Glossary Of Cryptocurrency Terms

Glossary Of Cryptocurrency Terms

A to Z, up to date cryptocurrency terms

  • 2FA – Two Factor Authentication – 2FA security is a two step verification login process e.g. following a username and password login, a code by text message may be required to login.
  • Advisor (ICO) – Meaning usually to mentor or guide an ICO in their particular area of expertise.
  • Address – A cryptocurrency address is the destination for a cryptocurrency payment.
  • Advertising (ICO) – Promoting/marketing an ICO by means of an audio or visual presentation.
  • Airdrop – ICO airdrop is the distribution of free tokens to assist in building an investor community.
  • Altcoin – ‘Alt coin’ – short for ‘alternative’ and ‘coin’. Term used to describe all cryptocurrencies, except for Bitcoin.
  • AML – Anti Money Laundering – law introduced to prevent someone from hiding the source of illegally obtained money.
  • Arbitrage – In finance and trading, Arbitrage refers to simultaneously buying and selling something on different exchanges that represent different price markets.
  • ATH – ‘ATH’ crypto term or ‘all time high’ refers to the highest price a coin or token has ever achieved.
  • Bagholder – In crypto, a bag holder refers to an investor that is holding worthless cryptocurrency.
  • Bearish – Investors expecting falling prices on the exchange.
  • Bear Market – A market in decline, which encourages panic selling.
  • Bitcoin (BTC) – 1st cryptocurrency, that uses encryption techniques for peer-to-peer transactions.
  • Bitcoin Cash (BCH) – A cryptocurrency created as a result of disagreements around the bitcoin scalability issue.
  • Blockchain – Public digital ledger where cryptocurrency transactions are recorded.
  • Bot – Trading bots – computers that automatically identify trends and complete trades.
  • Bollinger Band – Used in trading to identify levels of volatility.
  • Bullish – Investors which are expecting a rise in exchange prices.
  • Bull Market – Market with rising share prices, which encourages FOMO buying.
  • Calendar – ICO calendar lists upcoming, ongoing and completed ICO’s.
  • Circulating Supply – The amount of coins in the market or being held by investors at any one time.
  • Consensus – A.K.A ‘Distributed Consensus’ – An algorithm run by various computers to establish a collective agreement on the validity of a transaction.
  • Cold Storage – In crypto, cold storage refers to keeping your cryptocurrency off the internet, e.g. on a hardware wallet.
  • Cryptocurrency – Encrypted digital currency.
  • Coin – ICO blockchain token.
  • Crowdsale – Obtaining investment through a public token sale or as it’s more commonly known an initial coin offering (ICO).
  • DAO – Decentralized Autonomous Organisation – an organisation that operates digitally, through self-executing smart contracts on multiple computers.
  • DASH – DAO and open source cryptocurrency based on Bitcoin software
  • Decentralised – A condition where power or function has withdrawn from a central control and there is no central point of failure.
  • Decentralised Applications (dApps) – Applications which are run using Ethereum smart contracts.
  • Digital Currency – Another term for virtual currency and cryptocurrency.
  • DLT – Distributed Ledger Technology – A database independently held and updated by nodes in a large network.
  • ERC-20 – Type of token made on Ethereum. ICO tokens are usually ERC-20 and work immediately with Dapps.
  • Escrow Contract – Type of Ethereum smart contract.
  • Ether – ETH – Ethereum’s cryptocurrency.
  • Ethereum – Open source decentralised platform, running smart contracts created on blockchain technology.
  • Exchange – Website where you buy/sell cryptocurrencies.FCA – Financial Conduct Authority – Financial services conduct regulator for the UK.
  • Fiat – Paper or coin currency issued by a centralised power (Government) e.g. Euro.
  • FINMA – Swiss Financial Market Supervisory Authority – Responsible for Swiss financial regulation.
  • Flipping – Buying ICO tokens prior to being listed on exchanges and selling once they are listed.
  • FOMO – Fear Of Missing Out – In crypto, this is the feeling that you may miss an investing opportunity.
  • Fork – When a blockchain of a particular cryptocurrency divides into two different chains.
  • Fraudulent Misrepresentation – An intentionally false statement that is made to lure another party into signing a contract which will inevitably result in loss.
  • FUD – Fear Uncertainty Doubt.
  • Fudster – This a person that circulates FUD.
  • Gas – Gas is a ‘payment’ used to process a transaction on the Ethereum network.
  • Gas Limit – The max amount someone is willing to spend on a transaction.
  • Gas Price – The amount you are willing to spend on gas. More gas will incentivize miners to validate your transaction over others that set lower gas prices.
  • Genesis Block – The first block of a new blockchain.
  • Going Long – A trade which profits if the price increases.
  • Going Short – A trade which profits if the price decreases.
  • Hard Cap – The maximum amount an ICO will receive.
  • Hard Fork – When a single cryptocurrency splits into two branches.
  • Hardware Wallet – A physical device that stores cryptocurrency.
  • Hodl – ‘Hold’ – to not sell.
  • Hot Wallet – A wallet that is connected to the internet.
  • Howey Test – Test to identify whether a transaction qualifies as an investment contract or not.
  • ICO – Initial Coin Offering – Raising money through cryptocurrency in a public token sale.
  • IPO – Initial Public Offering – First time a company’s stock is offered to the public.
  • Insider Trading – Buying or selling tokens/cryptocurrency with the knowledge of non-public information.
  • IRS – Internal Revenue Service – US tax collection service.
  • KYC – Know Your Customer – businesses must identify and verify their customers (prevents money laundering etc.).
  • Limit Buy – Limit Order – Limit Sell – Orders made by a trader to buy/sell a cryptocurrency at a particular price.
  • Market Cap – Market Capitalization – Total value of a cryptocurrency/token.
  • Market Buy – Market Order – Market Sell – Buying, ordering or selling at the best possible prices.
  • Maximum Supply – The maximum number of coins or tokens to exist.
  • Mining – Verifying transactions and adding to the blockchain.
  • Mining Rig – Computer for processing proof of work blockchains.
  • Moon – A cryptocurrency or token price that is rising to very high prices.
  • Multisignature – When a transaction requires more than one signature or key to be processed.
  • Node – Computer which keeps and maintains a copy the blockchain.
  • Paper Wallet – Hardware wallet.
  • Ponzi Scheme – Fraudulent investing scam.
  • Pre-Sale – A sale that takes place prior to an ICO.
  • Private Key – Used to unlock your wallet.
  • Proof Of Stake (PoS) – Concept that allows a person to validate a transaction depending on how many coins they hold.
  • Proof Of Work (PoW) – Consensus algorithm – rewarding the first miner to solve the problem.
  • Pump And Dump – Encouraging investors to buy a particular token (which artificially inflates price) and then selling when the price of a token is high.
  • Public Key – The key you share to have someone send you cryptocurrency.
  • ROI – Return On Investment – Money made compared to money invested.
  • SAFT – Simple Agreement for Future Tokens – investment contract provided by cryptocurrency developers to certified investors.
  • Satoshi – Smallest fraction of a Bitcoin.
  • SEC – US Securities and Exchange Commission.
  • Segregated Witness – SegWit – separate transaction signatures.
  • Sharding – Database setup where numerous splits create many segments (shards) of a database.
  • Shilling – Advertising a cryptocurrency.
  • Smart Contract – Self-executing digital contract.
  • Soft Cap – Minimum amount an ICO needs to raise.
  • Solidity – Language to write smart contracts.
  • Token – Coin programmed in on a blockchain, used for ICO’s.
  • Token Sale – Raising money for an ICO by selling tokens.
  • Total Supply – The maximum amount of coins that exist.
  • Transaction Fee – Gas – the reward a miner receives for validating a block.
  • Volatility – How rapidly the price of a currency can change.
  • Wallet – Place to keep cryptocurrency.
  • Wei – Smallest fraction of Ethereum.
  • Whale – Investor that holds a lot of coins.
  • Whitelist – List of approved investors which hold first choice on contributing to an ICO.
  • Whitepaper – Document which informs investors of the ICO objectives, team members, token structure etc.

Related Posts

No items found