Income Tax Malaysia 2022: Who Pays and How Much?
- By CompareHero.my
- March 10, 2022
It’s that time of the year again- the season where legally employed Malaysians and their employees figure out their income tax rate, calculate their tax reliefs and add up their tax refund.
Now if you’re legally employed in Malaysia, or you are an employer here, you would have to pay taxes. However, in this article, we’ll be solely focusing on individual income tax, which means tax paid by employees in Malaysia.
If this is all still new to you, or if you just need a quick refresher, we’ve got you covered. Here is our guide to exactly how much tax you’ll have to pay in 2022.
Contents
Who should pay taxes?
According to Lembaga Hasil Dalam Negeri (LHDN)–also known as the Inland Revenue Board–those earning at least RM34,000 a year after EPF deductions need to pay taxes. Those who fail to do so can face legal action, so make sure you do your part and declare your income.
However, you should still file your taxes even if you earn less than RM34,000 annually. You won’t have to pay anything, but it is still necessary to declare your income. At this juncture, it’s worth mentioning that there’s a difference between filing your tax returns and paying taxes, as not everyone who files their returns will need to pay tax–only those who earn RM34,000 and more a year.
Adding on to this, any income that you earn outside of Malaysia is not taxable. You are also not required to pay taxes in Malaysia if you have been employed for less than 60 days. You will, however, need to declare ALL types of income (part time and freelance included) that you earn in Malaysia.
Do foreigners who are working in Malaysia need to pay tax?
Yes, like Malaysian nationals, all foreigners who have been employed in Malaysia for over 182 days are eligible to be taxed under standard Malaysia income tax laws and rates. However, foreigners working in Malaysia must visit the nearest LHDN branch or Non-Resident Branch to give notice of their chargeability within 2 months of their arrival in Malaysia.
How are my taxes calculated?
Firstly, the total of all your incomes in the whole tax year will be added. Then, if you qualify for any of the tax exemptions and reliefs, those amounts will be deducted from your income amount. Tax exemptions and reliefs are ‘discounts’ you can get for certain expenses made in the year. We’ll look at what exemptions you can for the 2021 tax year shortly but for now, this is what you need to know:
Total income – tax exemptions and reliefs = chargeable/taxable income
Your tax rate is calculated based on your taxable income. So the more taxable income you earn, the higher the tax you’ll be paying. Per LHDN’s website, these are the tax rates for the 2021 tax year.
Coming back to the tax exemptions and reliefs, these are all the ones that were announced by the government during the 2022 Budget speech:
Individuals and families
- RM9,000 for individuals
- Up to RM4,000 for those who contribute to the Employees’ Provident Fund (EPF), including freelance and part time workers
- Up to RM3,000 for kindergarten and daycare fees
- Sales tax fully waived for new passenger vehicles
- 100% exemption on import and excise duties, sales tax and road tax for electric vehicles
- 50% off for car seat purchases for B40 families
Lifestyle and entertainment
- Up to RM1,000 for domestic travel expenses
- Full exemption on entertainment duties for theme parks, cinemas, sporting events etc.
- Up to RM2,500 for book purchases or newspaper and magazine subscriptions, both physical and online
- Up to RM2,500 for gym subscriptions or purchase of sports equipment
Technology
- Up to RM2,500 for purchases of mobile phones, laptops, tablets and similar devices
- Up to RM2,500 for internet subscriptions
Health and well-being
- Up to RM1,000 for a full medical check-up
- Up to RM,000 for vaccinations
- Up to RM8,000 for parents’ medical expenses and care
Please note that you can claim the above for expenses made on or before 31st December 2021 only.
What happens if you don’t file your taxes on time?
You will still be able to file your income tax. However, you may possibly face an interest charge. According to the Inland Revenue Board Of Malaysia (LHDN), failure to pay your taxes on time will incur a 10% increment on your payable tax.
Therefore, if you’re a very busy person, or if this is your first time doing this, you might just forget to fill up that LHDN form on time. Do note that the deadlines for tax filing are 30th April 2022 and 15th May 2022 for manual filing and e-Filing, respectively.
Stay tuned for our next article to find out how to file and pay your income tax in 2022.
Read More
Maybank continues to offer support to customers via its Repayment Assistance programme
- By CompareHero.my
In a statement yesterday (March 9), Malayan Banking Bhd (Maybank) stated that the bank will continue offering financial support to customers who are still recovering from the effects of the pandemic under its Maybank Repayment Assistance programme for individuals, small medium enterprises (SME), and non-retail customers.
In line with its mission to Humanise Financial Services, the bank said that its current focus is tailoring their support to help rebuild their customers’ resilience to adapt and operate in the new normal.
It stated that the Maybank Repayment Assistance is available to all individual customers who have experienced loss of employment or at least 50% reduction in their income. It is also available to SME and non-retail customers who have suffered a decrease in revenue.
With that said, the affected customers must meet several criteria:
- Not under an existing Repayment Assistance programme as at the date of application;
- Whose loan/financing is still performing (not in arrears for more than 90 days) as at the date of application; and
- Whose loan/financing was disbursed on or before 30 September 2021.
Individual customers who have suffered a loss of employment and meet all other eligibility criteria may opt for 6 months deferment of payments, followed by a reduction of 50% instalment for 9 months for their loans/financing.
However, those who have experienced a 50% reduction in income and meet all other eligibility criteria can request for a 50% reduction of instalments for 6 months for their loans or financing. Similar options are also available for SME customers.
As for customers with Hire Purchase loans/financing who meet all other eligibility criteria, they may opt for either one of the two Maybank Repayment Assistance options:
- 50% reduction of instalments for 6 months, for customers who experienced 50% reduction in income; OR
- 6 months deferment of payments and extension of loan/financing tenure, for customers who experienced loss of employment.
“Additionally, customers who experienced a 50% reduction in income and have outstanding balance on their Credit Card/Credit Card-i can also choose to convert it into an instalment programme of 36 months.”, the bank added.
The Maybank Repayment Assistance programme would be complementing the existing URUS Financial Management and Resilience programme which was founded to support the bottom 50% income group individual customers until March 31.
Customers who are interested in applying for the Maybank Repayment Assistance may do so by visiting the Maybank2u Covid-19 Repayment Assistance page at www.maybank2u.my/covid19 for a list of supporting documents required. Alternatively, they can also apply at their nearest Maybank branch.
Read More
Malaysia to open borders on 1 April 2022 with quarantine waiver
- By CompareHero.my
- March 9, 2022
For the first time in two years, Malaysia will be allowing quarantine-free entry for all travellers vaccinated against Covid-19, Prime Minister Ismail Sabri Yaakob said on Tuesday.
“Citizens with valid travel documents can enter and leave the country as they did before the pandemic,” he said, continuing that all fully vaccinated Malaysians can now travel to any country that has opened their borders to visitors.
As for travelling to countries that have yet to open their borders such as Singapore, Ismail Sabri stated that Malaysians can opt for the Vaccinated Travel Lane (VTL) method. The country is currently also implementing the VTL method with Brunei, Indonesia and Thailand.
Following this, foreigners will no longer be required to apply for MyTravelPass as of April. They must, however, download the MySejahtera app and undergo a RT-PCR test two days before their departure, and a rapid test (RTK) upon arrival. As said by Ismail Sabri, “the country also wants to provide comfort to travellers and to not complicate their travel process”
Since March 2020, Malaysia has maintained one of the strictest entry curbs in Asia to contain the Covid-19 outbreak. The reopening marks Malaysia’s first steps in joining other Southeast Asian countries in transitioning into the endemic phase of the outbreak. It has been recorded that nearly 98% of Malaysia’s adult population have been fully vaccinated and 64% of them have received booster shots.
Ismail Sabri also said that while the number of Covid-19 cases is still high, hospitalisation rates are currently under control and that 99% of the recent cases are mild or asymptomatic.
“This move will revive the country’s economy, especially the tourism that has been affected by the pandemic,” he said.
The Prime Minister also announced new Covid-19 protocols that will take place in the endemic phase, which include:
- Eateries will be permitted to operate past midnight, depending on their licences.
- Social distancing will no longer be required at places of worship.
- There will not be 50% capacity for event venues.
- Vaccinations will not be required for inter-state travel or work.
That being said, it will still be mandatory for Malaysians to wear their masks and check in at premises with their MySejahtera app.
Updates will be provided once more information becomes available.
Read More
Ultimate Guide To Credit Scores
- By CompareHero.my
- March 8, 2022
Credit History? Credit Report? Credit Score? What does it all mean?
A credit history is a record of the credit accounts you hold along with details about those accounts including: the type of account, your responsibility on the account (e.g. whether you were a joint borrower), the credit limit or amount of the loan, the current balance, minimum payments made, whether you’ve made any late payments, and the current account status.
A credit report is like a report card on how you manage your overall finances. It’s normally issued by a credit reporting agency or credit bureau and will include your credit history, outstanding debt, bankruptcy status, and other non-banking or legal related information. The information can be sourced from various organizations or public sources. Do take note that credit reports are neutral, meaning they include both the good and the bad, and is meant for the evaluator to make a conclusion of creditworthiness.
A credit score is a three-digit number, typically between 300 and 850, that represents your creditworthiness and relates to how likely you are to repay debt. This helps banks and lenders evaluate your application for credit or loans. Credit reporting agencies calculate these scores based on their own proprietary models. Your score will never factor in personal information like your race, gender, religion, marital status, savings or deposits information, salary details or criminal records.
Contents
Why is a Credit Score important?
A credit score plays an important role when you want to apply for a financial product from a bank, including a personal loan, mortgage, car loan, or credit card. Banks, financial institutions, and even businesses use your credit score to evaluate the credibility of your financial health. It helps them understand the risks they might face if they decide to lend money to you. The higher your score, the better it is and the higher the chance of getting your applications approved. Essentially, it is an indicator of your financial health.
On top of that, you can leverage the banks or firms for a better deal such as lower interest rates or flexible payment periods if you have a better credit score. Not forgetting you will have more options to choose from as most banks will prefer to deal with you.
See also: Is A Person’s Credit Score Sexy?
How are Credit Scores calculated?
Different credit agencies have their different formulas to evaluate every individual’s credit score. You should not assume that your credit score will be the same across these credit agencies. Credit scores vary for two main reasons, the data on which the score is based, and the method of calculating the score. In general, here are the factors considered in credit scoring calculations.
- The number of credit facilities and the amount owed to the banks
- Whether you pay your loans on time or have missed payments in the past
- Your credit history length
- Types of secured and unsecured credit you hold – secured (home, car loans) vs unsecured credit (credit cards, personal loans)
- Have you been approved for new credit facilities recently
CCRIS
CCRIS does not provide a credit score. It only provides information of an individual’s profile such as their name, address, business registration, credit application details such as the amount of loan applied for, and credit account details such as the outstanding amount.
CTOS
A CTOS score is calculated based on credit information from both CCRIS and CTOS’s database. The image below explains the 5 factors that make up a CTOS Score:
- Payment History (45%) – Whether you pay your loans on time or have missed payments in the past.
- Amount Owed (20%) – The number of credit facilities and the amount owed to the banks.
- Credit History Length (7%) – How long have you held a credit facility (credit card, or a loan).
- Credit Mix (14%) – Types of loan and credit cards you hold – secured (home, car loans) vs unsecured credit (credit cards, personal loans).
- New Credit (14%) – Have you been approved for new credit facilities recently?
RAMCI
RAMCI’s i-Score is determined by debt repayment pattern, overdue accounts, frequencies of credit application and credit outstanding.
Credit Bureau Malaysia
Credit Bureau’s credit score (MYSCoRE) is assessed based on your debt repayment pattern, outstanding loan amount, credit application pattern, and also tells probability of defaulting a debt. Check out more details here!
Credit Reporting Agencies in Malaysia
There are three main Credit Reporting Agencies (CRAs), governed under the Credit Reporting Agencies Act 2010 and registered to the Registrar Office of Credit Reporting Agencies. These CRAs are:
- Credit Bureau by Bank Negara Malaysia; that manages the Central Credit Reference Information System (CCRIS)
- CTOS Data Systems; that issues MyCTOS Score Report
- RAM Credit Information (RAMCI); that issues the RAMCI Personal Credit Report
CTOS
CTOS is a private company which provides credit reporting and is also widely used by financial institutions to determine an applicant’s creditworthiness aside from using CCRIS. Usually, financial institutions use more than one credit report to determine an applicant’s credit health and CTOS is also known to be widely used in Malaysia.
CTOS collects credit-related information from various public sources such as:
- National Registration Department
- Malaysia Insolvency Department
- Companies Commission Malaysia (CCM)
- Publications of legal proceedings and notices in newspapers and government gazettes.
The type of credit-related information included in the CTOS credit report includes bankruptcy, legal action, and even case status. It also details an individual’s business exposure, business ownership, and directorships if any.
Similar to CCRIS, CTOS does not provide comments or opinions and does not blacklist any individuals. Aside from that, you can also obtain your own credit report from CTOS through its online portal – MyCTOS.
First, you will need to register to obtain your CTOS User ID, and once your ID has been activated you can access your credit report from MyCTOS anytime over the internet and even through the CTOS mobile app.
Types of CTOS reports
There are two types of reports provided by CTOS:
- MyCTOS Basic report – A brief credit report that only includes legal cases, personal information, business information, bankruptcy declaration (if any), and banking payment history (derived from Bank Negara).
- MyCTOS Score report – A comprehensive report that includes litigation and bankruptcy cases, directorship in registered companies, banking payment history from CCRIS and MyCTOS Score.
How do you Get Your CTOS report?
You can sign up here to get access to two free MyCTOS Basic reports per year. To get the MyCTOS Score Report, however, you will have to pay RM25.
Central Credit Reference Information (CCRIS)
CCRIS is managed by the Credit Bureau of Bank Negara Malaysia and it collects credit information from financial service providers in Malaysia like banks, insurance brokers and even private companies providing utility services such as the Malaysian telecommunication companies. Information that will be on the credit report from CCRIS are outstanding loans, summons, or whether the person has been declared bankrupt.
All of the information and data is then compiled into a credit report which financial institutions like banks will have access to. The data that is on the credit report will be broken down into a period of 12 months. It will contain credit-related information of an individual such as:
- Outstanding credit
- Special attention accounts, which are credit facilities under close supervision of financial institutions
- Applications for credit in the previous 12 months that have been approved or are pending
It should also be noted that CCRIS also stores positive information like your credit approvals and positive repayment history. One misconception that most people have is also that CCRIS will blacklist you if you have a bad repayment pattern. However, CCRIS does not provide an opinion and does not blacklist individuals, it only provides factual data which will then be used by financial institutions.
Type of CCRIS reports
You will find only one type of credit report from CCRIS and it does not involve a score. This is because the credit history and data collected is raw information that is not assessed and rated by Bank Negara (CCRIS).
How do you get your CCRIS report?
You can get a copy of your CCRIS credit report from Bank Negara, but do take note that you can only get access to your own credit report so you cannot ask someone else to obtain it for you. You will need to bring along your MyKad and other supporting documents to verify your identity. The credit report will then be issued to you at Bank Negara Malaysia’s head office.
RAM Credit Information Sdn Bhd (RAMCI)
RAMCI backed by RAM Holdings Berhad, operates a credit-information bureau in Malaysia. RAMCI opened its new market division to serve the individual consumers in 2015 with the introduction of three credit reports, using its own credit score, i-Score.
What is i-Score?
i-Score is a three-digit number that predicts how likely you are to pay back a loan or other credit obligations on time. The higher the score, the lower the risk you are to the lenders or banks.
i-Score does not determine whether your application will be approved or the interest rate banks will offer. However, it offers some guidance to the banks before approving a credit application.
3 Types of Individual Credit Reports from RAMCI
There are three types of credit reports by RAMCI:
- Personal Credit Report Basic (PCRB) – This basic report only provides RAMCI credit information (derived from RAMCI’s partners) and ANGKASA SPGA information (for public servants only). This report costs RM10 per set.
- Personal Credit Report Plus (PCRP) – This report provides RAMCI credit information, banking credit information, ANGKASA SPGA information and i-Score rated by RAMCI. This report costs RM15 for a set.
- JagaMyID Subscription – With this subscription, you will receive a timely alert when someone applying credit card or loan facilities using your name or if they detect any changes in your credit profile. A monthly notification email will also be sent to you to update you on your credit profile changes and credit score.
- RM50.00 (1 year subscription + 2 free PCRP)
- RM90.00 (2 year subscription + 4 free PCRP)
- RM130.00 (3 year subscription + 6 free PCRP)
How do you get your RAMCI report?
You can visit this site and sign up for your RAMCI Personal Credit Report today.
Credit Bureau Malaysia
Credit Bureau began operations by helping many SMEs get access to better financing since 2008. When the Credit Reporting Act 2010 was introduced, Credit Bureau Malaysia was introduced and expanded its market to include helping individuals.
Credit Bureau Malaysia collects and compiles credit information from various sources. Then they process this data and disseminate it to financial institutions and other credit grantors.
Credit Bureau Malaysia is jointly owned by Credit Guarantee Corporation Malaysia, Dun & Bradstreet Malaysia, and the Association of Banks Malaysia.
You can get an Individual Credit Report (ICR) from Credit Bureau Malaysia to get an overview of your personal information, related business and companies information, MySCoRE assessment, dishonoured cheque summary, past inquiries, credit information, non-bank credit information.
Learn How To Find The Right Credit Reporting Agency For You Here!
Frequently Asked Questions
1. How often do Credit Scores change?
For CCRIS
CCRIS does not provide your credit score in its credit report. However, it is stated that if you have settled any debt, your regularized account will be shown in the current month of your settlement. Nevertheless, the information on a number of installments in arrears for the last 12 months will be displayed in the credit report.
The record will be updated by the participating financial institution by the next reporting date, no later than 10th of every month.
For CTOS
It is your right and responsibility to update the information in your CTOS Self-Check Report. Generally, CTOS collects information from the banks, financial institutions, Bank Negara, firms and any sources available on our credit and legal conditions continuously. Hence, it is important for you to check your credit report yourself and see if there are any errors or mistakes in your personal and credit information.
It is advised to do so every six months to make sure your profile is up-to-date and provides the latest information to the banks in order to improve your chances of financial product’s application approval.
For RAMCI
Similar to CTOS, RAMCI continuously updates every individual’s credit report based on their source feeds. You can request for an update if you find any outdated or wrong information on your credit report.
2. If my name appears on any of the credit reports, does it mean I’m “Blacklisted”?
3. How do I maintain a healthy Credit Score?
1. Check your credit score regularly
Monitoring your credit score report regularly can help you ensure you are on track to maintain or improve your credit score. If you don’t check it regularly, you may put yourself at risk of fraud. For example, John Doe may be using your personal information to apply for a credit card without you knowing it.
2. Manage credit cards and loans properly
Do not max out your credit card limit as this tells the credit agencies that you are always at the edge of your finances. Also, you should control your urge to apply for a loan if you can resort to other alternatives such as saving or borrowing from family.
See also: How to Use Credit Cards Responsibly
3. Pay on time
This is one of the most important habits to showcase your capability as a good paymaster to the credit agencies and banks. By paying your monthly debt repayment, your score will be higher due to your consistency and discipline.
4. Do not apply for too many credit cards or personal loans at once
This may show banks that you are desperate for a sum of money which may put you at higher risk with banks. It could be a sign that you will not be able to repay your credit card or loan amount.
5. Avoid legal cases and bankruptcy
Try your utter best to stay out of trouble and make every effort to improve your financial condition even if it is in the worst shape ever. Bankruptcy will cost you a good amount of time for recovery and you will need at least two years to regain a healthy credit score.
4. What do I do if I’ve got a bad Credit Score?
Easy but effective steps to improve your credit score:
1. Prioritise debts with the highest interest
You should always try to clear your debts with the highest interest charges in order to minimise your cost. Credit card debt is usually the credit with the highest interest charges (18% per annum), followed by a personal loan. Ultimately, you should clear off as many debts as you can and make sure your debt service ratio is below 50%.
Check this out: How Do I Calculate My Debt Service Ratio?
2. Don’t let banks or companies chase you
Paying on time is a virtue. And it helps to keep your credit score in a good health state. By missing payment deadlines or defaulting on your debt, this will affect your credit score badly over a long period.
See more: Find out the best balance transfer plan in Malaysia here!
3. Double check your financial relationships
If you are having a hard time clearing your credit card debt, you may want to double check your shared expenses such as supplementary credit cards or utility bills with your partner. You should measure your financial capability accurately before taking on any additional responsibilities or commitments, especially if it’s not yours to carry.
See also: Should You Give Your Teenager A Credit Card?
4. Build a healthy credit history
For those who do not currently have a credit card or any form of loan, you will not have a credit history. This isn’t always a good thing. You should consider applying for a no annual fee credit card in order to build up your credit history. This helps the banks understand your risk profile which will help you get the loan you need in the future.
See also: Personal Loan Guide: Money Management
What To Do If You Don’t Have a Credit Score
If you do not have a credit card, or if you currently do not have any loans under your name, it means you won’t have a credit score, which may cause you problems in the future. For example, you decide you want to settle down and purchase a house. If you have no credit score, banks do not have access to your financial history to see how good (or bad) you are with your payments.
Here are 3 things you need to do to start building your credit score:
1. Get A Zero Annual Fee Credit Card
One of the easiest ways to get started on creating your credit score is by getting a credit card. Why? Because with a credit card, you will be creating a credit history when you begin using it. You may be put off using credit cards because of the horror news of people being dragged down by their credit card debts.However, you can avoid this by applying for a no annual fee credit card to minimise your cost and only use them for petrol expenses or emergency uses. Click here and compare the best credit cards with no annual fee!
See also: Sign Up For Malaysia’s Best Basic Credit Cards With No Annual Fees
2. Check Your Financial Commitments and Loans
Before applying for your first credit card or loan, you need to check all of your current commitments such as utility bills or debt (friends and family), so that you are well aware of your full financial conditions. By doing this, you can manage your finances better.
3. Check and Track Your Credit Score regularly
Once you have your first credit card or loan, you should apply to check your credit score and report within the first six months to make sure all of your personal information is correct. Then, it is strongly advised to keep track of your credit report every six months to make sure things are aligned such as credit information and personal information.
What Is Not Included in Your Credit Score But Will Be Considered By Banks When You Apply For A Financial Product?
There are many other factors that are taken into account when the bank decides to reject or approve your application. It is not solely dependent on your credit score report.
Here is a list of information that banks will also consider before approving an application:
- Profession and Industry – Risky jobs may have lower chances of approval or higher interest charges.
- Income level & employment history – Your chances of approval for a credit card is higher if your income level is stable and you do not job-hop in a short period.
- Employer – Multinational corporations or government-employed applicants have a higher chance of
- Bankruptcy or legal cases from the past – Though your credit report may be ‘clean’ for the past three or five-year, banks still factor in your past history in bankruptcy declaration or legal cases before approving your application for a loan or credit card.
- Asset – Banks may approve your application for credits if your net asset value is high.
- Down payment and loan period for loan application – Banks will consider your credit application to be less risky if your down payment is higher (lower amount of loan) and length of loan repayment is shorter.
- Location of residences – This unwritten rule applies to certain banks, subjective to their requirements and strategy, for example, if they do not have a branch or resource in a certain state, they are less likely to approve an application from someone in that state.
By now, we hope you have a better picture of how a credit score works and why it is important to maintain in a healthy state.
[tags]
Read More
50 Crypto Jargons and What They Mean
- By CompareHero.my
It can feel intimidating when you first step into an industry and see the insane number of words you have to Google, and still not know what it means after that. Finance, law, business, and, of course, the crypto industry are infamous for their hard-to-understand language.
Sometimes, the jargon used is done on purpose, other times, there just may not be another word to replace it. Regardless, this article will break down 50 of the most common crypto jargon and what they mean in understandable language. A glossary, if you may.
- 51% Attack:
- Also known as a majority attack, it happens when an individual or group controls more than 50% of the mining power on a blockchain. It is often accomplished by renting mining power from a third party.
- Address:
- An address on the blockchain is a string of text used to identify a location or person, just like an address in the real world or a website. The text string specifies the site of a particular wallet on the blockchain, from which digital assets may be sent or received.
- Airdrop:
- A marketing ploy in which money or tokens are sent to wallet addresses to raise awareness of a new cryptocurrency.
- All-time high:
- It refers to the highest price that an asset has ever reached.
- All-time low:
- The exact opposite of an All-time high. Referring to the lowest price that an asset has ever reached.
- Altcoin:
- Alternative cryptocurrencies to Bitcoin. For example Ethereum, Litecoins, or Monero.
- AML (Anti-Money Laundering):
- AML is a combination of processes and regulatory rules designed to detect and prohibit unlawful activities. This includes illegal trading, tax evasion, market manipulation, and the laundering of soiled gains.
- Arbitrage:
- An act of purchasing a digital asset on one exchange and selling it simultaneously for a profit.
- Ark:
- A decentralised ecosystem aimed at increasing blockchain adoption among users.
- ASIC (Application Specific Integrated Circuit):
- In contrast to general-purpose circuits like the CPUs that power our computers and mobile devices, ASICs are integrated circuits that have been built to fulfil a specific use case.
- Atomic Swap:
- An automated technology that permits one cryptocurrency trading for another without centralised middlemen, such as exchanges.
- Augur:
- A software program that intends to motivate a worldwide network of computers to keep an Ethereum-based (ETH) prediction market platform running.
- Bear Market:
- When supply exceeds demand, confidence is low, and prices decrease.
- Block Explorer:
- A blockchain search engine that allows you to search the blockchain for a specific piece of data.
- Block Height:
- It indicates a particular place in a blockchain determined by the number of verified blocks that came before it.
- Block Reward:
- The number of cryptocurrencies you will receive if you successfully mine a cryptocurrency block.
- Blockchain:
- A decentralised database shared across computer network nodes.
- Bull Market:
- Refers to a strong market upswing with substantial price growths.
- Burn:
- When a cryptocurrency token is removed from circulation.
- Chainlink:
- A decentralised network of nodes that connects off-blockchain data and information to on-blockchain smart contracts via oracles.
- Cipher:
- An algorithm for encrypting or decrypting data.
- Circulating Supply:
- It refers to the best estimate of the number of coins circulating in the market.
- Cold Storage:
- An offline wallet that allows one to store the crypto coin’s private keys away from the internet. Also known as a hardware wallet.
- Decred:
- A community-driven cryptocurrency that provides a fully decentralised, unbiased, and sovereign cryptocurrency option to traditional cash.
- DeFi (Decentralised Finance):
- A financial system based on blockchain technology that reimagines financial transactions by removing intermediaries.
- Double Spend:
- It happens when someone alters a blockchain network and inserts a special unit of currency to reclaim a coin.
- Dump:
- A sudden reduction in the price of a coin caused by unusual selling activity.
- Dust Transaction:
- Transactions of tiny amounts of bitcoin.
- ERC (Ethereum Request for Comment):
- An application-level standard for Ethereum.
- Escrow:
- A typical financial arrangement used to make transactions more unassailable.
- Fiat:
- A currency established as a recognized form of money. Usually with the support of a government regulation declaring it legal tender.
- FOMO:
- Fear Of Missing Out.
- Fork:
- A fork occurs whenever a community changes the blockchain’s protocol or fundamental rules.
- FUD:
- “Fear, uncertainty, and doubt” — indicates a general pessimism about a specific asset or market.
- Gas:
- The unit of measurement for the amount of computing effort necessary to perform various activities on the Ethereum network.
- Gwei:
- Stands for “gigaWei”, the smallest unit of the Ethereum network.
- Halving:
- Refers to a method of declining the pace at which new coins are issued.
- Hashrate:
- A measure of the computational capacity per second used when mining.
- Liquidity:
- How easy it is to turn cryptocurrency into cash.
- Mining:
- The procedure of validating a cryptocurrency transaction.
- Minting:
- A decentralised technique for creating a new coin.
- Monero:
- A digital currency that offers a high level of obscurity for users and their transactions.
- Pump:
- The exact opposite of “dump”. Indicates the manipulation to drive the demand and price of respective currencies up.
- Ripple:
- A technology that performs as both a cryptocurrency and a digital payment network for financial commerce.
- Sharding:
- A method examined by developers to increase transactional throughput.
- Staking:
- A method of accumulating rewards for holding specific cryptocurrencies.
- Token:
- It is a tradable asset or utility that exists on its blockchain and can be used for investment or economic purposes by the holder.
- Wallet:
- An app that permits cryptocurrency users to store their digital assets.
- Waves:
- A blockchain system that allows developers to create decentralised applications (DApps) and smart contracts.
- Whale:
- An account with a large amount of a coin and the ability to impact the market.
