Weird

term number seven, HODL. H-O-D-L. Now,

HODL means holding onto your digital money, not

spending or selling it, even if others do. It's like

keeping your favorite toy, even when other people want

to trade theirs. Now, there's an interesting story when it comes to the

term HODL. In December of 2013, a

period of extreme price volatility, a user named

GameKyubi posted on the Bitcoin forum,

Bitcoin Talk. And it was the title of the post was supposed to

read, I am holding, referring to

holding onto their Bitcoin despite the market crash. But

in a hurry and feeling emotional about the situation,

they mistyped it as, I am HODLing, H-O-D-L-I-N-G.

Instead of correcting the error, they doubled down on the typo, and

the term within the industry has now become HODL, and it

went viral. So the crypto community embraced it,

and turning HODL into an acronym, meaning Hold

On, for dear life and since then huddle

has become a philosophy for many crypto enthusiasts symbolizing

the idea of resisting the urge to sell when prices drop

with the belief that long-term holding will lead

to gains as crypto grows in adoption and

value so number eight cold storage wallet This

is like a super safe box where you can keep all your digital money

offline so that no one else can touch it. I

personally use cold storage wallets for my Bitcoin and

other cryptocurrencies so that it stays protected. In

fact, I take it even one step further. I have my Bitcoin

and crypto on different cold storage wallets to

help de-risk. Number nine, exchange. An

exchange is a place like a big market where people buy

and sell digital money. Now traditionally exchanges

are things where you can buy stocks and shares of course but it has moved

into the cryptocurrency world as well.

So it's not really a foreign type of term that a lot of people may

not know about but it has just transgressed into cryptocurrency

as well and a lot of people use it. Number 10. Private

key. A private key is like a secret password that

lets you open your digital piggy bank. Only you know

the password and it keeps your digital money safe.

Now you get private keys when you have things like cold

storage wallets. Never ever ever lose your

keys. Because the old saying goes, not your

keys, not your Bitcoin. Now, speaking of private keys, there

are stories out there of people losing their private keys

and not being able to get their Bitcoin or crypto. Now,

the way Bitcoin is heading, this could cost you millions,

if not tens of millions, and maybe even hundreds of millions of

dollars. Number 11, crypto mining. Well, mining

is like solving a puzzle. When someone solves it, they

get a reward in digital money. This is how new digital

money is made. Now relating this to Bitcoin, you will hear

things like Bitcoin mining, and there are Bitcoin miners

everywhere, and they're absolutely massive. You can do this in

massive warehouses that take up football fields, all the way down

to little miners, perhaps in your office at home. So

crypto mining or Bitcoin mining is how Bitcoin

is made. So when you think about crypto or Bitcoin

mining, essentially it's computers solving mathematical

problems and that in turn creates the

Bitcoin. Number 12, smart contracts. A

smart contract is like a robot that follows rules you

give it. Once you set it up, it does things all by itself,

like making sure everyone gets what they agreed on without needing

a person to check. So smart contracts in today's age

are utilised everywhere and fundamentally in

the future. smart contracts will take over

the world as different industries start to adopt smart

contract technology. Lucky number 13, NFT.

Now, what is that? It's Non-Fungible Token.

An NFT is like owning a one-of-a-kind digital

sticker or collectible that only you have. Even

though people can see it, only you own the original version, kind

of like a special edition toy that no one else

has. Now, NFTs famously in the last cycle

were little pictures like monkeys and things like this that were selling for

millions of dollars. It was absolutely ridiculous. And a lot

of celebrities jumped on the bandwagon, including people like Justin Bieber,

bought these NFTs of, I think at the time it was like apes,

and they absolutely crashed. They spent so much money

and then it went to zero. So be very, very careful when

buying NFTs. Alright guys, I hope that helped understanding some

of the different terminology when it comes to the

crypto industry. But if you've got some other words that

you want me to decipher for you, perhaps just like for a five-year-old, then

please let me know in the comments below. Alright, thanks guys. Thank

you so much. Take care. Thanks for tuning in to Crypto Collective. If

you've enjoyed this episode, the best way to show your support is to leave a

five-star review on Apple Podcast or Spotify and

make sure to subscribe to the YouTube channel so you don't miss an episode. You

can also find more of me at I'm Matthew