Advance Crypto Glossary


1hr

This represents data for the last 1 hour.

24hr

This represents data for the last 24 hours.

34% Attack

This signifies a hijacking of a network by an entity that contributes at least 34% of its total processing power. This allows the entity to control the network and negatively affect its processes.

51% Attack

This signifies a hijacking of a network by an entity that contributes at least 51% of its total processing power. This allows the entity to control the network and negatively affect its processes.

30d

This represents data for the last 30 days.

A

Address

This is a combination of letters and numbers which represent a digital place where crypto coins and tokens may be deposited or sent from. This may either be shared publicly or appear in the form of a QR code.

Airdrop

A marketing procedure wherein a blockchain project distributes a specific cryptocurrency to a targeted audience. This may be used to accomplish promotional or reward purposes, or both.

Algorithm

Mathematical computations coded into and performed by a computer software to accomplish the programmer’s intended outcome.

All-Time-High

Abbreviated as ATH, this refers to the highest price achieved by a cryptocurrency since its first known listing.

All-Time-Low

Abbreviated as ATL, this refers to the lowest price achieved by a cryptocurrency since its first known listing.

Altcoin

Also known as “alternative coin”, this term represents any other cryptocurrency that is not Bitcoin.

Anarcho-Capitalism

Also known as free-market anarchism, anarcho-capitalism is a type of political philosophy that emphasizes heavily on free trade and self-ownership. A good number of early Bitcoin adopters subscribed to this philosophy.

Anti-Money Laundering (AML)

Any legal law or procedure that pertains to combating entities that launder money through cryptocurrencies.

API

Shorthand for Application Programming Interface, API is a collection of functions and procedures that allows an entity to access the data or features of an operating system, application, or other services.

ASIC

Shorthand for Application Specific Integrated Circuit, ASICs are specialized computer hardware designed for mining specific cryptocurrencies.

Atomic Swap

This is a method of allowing entities to exchange a specific type of cryptocurrency with another either through a separate blockchain or through off-chain without the assistance of an intermediary such as a cryptocurrency exchange.

B

Bag

This signifies an assortment of cryptocurrencies that a person holds.

Bagholder

This signifies a person who possesses an assortment of cryptocurrencies. This may connote a portfolio of cryptocurrencies with falling prices.

Bear

This refers to a person who strongly believes that a specific asset — in this context a cryptocurrency — will observe a decline in price over a considerable amount of time.

Bear Market

This refers to a market condition wherein a specific asset — in this context a cryptocurrency — will observe a decline in price over a considerable amount of time.

Bear Trap

A scheme performed by a group of traders wherein they sell a considerably large amount of an asset to trick others into thinking there will be a downward trend in its price. Those who observe the abrupt change will, in turn, sell their assets for fear of cutting losses. Those who instigated the scheme will buy back their assets, thereby gaining profit.

Bitcoin

Abbreviated with BTC, the more popular cryptocurrency in this day and age. It is the most accepted crypto in exchanges and is the primary medium for exchanges.

Bitcoin ATM

This is an automated teller machine that allows users to withdraw Bitcoin.

Bitcoin Improvement Proposal

Abbreviated as BIP, this is a technical document purposed to introduce features and other suggestions that can improve the Bitcoin protocol.

BitLicense

The common term used to refer to licenses issued in the New York area by the New York State Department of Financial Services (NYSDFS) to crypto-related businesses.

Bit

This is a sub-unit of Bitcoin. Each Bitcoin has exactly 1 million Bits.

Block

This is a historical database of transactions that occur at a specific time period. Each block’s memory needs to be consumed before another block gets released and used to record newer transactions.

Blockchain

This may either refer to blockchain technology, or to the chain of blocks which are linked together and kept secure using cryptography.

Block Explorer

This is an online tool that allows users to view transactions that occur on a specific cryptocurrency’s blockchain, along with other details such as hash rate and transaction growth.

Block Height

This refers to the total number of blocks on a blockchain that precedes the current one.

Block Reward

This is a type of incentive given to the miner who successfully calculates a valid hash in a block during the practice called mining.

Bot

This refers to an automated trading software bot that is programmed to facilitate trade orders quickly through a pre-set buy-and-sell algorithm.

Brute Force Attack

In cryptography, this is a trial-and-error attack that consists of an attacker submitting a large number of possible password combinations to crack a code or key.

Bubble

This refers to a phenomenon wherein an asset escalates in price more than its supposed value, to be followed by a sharp decline as the market corrects.

Bug Bounty

This is a reward given by crypto and blockchain companies to individuals who are willing to test their new platform and check for possible bugs and security threats before they are taken advantage of by other entities.

Bull

This refers to a person who strongly believes that a specific asset — in this context a cryptocurrency — will observe a rise in price over a considerable amount of time.

Bull Market

This refers to a market condition wherein a specific asset — in this context a cryptocurrency — will observe a rise in price over a considerable amount of time.

Bull Trap

A scheme performed by a group of traders wherein they purchase a considerably large amount of an asset to trick others into thinking there will be an upward trend in its price. Those who observe the abrupt change will, in turn, purchase the asset in question for fear of missing out. Those who instigated the scheme will sell back their assets, thereby gaining profit.

Buy the Dip

Commonly uttered with the additional coarse word f***ing, this is an ecstatic expression by individuals across crypto communities urging others to purchase a certain asset that has a considerably low price.

Buy Wall

This is an event wherein a large limit order has been placed to purchase a crypto asset when it reaches a certain price.

Burn

This refers to an activity wherein issuers of a specific crypto asset decide to render a specified percentage of the asset unspendable or unusable.

Byzantine Generals’ Problem

This is a hypothetical issue in consensus wherein nodes of a particular blockchain network cannot come up with a singular strategy due to a lack of trust and the possibility of the existence of bad actors. The term derives its roots from a paper published by SRI International in 1982.

Byzantine Fault Tolerance

This is a property of computing systems wherein they still generate consensus regardless of the set of failures encountered that belong to the Byzantine Generals’ Problem.

C

Candlesticks

This is a graphic method popularly used, in this context, by cryptocurrency exchanges to denote price changes over time. The graphs constitute rectangular figures that have a line in the middle, resembling a candle with a wick.

Cash

This represents physical money, such as banknotes or coins.

Centralized

This refers to structures wherein the authority to decide on the network’s behalf rests on the shoulders of a small group of nodes or entities.

Central Ledger

This is a type of ledger kept and maintained by a centralized authority.

Central Processing Unit

Abbreviated as CPU, this is a piece of computer hardware that functions as the brains of the whole unit. CPUs are also called processors.

Cipher

This refers to the algorithm used to encrypt or decrypt information.

Circulating Supply

Contrary to maximum supply, circulating supply is the term used to the number of digital assets that are currently being circulated in the market and in the general public.

Client

This refers to the software that can access a local computer and process transactions in it.

Close

Similar to financial stocks, this is used to refer to the digital asset’s closing price.

Cloud Mining

This is an activity popular among cryptocurrency mining platforms, wherein they allow other entities to rent their mining power for a rate that will be profitable for both parties, as the actual mining occurs in locations that may either have cheap electricity or cold temperature.

Coin

This refers to digital assets that are able to operate independently.

Cold Storage

Also called offline storage, this is a type of storage that may involve offline computers, paper wallets, USB flash drives, or hardware non-custodial wallets.

Cold Wallet

This is a category of wallet that is in cold storage.

Confirmation

For blockchain ecosystems, each transaction is confirmed only when its information has been added to a block in a blockchain. Other platforms such as cryptocurrency exchanges require a number of confirmations before they finalize a transaction.

Consensus

Whenever a transaction is made, every node in a particular blockchain verifies its validity, and if so, the network is said to have reached a consensus.

Consortium Blockchain

This is a type of blockchain wherein a particular entity is said to privately own it, even though everyone may be allowed to view transactions that occur in it.

Correction

This is a term used mainly in cryptocurrency trading markets wherein a cryptocurrency — or the market in general — reverses in its price movement of at least 10% to return to its more appropriate value.

Cryptocurrency

A type of digital asset that has a specific market value and that has powerful cryptographic properties. These usually perform independently of traditional intermediaries like banks and other financial institutions.

Cryptographic Hash Function

This process occurs on a node wherein any transaction is converted into a standard alphanumeric string that registers its place in the blockchain. Each cryptocurrency has its own unique hashing algorithm.

Cryptography

This is the practice of encrypting or decrypting information.

Crypto Trading

The simplest method of exchanging or receiving cryptocurrency. Rather than mining, users can buy and sell cryptocurrencies for another.

Custodial /Non-Custodial Wallet

Generally connected to the storage of keys, regarding wallets or exchanges, a non-custodial set-up is where the users directly detain private keys. Custodial is when a private key is held by the exchange where the wallet is registered.

D

Dark Web

This is a portion of the Internet which are not indexed by various search engines such as Google, and which requires specific software, configurations, or authorization to access.

Date of Launch

This is popular among ICOs as this denotes when the tokens will become available for purchase.

Dead Cat Bounce

In market jargon, this refers to a temporary recovery in price amid a notable decrease.

Decentralized

This refers to structures wherein the authority to decide on the network’s behalf rests on the shoulders of nodes or actors who work in a distributed function to attain a similar goal.

Decentralized Applications

Abbreviated as DApps, these are applications that are created and run on a decentralized network.

Decentralized Autonomous Organizations

Abbreviated as DAO, these are organizations that run through rules as coded in smart contracts.

Decentralized Exchange

Abbreviated as DEX, this is a type of cryptocurrency exchange wherein various entities may purchase or sell cryptocurrencies without the direct facilitation of any intermediary.

Decryption

This is a process wherein undecipherable information is rendered back to its unencrypted form.

Delegated Proof-of-Stake

Abbreviated as DPoS, this is a consensus mechanism similar to Proof-of-Stake (PoS). However, the system delegates entities who will produce blocks on the blockchain, who, in turn, will gain rewards for doing so.

Depth Chart

This chart plots the requests to buy — or bid — and the requests to sell — or ask — on a chart depending on limit orders. This also shows the crossover point where the market is highly likely to accept a transaction in a timely function.

Derivative

This is a financial contract between two or more parties that derives its value from the performance of an underlying asset.

Deterministic Wallet

This is a type of wallet that allows its user to generate keys from a seed.

Difficulty

This refers to the cost of discovering new blocks. Transaction fees increase in proportion to the level of difficulty.

Digital Currency

This is an asset that only exists digitally and has a certain value. It is sometimes called digital commodity.

Digital Identity

This refers to the digital representation of a person through information such as name and address.

Digital Signature

Generated by key encryption, this is used to confirm the authenticity of an electronically-transferred document.

Directed Acyclic Graph

Abbreviated as DAG, this is a structure that is directed and without cycles connecting the other edges.

Distributed Consensus

This refers to a coordinated agreement by a collection of computers in a particular network, allowing them to achieve consensus without a central authority.

Distributed Denial of Service Attack

Abbreviated as DDoS, this is a malicious attack aimed at disrupting the normal traffic of a specific server. The attacker attempts to overwhelm the server with a traffic of requests so that legitimate requests cannot be accommodated.

Distributed Ledger

This is a type of ledger wherein its data may be accessed by all the nodes in a particular network without the need for a centralized data center or authority.

Distributed Ledger Technology

Abbreviated as DLT, this is the digital technology that focuses on distributed ledger and its use cases. Blockchain technology is a type of DLT.

Dolphin

In trading circles, this refers to a person who owns a modest amount of cryptocurrency. The person is not fit to be called a whale yet.

Dominance

This refers to Bitcoin’s difference in market capitalization with the market capitalizations of all altcoins combined.

Double Spending

This occurs when an asset is being illegally spent more than once.

Dump

In trading circles, this refers to the activity of selling most — if not all — of the person’s crypto asset.

Dust Transactions

These are minute transactions that cause heavy traffic on the network, thereby slowing it down.

Do Your Own Research

Abbreviated as DYOR, this is a phrase circulated across various circles to urge the reader to research on their own and not take other people at their word.

E

ELI5

Shorthand for “Explain Like I’m 5,” this phrase is used to describe explanations that are so concise and simple that even a 5-year-old kid may be able to comprehend it.

ERC-20

This is a token standard for the Ethereum platform, albeit the most popular and widely-accepted. ERC stands for “Ethereum Request for Comments”.

ERC-721

This is a non-fungible token standard for the Ethereum platform. This rose in popularity mainly due to the game CryptoKitties.

Escrow

This refers to a service sought after by two parties, usually a buyer and a seller, wherein a third party is assigned to safekeep a specific amount of fund until all agreed-upon conditions are met.

Ether

This is an asset used in the Ethereum platform for executing smart contracts.

Ethereum Improvement Proposal

Abbreviated as EIP, this describes standards for the Ethereum platform, which include core protocol specifications, client APIs, and contract standards.

Ethereum Virtual Machine

This is a Turing-complete runtime environment for smart contracts in the Ethereum platform.

Exchange

Cryptocurrency exchanges are platforms that allow users to trade cryptocurrency to fiat or to other cryptocurrencies. They also offer crypto wallet services for their users.

Exchange Traded Fund

This is a security that tracks an assortment of assets which include cryptocurrencies, stocks, and bonds, and can be traded as a single stock.

F

Faucet

This is a website that gives out free cryptocurrencies, usually in small amounts, to help newbies start with crypto. These sites oftentimes make the newbies accomplish small tasks and give a specific amount as a reward.

Fiat Money

This refers to currency that is considered legal tender by a specific government. One example is the US dollar, which is accepted and supported by the US government.

Fish

In trading circles, this refers to a person who owns an insignificant amount of cryptocurrency. They are also called minnows.

Flipping

This is an investment strategy wherein a person buys a certain asset and resells it at a short time later for profit.

FOMO

Shorthand for “fear of missing out”, this phrase is commonly used in crypto investment circles to describe the feeling of apprehension for missing out on a cryptocurrency which many deem to have high ROI potential, and regretting it later.

Fork

Sometimes called chain split, this refers to a situation wherein a blockchain splits into two separate chains. There are two general types of forks: hard fork and soft fork.

FUD

Shorthand for “fear, uncertainty, and doubt”, this phrase is commonly used in crypto investment circles to instill the said emotions across investors to cause the price of a cryptocurrency to go down.

FUDster

This describes a person spreading FUD.

Full Node

This refers to a node that has downloaded the complete history of a blockchain for the purpose of observing and enforcing its rules.

Fundamental Analysis

This refers to a method wherein a person analyzes all the factors that are relevant to a cryptocurrency including price changes, team, technology, and more. This is performed by others as part of what they call “value investing”.

Futures

These are financial instruments where a person purchases an asset at a certain price and at a certain date in the future.

G

Gains

This is commonly used in crypto investment circles to refer to an increase in value or profit.

Gas

This refers to the measurement of an operation in the Ethereum network. Simple transactions like transferring Ether from one address to another does not require much gas, but deploying smart contracts do.

Gas Limit

In the Ethereum platform, this refers to the maximum amount of gas that a person is willing to expend in a transaction.

Gas Price

In the Ethereum platform, this refers to the amount of ether to be spent for each unit of gas on a transaction.

Genesis Block

This refers to the initial block of data that is processed and validated, and will be the first block in a new blockchain.

Graphics Processing Unit

Abbreviated as GPU, this is a piece of computer hardware that functions to enhance the graphics capabilities of a computer unit. This is popular among crypto mining groups because this significantly enhances a mining rig’s capabilities. GPUs are also called graphics card.

Group Mining

Also referred to as mining pool, this is a practice of a number of crypto miners wherein they pool their resources to improve their chances of solving a block.

Gwei

This refers to the denomination used to define the gas costs in a transaction that involves ether.

H

Hacking

This is an activity wherein an entity hijacks another computer or computer system in an unauthorized way.

Halving

This refers to the decrease — 50% to be exact — in the number of cryptocurrency that a miner receives as reward for mining a complete block.

Hard Capitalization

In ICOs, this refers to the maximum amount that the project aims to amass. When this has been reached already, the project will stop offering additional coins to be purchased.

Hard Fork

This is a type of fork wherein a network is divided into two separate groups in which their views are deemed irreconcilable. The chain then is split into two, wherein one group maintains the old chain while the other adopts the other. Popular examples of these are Bitcoin and Bitcoin Cash, and Ethereum and Ethereum Classic.

Hash

In its original context, this refers to the act of performing a cryptographic hash function.

Hash Rate

This refers to the unit of crypto mining performance. This may be in kH/s (kilohash per second), MH/s (megahash per second), GH/s (gigahash per second), or TH/s (terahash per second).

HD Wallet

Shorthand for Hierarchical Deterministic Wallet, this refers to a cryptocurrency wallet that uses the Hierarchical Deterministic (HD) protocol to generate crypto wallets using 12 mnemonic phrases.

HODL

This is a crypto slang wherein a person holds on to his asset for a long time despite the fluctuation of prices. This originated from a post on Bitcointalk by an individual who admitted to have been under the influence of alcohol. As a result, he mistyped the word “hold” and wrote “hodl” instead.

Hosted Wallet

This is a crypto wallet maintained by a third party.

Hot Storage

Also called online storage, this refers to online storage of keys for easy accessibility to the user’s crypto assets.

Hybrid PoW/PoS

This utilizes both Proof-of-Work (PoW) and Proof-of-Stake (PoS) for its consensus algorithm. This way, the blockchain enjoys the security advantages of PoW and the energy efficiency offered by PoS.

Hyperledger

This refers to the open-source collaboration hosted by the Linux Foundation for providing various DLT-based solutions.

I

Immutable

This refers to the property of a data to be resistant to any type of alteration.

Initial Coin Offering

Abbreviated as ICO, this refers to a crowdfunding platform that uses cryptocurrencies as a means of raising capital for a blockchain-based project.

Initial Exchange Offering

Abbreviated as IEO, this refers to a crowdfunding platform wherein a cryptocurrency exchange hosts the token sale on behalf of the blockchain-based project, with a percentage of the token sales distributed to the exchange.

Initial Token Offering

Abbreviated as ITO, this refers to a crowdfunding platform that uses tokens as a means of raising capital for a blockchain-based project. The main difference between ICO and ITO is that the latter has yet to prove its intrinsic worth of the token offering.

Initial Bounty Offering

Abbreviated as IBO, this refers to a method wherein a company outsources the accomplishments of various tasks to other parties for a fixed amount of time. In turn, the company rewards those parties for completing the tasks that it has assigned to them.

Instamine

This refers to the mining of a large sum of cryptocurrencies in a short time after launching.

Intermediary

Other times referred to as middleman, this refers to a party who acts as the go-between two parties to bring about the expected agreement.

J

JOMO

Shorthand for “joy of missing out,” this phrase is commonly used in crypto investment circles to describe the feeling of relief or joy for missing out on a cryptocurrency which is plummeting in price or is found out to be a scam.

K

Know Your Customer

Abbreviated as KYC, this is a practice expected of companies wherein they will verify the identity of their users or customers in line with anti-money laundering laws.

L

Lambo

Alternatively used to refer to Lamborghini, this is a term used around crypto circles to connote mooning or getting rich with cryptocurrencies to afford such a luxury car from the said brand.

Ledger

This refers to any record of financial transactions that cannot be altered, only added with newer entries.

Lightning Network

Developed in 2015, this is a “second layer” payment protocol that occurs on top of the specified blockchain. Lightning Network is being explored for popular blockchains such as Bitcoin and Litecoin.

Limit Order

This refers to an order placed by traders, whether to buy or sell a cryptocurrency when it reaches a certain amount.

Long

Named also as “long selling,” this represents a concept wherein a trader purchases an asset in order to sell it at a higher price for a profit later.

M

Mainnet

Alternatively used to refer to “the main network,” this is an independent blockchain network that facilitates live transactions.

Market

In cryptocurrency circles, this refers to the digital place where transactions are facilitated. In a broader sense, this may mean the summation of all cryptocurrencies and exchanges within the industry.

Market Capitalization

Abbreviated as MCAP, this refers to the total number of cryptocurrencies multiplied by the price for each piece.

Market Order

This refers to purchase or sells at a cryptocurrency exchange at its current available price.

Margin Trading

This is a practice wherein a trader borrows funds from a broker to jumpstart his crypto trading. This is not recommended for new traders, especially those who are not well-versed with the asset’s market movement.

Maximum Supply

This is the declared total amount of a cryptocurrency that will ever exist.

Merkle Tree

In cryptography circles, this refers to a tree-like structure that allows the secure and efficient verification of content in a large sum of data. This is named after Ralph Merkle, who patented the concept in 1979.

Microtransaction

This refers to a business model wherein users can purchase virtual goods with minuscule amounts of money.

Mineable

Some cryptocurrency ecosystems incentivize participants who will contribute to the stability of the blockchain by discovering new blocks and validating transactions. When this is so, the native cryptocurrency is said to be mineable.

Miners

This refers to participants in a blockchain ecosystem who use their computing system to mine new cryptocurrencies.

Mining

In cryptocurrency circles, this refers to the practice of using advanced computer systems to discover new blocks, thereby allowing the miner to gain the block reward, which is new cryptocurrencies.

Mining Reward

This refers to the reward that miners receive for utilizing their computing power to process transactions and discover new blocks.

Mining Rig

This refers to the computer system used to mine new cryptocurrencies.

Mnemonics

This refers to information — in the form of letters or figures which are used to aid in memory.

Mnemonic Phrase

Also referred to as a mnemonic seed, this is an assortment of phrases that are used to access or restore the user’s crypto assets.

Moon

In cryptocurrency circles, this refers to a phenomenon wherein a cryptocurrency continuously skyrockets in price.

Moving Average Convergence Divergence

Abbreviated as MACD, this is a trend-following momentum indicator that reflects the relationship between two moving averages in the price of a security.

Mt. Gox

This refers to the now-defunct cryptocurrency exchange where users can trade their fiat to Bitcoin, and vice versa. This is one of the most popular exchange at that time, and it shut down in 2014 when approximately 850,000 Bitcoins were stolen from it.

Multi-Signature

Popularly referred to as “Multi-Sig,” this is used to describe wallet addresses that require more than one key to authorize a transaction.

N

Nest Egg

This refers to a substantial amount of money or other assets saved or invested for a particular purpose.

Network

This refers to every node that is connected to support operations in a blockchain at a respective time period.

Node

In a blockchain ecosystem, this refers to each ledger copy managed by a blockchain participant.

No-Coiner

This refers to anyone who has no cryptocurrency in their investment portfolio and firmly believes that cryptocurrency will inevitably fail.

Non-Custodial

Generally connected to the storage of keys, regarding wallets or exchanges, a non-custodial set-up is where the users directly detain private keys.

Nonce

Arbitrarily, a number is generated when a miner hashes a transaction. This number is supposed to be used only once is generated; that is why it is called nonce.

O

Off-Ledger currency

This refers to a currency developed out of the designated blockchain ledger, although it is approved or used.

Offline Storage

This refers to any storage of crypto assets in hardware not connected to the internet.

On-Ledger currency

This refers to a currency developed, approved, and used within the blockchain.

Online Storage

This refers to the action of recording cryptocurrencies in devices or systems with an internet connection, increasing the risk but also the convenience.

One Cancels the Other Order

Abbreviated as OCO, this phenomenon happens when two cryptocurrency orders are placed both at once. However, the rule is in position as a result of the acceptance of one of them, and the other is canceled.

Open/Close

In trading circles, this refers to the price at each cryptocurrency opens in a specific period (e.g., every new day); and the price at each cryptocurrency closes in a specific period (e.g., 12 hours after the beginning of a new day).

Open Source

This may refer to any software which code is released publicly available and allowed to distribution. It is made under a license, and the copyright holder allows the users the users to study, change, and distribute that specific software to any person for any reason.

Option

In crypto trading circles, this refers to a contract that offers the right to the buyer, without demanding it, to buy or sell an elementary asset or instrument at a designated price. There exist American and European options, wherein the former might be applied at any time before the end date while the latter might be applied at the expiration.

Options Market

This refers to a public market for options, where transactors are given the right to buy or sell a cryptocurrency at a particular strike price on a set date or before.

Oracles

This refers to an agent delegated to search for information and verifying it. He or she builds a bridge between the real world and blockchain by providing data to smart contracts for the implementation of stated contracts under particular conditions.

Orphan

A block that is valid on the blockchain, but is not included in the main chain. It might happen when two miners develop blocks at similar times, or it might be a result of an attacker trying to reverse a transaction. It is also named as a “detached block”.

Overbought

When a large and unexpected number of purchases have been made on a cryptocurrency, consequently its price will increase for a prolonged period of time. When this happens with no justifiable reason, the cryptocurrency is assumed as overbought. As a result, a long queue of sell orders is expected.

Oversold

When a low and unexpected number of purchases have been made on a cryptocurrency, consequently its price will decrease for a prolonged time. When this happens with no justifiable reason, the cryptocurrency is assumed to be oversold. As a result, a long queue of buy orders is expected.

Over the Counter

Abbreviated as OTC, this is a transaction done outside of an exchange, usually peer-to-peer within private trades. In the case of some jurisdictions where exchanges are not allowed, traders choose the OTC option.

P

Pair

This refers to the action of trading between two cryptocurrencies, for example, the trading pair: BTC/ETH.

Paper Wallet

This refers to a physical material where users can record and keep their private key or seed phrase.

Peer-to-Peer

Abbreviated as P2P, this connection represents cooperation between parties in a diffused network, segregating tasks or workloads between peers.

Permissioned Ledger

This refers to a ledger developed with constraints, meaning that only by requiring access, people or organizations, have the authorization to access it.

Platform

On Tokenncoin, this refers to any system, ecosystem, application, or outfit, where users are allowed to accomplish a certain task.

Ponzi Scheme

This refers to a scam or fraud that involves investments related to payments with alleged returns to current investors from funds obtained from new investors.

Portfolio

A certain amount of cryptocurrencies or digital assets detained by individuals, financial institutions, investment companies, or hedge funds.

Pre-mine

This occurs when the amount or total of a coin’s initial supply is produced under or before a public launch, instead of being generated after mining/inflammation. It is supposed to be used for reliable purposes, for example, marketing.

Pre-sale

This refers to a sale that happens before the ICO and later provided to the general public for funding purposes.

Private Key

A fragment of code created within asymmetric-key encryption process, combined with a public key, to be applied in decrypting information hashed with the public key. It acts as a digital signature when selling or withdrawing crypto.

Proof-of-Authority

Abbreviated as PoA, this is a blockchain consensus protocol that represents the fastest mechanism when delivering transactions, using identity as a venture.

Proof-of-Burn

Abbreviated as PoB, this is a blockchain consensus protocol that intends to bootstrap one blockchain to another by increasing the energy efficiency while verifying that a cost was generated in “burning” a coin by sending it to an unreliable address.

Proof-of-Stake

Abbreviated as PoS, this is a blockchain consensus protocol that is used as an alternative to PoW. The mechanism involves the election of the creator of the next block via numerous combinations of arbitrary selections, and wealth or age of staked assets.

Proof-of-Work

Abbreviated as PoW, this is a blockchain consensus protocol wherein miners utilize their computing device’s power to discover new blocks and validate transactions, thereby receiving cryptocurrency as mining reward. This protocol is used by Bitcoin.

Protocol

This refers to any set of rules defined to represent how data is exchanged within the network.

Pseudonymous

This refers to a false name used to keep the user’s anonymity, such as what Satoshi Nakamoto (Bitcoin’s creator) did.

Public Address

This represents the cryptographic hash of a public key, enabling customers to use it as an address to receive payments.

Public Blockchain

This refers to a blockchain that allows any user to access it through a full node on his/her computer.

Public Key

This refers to a specific user's wallet address, which appears as a long puzzle of numbers and letters. It is used to receive cryptocurrencies.

Pump and Dump Scheme

Abbreviated as PnD, it represents a way of securities fraud or scam including the artificial inflammation of the price of a cryptocurrency, containing false and ambiguous positive statements in order to sell the purchased stock with a generous margin.

Q

QR Code

This is a machine-readable tag that shows encoded information into a graphical pattern. It is often used to share wallet addresses with individuals.

R

Raiden Network

This represents an off-chain scalable solution intending to provide near-instant, low-fee, and scalable payments through the Ethereum blockchain.

Replicated Ledger

This refers to a reproduction (copy) of a distributed ledger in a network shared to all participants in the cryptocurrency network.

Rank

This refers to the relative place of a cryptocurrency by its market capitalization.

REKT

This is an abbreviation for "wrecked", and is a term used to explain a bad loss in a trade.

Relative Strength Index

Abbreviated as RSI, it represents a particular technical analysis created to determine the momentum of price and speed changing over time. Developed by J. Welles Wilder, it oscillates between zero and 100. A cryptocurrency above 70 is considered overbought and oversold when it is below 30.

Reverse Indicator

This refers to a person that another user can benefit from as an indicator of how not to place, buy or sell orders, since the person is (almost) always wrong when predicting price oscillations of cryptocurrencies.

Ring Signature

This is a form of encryption process that improves user privacy by merging inputs of numerous signers, giving the network nodes of power to authorize a transaction without identifying which node requested it.

Return On Investment

Abbreviated as ROI, it corresponds to the margin between the net profit and the cost of the investment.

S

Satoshi Nakamoto

Pseudonymous for the individual or individuals that created Bitcoin.

SATS

Named after Bitcoin’s anonymous creator, SAT, or Satoshi, is the smallest unit of Bitcoin with a value of 0.00000001 BTC.

Scam

This refers to a fraudulent or fallacious cryptocurrency or ICO.

Scrypt

This refers to an algorithm that encrypts a key in an innovative way that takes a huge amount of RAM to be hashed. Emerged as an alternative for PoW algorithm SHA-256, this aims to be deemed impregnable against hacks.

Second-layer solutions

This is a group of solutions built on top of a public blockchain providing more scalability and efficiency.

Securities and Exchange Commission

Abbreviated as SEC, this is an independent US agency from the federal government responsible to empower federal securities laws, propose rules, and regulate the securities industry, US stock and options exchanges, among other activities.

Seed

This is a series of words that enable the owner to back up his wallet or restore access to his crypto assets.

Segregated witness

Popularly referred to as SegWit, this represents a Bitcoin Improvement Proposal (BIP) to separate the processing system by separating signature data from signature data. This enables more transactions to fit into one block in the blockchain, improving the transaction speed.

Selfish Mining

This occurs when a miner finds or creates a new block on the blockchain platform and does not broadcast the information with the network. If he finds the second block quicker than the rest of the miners in the network, then he or she would be able to invalidate all other blocks discovered in the time taken to execute this attack.

Sell Wall

If a large limit order happens while a cryptocurrency reaches a certain value, it means a sell wall. In this way, traders can prevent a cryptocurrency from ascending above that value, as supply will likely surpass command when the order is performed.

Side Chain

This refers to a blockchain ledger running simultaneously with a primary blockchain, existing a two-way link between the primary chain and sidechain. This enables the side chain to work independently of the primary, operating by its own protocols or ledger mechanisms.

Simplified Payment Verification

Abbreviated as SPV, it means a frivolous client in charge of verifying blockchain transactions. downloading only block headers and claiming proof of inclusion to the blockchain onto the Merkle Tree.

SHA-256

Used in Bitcoin PoW, this is a hashing algorithm that generates a 256-bit signature for a text. It is subsequently used by a number of altcoins as well.

Sharding

This is a scaling method of splitting up blockchain history, states, and transactions into partitions. In this way, each shard can be realized in parallel.

Shilling

This refers to the act of vigorously promoting a cryptocurrency project or an ICO.

Shitcoin

This is a term used to describe a cryptocurrency that is not expected to have potential, value, or any beneficial usage.

Short

Also known as "short selling", it represents a concept where a trader sells a borrowed asset in order to sell an asset expected to have its price continuously declining. In case of a decline in price, the short seller will buy the asset at its lower cost and return it benefiting from the difference between the prices.

Silk Road

This represents an online market that existed on the dark web and is now turned off by the FBI.

Smart Contract

This refers to a contract written in computer code that can facilitate, verify, or empower a contract on the blockchain without the presence of intermediaries.

Soft Cap

This refers to the minimum amount expected to be raised in an Initial Coin Offering (ICO).

Soft Fork

This refers to a change in a blockchain protocol where previously validated transactions become invalid. For a soft fork to work, the majority of miners shall empower the network and upgrade to the new protocol.

Solidity

This is a programming language, similar to the popular JavaScript, focused on developing smart contracts. This is the language used by the Ethereum Virtual Machine.

Spot

An operation or transaction purchasing or selling a cryptocurrency prompt agreement, or payment and delivery, of this specific cryptocurrency into the market.

Spot Market

This refers to a public market where cryptocurrencies can be traded for instant agreement. This functions differently from a futures market, where assets are purchased based at a certain price and at a certain date in the future.

Stablecoin

This is another type cryptocurrency that has low volatility (stable), often used as a resource for portfolio diversification. One popular example is USDT, which is pegged to the US dollar.

Staking

In a Proof-of-Stake (PoS) system, this is a practice wherein participants stake their tokens to become a validator to the blockchain and obtain rewards.

Stale Block

This is a successfully mined block anyhow not included in the current longest blockchain, usually because another similar block was generated into the chain first.

State Channel

This refers to a second-layer scaling solution expected to decrease the total on-chain transactions, moving them off-chain, and allowing the participants to sign ti the main chain after numerous off-chain transactions.

Symbol

This refers to the abbreviation of a cryptocurrency; for example, Etherum's symbol is ETH.

T

Taint

This refers to the amount of cryptocurrency in an account that is able to be tracked to another account.

Tangle

This is a blockchain alternative developed by IOTA, working with direct cyclic graphs (DAG) which only building in one particular direction and in a way that it never repeats, thereby being quantum-computing resistant.

Testnet

Contrary to a mainnet, this is an alternative to the live blockchain, and is dedicated to various tests participants may conduct, in which they might not otherwise be able to in the live blockchain.

Technical Analysis

This refers to any evaluation procedure that includes statistical analysis of market activity. Charts and trading tools are used to look at historical data and sustain future investment decisions.

Think Long Term

Abbreviated as TLT, this represents a user mindset to have a longer-term investment range of months to years.

This is Gentlemen

Originated as a writing mistake when writing "This is it, gentlemen", it is now commonly expressed to introduce good news.

Ticker

This refers to the abbreviation of cryptocurrencies' original names, for example, Bitcoin (BTC).

Timelock

This refers to the stipulation of the precise time when the transaction on a block on the blockchain can be conducted.

Timestamp

This marks the specific time when a transaction occurred and was encrypted.

Token

This refers to a digitally-code utility which can be owned, bought, and sold. It does not have value only by itself, it is made to the software to be developed around it.

Token Generation Event

This marks the specific time when a token is generated.

Tokenize

This refers to the process of turning a real-world asset into a digital object with a specific value. Oftentimes, token-issuing companies provide ownership of parts of its asset to the token owners.

TOR

T represents free software that enables anonymous communication. It represents an acronym for the original software named "The Onion Router".

Total supply

This refers to the total number of coins currently existing, minus each coin that has been burned.

Trade volume

The number of coins traded in a specific time, usually in the last 24 hours.

Transaction

Abbreviated as TX, this represents the value of cryptocurrency moved from one entity to another, within the blockchain platform.

Transaction fee

This refers to the payment (fee) for making a transaction on the blockchain. Generally, there are low fees paid by the miners involved in successful transactions. These fees can vary depending on the network.

Trustless

A segment of the blockchain where the individuals do not need to rely on any other participant for transactions to be implemented as provided.

Tumbler

Also known as Mixing Service, this is a service to strengthen the privacy and anonymity of cryptocurrency transactions by combining tainted cryptocurrencies with other isolated transactions.

Turing-complete

This refers to a machine capable of performing programmable calculations, unlike any other computer. The Ethereum Virtual Machine is one example of a Turing-complete machine.

U

Unconfirmed

After a transaction is being proposed, it has an unconfirmed period, wherein the network finalizes to ensure and examine the transaction. The period between states is called Unconfirmed.

Unpermissioned Ledger

This refers to a ledger that is publicly available to be seen.

Unspent Transaction Output

The amount of cryptocurrency sent to an entity but not spend, which means that this input can be used in a new transaction.

UTC Time / Coordinated Universal Time

Abbreviated as UTC, it represents the basis for civil time nowadays. It is named as such because it is the standard by which all time zones are based. UTC combines universal time and atomic time.

V

Validator

An individual involved in a block validating process within consensus protocols, for example, Proof-of-Stake (PoS) and Delegated Proof-of-Stake (DPoS).

Vanity Address

A cryptocurrency public address, composed of customized numbers and letters, generally chosen by its owner.

Vaporware

A cryptocurrency enterprise that has never been created in fact.

Venture Capital

A type of private equity delivered to fund small, initial stage projects alleged to have high growth potential.

Virgin Bitcoin

A bitcoin that has never been used or spent.

Volatility

A statistical method to estimate the oscillations on the cryptocurrencies fluctuation. This is evaluated by monitoring the standard deviation between oscillations from that single security or market index.

Volume

The quantity of cryptocurrency that has been traded in a specific period of time, for example, the cryptocurrencies traded during the last 24h, last week, etc. Volume can facilitate the prediction of future values once it is able to indicate the direction and movement of a cryptocurrency.

W

Wallet

Within the cryptocurrency world, a wallet is a secure place to store, send, and receive digital currency, in the manner of a digital wallet. Over the cryptocurrency market exists two categories of wallets: hot wallets (connected to the internet) and cold wallets (not connected to the internet).

Wallet Address

This is the point of access so users can send cryptocurrency to your wallet.

Wash Trade

A manner of manipulating the market by investors. The investors simulate activity in the marketplace and, in parallel, they sell and buy the same cryptocurrencies.

Watch List

It is a feature that users can benefit from the website by creating their own list of cryptocurrencies intended to follow. A watchlist can also represent a list of web pages that a user elected to follow for changes.

Weak Hands

This refers to the state of an investor, usually an inexperienced one, who starts panicking and selling cryptocurrencies at the first sign of a price reduction.

Wei

The minor unit of an Ether, with a value of 000000000000000000,1 Ether.

Whale

A term applied to present a very wealthy investor who owns of a high amount of cryptocurrencies enough to influence the market.

When Lambo

This is the extended version of Lambo.

When Moon

This is the extended version of Moon.

Whitelist

Before an ICO, interested individuals or parties can register their intention and motivation to participate or purchase during the sale. The list of these registered parties is considered the whitelist.

Whitepaper

This is a document that represents a specific and meticulous explanation of a cryptocurrency aiming to captivate investors. It is developed to provide full technical information, explain its vision, values, and purpose. Commonly, it includes a roadmap informing how the cryptocurrency intends to grow and prevail.

Y

Year to Date

Abbreviated as YTD, it means one year to a specific date in the cryptocurrency world.

Z

Zero Confirmation Transactions

This is the alternative term for an unconfirmed transactions.

Zero-Knowledge Proof

Also called zero-knowledge protocol, this is a method by which one party (the prover) is enabled to prove to another party (the verifier) that a transaction or event actually happened. Through this protocol, private details of the specific transaction or event are not revealed.