Crypto Terms to Know – Glossary

A, B, C

• A bitcoin miner or group of miners wins control of more than 50% of a blockchain network.

• A string of characters produced at random and linked to a crypto wallet.

• A type of marketing strategy used by bitcoin startups.

• A well-defined computing operation that takes changeable inputs, including a cryptographic key, and outputs a result.

• The highest trading price for a digital asset ever.

• The cheapest price ever achieved by a cryptocurrency.

• A digital currency other than Bitcoin.

• A term used to describe all regulations, policies, and recommendations aimed at putting a stop to criminals seeking to swap their illegally obtained cryptocurrency assets for cash.

• A software middleman that allows two programs to communicate with one another.

• A microchip created for a specific application, such as a transmission protocol or a handheld computer.

• Simultaneous purchase and sale of stocks, money or commodities in multiple markets or in derivative forms to profit from price differences for the same asset.

• A cryptocurrency trade between different crypto wallets.

• The coins and tokens that one has in their portfolio.

• An investor or trader who has been holding a specific coin for an extended period of time and now must face the consequences of that decision.

• A misleading technical indication of a market turnaround from down to up that can entice naïve purchasers.

• Market pessimism and price drops are referred to as bearish or a bear market.

• A form of digital currency that functions independently of a central bank and keeps transaction records while generating fresh units of currency through the computational solution of mathematical puzzles.

• A distributed database that keeps an ever-growing collection of financial transactions.

• A piece of software that displays blocks, transactions, and blockchain network analytics.

• The number of blocks on the blockchain preceding it

• A block reward is the number of bitcoins you receive if you successfully mine a cryptocurrency block.

• A system in which a record of bitcoin or other transactions is kept across numerous computers linked in a peer-to-peer network.

• A standard for interoperability of heterogeneous blockchains, including blockchains with completely distinct consensus methods and algorithms.

• A crowdsourcing project that rewards people for detecting and reporting software defects.

• An aggressive dip-buying approach favored by traders in hot markets, such as Bitcoin. An acronym for Buy the F$%king Dip.

• Bullish describes market optimism and price increases, like a bull market.

• Refers to the act of transmitting a token to a receiving account.

• An investment strategy based on the basic premise of “buy low, sell high” but with a more focused strategy.

• The consequence of a single large buy order or the combination of numerous large buy orders placed at the same price in a market’s order book.

• The monetary worth of all mined coins in cryptocurrency markets.

• Central bank digital currency is a term used to describe digital tokens that are issued by a central bank of a particular country; they are similar to cryptocurrency,

• Individuals or organizations use physical books or digital files to record and total economic transactions in a centralized manner.

• A central exchange handles all cryptocurrency trade orders.

• A cryptocurrency and technology platform that allows non-blockchain firms to connect safely to blockchain platforms.

• A data encryption and decryption algorithm with a set of well-defined stages that can be carried out as a procedure.

• The number of coins or tokens of a particular cryptocurrency that are publicly available for purchase or sale.

• Any form of virtual or digital currency that uses cryptography to safeguard transactions.

• Any crypto wallet that is not linked to the internet, but is not a physical wallet.

• When a Bitcoin transaction is joined in a block with other transactions and added to the blockchain, it is considered confirmed.

• Confirmations represent the number of blocks that have passed since a transaction was added to a coin’s network.

• The protocols, algorithms, or other computer systems that enable the operation of cryptocurrencies.

• A variety of methods for achieving agreement, trust, and security over a decentralized computer network.

• A collection of private blockchains, each owned by a different organization, that have joined forces to share information in order to improve existing workflows, transparency, and accountability.

• A digital currency in which transactions are validated and records are kept by a decentralized finance system rather than a centralized authority utilizing cryptography.

• The function that is employed for security purposes and serves as the foundation of crypto security.

• Data encoding and decoding as a mathematical and computational method.

D, E, F

• An entity model in which token holders engage in an entity’s management and decision-making.

• Control and decision-making are transferred from a centralized entity (person, organization, or group thereof) to a dispersed network or decentralized applications.

• Decentralized applications run on a blockchain system in a transparent, accessible, and decentralized environment, free of oversight or influence from nearly any authority.

• A form of distributed open-source software application that runs on a blockchain network rather than a single computer.

• An entity model in which stakeholders engage in an entity’s management and decision-making.

• Peer-to-peer marketplaces in which bitcoin traders conduct deals without entrusting their funds to an intermediary or custodian.

• The act of reversing an encryption process in order to perceive or access previously encrypted data.

• A type of cryptocurrency with a declining coin supply.

• A tool for determining cryptocurrency supply and demand at any given time for a variety of pricing.

• Deriving private keys from that single starting point is how a deterministic crypto wallet works.

• A metric that indicates how difficult it is to mine a block in a blockchain for a specific cryptocurrency.

• A digital asset is any asset that exists in digital form.

• A transferable or fungible asset represented in the real or virtual world by exclusive tokens on a blockchain network that may represent a commodity, utility, or smart contract.

• Currency that can only be accessed via computers or mobile phones since it exists exclusively in electronic form.

• If someone wishes to show that they have created a statement, they can add a digital signature to it so that others can verify it.

• A digital system for recording asset transactions in which transactions and details are recorded in numerous locations simultaneously.

• A term used to describe the possibility of a cryptocurrency being used twice or more.

• An organized swindle in which investors are duped into acquiring a fraudulently inflated cryptocurrency token.

• A market sell-off that occurs when substantial amounts of a specific cryptocurrency are sold in a short period of time.

• A small quantity of cryptocurrency left over from a trade or cryptocurrency transaction.

• Urging people to think for themselves and do their homework before investing in crypto or digital currencies.

• A communication, transaction, or data value illegible to an unauthorized reader or recipient, so that it may only be read and processed by the intended recipient.

• Acronym for Ethereum Request for Comment.

• The Ethereum blockchain’s established standard for fungible tokens.

• Tokens given to a third-party smart contract.

• A decentralized blockchain platform that creates a peer-to-peer network for securely executing and validating application code known as smart contracts.

• After each new Ethereum blockchain is added, the Ethereum Virtual Machine, a piece of software, executes smart contracts and computes the state of the Ethereum network.

• Programs that are stored on a blockchain ledger and run when certain criteria are met.

• Acronym for Ethereum Virtual Machine.

• Where buyers and sellers can exchange cryptocurrency.

• Acronym for Fundamental Analysis.

• A method of rewarding customers with quick Bitcoin payments in exchange for completing tasks on a website or app.

• Fiat currencies are money that is legal tender whose value is linked to the value of a government-issued, actual currency.

• Irrationally purchasing or trading a coin without doing due diligence.

• A fork is essentially a modification to the blockchain protocol that the software uses to determine whether or not a transaction is genuine by verifying transactions.

• Ideal trading environment with no transaction fees or constraints.

• A strategy for influencing public opinion about certain cryptocurrencies or the cryptocurrency market in general by publishing false, incorrect, or misleading information

• A peer-to-peer machine in the Bitcoin network that hosts and synchronizes a copy of the full Bitcoin blockchain

• To forecast the future value of an item based on whether it is overvalued or underpriced in the market.

• An agreement between two parties to acquire or sell an item, such as digital assets, on a specified date and at a specified price.

G, H, I

• A blockchain transaction fee paid to network validators in exchange for their blockchain services.

• The most computing power you are ready to pay for in order to analyze and validate a certain transaction.

• The price of one unit of gas is referred to as the gas price.

• The term given to the first block mined in a cryptocurrency, such as Bitcoin.

• The first NFT issued by a creator, hopefully to a receptive audience that will snap it up immediately.

• Several persons or entities combining their computational resources to mine together.

• The denomination of the Ether cryptocurrency.

• When the payout for mining Bitcoin transactions is slashed in half.

• The market cap imposed in the code of a blockchain to keep the maximum number of tokens in circulation.

• A significant modification to a network’s protocol that allows previously invalid blocks and transactions to become legitimate, or vice versa.

• Hardware wallets are cryptocurrency wallets that hold the user’s private key in a safe hardware device.

• A hash method is used to generate a code for the data. The code is a string of characters that serves as the file’s “fingerprint.”

• A hash rate is a unit that measures the computing power of bitcoin mining equipment.

• A method used with the purpose of compressing data.

• The speed with which your hardware can mine cryptocurrencies by solving critical mathematical problems per second.

• A warning to other cryptocurrency investors not to sell when values fall.

• A crypto wallet connected to the internet and thus exposed to cyber-attack.

• The blockchain is used to agree on rotating committees, which then execute permissioned consensus procedures to agree and validate transactions.

• An acronym for Initial Coin Offering.

• The ability of a blockchain ledger to preserve a permanent, indelible, and unalterable record of transactions.

• Immutable transactions prevent any entity (for example, a government or corporation) from manipulating, replacing, or falsifying data stored on the network.

• The cryptocurrency industry’s equivalent of an initial public offering (IPO) is an initial coin offering (ICO). An ICO can be launched by a firm looking to generate funding to build a new coin, app, or service.

• A file system similar to Git that allows you to store files and track versions over time while keeping track of them on a distributed network similar to BitTorrent.

J, K, L

• Joy Of Missing Out. It is frequently used by no-coiners to express their joy at not being involved in cryptocurrencies, usually, when prices are falling or a scam ICO is exposed.

• A series of procedures crypto exchanges do during customer onboarding to authenticate their identity and perform due diligence to understand their financial activity and dangers.

• When a cryptocurrency investment pays out enough that an investor can purchase a Lamborghini.

• When cryptocurrency holders will be wealthy enough to acquire a Lamborghini.

• A network or system that runs on top of a blockchain protocol to improve its scalability and efficiency.

• The ledger anonymously stores individuals’ names, cryptocurrency balances, and a record of all transactions completed between network participants.

• Borrowing money to make trades in order to profit more.

• The Lightning Network is intended to make bitcoin transactions as quick and inexpensive as possible.

• A purchase limit order will only be filled at the limit price or a lower price. A sell limit order will only be executed if the limit price or a higher price is met.

• The simplicity with which tokens can be exchanged for cash and other tokens without causing a significant change in the price of the asset.

• A method in which cryptocurrency investors lend assets to a decentralized finance exchange in exchange for rewards.

• A crypto transaction limitation technique that defines an actual time or block height to confirm a transaction on the blockchain network.

• An investor buys bitcoin with the idea that prices will climb later, allowing the asset to be sold for a profit.

M, N, O

• A momentum indicator that follows a trend and displays the relationship between two exponential moving averages (EMAs) of a security’s price.

• The name given to the genuine Bitcoin blockchain and network.

• The name of a trader’s position when going short on margin.

• The name of a trader’s position when going long on margin.

• A risky cryptocurrency method that allows you to magnify gains and losses with borrowed cash, often known as leveraging.

• A market cap is determined by multiplying a specific crypto market’s current coin price by its circulating supply. In other words, the market cap is the combined value of all mined coins on the cryptocurrency exchange.

• An order to purchase or sell bitcoin coins and tokens for fiat currency at the current market price.

• MCAP is a cryptocurrency that runs on the Ethereum blockchain.

• The virtual world that is immersive and has enormous social and financial potential.

• The competitive process for a cryptocurrency that uses the proof-of-work (PoW) mechanism to verify and add new transactions to the blockchain.

• Smart contracts in which a customer pays for the output of mining power generated by hardware located in remote data centers.

• A mining pool is a group of cryptocurrency miners who pool their computational capabilities over a network in order to increase the likelihood of finding a block or otherwise successfully mining for cryptocurrency.

• If your company deals with virtual currencies and provides virtual currency exchange or virtual currency transfer services.

• It is the official cryptocurrency on the Reddit social media platform. Registered crypto enthusiasts are able to farm or earn this currency based on the quality of the content. they publish on Reddit.

• A momentum indicator that follows a trend and displays the relationship between two exponential moving averages (EMAs) of a security’s price.

• Acronym for Money Services Businesses.

• Switch between multiple altcoins and constantly calculate which coin is the most profitable to mine at the time.

• A digital wallet that works with multiple signatures.

• The requirement for two or more signatures on a transaction before it may be conducted.

• Cryptocurrency networks can be compared to technology companies. They are, however, decentralized systems that are coordinated by an underlying blockchain-based crypto asset rather than having a central owner who organizes activities between users.

• A computer networked with other computers that adhere to standards and share information.

• Non-fungible tokens, or NFTs, are digital pieces of material that are linked to the blockchain, the digital database that underpins cryptocurrencies like Bitcoin and Ethereum.

• A number created at random or semi-randomly for a specified purpose.

• Acronym for One Cancels the Others.

• A transaction that takes place entirely on a blockchain network

• Consists of a pair of orders that are generated concurrently, but only one of them can be performed.

• Data feeds that bring data from off-chain data sources and place it on the blockchain (on-chain) for smart contracts.

• A term used to describe when a security is thought to be trading at a price higher than its inherent or fair worth.

• A term used to describe when an item, such as Bitcoin, is trading at a price that is lower than its true value.

P, Q, R

• A paper wallet is a printed piece of paper that contains public or private keys and QR codes that you can use to facilitate cryptocurrency transactions.

• The direct exchange of any asset, such as digital currency, between individuals without the intervention of a central authority.

• It is a decentralized, peer-to-peer, environmentally friendly digital cryptocurrency. Users can process Pandacoin (PND) by mining.

• A process in which assets are made available to chosen buyers for purchase prior to a stated selling date.

• A distributed ledger that functions as a closed database protected by cryptographic ideas and the demands of the organization.

• A private key has a security code that allows the possessor to conduct cryptocurrency transactions and demonstrate ownership of their holdings.

• A company offering to leverage Ethereum’s ERC-721 NFT protocol to assign individuals a unique, non-fungible blockchain-based identity that only the individual can access.

• An algorithm for cryptographic consensus used to confirm agreement on a distributed and decentralized network.

• A system to verify transactions using the number of coins staked.

• A decentralized consensus technique that demands network users to spend time on solving an arbitrary mathematical puzzle in order to prevent anyone from gaming the system.

• A simple set of principles that allow computers to communicate data.

• One in which everyone is allowed to join and engage in the blockchain network’s key activities.

• A public key enables you to accept bitcoin (or another crypto) transactions.

• A distributed ledger technology that allows for record keeping.

• A message meant to attract people to buy cryptocurrencies in order to profit from the price manipulation induced by the sudden increase in demand.

• Portrays a situation in which a group of people seeks to make a large profit by pumping an asset.

• A bitcoin trader who has been completely devastated and destroyed as a result of recent price drops. A shortened version of wrecked.

• Meant to show whether an investment has been overbought or oversold in comparison to recent price levels.

• Individual orders are collected and organized into an order book to imitate the experience of a trade without participating in one.

• A sort of digital signature that can be performed by any member of a group of users who have access to the same private key.

• An acronym for Relative Strength Index

S, T, U

• A pseudonym of the person or people that contributed to the development of the initial bitcoin software and exposed the notion of cryptocurrency to the world in a paper published in 2008.

• The smallest unit of bitcoin, it is equivalent to 100 millionth of a bitcoin.

• The Bitcoin (or another crypto) network’s limited ability to manage massive amounts of transaction data on its platform in a short period of time.

• Significant cryptocurrencies such as Litecoin and Novacoin use this type of mining algorithm.

• It is an independent US federal government regulatory organization tasked with safeguarding investors, ensuring the fair and orderly operation of the securities markets, and enabling capital formation.

• A string of characters generated by your bitcoin (crypto) wallet address that allows you to access the cryptocurrency connected with that wallet.

• A modification to Bitcoin’s transaction format in which the witness information was deleted from the block’s input field.

• A deceptive cryptocurrency mining approach in which one miner or a group solves a hash, creates a new block, and keeps it off the public blockchain.

• One massive sell order or many sell orders at the same price.

• It is the Bitcoin protocol’s hash function and mining method that refers to the cryptographic hash function that produces a 256-bit long result.

• Divides a blockchain company’s whole network into smaller segments.

• A database partitioning technique utilized by blockchain organizations for scalability, allowing them to handle more transactions per second.

• The increasingly common practice of marketing any cryptocurrency through implicit advertising.

• A cryptocurrency having little to no value, or a digital currency with no obvious, immediate purpose.

• The goal is to sell the cryptocurrency at a high price and then repurchase it at a reduced price.

• The procedure by which other network participants forcibly remove an infringing validator from the Beacon Chain while diminishing their balance.

• Smart contracts are self-executing code that executes a set of instructions before being confirmed on the blockchain.

• A modification to the software protocol in which previously valid transaction blocks are rendered invalid.

• Users can store and use cryptocurrency using software or hardware. A software wallet is a digital storage for your crypto.

• A high-level object-oriented language for constructing smart contracts.

• Coins that try to tie their market worth to an external reference.

• The examination of decentralized finance market pricing, volume, momentum, and other factors to determine whether the market is bullish or bearish.

• They are unique from the official (mainnet) coins, have no value, and can be obtained for free from faucets.

• The precise time at which a block was mined and confirmed by a blockchain network.

• A virtual currency token or a cryptocurrency denomination.

• These blockchains are structured in such a way that they lack the essential unit for value transmission.

• A phrase that describes the economics of a token.

• A decentralized network that maintains anonymity by encrypting internet traffic and passing it through a series of servers before arriving at its destination.

• A strong belief that the price of a specific cryptocurrency will shortly skyrocket.

• A Bitcoin (or another crypto) value transfer on the blockchain. In particular, Bitcoin transactions are certain messages (they can be compared to emails) that are digitally signed by means of cryptography and sent to the entire network with the purpose of verification.

• A bitcoin (or another crypto) fee charged to conduct a blockchain transaction.

• This term refers to a machine that can solve any computational problem, regardless of its complexity. The necessary condition is that this machine is provided with enough time and memory as well as the necessary instructions. It is used to describe modern programming languages (C++, Python, JavaScript, etc.) since most of them are Turing Complete.

• Has been validated but is not yet posted on the Bitcoin blockchain.

• The quantity of digital cash left over after a bitcoin (or another crypto) transaction.

• Acronym for Unspent Transaction Output.

V, W, X

• Computers dedicated to ensuring the integrity of a blockchain.

• A measure of how much an asset’s price has risen or fallen over time.

• Users can store and use cryptocurrency using software or hardware wallets. They are used to store private keys, keeping crypto in security and access. Wallets allow crypto owners to send, receive, and spend cryptocurrencies.

• A blockchain-based decentralized online ecosystem.

• A person or entity who possesses an unusually significant amount of cryptocurrency.

• A document created by developers that discusses the technology and goal of the project on which they are working.

• A list or collection of wallet addresses approved by the administrator to participate in a presale.

Y, Z

• A way to earn rewards or interest by placing your cryptocurrency in a pool with other individuals.

• A transaction that has not yet been submitted to a block.