Crypto Terms: Letter I

What is IP Address?

Meaning:

IP Address - a unique numeric address that is assigned to a device that is connected to a local network or the internet.

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Let's find out IP Address meaning, definition in crypto, what is IP Address, and all other detailed facts.

IP essentially stands for Internet Protocol and it is a set of rules that governs data distribution between devices connected to a local network or the internet. IP addresses are unique numeric addresses assigned to these devices. These addresses act as labels that carry information about the devices.

IP addresses provide the means to differentiate between various devices that are interconnected on the internet. In the crypto world, IP address awareness is essential to maintain privacy on the internet.

How Does IP Address Work?

The workflow of IP addresses can be divided into four main steps:

Your device is connected to the internet through a network that is offered by an internet service provider (ISP).
The ISP assigns a unique IP address to your device.
Your internet activity is routed through the ISP.
After your device’s compliance with the internet protocols is ensured, they route it back to you.

Note that this process happens in seconds.

What is the Classification of IP Addresses?

IP addresses are classified in two ways – by format and by type. There are two different formats and two different types of IP addresses.

The formats of IP addresses:

IPv4 is a 32-bit format and it is a numeric addressing method that uses a dot (.) for the separation of its binary bits. It uses Address Resolution Protocol (ARP) to map IP addresses and offers 12 different headers.
IPv6 is a 128-bit format and it is an alphanumeric addressing method that uses a colon (:) to separate its binary bits. It uses Neighbor Discovery Protocol (NDP) to map IP addresses and offers 8 different headers.

The types of IP addresses:

The dynamic IP address is the address that is assigned to a device and then reassigned to another device when the first one loses access to the internet. This constant change makes your device more secure and harder to hack.
The static IP address is a specific address assigned to a device that remains with that device. Static IP addresses are mostly used by businesses that host their own servers.

Crypto Privacy and IP Addresses

On-chain security and anonymity are essential things to consider when using cryptocurrencies. Without security and anonymity, your identity and personal information shared on an exchange or an IP address might become accessible to the public. Being recognized as a crypto trader might put you at risk, therefore, you should always consider on-chain privacy measures and avoid connecting your identity to your IP address.

How to Protect Yourself From Crypto Privacy Issues Associated with IP Addresses?

The best way to protect your personal information is using a Virtual Private Network (VPN) which reroutes your location to a different geological location. VPN services replace your unique IP address with their own which makes it impossible to find your location, personal information, and online activity.

Besides, stay away from crypto exchanges that lack on-chain protection measures. There's no reason to hide your IP address if your on-chain information is public. Though if the exchange does offer on-chain security measures, don’t ignore them.

liquidated, he will only lose the Isolated Margin balance, not the whole balance.<\/p>\nTo illustrate, imagine that you want to open a long position in <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//buy-ethereum-eth/">Ethereum that is worth $10000 and has a 10x <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-leverage/">leverage. In this case, you have a margin balance of $20000 but you don’t want to risk the whole amount for a single position because it would probably be careless.<\/p>\nThus, you can set the Isolated Margin for the position to, let’s say, $1000. By doing that, you won’t lose more than $1000 if your position is liquidated.<\/p>\nThe amount of margin assigned to a position<\/strong> can be adjusted<\/strong> once it has been isolated. In Isolated Margin mode, an additional margin can be added to the position if it's about to be liquidated. This would prevent liquidation.<\/p>\nCross Margin<\/strong> is another popular margin mode. The full margin balance is divided across open positions<\/strong> in this mode. The division is done to avoid liquidation. When liquidation occurs, the trader could lose his\/her entire margin balance as well as any open positions if Cross Margin is activated. Though a losing position that is close to liquidation can be assisted by realized Profit and Loss from another position.<\/p>\nCross Margin is the default choice on most trading platforms. This is because it’s the most direct approach for new traders. Isolated Margin, on the other hand, can be advantageous for more risky positions with strict downside limits.<\/p>","definition":"the margin balance assigned to a single position that allows traders to manage their risks.","status":"published","meta_title":"What is Isolated Margin? Definition & Meaning | Crypto Wiki","meta_description":"Isolated Margin meaning: Isolated Margin - the margin balance assigned to a single position that allows traders to manage their risks.","meta_keywords":null}" :prev-section="{"id":443,"wikipedia_url":"https:\/\/en.wikipedia.org\/wiki\/IOU","level":"medium","author_id":1,"created_at":"2023-06-19T06:59:00.000000Z","updated_at":"2024-01-03T03:59:21.000000Z","slug":"what-is-iou","title":"What is IOU?","section":"I","keyword":"IOU","content":"To specify, IOU is any file that showcases that there is debt owed between two parties. <\/p>\nIOUs are crucial papers in financial deals since they explain the debt connection between two parties<\/strong>, whether they are individuals or corporations. IOUs, although this, are not legally binding. They mostly serve as a warning<\/strong> and have no contractual force.<\/p>\nIOUs are typically created in the heat of the moment, such as at the end of a business meeting, as a type of statement of intent. They are frequently accompanied by a more formal written contract or agreement.<\/p>\nThe adaptability of blockchain technology, particularly when combined with smart contract features on various protocols, enables users to effortlessly generate and transfer IOU tokens. With the popularity of <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-erc-20/">ERC-20 and <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-bep-20/">BEP-20 tokens,<\/strong> <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-minting/">minting IOU tokens is a simple and efficient method to represent debt in the cryptocurrency world. Crypto IOUs, like ordinary IOUs, lack binding authority. <\/p>\nThey are, though, a highly practical method to maintain debt relationships in control and to keep track of the money you borrow or lend.<\/p>\nBesides, IOUs can be generated for any type of debt. IOUs are considered semi-formal papers, and their principal goal is to act as a reminder that two parties are in debt to one another. The elements of an IOU are determined by the parties.<\/strong> IOUs may include the names and addresses of the people involved, or they may just specify the level of debt.<\/p>\nIOUs are typically used to relate to monetary debt, but they may also apply to other types of assets such as real estate and material objects<\/strong>. An IOU, in a broader context, does not have to be a tangible document. This can simply be a simple spoken agreement between parties describing the quantity of debt, as well as the period and terms for repayment.<\/p>\nMoreover, a new type of IOU has developed as a result of the emergence of cryptocurrencies. Blockchain-based IOUs<\/strong> enables merchants to quickly generate tokens that reflect debt and trade across blockchains. <\/p>\nAn IOU crypto token serves the same function as an IOU notice in that it serves to identify a debt connection between two parties. For instance, if you lend <a href=https://www.bitdegree.org/"//crypto//buy-bitcoin-btc/">Bitcoin to a colleague and want documentation of the transaction, your colleague can generate an IOU token, which will be kept in your personal <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-wallet/">wallet. /n
So, when you return the IOU token, you are effectively requesting reimbursement for the cryptocurrency you gave.<\/strong><\/p>","definition":"is a declaration that recognizes the presence of debt. It is a phonetic abbreviation for the phrase \"I owe you.\"","status":"published","meta_title":"What is IOU? Definition & Meaning | Crypto Wiki","meta_description":"IOU meaning: IOU - is a declaration that recognizes the presence of debt. It is a phonetic abbreviation for the phrase \"I owe you.\"","meta_keywords":null}" :model="{"id":431,"wikipedia_url":"https:\/\/en.wikipedia.org\/wiki\/IP_Address","level":"medium","author_id":1,"created_at":"2023-06-19T06:58:59.000000Z","updated_at":"2024-01-03T04:07:10.000000Z","slug":"what-is-ip-address","title":"What is IP Address?","section":"I","keyword":"IP Address","content":"IP essentially stands for <a href=https://www.bitdegree.org/"https:////en.wikipedia.org//wiki//Internet_Protocol/" target=\"_blank\" rel=\"nofollow noindex noopener\">Internet Protocol<\/a><\/strong> and it is a set of rules that governs data distribution between devices connected to a local network or the internet. IP addresses are unique numeric addresses assigned to these devices. These addresses act as labels that carry information about the devices.<\/p>\nIP addresses provide the means to differentiate between various devices that are interconnected on the internet. In the crypto world, IP address awareness is essential to maintain privacy on the internet<\/strong>.<\/p>\n<h2>How Does IP Address Work?<\/h2>\nThe workflow of IP addresses<\/strong> can be divided into four main steps:<\/p>\n<ul>\n<li>Your device is connected to the internet through a network that is offered by an <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-internet-service-provider-isp/" target=\"_blank\" rel=\"nofollow noindex noopener\">internet service provider (ISP)<\/strong><\/a>.<\/li>\n<li>The ISP assigns a unique IP address to your device.<\/li>\n<li>Your internet activity is routed through the ISP.<\/li>\n<li>After your device’s compliance with the internet protocols is ensured, they route it back to you.<\/li>\n<\/ul>\nNote that this process happens in seconds.<\/em><\/p>\n<h2>What is the Classification of IP Addresses?<\/h2>\nIP addresses are classified in two ways – by format and by type. There are two different formats and two different types of IP addresses.<\/p>\nThe formats of IP addresses:<\/p>\n<ul>\n<li>IPv4<\/strong> is a <a href=https://www.bitdegree.org/"https:////en.wikipedia.org//wiki//32-bit_computing/" target=\"_blank\" rel=\"nofollow noindex noopener\">32-bit format<\/strong><\/a> and it is a numeric addressing method that uses a dot (.) for the separation of its binary bits. It uses <a href=https://www.bitdegree.org/"https:////en.wikipedia.org//wiki//Address_Resolution_Protocol/" target=\"_blank\" rel=\"nofollow noindex noopener\">Address Resolution Protocol (ARP)<\/strong><\/a> to map IP addresses and offers 12 different headers.<\/li>\n<li>IPv6<\/strong> is a <a href=https://www.bitdegree.org/"https:////en.wikipedia.org//wiki//128-bit_computing/" target=\"_blank\" rel=\"nofollow noindex noopener\">128-bit format<\/strong><\/a> and it is an alphanumeric addressing method that uses a colon (:) to separate its binary bits. It uses <a href=https://www.bitdegree.org/"https:////en.wikipedia.org//wiki//Neighbor_Discovery_Protocol/" target=\"_blank\" rel=\"nofollow noindex noopener\">Neighbor Discovery Protocol (NDP)<\/strong><\/strong><\/a> to map IP addresses and offers 8 different headers.<\/li>\n<\/ul>\nThe types of IP addresses:<\/p>\n<ul>\n<li>The dynamic IP address<\/strong> is the address that is assigned to a device and then reassigned to another device when the first one loses access to the internet. This constant change makes your device more secure and harder to hack.<\/li>\n<li>The static IP address<\/strong> is a specific address assigned to a device that remains with that device. Static IP addresses are mostly used by businesses that host their own servers.<\/li>\n<\/ul>\n<h2>Crypto Privacy and IP Addresses<\/h2>\n<a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-on-chain/">On-chain security and anonymity are essential things to consider when using <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-cryptocurrency/">cryptocurrencies. Without security and anonymity, your identity and personal information shared on an <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-exchange/">exchange or an IP address might become accessible to the public. Being recognized as a crypto trader might put you at risk, therefore, you should always consider on-chain privacy measures and avoid connecting your identity to your IP address.<\/p>\n<h3>How to Protect Yourself From Crypto Privacy Issues Associated with IP Addresses?<\/h3>\nThe best way to protect your personal information is using a <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-virtual-private-network-vpn/" target=\"_blank\" rel=\"nofollow noindex noopener\">Virtual Private Network (VPN)<\/strong><\/strong><\/a> which reroutes your location to a different geological location. VPN services replace your unique IP address with their own which makes it impossible to find your location, personal information, and online activity.<\/p>\nBesides, stay away from crypto exchanges that lack on-chain protection measures. There's no reason to hide your IP address if your on-chain information is public. Though if the exchange does offer on-chain security measures, don’t ignore them.<\/p>\n <\/p>","definition":"a unique numeric address that is assigned to a device that is connected to a local network or the internet.","status":"published","meta_title":"What is IP Address? Definition & Meaning | Crypto Wiki","meta_description":"IP Address meaning: IP Address - a unique numeric address that is assigned to a device that is connected to a local network or the internet.","meta_keywords":null,"author":{"id":1,"user_id":1,"created_at":"2023-05-03T14:30:55.000000Z","updated_at":"2023-05-11T07:18:20.000000Z","title":"Editor-In-Chief","slug":"aaron-s-editor-in-chief","description":"Having completed a Master’s degree on Economics, Politics & Culture for the East Asia region, Aaron has written scientific papers with a comparative analysis of the differences between US’ Western and Japan’s Collective forms of capitalism, 1945-2020.<\/p>\nWith close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.<\/p>\nAaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.<\/p>\nAaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.<\/p>","user":{"id":1,"first_name":"Aaron","last_name":"S.","email":"aaron@bitdegree.org","email_sanitized":"aaron@bitdegree.org","email_verified_at":"2023-12-01T09:40:20.000000Z","must_verify_email":false,"is_registered_with_wallet":false,"status":"active","country":"LT","last_connected_ip":"88.119.132.125","image_id":2641,"referral_token":"05TMu2NysXOCn525","referred_by":null,"created_at":"2023-05-03T14:30:55.000000Z","updated_at":"2024-01-09T15:22:21.000000Z","full_name":"Aaron S."}}}" :chapter-list="[{"id":1,"title":"Blockchain","slug":"blockchain","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-blockchain.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/blockchain-101.jpg","rating":100,"sections":[{"chapter_id":1,"order":1,"slug":"what-is-blockchain","title":"What is the Blockchain?","status":"published","modified_content":null},{"chapter_id":1,"order":2,"slug":"decentralized-blockchain","title":"Anonymous & Decentralized Blockchains: The Cornerstone of Crypto","status":"published","modified_content":null},{"chapter_id":1,"order":3,"slug":"blockchain-transaction","title":"What is a Blockchain Transaction in Crypto?","status":"published","modified_content":null},{"chapter_id":1,"order":4,"slug":"crypto-fees","title":"The Different Types of Crypto Fees Explained","status":"published","modified_content":null},{"chapter_id":1,"order":5,"slug":"what-is-bridging-in-crypto","title":"The Key Notion Behind the Concept of Bridging in Crypto","status":"published","modified_content":null},{"chapter_id":1,"order":6,"slug":"types-of-blockchains","title":"Different Types of Blockchains: What to Look Out For?","status":"published","modified_content":null}]},{"id":2,"title":"Cryptocurrencies","slug":"cryptocurrencies","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-cryptocurrencies.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/cryptocurrencies-101.jpg","rating":100,"sections":[{"chapter_id":2,"order":1,"slug":"what-is-a-cryptocurrency","title":"What is a Cryptocurrency?","status":"published","modified_content":null},{"chapter_id":2,"order":2,"slug":"how-does-cryptocurrency-work","title":"How Does Cryptocurrency Work?","status":"published","modified_content":null},{"chapter_id":2,"order":3,"slug":"is-cryptocurrency-a-good-investment","title":"Is Cryptocurrency a Good Investment? 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Cryptocurrencies?","status":"published","modified_content":null},{"chapter_id":7,"order":2,"slug":"how-to-invest-in-crypto","title":"Investing in Crypto: What Investing Options Do You Have?","status":"published","modified_content":null},{"chapter_id":7,"order":3,"slug":"ico-vs-ido","title":"ICO vs IDO vs IEO: Which One is the One?","status":"published","modified_content":null},{"chapter_id":7,"order":4,"slug":"what-is-an-airdrop","title":"What are Crypto Airdrops and How to Get Them?","status":"published","modified_content":null},{"chapter_id":7,"order":5,"slug":"how-to-get-free-crypto","title":"How to Get Free Crypto Assets?","status":"published","modified_content":null},{"chapter_id":7,"order":6,"slug":"how-to-arbitrage-crypto","title":"What is Crypto Arbitrage: The Main Principles","status":"published","modified_content":null},{"chapter_id":7,"order":7,"slug":"what-is-a-perpetual-contract","title":"Perpetual Contracts: Futures Contracts Without an Expiration 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Tokens?","status":"published","modified_content":null},{"chapter_id":8,"order":5,"slug":"how-to-research-crypto","title":"Crypto Research Fundamentals & Social Signals: Your Daily Trading Strategy","status":"published","modified_content":null},{"chapter_id":8,"order":46,"slug":"portfolio-diversification-definition","title":"Portfolio Diversification: The Whats, the Whys, and the Hows","status":"published","modified_content":null}]},{"id":9,"title":"Mining","slug":"mining","updated":false,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-crypto-mining.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/crypto-mining-101.jpg","rating":80,"sections":[{"chapter_id":9,"order":1,"slug":"what-is-crypto-mining","title":"Crypto Mining: What It is and How Does It Work?","status":"published","modified_content":null},{"chapter_id":9,"order":2,"slug":"what-is-a-mining-pool","title":"Mining Pools: Is Collective Mining Better Than Solo Mining?","status":"published","modified_content":null},{"chapter_id":9,"order":3,"slug":"what-is-staking-crypto","title":"An Advanced Look into What is Staking Crypto","status":"published","modified_content":null},{"chapter_id":9,"order":4,"slug":"what-is-proof-of-stake-vs-proof-of-work","title":"Proof-of-Work VS Proof-of-Stake: The Differences That Matter","status":"published","modified_content":null},{"chapter_id":9,"order":5,"slug":"what-is-crypto-mining-rig","title":"Crypto Mining Rig: What It is and How to Build One?","status":"published","modified_content":null}]},{"id":10,"title":"Crypto Terms","updated":false,"chapter":"crypto\/assets\/crypto-book\/chapters\/crypto-101-glossary.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/crypto-glossary-101.jpg","rating":100,"sections":["A","B","C","D","E","F","G","H","I","J","K","L","M","N","O","P","Q","R","S","T","U","V","W","X","Y","Z"]}]" current-chapter="I" current-section="what-is-ip-address">

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