Welcome to Crypto Jargon — a series of 30 videos I launched recently on my YouTube channel and I am now adding them here to my blog.
In these series, I’m breaking down the complex terminology related to cryptocurrencies and blockchain tech, as well as trading slang — all of which you will inevitably come across in your research in the crypto universe, be it on Twitter, mainstream media articles, blogs, forums and all other social media as well.
There’s a lot of great content in these series and each episode is packed with value and I’m sure you will learn a lot, so let’s get started.
Below is my first episode with the following terms: AML KYC 2FA FAQ and QRcode.
Let’s first start with AML.
This is the acronym for Anti-Money Laundering, which is a process that all financial institutions are required to follow in order to prevent, detect and report suspected money laundering activities. Money Laundering is a broad term related to acquiring capital illegally or moving illicit funds. Some examples are tax evasion, public corruption, and market manipulation through methods such as inside trading or wash trading. Wash Trading is explained in another episode, so make sure you check out the rest of the Crypto Jargon series on this channel.
Another popular acronym you will see on many websites as you open new accounts is KYC.
This stands for “Know Your Customer”. There are a number of laws and regulations worldwide, which require businesses to know the identity of their customers, so it is a typical requirement for most exchanges, wallets, and ICOs these days. Usually, you will need to send your personal details like an ID scan, proof of address — which can be a bank statement or utility bill and in some cases even a selfie, to prove that you are the same person as the ID you provided.
Moving on to 2FA which means Two Factor Authentication.
This is an additional layer of security requiring a code to verify that the owner of an account is the one accessing it. This is a method of securing online accounts through multiple authentication rounds. This makes it difficult for hackers to breach your account. Even if they’re able to crack your password, they won’t be able…