What is Security Token

A security token is a digital contract that represents a piece of a marketable asset. Security tokens represent a portion of ownership in financial assets such as stocks and bonds, as well as a profit promise. Security tokens are issued through initial coin offerings and exchanged on blockchains (STOs). STOs are more regulated than initial coin offers, lowering the chance of fraud. STOs allow fundraisers who tokenize financial assets to access a large audience on open marketplaces. Because blockchains are public, securities exchanged as tokens gain from transparency. Security tokens also allow for the division of illiquid assets. Security tokens are subject to government regulations, and rules violations might result in penalties. Tokens, on the other hand, frequently make use of exemptions to get around the law In the United States, securities are governed by the Howey Test. The securities must be an investment of capital into a joint company with the expectation of benefit owing to third-party efforts, according to the test.

Crypto Term

Blockchain

A blockchain is a subset of a distributed database. The Bitcoin inventors originally prototyped the system in 2008. This modern database is made up of separate blocks that are connected together in a chronological chain. Blockchains may be used to store a wide range of data types. It has mostly been utilized as a public ledger for bitcoin transactions to date. A peer-to-peer network comprised of independent nodes uses a consensus process to ensure the blockchain's security and legitimacy. Each node in the network keeps a public and immutable copy of the data.

Full definition
2 Factor Authentication (2FA)

2 Factor Authentication is a security measure with two layers. It is used by the majority of cryptocurrency exchanges. To log in, you must provide not only a password, but also a code obtained, for example, from the Google authenticator.

Full definition
Airdrop

An airdrop is a method of distributing coins. End users can typically obtain coins for free or in exchange for doing a small task, such as subscribing to a newsletter, sending a tweet, or inviting others via a personal affiliate link. Cryptocurrency airdrops — the act of depositing cryptocurrency into public crypto wallets — are utilized as a marketing, liquidity creation, and network bootstrapping technique for many different types of blockchain initiatives.

Full definition
Altcoin

Altcoin - "alternative coin" - is any kind of digital currency other than Bitcoin. Since the launch of Bitcoin, the world's first digital currency, many altcoins (as well as supporting blockchains) have been created. Altcoin digital currencies share many similarities to Bitcoin, but consistently and have significant differences. There are about 20,000 altcoins, and this number is expected to grow significantly in the coming years. Altcoins often develop Bitcoin features. Ethereum, currently the most widely used blockchain, supports digital contracts and separate applications where Bitcoin does not. Altcoins are also often created to cater to the needs of different users. The Litecoin blockchain, for example, can process payments quarterly for the duration of Bitcoin.

Full definition
Cold Storage

Cold storage is the way to store cryptocurrency offline.  The word refers to the use of offline wallets that are not connected to the internet. Cold storage is the most secure way to keep cryptocurrencies since an offline currency becomes less likely to be hacked and stolen. Paper wallets, printed renditions of private keys, and offline hardware and software wallets are all examples of cold storage.

Full definition
Crypto News
Crypto Content
Crypto Price Prediction
Crypto FAQ