Glossary

A virtual location where cryptocurrency can be sent to and from. It consists of alphanumeric characters and can be shared publicly in the form of text or QR code. Cryptocurrency address is not intended to be permanent, as it represents itself a token, designed for a single transaction use only.

A way to distribute tokens and coins to many wallet addresses. Airdrop campaigns are typically started by cryptocurrency developers to boost the visibility of a token or coin. Developers may give out their tokens by randomly selecting recipients or by announcing the event through airdrop-specific newsletters or bulletin boards.

The highest peak of a coin's price throughout its entire existence, based on its market capitalization rate, is referred to as the All-Time-High (ATH). The opposite term, when the price reaches its lowest point, is known as All-Time-Low (ATL).

The lowest point of a coin's price over its entire existence, based on market capitalization rate, is called the All-Time-Low (ATL). The opposite term, referring to the highest price, is known as All-Time-High (ATH).

Any digital cryptocurrency that is similar to Bitcoin and serves as an alternative to it is referred to as an altcoin (short for "alternative to Bitcoin").

Any policy or legislation designed to prevent money laundering and corruption is known as Anti-Money Laundering (AML). In the cryptocurrency space, AML regulations primarily focus on preventing the conversion of illicitly obtained cryptocurrencies into real-world cash or assets.

API, which stands for Application Programming Interface, is a collection of routines, protocols, and tools used to develop software applications. Essentially, an API defines the rules and methods that allow different software components to communicate and interact with each other effectively.

The annual percentage rate (APR) refers to the yearly interest rate earned or charged. It is typically applied to borrowers as a cost for borrowing funds and paid to investors or lenders as earnings. APR is expressed as a percentage, representing the ratio of the interest to the original principal amount.

The Annual Percentage Yield (APY) is the interest rate earned on savings or investments, taking into account the effect of compounding over a year. With compounding, the interest earned is added to the initial amount, which then increases the base for calculating future interest. As a result, both the principal and the interest grow, leading to a higher overall return at the end of the year.

Cryptocurrency arbitrage involves exploiting price discrepancies by purchasing a cryptocurrency on one exchange where the price is lower and then selling it on another exchange where the price is higher. This practice allows traders to profit from the differences in prices between exchanges.

The phenomenon of losing all invested capital by shorting Bitcoin is often referred to as experiencing a "Romanian Blowout." This term originates from a notable case where a Romanian cryptocurrency investor, who had previously been successful with shorting Bitcoin, lost his entire investment when Bitcoin’s price increased dramatically from USD 300 to USD 500.

The term referred to a situation, when the total market capitalization of a specific cryptocurrency (Ethereum, for instance) grows bigger than the total market capitalization of Bitcoin.

The term for a deceptive marketing practice where a sponsor is disguised to make it appear as if a marketing message is genuinely supported by the community is "astroturfing." This technique creates a false impression of grassroots support or community endorsement when, in reality, it is driven by hidden sponsors or entities.

The smart contract technology that allows for the exchange of one cryptocurrency for another without relying on centralized intermediaries is known as "decentralized exchanges" (DEXs) or "automated market makers" (AMMs). These platforms utilize smart contracts to facilitate peer-to-peer transactions and swaps directly between users.

An account book designed to document individual transactions, typically used to verify that transactions have occurred or to confirm the authenticity of products or transactions, is known as a "ledger." In the context of blockchain technology, this is often referred to as a "blockchain ledger" or simply "blockchain."

Automated Market Makers (AMMs) are decentralized exchanges that utilize mathematical algorithms to automatically set and adjust the prices of tokens. Instead of relying on order books, AMMs use specific equations to determine the value of tokens and facilitate trading. These equations can vary and evolve according to the underlying protocol, allowing AMMs to generate price quotations and manage liquidity dynamically.

A quantity of a specific cryptocurrency is often referred to as a "bag." This term is used informally within the crypto community to describe an amount of a particular cryptocurrency that someone holds or owns.

A bagholder is someone who holds onto a large amount of a specific cryptocurrency, especially during a period of rapid price decline. The term typically refers to investors who refuse to sell their holdings despite falling prices, often hoping for a future rebound.

A person who anticipates a decline in cryptocurrency prices and maintains a pessimistic view of market volatility is known as a "bear" or "bearish investor." This term is used to describe someone who expects the market or a particular asset to fall in value.

This manipulation tactic is known as a "bear trap." It involves a group of traders selling a large amount of a cryptocurrency to create an artificial price decline. Other traders, believing the market is bearish, sell their assets in response to the drop. Once the price falls significantly, the initiators of the bear trap buy back the cryptocurrency at the lower price. When the price eventually rebounds, the initiators profit from the difference.

Bitcoin is a type of digital currency that operates independently of traditional banking systems. Launched in 2009, it has grown to become the most well-known and widely used of various emerging cryptocurrencies. For further information, you can refer to a detailed Bitcoin guide.

A machine that enables individuals to buy Bitcoin using cash or a debit card is called a "Bitcoin ATM" or "Bitcoin kiosk." These machines facilitate the purchase of Bitcoin by converting cash or card payments into cryptocurrency.

A design document used to propose new features or changes to Bitcoin is known as a "Bitcoin Improvement Proposal" (BIP). BIPs serve as the standard method for discussing and communicating ideas, as Bitcoin lacks a formal governing structure.

The business license for virtual currency activities issued to cryptocurrency companies in New York by the New York State Department of Financial Services (NYSDFS) is known as the "BitLicense." This license regulates businesses involved in virtual currency activities within the state.

A constituent part of Bitcoin is called a "bit." There are 1,000,000 bits in one Bitcoin, making a bit a unit of measurement used to denote smaller amounts of Bitcoin.

A container or collection of transactions on a blockchain is known as a "block." Each block includes a cryptographic hash of the previous block, a timestamp, and transaction data, which is typically organized in a Merkle tree structure. This ensures the integrity and chronological order of transactions within the blockchain.

An online browser that enables users to view all transactions on a blockchain, as well as transaction histories and balances of addresses, is called a "blockchain explorer." Blockchain explorers provide a searchable interface for examining and verifying blockchain data.

Block height refers to the number of blocks between a specific block and the very first block in the blockchain. It indicates a block's position within the chain and helps determine its sequence and order relative to the genesis block.

The new bitcoins awarded to cryptocurrency miners for successfully mining a block, as an incentive to encourage them to continue supporting the blockchain's integrity through legitimate participation, are known as the "block reward."

A blockchain is a decentralized, distributed, and public digital ledger used to record transactions across multiple computers. This technology ensures that once recorded, transactions cannot be altered retroactively without modifying all subsequent blocks. By eliminating the need for third-party intermediaries, blockchain technology enhances both security and speed for transactions between parties.

A technical analysis tool developed by John Bollinger, used to analyze the prices and volatility of a financial instrument or commodity over time, is known as Bollinger Bands. This tool employs a formulaic method to create bands around a moving average, which helps to characterize price trends and volatility.

A trading software tool that automates cryptocurrency trading based on a preset algorithm of buy-and-sell rules is known as a "trading bot." This tool executes trades on behalf of users according to predefined strategies, enabling automated and efficient trading.

An attack that uses trial-and-error methods to generate codes, keys, or passwords involves automated software testing numerous possible combinations to gain access to a system.

The term for a situation where market participants drive prices up rapidly, followed by a swift decline as the market corrects, is "pump and dump."

A special program offered by websites, organizations, and software developers that rewards individuals for reporting bugs, particularly those related to exploits and vulnerabilities.

"Bull" or "bullish" refers to a person who strongly believes that prices are going to rise.

A false signal indicating a declining trend in a stock, index, or other security, which reverses after a strong rally and breaks a previous support level, is known as a "bear trap." This move misleads traders or investors who acted on the initial sell signal, resulting in losses on their long positions.

The process of making coins unusable or unspendable involves rendering them effectively removed from circulation.

A situation where a large buy order is placed at a specific price to influence market perception or prevent a cryptocurrency from falling involves placing a substantial order to create a significant buying pressure at that level.

An account book designed to document individual transactions, typically used to verify that transactions have occurred or to confirm the authenticity of products or transactions, is known as a "ledger." In the context of blockchain technology, this is often referred to as a "blockchain ledger" or simply "blockchain."

A situation where distributed units must coordinate their actions but cannot trust one another to do so effectively involves the challenge of reaching a consensus without relying on mutual trust, often requiring mechanisms to ensure cooperation despite the lack of trust.

Physical fiat currency refers to tangible forms of money, such as paper bills or metal coins, issued by a government.

CeFi, or centralized finance, is a system where individuals can trade and borrow cryptocurrencies by providing collateral, with transactions and services managed through centralized entities.

A general ledger is a comprehensive record that contains all the accounts used to document transactions related to a company's assets, liabilities, owners' equity, revenue, and expenses. It serves as the main accounting record for a business.

A central processor, also known as the main processor, is the core electronic component in a computer that executes program instructions. It performs essential tasks such as arithmetic calculations, logical operations, control functions, and input/output (I/O) processes, enabling the computer to function effectively.

A structure where a few nodes exert control over the entire network involves centralized management by a small number of entities.

A synonym for the term "fork" is "split."

In the Unspent Transaction Output (UTXO) system, Bitcoin transactions are processed through inputs and outputs. The difference between the total output and the input is returned as change.

A type of fraud involving credit cards occurs when a customer requests the issuing bank to reverse a transaction made with a merchant. This is known as a "chargeback."

An algorithm used to convert information into a cipher or code for encryption or decryption purposes performs the transformation of data into a secure format.

A more reliable metric than Total Supply for defining market capitalization is the "Circulating Supply." This term refers to the amount of a stock or currency currently available on the market and is closely related to other measurements of token supply.

A local desktop computer or workstation that can access and process blockchain transactions is a machine capable of managing and verifying blockchain activities.

The term usually refers to closing price in financial stocks.

The process of Bitcoin mining using a remote datacenter with shared processing power, allowing users to mine Bitcoin or other cryptocurrencies without handling the hardware, is known as "cloud mining."

A private owner or an enterprise, that partially controls a cryptocurrency wallet.

Any cryptocurrency that operates on the market.

The content of the 'input' in a generation transaction, which creates new coins without referencing a parent transaction, is known as the "coinbase." The coinbase can include any arbitrary data.

Cold storage, also known as a cold wallet, refers to a hardware device used to store Bitcoin or other altcoins offline. It is widely regarded as the most secure method for storing cryptocurrency.

In the cryptocurrency industry, "confirmation" refers to a transaction that has been included in a block on the blockchain. Each block represents a single confirmation. The number of confirmations required, which varies by exchange, determines when a transaction is considered final.

The sequence and content of blocks, including the transactions they contain, agreed upon by network participants, defines how the blockchain operates and validates transactions.

A privately operated blockchain where a consortium shares confidential information while leveraging the blockchain's immutability and transparency features.

A negatively colored term for a reverse movement of at least 10% in a cryptocurrency or market, aimed at correcting over- or under-valuations, is "correction."

A kind of cyber attack in which a hacker hijacks a target's processing power to mine cryptocurrency on the hacker's behalf.

An asset class that includes decentralized cryptocurrencies, as well as commodities, digital goods, and services that integrate various technologies and markets.

A digital asset that employs strong cryptography to secure financial transactions, regulate the creation of additional units, and verify the transfer of assets.

A hash function that processes an input (or 'message') and produces a fixed-size string of bytes, with the hash being straightforward to compute for any given data.

A method of safeguarding information and communications using codes, ensuring that only authorized individuals can read and access the data.

In a custodial setup, the service provider holds the private keys, while users access their accounts through a login system.

Any activist advocating widespread use of strong cryptography and privacy-enhancing technologies as a route to social and political change.

Some Internet content located on darknets, which requires special software, configurations, or authorization for access, and is not indexed by search engines, is often used for criminal activities.

The official start of token sale during the ICO event.

The term refers to a situation where prices quickly rise after a prolonged period of decline.

The process of distributing power without central control, emphasizing transparency, security, and rapid transactions between parties while removing the need for third-party involvement, is known for its decentralized principles.

Digital applications or programs that operate on a blockchain or peer-to-peer (P2P) network, rather than on a single computer, and are not under the control of a single authority, are known for their decentralized nature.

A new fundraising concept, initially proposed by Vitalik Buterin, that combines the advantages of Decentralized Autonomous Organizations (DAOs) and Initial Coin Offerings (ICOs) to enhance the current model of digital token sales.

An enterprise that is run through rules encoded in smart contracts.

A peer-to-peer exchange where traders can buy and sell cryptocurrency directly, without any third-party intervention.

The process of converting encrypted data back to its original, readable form is known as decryption.

Decentralized Finance (DeFi) is a system that allows users to trade cryptocurrencies directly, without relying on collateral or intermediaries like traditional financial institutions.

An economic term referring to the general decline in prices for goods and services, typically resulting from a very low inflation rate, is deflation.

A consensus algorithm ensures agreement on the truth across the network by validating transactions and operating as a form of digital democracy.

A dynamic visual chart that shows the total number of buy and sell orders for an asset, highlighting the price levels where the market is most likely to accept transactions.

A financial contract between two or more parties that derives its value from an underlying asset, such as cryptocurrencies.

A market where derivatives, futures contracts, or options are traded.

A system that generates keys from a single starting point called a seed. This seed enables users to back up and restore a wallet easily and can sometimes create public addresses without needing access to the private key.

A value that determines the difficulty of hashing a new block, linked to the maximum permissible number in a specific part of a block’s hash. The lower the value, the harder it is to generate a suitable hash. Difficulty fluctuates with the computing power of miners; if many miners exit the network, the difficulty reduces accordingly.

An interchangeable good or product that can be exchanged for other commodities without a specific value. In the digital realm, this refers to a digitized commodity that is traded virtually, carrying its own intrinsic value.

Electronic currency, often compared to fiat paper money, is valued similarly but can be instantly transferred anywhere in the world without the need for third-party intermediaries.

An online or networked identity used in cyberspace by individuals, organizations, or electronic devices. Users may have multiple digital identities across various communities. Key concerns in digital identity management include security and privacy.

A mathematical scheme created through key encryption, used to verify the authenticity of digital messages or documents.

A long green or red bar on a graph that indicates price changes of a cryptocurrency, reflecting the movements shown by the green and red candles on price charts.

A directed, acyclic graph (DAG) is a graph where edges have a single direction and no cycles are present, meaning the connections between edges only go in one direction.

A consensus in which multiple computers in a network agree to operate based on decentralization principles, eliminating the need for intermediaries.

A type of cybercriminal activity aimed at rendering an electronic device or network unavailable by overwhelming the system with excessive requests.

Distributed ledgers are those in which data is stored across a network of decentralized nodes. This term applies beyond just cryptocurrency contexts.

The technology for storing data in distributed ledgers.

A type of network that stores data across decentralized nodes, without control by any central authority.

In the crypto field, the term refers to a person who holds a substantial amount of cryptocurrency, positioning them between a "whale" (with a larger quantity) and a "fish" (with a smaller quantity).

The short term for "Bitcoin Dominance," which is an index comparing Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies.

Repeatedly selling the same asset.

A situation in which a person sells all their cryptocurrency assets.

A rapid selling of a large quantity of cryptocurrency, typically leading to a significant drop in its price.

A malicious practice where an individual sends a large volume of tiny transactions to overwhelm and slow down the network's processing capacity.

This refers to the pace at which new cryptocurrency coins are generated and made available in the market over time, often based on predefined rules within a blockchain network.

An organization focused on creating global standards for blockchain technology, with the goal of promoting consistency and interoperability across industries, benefiting both businesses and consumers on a worldwide scale. It is driven by member participation and collaboration.

A widely adopted technical standard on the Ethereum blockchain that defines the rules and functions needed to implement tokens through smart contracts, enabling their interoperability and compatibility across various platforms.

A technical standard introduced in 2017 for non-fungible tokens (NFTs) on the Ethereum blockchain. It allows smart contracts to manage and trade unique digital assets, distinguishing them from fungible tokens like ERC-20, as each token under this standard has a unique value and cannot be exchanged on a one-to-one basis.

A legal arrangement where two parties engage in a transaction and rely on a third-party intermediary to hold their assets or financial instruments until the terms of the agreement are fulfilled. This third party acts as a neutral guarantor, ensuring the transaction is completed securely and fairly for both sides.

A digital asset used within the Ethereum platform, similar to Bitcoin, but designed to facilitate smart contracts and decentralized applications. It powers transactions and computational services on the Ethereum network.

Detailed documentation outlining the core protocol specifications, client APIs, and contract standards for the Ethereum platform.

A virtual machine that serves as the runtime environment for executing smart contracts on the Ethereum network. It ensures that smart contract code runs in isolation from the network, filesystem, and other processes, maintaining security and integrity.

Cryptocurrency exchanges are specialized platforms designed for buying, selling, and trading digital assets.

A collection of securities that tracks a diverse set of assets, such as stocks, bonds, and cryptocurrencies, and can be traded as a single entity, similar to a stock.

A reward system often employed by businesses to attract users when launching new altcoins. In this system, users receive altcoins for completing various tasks or activities.

Physical money or cash, typically contrasted with cryptocurrencies. Fiat currency is government-backed and holds value because of official endorsement.

An asset, coin, or token that has a fixed value linked to fiat currency, which is backed by government authority.

Sometimes called a "minnow," this term describes an individual who holds a small and relatively insignificant amount of cryptocurrencies, positioned at the lowest level in the "fish - dolphin - whale" hierarchy.

The term used to describe a situation where the market capitalization of a specific cryptocurrency, such as Ethereum, exceeds that of Bitcoin.

Originally used in real estate to describe a strategy where an investment is made with the aim of quickly profiting from it, the term now also refers to an investment approach in the crypto field. This involves buying tokens during an ICO with the expectation of gaining profit once they are listed on exchanges.

An acronym for "fear of missing out," describing the anxiety about missing a potentially profitable investment opportunity and regretting it later.

A blockchain fork refers to a split in the blockchain, resulting in an alternative blockchain that operates alongside the original one.

A software fork occurs when developers alter existing technology to create a completely new project.

An acronym for "fear, uncertainty, and doubt," used to describe the intentional spread of false negative information to mislead people about a cryptocurrency.

A person who deliberately spreads false negative information about a cryptocurrency to mislead others and damage its reputation.

Nodes that download the complete history of a blockchain to monitor and enforce its rules.

An analysis conducted prior to investing in a crypto asset, involving thorough research into the technology, the team behind the asset, and its growth potential.

Legally standardized financial contracts that enable the purchase or sale of specific crypto assets or commodities at a predetermined price on a future date.

An increase in a crypto asset's value or a profit gained from selling it.

The transaction fee required for executing operations on the Ethereum platform.

The term refers to the maximum amount of gas a user is willing to pay for a transaction on the Ethereum network.

The term refers to the price a user is willing to pay for a transaction on the Ethereum network to prioritize it and ensure quicker processing.

The first block in a blockchain, often referred to as block 0 or the genesis block, is the foundational block of the chain. It is typically hardcoded into the blockchain's software and serves as the starting point for all subsequent blocks.

A crypto asset, which is backed by gold. In other words, a crypto asset which value is equal to some specific amount of gold - for example, one physical gram of gold equals to one coin.

Originally designed for 3D modeling, this computer chip is now used in the crypto field for efficient mining operations.

Referred to Ethereum's unit of measurement for gas costs.

Unauthorized access or control of another computer system for malicious or illegal activities.

The process of reducing the reward earned for mining blocks.

The maximum amount of funds that can be raised during an Initial Coin Offering (ICO) for token distribution. Once this limit is reached, the ICO is typically closed to further investment.

The term refers to a significant change in the protocol that alters the validity of blocks or transactions, making previously invalid ones valid or vice-versa. A hard fork necessitates that all nodes or users upgrade to the latest version of the protocol software.

The process of applying a hash function to input data of any size to produce a fixed-length, seemingly random output. This output is unique to the input data and cannot be reversed to reveal the original information without a cipher. Importantly, hashing the same document with the same algorithm will always produce the same output.

A function that maps input data of any size to output data of a fixed size.

Hash Power, or Hash Rate, measures the computing power needed for network operations, quantified by the number of hashes processed per second. It is expressed in units such as kH/s, MH/s, GH/s, TH/s, PH/s, or EH/s.

The hidden cap is the undisclosed target amount a startup seeks to raise during an Initial Coin Offering (ICO). It involves a set time frame for selling tokens to individuals, not large investors or enterprises, with the goal of making the tokens public and drawing in smaller investments.

An advanced digital wallet that automatically creates a hierarchical tree-like structure of private and public addresses (or keys), eliminating the need for users to generate them manually.

The abbreviation "HODL" stands for "Hold On for Dear Life" and refers to the strategy of holding onto assets for an extended period, regardless of market fluctuations.

A wallet hosted by a third-party service provider.

The online storage where private keys or other sensitive data are kept, enabling quick access to cryptocurrencies.

An approach that combines the security level of Proof-of-Stake and the governance and energy efficiency of Proof-of-Work consensus distribution algorithm.

An approach that merges the security benefits of Proof-of-Stake with the governance and energy efficiency aspects of the Proof-of-Work consensus algorithm.

An open-source initiative hosted by The Linux Foundation, aimed at advancing cross-industry blockchain technologies through global collaboration among leaders in finance, banking, IoT, supply chain, manufacturing, and technology.

The term refers to something that is immutable and cannot be altered or deleted.

Impermanent losses occur when providing liquidity to a trading pair in a decentralized exchange. These losses are due to fluctuations in the value of the assets involved and are only realized as permanent when the liquidity is withdrawn.

The financial term describing a situation where prices rapidly increase while the purchasing power of money decreases is hyperinflation.

A structured approach to crowdsourcing human resources, business development, marketing, and user acquisition, where network tokens are offered in exchange for contributions to the ecosystem, is known as a bounty program.

A crowdfunding event typically conducted by startups, where a specific amount of cryptocurrency is sold in the form of tokens to investors and crypto enthusiasts to raise funds, is known as an Initial Coin Offering (ICO). Due to the lack of legal regulation and the prevalence of scams in recent years, ICOs are now considered to carry significant risks.

An Initial DEX Offering (IDO) is an evolved version of the Initial Exchange Offering (IEO) and takes place on a decentralized exchange (DEX). The first IDO was launched on June 17, 2019, by Raven Protocol (RAVEN) on the Binance DEX.

Similar to ICOs, but the focus is on the offering of tokens with proven (or unproven) intrinsic utility in the form of software or usage in an ecosystem.

An activity carried out within a brief time frame that results in the uneven or unfair distribution of coins to investors. This practice typically occurs shortly after the launch of a new cryptocurrency.

An entity or individual that acts as an intermediary in the transaction process between a seller and a buyer.

The term opposite to FOMO ("Fear of Missing Out") is JOMO, which stands for “Joy of Missing Out.” It describes the satisfaction or relief someone feels from not participating in cryptocurrency trading, particularly when prices are falling or when fraudulent activities are uncovered during an ICO.

The abbreviation KYC stands for “Know Your Customer.” It refers to a project’s or financial institution’s requirement to verify a customer’s identity in compliance with global anti-money laundering regulations.

Originally, "Lambo" is a shorthand for the brand name "Lamborghini." Given the car's association with wealthy cryptocurrency owners, "Lambo" has come to symbolize a sharp increase in cryptocurrency prices. It is often used in phrases like "When Lambo?" to inquire about when prices will rise significantly.

A ledger of financial transactions that remains immutable and cannot be altered.

A margin loan offered to an investor by a broker or exchange, which oversees the investor's trading account.

A "Layer 2" payment protocol built on top of a blockchain-based cryptocurrency, such as Bitcoin, that facilitates rapid transactions between participating nodes. It is often highlighted as a solution to Bitcoin's scalability issues and also streamlines atomic swaps.

Orders set by traders to buy or sell a cryptocurrency once it hits a specified price.

The term used to gauge how easily a particular cryptocurrency can be bought or sold without impacting its market price is "liquidity."

Liquidity pools are collections of tokens locked in a smart contract, designed to boost transaction efficiency by providing liquidity. They are primarily utilized by decentralized exchanges (DEXes) to facilitate fair trading conditions, helping buyers acquire assets at lower prices and sellers achieve higher prices.

Litecoin is a fork of Bitcoin, developed as an enhanced alternative to the original cryptocurrency. Often likened to silver in comparison to Bitcoin's gold, Litecoin offers improvements and variations on Bitcoin's features. For more detailed information, please refer to a Litecoin guide.

A strategy where one buys cryptocurrency and holds it for an extended period, anticipating a significant price increase before selling it for a substantial profit, is known as "holding" or "HODLing."

LP tokens serve a similar role to shares in index funds. They are issued to investors who contribute liquidity to a trading pool. By enhancing the liquidity pool, these tokens entitle holders to a share of the accumulated transaction fees. Additionally, LP tokens can be used for trading on decentralized exchanges.

A blockchain protocol that is developed independently, rather than being a testnet or a project built on existing networks like Ethereum, is referred to as a "native blockchain protocol."

When the value of an investor's account drops below the margin maintenance level, the broker requires the investor to deposit additional funds or securities to meet the minimum value needed to continue trading. This situation is known as a "margin call."

The online storage where private keys or other sensitive data are kept, enabling quick access to cryptocurrencies.

In the cryptocurrency sector, this term describes both digital and physical environments where cryptocurrency transactions take place.

A unique metric designed to determine the true value of a particular cryptocurrency and assess its ranking among other cryptocurrencies.

An order to buy or sell a specific cryptocurrency at the current market price. As long as there are available buyers and sellers, market orders are executed. This is the simplest type of order and is typically used when the priority is ensuring the trade is completed rather than focusing on the execution price.

Masternodes are key components of a blockchain network, similar to regular nodes but with a more extensive role. These servers store the entire blockchain and support various functions beyond mining, such as anonymizing transactions, verifying and clearing transactions, and participating in governance and voting processes.

The maximum supply of a cryptocurrency is the total number of coins that will ever exist throughout its lifetime. Once this maximum coin limit is reached, no additional coins can be mined or produced, effectively capping the cryptocurrency's total supply.

A data structure commonly used in computer science applications, Merkle trees play a crucial role in efficiently and securely encoding blockchain data in Bitcoin and other cryptocurrencies. Also known as "binary hash trees," they help ensure data integrity by enabling quick and secure verification of large datasets.

A microbitcoin, also referred to as a 'bit,' represents 0.000001 BTC.

A micropayment is a small financial transaction conducted online, typically used to purchase digital goods or services such as ebook pages or in-game items.

Cryptocurrencies that enable the creation of new coins through the process of block confirmation. Miners contribute their computational power to generate new blocks and are rewarded with newly minted cryptocurrencies as part of the mining process.

A miner is an individual or organization that takes part in the process of mining, contributing computational resources to validate transactions and generate new cryptocurrencies.

The process of creating new cryptocurrencies by adding blocks to a blockchain network is known as mining.

A mining contract, or "cloud mining," allows users to rent or invest in mining capacity remotely. Through this arrangement, individuals can participate in cryptocurrency mining without having to manage the hardware and infrastructure themselves.

A setup that brings together multiple miners to pool their computing power in order to achieve economies of scale and enhance competitiveness in finding the next block on a blockchain is known as a mining pool or "group mining."

A reward that miners receive for contributing their computational power to validate transactions and add new blocks to the blockchain is known as a mining reward.

A mining rig is a computer used for cryptocurrency mining activities. It can either be a dedicated system specifically designed and built for mining or a multipurpose computer, such as a gaming rig, that is used for mining on a part-time basis.

The term "fish" refers to someone who holds a small, insignificant amount of cryptocurrency.

A cryptocurrency mixing service, also known as a coin mixer or tumbler, enhances privacy and anonymity by blending potentially identifiable or “tainted” cryptocurrencies with unrelated transactions. This process makes it more challenging to trace the origin and destination of the cryptocurrency.

A recovery phrase, or seed phrase, is a list of words used in sequence to access or restore your cryptocurrency assets. It should be kept confidential and secure, as it is a standard feature in most HD wallets.

Mnemonics are learning techniques designed to enhance information retention and retrieval in human memory. They utilize tools such as elaborative encoding, retrieval cues, and imagery to encode information in a way that facilitates efficient storage and recall.

Often called money remitters or money transfer services, money transmitters are entities that transfer funds or provide payment services according to U.S. legal codes. In most states, a money transmitter is defined as anyone who receives money to send it to another location using any method, such as wire, facsimile, electronic transfer, or payment instruments.

The term "moon" describes a situation where a cryptocurrency's price rises significantly and maintains that high level for an extended period. The question “When moon?” is similar to asking “When Lambo?” in the context of anticipating substantial financial gains.

The MACD (Moving Average Convergence Divergence) is a trend-following momentum indicator that illustrates the relationship between two moving averages of a security's price. It is calculated by subtracting the 26-period Exponential Moving Average (EMA) from the 12-period EMA.

Mt. Gox, one of the earliest platforms for fiat-to-bitcoin exchanges, was founded by Jed McCaleb. The name "Mt. Gox" stands for “Magic: The Gathering Online Exchange.” The platform shut down in 2014 after approximately 850,000 bitcoins were reported as lost or stolen.

A multi-signature (or multi-sig) digital signature is a type of security feature that requires more than one key to authorize a transaction, providing a higher level of security.

All nodes in a blockchain that operate simultaneously at any given time are referred to as the "network" or "peer network."

A person who does not hold cryptocurrencies and has no belief in their success is often referred to as a "cryptocurrency skeptic" or "crypto skeptic."

A single item in a blockchain network operated by a participant is typically referred to as a "node."

The storage of keys for exchanges and wallets is commonly referred to as "key management" or "key storage." This involves securely handling private keys and other sensitive information essential for accessing and managing cryptocurrency assets.

A nonce is a random string of data used as an input in the hashing process of a transaction block. It helps in producing a hash that meets the numerical criteria set by Bitcoin's difficulty level. Different nonces are used for each hashing attempt, resulting in billions of possible nonces being tested to successfully hash each transaction block.

A currency created outside of a specific blockchain but accepted by it.

The method of storing cryptocurrencies in an offline space, using devices or systems not connected to the Internet.

A cryptocurrency that is both created and utilized within a specific blockchain ledger.

The term refers to a rule applied when two different cryptocurrency orders are placed simultaneously. According to this rule, if one order is accepted, the other should be automatically declined.

The method of storing cryptocurrencies on devices or systems connected to the internet. While more convenient than offline storage, it offers a lower level of security.

Software that allows for free usage, sharing, modification, and distribution is called "open source." This term is associated with a philosophy that promotes the free sharing of information for the common good.

A contract that grants the buyer the right, but not the obligation, to buy or sell an underlying asset at a specified strike price. There are two types: American options, which can be exercised at any time before expiration, and European options, which can only be exercised on the expiration date.

A public market for options.

In cryptography, a random oracle is an oracle that provides a unique, random response to each query, selected uniformly from its output domain. It is often used in cases where a proof cannot be completed with weaker assumptions on the cryptographic hash function.

An "orphan block," also called a "detached block," is a valid block that exists outside the main blockchain. This can occur when two miners produce blocks simultaneously or when a block is subjected to a cyber attack.

A valid block that is not part of the main chain but was instead part of a discarded fork.

Over-the-counter (OTC) or off-exchange trading occurs directly between two parties without the oversight of an exchange. Unlike exchange trading, which provides liquidity, transparency, and maintains the current market price, OTC trading does not necessarily disclose the price publicly.

Overbought refers to a period during which the price has experienced a significant and consistent upward movement over time with minimal pullback. This is typically illustrated on a chart showing a price trend from the "lower-left to upper-right."

Oversold refers to a period during which the price has undergone a significant and consistent downward movement over time with little to no pullback. This is typically depicted on a chart as a trend moving from the "upper-left to the lower-right."

Trading pair of two crytos.

A paper wallet is a physical document that securely stores your altcoins offline. It is immune to hacking and online theft but vulnerable to physical risks like fire, flooding, burglary, or being lost. The wallet contains a printed public and private key for a specific address, with no data stored on a computer. Often, paper wallets include QR codes for the keys, allowing for easy scanning when accessing the keys on a computer or phone, rather than manually typing them out.

A peer-to-peer (P2P) network is a system in which computers are interconnected via the Internet, allowing files to be shared directly between systems without relying on a central server. In this setup, each computer functions as both a file server and a client.

A permissioned ledger is a type of ledger where access is restricted and requires special permissions, allowing only authorized participants to view or modify the data.

The term refers to the primary blockchain on which tokens are built or the platform used for trading cryptocurrencies.

A form of fraud where the success of a non-existent enterprise is promoted by paying quick returns to early investors using the funds from later investors.

The total amount of cryptocurrencies owned by a single individual or organization.

The process of mining or generating a set amount of cryptocurrency coins before the cryptocurrency is publicly launched.

A phase occurring before the official token sale, allowing investors to purchase tokens prior to their public release. For companies, this phase provides an opportunity to raise funds for their blockchain project.

A private key is a confidential address paired with your public key, enabling you to spend or withdraw your coins from your wallet. Although it resembles a public key, it is slightly longer. You can derive a public key from a private key, but not the other way around. The private key controls access to the balance of the address, and ownership of the private key equates to ownership of the address's value.

A small piece of code paired with a public key, used to activate algorithms for text encryption and decryption. Created as part of public key cryptography during asymmetric-key encryption, it is employed to decrypt and convert a message into a readable format. Public and private keys work together to enable secure communication, such as encrypted email.

A Proof of Concept (PoC) is an implementation of a method or idea designed to demonstrate its feasibility and verify that a concept or theory has practical potential. Typically small and potentially incomplete, a PoC is also known as proof of principle. In software development, PoC involves distinct processes with specific objectives and roles for participants. It may also refer to partial solutions involving a limited number of users to assess whether a system meets certain requirements.

A blockchain consensus mechanism that facilitates relatively fast transactions by using identity as a stake.

An alternative consensus algorithm designed to address the energy consumption issues of Proof-of-Work (PoW). Proof-of-Burn (PoB) is often referred to as PoW without the energy waste.

The term refers to verification that provides evidence of the real software developer behind a cryptocurrency. Proof of Developer (PoD) is primarily used during the launch of a new cryptocurrency to prevent fraud.

Proof-of-Reserve (PoR) is an independent audit conducted by a third party to verify that a custodian, such as a centralized crypto exchange, truly holds the assets it claims to have.

The PoS (Proof-of-Stake) concept is based on the principle that the more coins a person holds, the greater their mining power.

A consensus mechanism that plays a crucial role in validating the status of coin transactions and managing assets.

A proof-of-work (PoW) system is an economic measure designed to prevent denial of service attacks and other network abuses, such as spam. It achieves this by requiring the requester to perform some computational work, typically involving processing time by a computer.

A special regulation that outlines the rules for interacting within a blockchain network, including aspects like consensus, transaction validation, and network participation.

Refers to a false name used by the creator of something. For example, Satoshi Nakamoto is the pseudonym of Bitcoin's founder.

A hashed version of the public key.

A blockchain network with unrestricted access that does not require special permissions.

A public key functions like a bank account for your digital currency, serving as the address where your coins are stored. For different types of coins, separate wallets are needed. A wallet consists of one or more public keys, and you can have as many as you choose without incurring costs. For example, a Bitcoin public key might look like: 14euyjBip1t2aWax5ZSg5YGFH8WW55CnEj. Anyone can send coins to this address, and you can transfer coins to other addresses, provided you have the corresponding private key.

A form of securities fraud where the price of an owned stock is artificially inflated through false and misleading positive statements, with the intent to sell the stock, bought at a lower price, at a higher price.

A black-and-white pattern (code) that can be read by machine scanners, facilitating the easy sharing of a wallet address.

An off-chain scaling solution that provides near-instant, low-fee, and scalable payments. It complements the Ethereum blockchain and is compatible with any token that supports it.

A specific cryptocurrency's position in the market capitalization ranking.

A slang term for “wrecked,” referring to a situation where one loses a significant amount of money during trading.

A momentum indicator that assesses the magnitude of recent price changes to determine whether an asset, such as a stock, is overbought or oversold.

A copy of a distributed ledger that is shared with all participants in a cryptocurrency network.

A person who is often wrong in predicting cryptocurrency price movements is referred to as a "reverse indicator," meaning their predictions can serve as a guide for how not to place buy or sell orders.

A type of digital signature that can be performed by any member of a group, where each member has their own key. A message signed with a ring signature is endorsed by someone within a specific group of people.

An abbreviation for "Return on Investment," representing the ratio between net profit and the cost of an investment.

Satoshi is the smallest fraction of cryptocurrency available for transactions, equivalent to 0.00000001 Bitcoin. It is named after Satoshi Nakamoto, the pseudonymous creator of Bitcoin.

The smallest unit of bitcoin with a value of 0.00000001 BTC.

A pseudonym for the individual or group who created Bitcoin. The true identity of Satoshi Nakamoto remains unconfirmed.

In the crypto sphere, the term refers to an ICO fraud or the creation of a deceptive cryptocurrency.

An alternative Proof-of-Work (PoW) algorithm to SHA-256, used in Bitcoin mining. Scrypt mining emphasizes memory usage over pure CPU power, aiming to reduce the advantage of ASICs and thus increase network participation and energy efficiency.

A secondary framework or protocol built on top of an existing blockchain system. Examples of layer 2 solutions include the Bitcoin Lightning Network and Ethereum Plasma.

The U.S. government agency responsible for protecting investors from harmful or illegal financial practices and fraud. It requires full and accurate financial disclosure from companies offering stocks, bonds, mutual funds, and other securities to the public.

Similar to a mnemonic phrase, a set of symbols created by a wallet owner for the purpose of restoring keys.

An implemented protocol upgrade designed to increase block capacity by removing certain parts of a transaction and adding new ones. Segregated Witness (SegWit) separates transaction signatures, thereby freeing up space on the blockchain.

A malicious mining strategy aimed at undermining blockchain network integrity. A selfish miner withholds a successfully validated block from the rest of the network and continues mining the next block, thereby demonstrating more proof-of-work compared to other miners.

An amount of limit orders placed to prevent sell orders from executing at a price higher than the set threshold, creating downward price pressure on a cryptocurrency. This tool is often used by whales to manipulate cryptocurrency prices.

A computer security cryptographic algorithm developed by the US National Security Agency (NSA) in collaboration with the National Institute of Standards and Technology (NIST).

A specific type of database partitioning that divides large databases into smaller, parallel-running segments called shards, aiming to improve transaction speed.

Any promotional activity aimed at raising funds, commonly referring to the promotion of Initial Coin Offerings (ICOs).

Any coin that has no potential value or usage.

A trading method used to capitalize on a temporary decline in an asset's price. The trader borrows the asset, sells it, and waits for the price to fall. Once the price drops, the trader buys back the asset at the lower price, securing a quick profit.

A blockchain ledger that runs parallel to the primary blockchain. A sidechain operates independently with its own protocols and ledger mechanisms, enabling data transfer between the primary blockchain and the sidechain.

An online black market, now closed by the FBI, was the first modern darknet market primarily known for facilitating the sale of drugs.

A lightweight client that enables the validation of transactions within a block without the need to download the entire block.

A smart contract, or cryptocontract, is a computer protocol that governs cryptocurrency transfers, ensuring traceability, transparency, and irreversibility.

The minimum amount of money a new project aims to raise during an ICO. If the soft cap is not reached, the project returns all raised funds to the investors.

A change to the software protocol that invalidates only previously valid blocks or transactions. Most soft forks require miners to update their mining software.

An object-oriented, high-level language used for implementing smart contracts on the Ethereum blockchain.

A contract for buying or selling a cryptocurrency asset with immediate settlement, meaning payment and delivery occur right away.

A public market where cryptocurrencies are traded with immediate settlement, as opposed to a futures market where settlement occurs at a later date.

A type of cryptocurrency designed to address price volatility. Stablecoins are typically pegged to fiat currencies, precious metals, or other assets to maintain stable value.

In the cryptocurrency world, staking involves enhancing network efficiency by holding and using cryptocurrencies to verify transactions. Participants earn rewards, typically in the form of interest, for their staking efforts. Staking not only provides an alternative income stream by holding coins but also benefits from the appreciation in the value of the coins, which can increase rewards.

A successfully mined and completed block with information that no longer needs to be recorded or worked on and is not included in the current blockchain.

A secure space where transactions can be processed off-chain (outside of the blockchain) to avoid sending all data to the blockchain. These transactions are authorized, with only their results recorded on the blockchain.

A short designation for crypto assets. For instance, BTC is the symbol for Bitcoin.

A synthetic token is a digital currency operating under the Synthetix protocol. These tokens are built on the Ethereum blockchain and provide direct exposure to various assets like gold, dollars, or pounds. They can be easily acquired on most fintech platforms, as many are based on Bitcoin or Ethereum blockchain systems.

The percentage of cryptocurrency in an account that can be traced back to another account.

The transaction storing and processing mechanism of IOTA, a cryptocurrency network designed to facilitate fee-less microtransactions for the expanding ecosystem of Internet of Things (IoT) devices.

Analytical activity aimed at monitoring a coin's history, price, and volume trends. Technical analysis involves using charts and other tools to identify major patterns that can assist in making informed investment decisions.

A blockchain that mirrors the main one and is used for testing updates without disrupting the operations of the primary blockchain.

Refers to a situation where one plans their investment activities over the course of months or years.

Originally phrased as "This is it, gentlemen," it is often used before delivering good news.

Similar to "symbol," a ticker is an abbreviation that represents a cryptocurrency, such as BTC for Bitcoin.

A type of smart contract that enforces a condition to restrict transactions until a specified time or block height is reached.

A method of recording the precise time and date when a transaction was processed.

A virtual unit created for utility purposes, allowing access to a specific cryptoeconomic system. It doesn't represent intrinsic value but is intended for developing software.

An event held to launch a token, similar to an Initial Coin Offering, but specifically focused on the release of tokens rather than coins.

The process of converting physical assets into their digital representation on the blockchain.

The acronym for "The Onion Router." It refers to an open-source software program that enhances privacy and security by protecting against Internet surveillance through traffic analysis. Tor is also utilized for providing anonymity to servers in location-hidden services.

The total amount of coins in existence for a specific cryptocurrency, excluding those that have been burned or otherwise removed from circulation.

In decentralized finance (DeFi), this term represents the total amount of assets or cryptocurrencies available for trading within a protocol or liquidity pool. It is used to gauge the overall value and performance of digital currencies over a given period.

The amount of shares or contracts traded for a specified security within a 24-hour period.

The process of transferring cryptocurrency between two parties on a blockchain involves sending digital assets from one address to another, which is recorded and verified through the network's consensus mechanism.

A transaction fee is the amount of money paid to process and validate a cryptocurrency transaction on a blockchain. It compensates network participants, such as miners or validators, for their role in confirming and securing the transaction.

In blockchain systems, transactions are termed "trustless" because they do not require intermediaries or third parties for verification. The blockchain's decentralized network of nodes collectively validates and confirms transactions, ensuring trust and security without relying on external authorities.

This service, also known as a mixing service, blends potentially identifiable or 'tainted' cryptocurrency funds with other transactions to obscure their origin and enhance privacy. It helps in masking the trail of funds, making it harder to trace their source.

The term refers to any system or programming language that is capable of performing any computable operation, given sufficient resources.

A state in which a transaction has not been accepted into the blockchain is referred to as a "pending" or "unconfirmed" transaction.

A publicly available blockchain is often referred to as a "public blockchain." This type of blockchain is open to anyone and allows for participation by any user, with transactions and data being accessible to the public.

The unspent output of a blockchain transaction that can be used as an input for new transactions is known as a "UTXO" (Unspent Transaction Output).

The abbreviation for "Coordinated Universal Time" is "UTC".

A participant on a Proof-of-Stake (PoS) blockchain who is responsible for validating blocks and earning rewards is someone who provides their own cryptocurrency as a stake to help secure the network and confirm transactions. This role involves holding and locking up a certain amount of cryptocurrency to support the network’s operation and is rewarded with additional cryptocurrency for their contributions.

A cryptocurrency address is an alphanumeric string that serves as a unique identifier for receiving funds. It functions similarly to a bank account number, allowing users to share it with others to receive cryptocurrency payments. Each address is associated with a specific cryptocurrency wallet and facilitates the transfer of digital assets on the blockchain.

A cryptocurrency initiative that is heavily promoted but will never actually be developed or made available to the public.

Funds that investors are eager to provide to promising startup companies with strong growth potential.

A freshly-mined bitcoin with no prior transaction history.

A statistical financial indicator that tracks the rate at which prices increase or decrease and the intensity of their fluctuations.

The amount of cryptocurrency traded over a specific period, indicating its direction, movement, and providing insight into future price trends and demand.

A digital wallet designed for securely storing, sending, and receiving cryptocurrency.

A market manipulation technique in which cryptocurrency is simultaneously bought and sold to create the illusion of artificial trading activity.

A website feature that enables users to create a personalized list of crypto assets to monitor their prices.

Investors who adhere to traditional trading strategies, making their trading behavior more predictable.

The smallest unit of Ether, where 1 Ether equals 1,000,000,000,000,000,000 Wei (10^18).

Investors who hold large amounts of cryptocurrency and have the potential to significantly influence the market are known as "whales."

A list of individuals and entities interested in participating in an upcoming ICO.

A document outlining a project or startup company, typically prepared before an upcoming ICO, aimed at attracting potential investors.

Electronically transferring funds between individuals, commonly used for sending and receiving fiat currency on bitcoin exchanges.

Yield farming is an investment strategy that enables earning additional cryptocurrency. It involves lending or staking crypto through smart contracts created by a series of computer algorithms. By participating in yield farming, investors can generate returns by selecting optimal lending platforms. Yield farmers continuously monitor the market and employ various strategies to maximize their investment returns.

The abbreviation for "Year to Date" is "YTD."

Another term for an unconfirmed transaction is a "pending transaction."

A method of verifying transactions without disclosing private details is known as "zero-knowledge proof."