Just out of curiosity i would like to try and explain some Economic terms. If you can explain something right its should give you the confidence that you have understood it.
Please fell free to correct me if i explained a term wrong and if i should add accurate description to it.
Asset:
Description: Assets are items your owns that have economic benefits. In most cases you can sell it for Cash or Trade.
Examples: Cash, Your Splinterlands Cards :P, Real estate and many more...
Resources: https://www.investopedia.com/ask/answers/12/what-is-an-asset.asp
Token:
Description: It’s important not to confuse the terms “cryptocurrencies” and “tokens,” as there are fundamental differences that distinguish them. Tokens are units of value that blockchain-based organizations or projects develop on top of existing blockchain networks.
Examples: Cryptocurrencies: HIVE, BITCOIN, ETHEREUM
Tokens: SPS, Uniswap (UNI), PancakeSwap (CAKE)
Resources: https://www.gemini.com/cryptopedia/cryptocurrencies-vs-tokens-difference#section-what-is-a-token
Transfer:
Description: Assets can be transferred. Transfer is the process were the asset changes owner.
Examples: I buy a work of art and it is transferred to my home.
Resources: https://www.investopedia.com/terms/t/transfer.asp
Interest & Compound interest:
Description: Two main types of interest can be applied to loans—simple and compound. Simple interest is a set rate on the principle originally lent to the borrower that the borrower has to pay for the ability to use the money. Compound interest is interest on both the principle and the compounding interest paid on that loan.
Examples: I borrow $10k from a bank, so in order for the bank to give me the money, I pay them interest on it. Otherwise, the bank has no incentive to lend me money.
Resources: https://www.investopedia.com/terms/i/interest.asp
APR% & APY%:
Description: APR stands for Annual Percentage Rate and APY stands for Annual Percentage Yield. While an APR only accounts for simple interest, the annual percentage yield (APY) takes compound interest into account.
Examples: Say you compare an investment that pays 5% per year with one that pays 5% monthly. For the first, the APY equals 5%, the same as the APR. But for the second, the APY is 5.12%, reflecting the monthly compounding.
Resources: https://www.investopedia.com/terms/a/apr.asp
Appreciation:
Description: Appreciation, in general terms, is an increase in the value of an asset over time.
Examples: An investor purchases a stock for $10. A year later, the stock is trading at $15 per share.
Resources: https://www.investopedia.com/terms/a/appreciation.asp
Staking / staked:
Description: At a very basic level, “staking” means locking your Crypto assets in a proof-of-stake Blockchain like HIVE or in a DEFI staking pool like pancakeswap, or in Splinterlands to stake you SPS for a certain period of time. While your Crypto are staked, you will get some benefits. In most cases you will earn more tokens.
Examples: For proof-of-stake Blockchain these locked assets are used to achieve consensus, which is required to secure the network and ensure the validity of every new transaction to be written to the blockchain.
Resources: https://www.bitcoinsuisse.com/fundamentals/what-is-staking
Liquid/Liquidity:
Description: The term liquidity is generally used in the financial markets to describe the ease by which an asset can be converted into cash without difficulty. In terms of cryptocurrencies, liquidity is the ability of a coin to be easily converted into cash or other coins.
Examples: On https://tribaldex.com/dieselpools/pools you can see the total liquidity of the assets you want to trade.
Resources: https://b2broker.com/de/news/cryptocurrency-liquidity-and-finding-the-best-liquidity-provider/
Custodianship:
Description: The main utility of cryptocurrency custody solutions lies in the safeguarding of cryptocurrency assets. Mostly done by a third Party solution.
Examples: Again Splinterlands, if you open an Account with E-Mail and Passwort and buy the spellbook, your entering a Custodianship with Splintelrnads as long you dort claim your keys.
Resources: https://www.investopedia.com/news/what-are-cryptocurrency-custody-solutions/
To Exchange (Verb):
Description: Replacing an Assets with something else, mostly cryptocurrencies or fiat.
Examples: I want to exchange HIVE to BTC.
Resources: https://www.dictionary.com/browse/exchange
An Exchange (Noun):
Description: Cryptocurrency exchanges are platforms that facilitate the trading of cryptocurrencies for other assets, including digital and fiat currencies. In effect, cryptocurrency exchanges act as an intermediary between a buyer and a seller and make money through commissions and transaction fees.
Examples: Coinbase, Bittrex, tribeldex, hive-engine ...
Resources: https://docs.uniswap.org/protocol/introduction#how-does-the-uniswap-protocol-compare-to-a-typical-market
Blockchain:
Description: A database structures its data into tables whereas a blockchain, like its name implies, structures its data into chunks (blocks) that are chained together.This system also inherently makes an irreversible timeline of data when implemented in a decentralized nature.
Examples: The Hive Blockchain
Resources: https://www.investopedia.com/terms/b/blockchain.asp#what-is-blockchain
Decentralization:
Description: In blockchain, decentralization refers to the transfer of control and decision-making from a centralized entity (individual, organization, or group thereof) to a distributed network.
Examples: Bitcoin is decentral, because the Blockchain/Notes are distributed in the hole world. So if one node fails, there are many others that can manage the network transactions.
Resources: https://aws.amazon.com/de/blockchain/decentralization-in-blockchain/
Cryptography
Description: Cryptography is a method of protecting information and communications through the use of codes, so that only those for whom the information is intended can read and process it.
Examples: With cryptography we have the ability to encrypt messages and data and only give access to people who are allowed to. A good example is the use of private and active key to log in to different places in the HIVE, ecosystem.
Resources: https://searchsecurity.techtarget.com/definition/cryptography
Diversify
Description: You may have heard the saying ‘don’t put all your eggs in one basket’. The potential for loss may be the reason that some people are wary of investing but there is a process which can help mitigate some of the risk – diversification. This involves spreading your investments across different assets classes, whether these are equities, crypto, cash, stocks, or any other.
Examples: Dont go all in Splinterlands, you may miss some other opportunities in Crypto, or in the stock market.
Resources: https://www.schroders.com/de/insights/invest-iq/investiq/investiq-articles/diversification-not-putting-all-your-eggs-in-one-basket/
In addition i would like to link some interesting YouTube Chanel that explains Economics in detail and in entertainet ways.
Coin Bureau:
I think everyone in Crypto should know this YouTube Chanel, he makes awesome videos about the most Crypto project. Really nice to watch.
https://www.youtube.com/c/CoinBureau/videos
Economics Explained:
This YouTube Chanel is exploding, since i he startet the Chanel two years ago, i liked the style of the videos and very educational and professional.