4 Crypto Banking Terms You Need To Know
Honestly,.. whenever you hear the terms (and acronyms): DeFi, CeFi, HODL, FOMO, TradFi, P2E, NFT,.. etc.
Doesn’t it feel like you’re trying to decipher a whole new freakin language?!? I mean, Seriously?! LOL. 😉
Well, when it comes to the crypto space, and it involves your money and the “banking” (or “unbanking”) system,…. there are certain new crypto lingo terms that you just gotta suck it up, learn, and know.
WHY?
Because it’ll get you in the crypto finance game, off the sidelines, and growing your stash in the most innovative ways that you’ve ever seen.
EVER!
So, there are many crypto banking terms that might be confusing for someone new to the crypto world. Crypto Banking is a growing industry, and understanding how it works is important to take advantage of the crypto financial services it has to offer.
*Check out these four must-know crypto banking terms:
1. FINTECH
Fintech is a term you’ll probably come across while reading about crypto banking, though it isn’t exclusive to the crypto world. It’s a portmanteau of “financial technology” and refers to any technology company that combines innovative technology with finance.
The goal of fintech companies is to make the financial services industry automated, digital-friendly, more efficient, and safer from security breaches.
Of course, fintech companies include crypto companies that are bringing blockchain technology, smart contracts, and artificial intelligence to the finance world.
2. UNBANKED
“Unbanked” is a term that describes anyone who does not use traditional financial institutions or services, whether by choice or because they don’t have access to them. They primarily rely on cash and don’t have bank accounts, credit or debit cards, and even lack insurance.
The term is also not exclusive to the crypto world, but it comes up often in the context of crypto banking because of crypto’s unique ability to bring financial services to these people.
3. DEFI / TRADFI
“Unbanked” is a term that describes anyone who does not use traditional financial institutions or services, whether by choice or because they don’t have access to them. They primarily rely on cash and don’t have bank accounts, credit or debit cards, and even lack insurance.
The term is also not exclusive to the crypto world, but it comes up often in the context of crypto banking because of crypto’s unique ability to bring financial services to these people.
4. SMART CONTRACTS
Smart contracts are a type of software program designed to self-execute once the specified conditions of the contract are met. They are essential to DeFi because they eliminate the need for third parties in a transaction. Instead, a computer automatically handles the entire transaction.
Smart contracts are used in crypto banking for secure, trustless transactions like crypto-backed loans or transferring assets.
UNDERSTANDING CRYPTO BANKING TERMS
The crypto world is filled with its own terminology. These terms can seem confusing – and potentially alienating – to any newcomer seeing them for the first time. But by taking the time to learn about essential crypto banking terms, you’re giving yourself a solid foundation of knowledge you can work on as you navigate the world of crypto and crypto banking.
-Via this site: 4 Crypto Banking Terms You Need to Know
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