If you’re new to the cryptocurrency world, it can be confusing trying to understand all of the terminologies. This post will define some of the most important terms you need to know. We’ll cover everything from “altcoins” to “Zero Confirmation Transactions.” You’ll be one step closer to joining the cryptocurrency community by understanding these terms! If you are a beginner in crypto, this post and the basics of cryptocurrency should help you.
The Ultimate Cryptocurrency Terminology Cheat Sheet
In the world of cryptocurrencies, many terms are used to describe various aspects of the technology. While some of these terms may have a straightforward meaning, others can be more difficult to understand. This post will go through some of the most common cryptocurrency terms and their definitions.
However, more in-depth articles will be published about each of them in the future, giving more insight.
51% Attack
A 51% attack is when a single entity or group of entities gain control of more than half of the mining power of a cryptocurrency network. This allows them to reverse transactions, prevent new transactions from being confirmed, and even double-spend coins.
See Types of Cryptocurrency Attack.
Addresses
Cryptocurrency addresses are alphanumeric strings that represent a holder’s public key. These addresses are used to receive and send cryptocurrencies. Every address is unique, like your bank account number and sort code.
Find out more here: What are cryptocurrency addresses?
Airdrop
Airdrops are a way of distributing new tokens to the cryptocurrency community. They usually occur when a new blockchain or token is launched, and developers want to get the word out to as many people as possible. Airdrops can also be used to reward loyal customers or followers.
Algorithm
A cryptocurrency algorithm is a mathematical formula to create new blocks and confirm transactions on a blockchain network. The algorithm is what determines the mining difficulty and how rewards are distributed. There are several different algorithms, but the most popular ones are Bitcoin’s SHA-256 and Ethereum’s Ethash.
All-Time High
An all-time high (ATH) is the highest price that a cryptocurrency has ever reached. It is used to measure the success of a particular coin or token and is often used to predict future prices.
All-Time Low
A cryptocurrency’s all-time low is the lowest price a particular coin or token has ever reached. It is used to measure the success of a specific coin or token and can be used to predict future prices.
Altcoin
Altcoins are cryptocurrencies that are not Bitcoin. They can be created by copying the codebase of an existing cryptocurrency or by using a different algorithm. Altcoins are often used to experiment with new features or achieve greater decentralization.
AML
AML is short for “anti-money laundering.” It is a set of regulations designed to prevent using cryptocurrencies for illegal activities such as money laundering and terrorist financing.
One way to complete an AML check for crypto is using a third-party service like AnChain. AnChain is a company that provides blockchain analysis and compliance solutions for businesses and law enforcement agencies.
See: How to be Legal in Crypto
Anti-Money Laundering
See AML.
Application Specific Integrated Circuit
An Application-Specific Integrated Circuit (ASIC) is a type of microchip that is designed to mine cryptocurrencies. ASICs are faster and more efficient than traditional CPUs and GPUs, making them the preferred choice for miners. There are several different ASICs on the market, but the most popular ones are Bitmain’s Antminer series.
Arbitrage
Arbitrage is the process of buying and selling cryptocurrencies at different prices to profit from the price difference. For example, you might buy Bitcoin from one exchange for $10,000 and sell it on another exchange for $11,000. By doing this, you would have made a $1,000 profit.
ASIC
See Application Specific Integrated Circuit.
ATH
See All-Time High.
ATL
See All-Time Low.
Atomic Swap
Atomic swaps are a way of exchanging cryptocurrencies without needing a third party. They are done through a process called Hash Time-Locked Contracts (HTLCs), which allow two parties to trade cryptocurrencies in a trustless manner between blockchains.
Bag
A bag is a term used to describe a holding of a specific cryptocurrency. For example, if you have 10 Bitcoin, you would say that you have a “bag” of Bitcoin.
Bear Trap
A bear trap is a situation in which a trader believes that the price of a particular currency will fall, but it rises, often leading to losses for the trader.
Bear/Bearish
In cryptocurrency, “bear” describes a market condition in which the prices are falling. A bearish market is one in which the prices are expected to decline.
Bitcoin
Bitcoin is a digital asset and a payment system invented by Satoshi Nakamoto. Transactions are verified by network nodes through cryptography and recorded in a dispersed public ledger called a blockchain. Bitcoin is unique in that there are a finite number of them: 21 million.
Block
A block is a data unit used to store information on a blockchain. Blocks are created by miners and are added to the blockchain in sequential order. Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data.
Block Explorer
A block explorer is a website allowing you to view a cryptocurrency’s blockchain. They allow you to see the transactions that have taken place and the blocks and block headers.
Block Height
Block height is the number of blocks that have been mined on a blockchain. It can track a cryptocurrency’s progress and estimate when a particular block will be mined.
Block Reward
A block reward is a payment made to a miner for mining a block (otherwise known as a gas fee). The amount of the reward depends on the cryptocurrency and the algorithm that is used. Bitcoin, for example, has a block reward of 6.25 Bitcoin.
Blockchain
The blockchain is a publicly dispersed ledger that records transactions for a specific cryptocurrency. It is used to track a cryptocurrency’s progress and verify the legitimacy of transactions.
BTFD
BTFD is an acronym for “Buy The F***ing Dip.” It is a strategy that recommends buying a cryptocurrency when the prices are low to profit from the eventual price increase.
Bull/Bullish
Bull refers to the market sentiment where prices increase, and investors are optimistic. A bullish market is one in which the prices are expected to rise.
It is the opposite of a bear market where prices are falling, and investors are pessimistic.
Burned
When a cryptocurrency is burned, the coins are removed from circulation. This can be done for various reasons, such as to reduce the supply of a coin or punish people who engage in fraudulent activities.
Buy the F***ing Dip
See BTFD.
Buy Wall
A buy wall is a large order or group of orders placed on a cryptocurrency exchange to prop the asset price up. A buy wall typically consists of several orders close to each other in price and will fill all or most of the available buy order book at once.
CAP
The “cap” is the maximum amount of coins or tokens that will ever exist. This is set at the beginning of a cryptocurrency’s creation and cannot be changed.
Central Ledger
A central ledger is a ledger that is maintained by a centralized authority. This authority can be an individual or organization that oversees and controls the transactions and storage of cryptocurrency. Central ledgers are used to prevent double-spending and ensure records’ accuracy. Centralized Ledgers are not required with blockchain, but some people decide to keep them for personal records.
Chain Linking
Chain linking is the process of connecting two or more blockchains together. This allows for the transfer of assets between blockchains and the execution of smart contracts between them. Chain linking creates decentralized networks and increases blockchain applications’ security.
Not to be confused with Chainlink (LINK), the cryptocurrency.
Cipher
A cipher is a code or algorithm used to encrypt data. It is used in conjunction with a key, ensuring that only authorized individuals can access the information. Ciphering is used to protect data privacy and ensure its security.
Not to be confused with Cipher (CPR), the cryptocurrency.
Circulating Supply
Circulating supply is the total number of coins or tokens in circulation at any given time. This number does not include any coins or tokens that are burned, stored, or held by the creators of the cryptocurrency.
Cold Storage
Cold storage in cryptocurrency is a process of storing the seed prase or master key offline on a device that is not connected to the internet. All tokens or coins remain on the blockchain and cannot be accessed without the seed phrase or master key. This can be done through a hardware wallet or a paper wallet. Keeping coins or tokens offline protects your cryptocurrency holdings from theft and hackers.
Cold Wallet
See Cold Storage.
Confirmed
Confirmed in crypto means that the network verified the transaction and is now permanent.
Consensus
Consensus is the agreement of all network nodes on the transaction’s validity. To achieve consensus, most nodes must agree that the transaction is valid. This allows for the safe and secure execution of transactions without the risk of fraud or double-spending.
Consensus Process
A consensus process in crypto is a set of rules used to verify the validity of transactions.
Also, see Consensus.
Consortium Blockchain
A consortium blockchain is a blockchain controlled by a group of nodes rather than a single entity. This allows for more trust between the participants and better security due to less transparency. Consortium blockchains are often used for business applications.
Cryptocurrency
Cryptocurrency is a digital or virtual currency that uses cryptography to secure transactions and control the creation of new units. Cryptocurrencies are decentralized, not subject to government or financial institution control. This makes them attractive to investors looking for a more secure way to store their assets.
Cryptographic Hash Function
Cryptographic hash functions are algorithms to create a unique fingerprint or “hash” of data. This hash is then used to verify the integrity of the data. Cryptographic hash functions are essential for the security of cryptocurrencies and blockchain applications.
Cryptography
Cryptography is the practice of using codes, hiding data, verifying messages, and using digital signatures to secure communication in the presence of third parties. It is used in cryptocurrency to protect the privacy and security of transactions. Cryptography is also used in other applications such as email, file sharing, and secure communications.
DAO
DAO is a Decentralized Autonomous Organization. It is a self-governing organization run by its members, who can vote on proposals that affect the organization. DAOs are often used for crowdfunding and to manage assets.
dApp
A dApp is a decentralized application that is built on a blockchain. These applications are often used for crowdfunding, managing assets, and voting but can be adjusted to do almost anything on the blockchain.
Decentralized
In cryptocurrency, decentralized means the network is not controlled by a single entity. This allows for more trust between the participants and better security due to higher transparency.
Decentralized Application
See dApp.
Decentralized Autonomous Organization
See DAO.
Decentralized Exchange
A decentralized exchange (DEX) in crypto is an exchange that is not controlled by a single entity, such as Maiar DEX.
Decentralized Finance
Decentralized finance, or “DeFi,” for short, is a term used to describe the use of blockchain underlying technology to create financial products and services.
Decryption
Decryption is the process of unlocking data that has been encrypted. This is done by using a cryptographic key to unlock the data. Decryption is necessary to access information that has been encrypted for security purposes.
Deflation
In cryptocurrency, deflation is a process that reduces the total number of coins in circulation. This happens when users hold onto their coins rather than spend them, which decreases the number of coins in circulation. This can positively affect the price of the currency as it becomes scarcer.
Depth Chart
A depth chart is a graphical representation of the order book for a particular cryptocurrency. It shows the buyers and sellers at each price point and the total amount of buy or sell orders at each price. This allows traders to see the demand for a particular currency and make informed decisions about when to buy or sell.
Deterministic Wallet
A deterministic wallet is a type of cryptocurrency wallet that uses a single seed to generate all the addresses and private keys for the wallet. This provides a more secure way to store your funds, reducing the chances of losing your money if you lose your wallet.
DEX
Digital Assets
Digital assets are any type of asset that is represented by a digital token. These assets can be used to represent anything, including physical assets, rights, and even other cryptocurrencies. Digital assets are often used to represent ownership of an object or right and can be traded on cryptocurrency exchanges.
Digital Commodity
See Digital Assets.
Digital Currency
Digital currency is a type of currency that is used in cryptocurrency. This currency is digital, meaning it exists only in the form of computer data. Digital currencies are used to conduct transactions on the blockchain and can be used to purchase goods and services.
Digital Ledger (DLT)
A digital ledger records all transactions that have taken place on a blockchain. This allows participants in the network to track the movement of funds and verify the legitimacy of transactions. The ledger is also used to create new blocks and secure the network.
Digital Signature
A digital signature is a type of cryptographic signature that is used to verify the authenticity of a message or document. It is created using a private key to encrypt a message or document. The recipient can then use the public key to decrypt the message and verify its authenticity.
Distributed Ledger
A distributed ledger is a type of database that is spread out across a network of computers. This allows for the verification of transactions by multiple participants, as well as the secure storage of data. The distributed ledger is often used to power blockchain networks.
Also, see Digital Ledger.
Double Spend
Double spending is a potential process that allows someone to spend the same cryptocurrency more than once. This can be done by spending the currency on two different transactions or sending the same transaction to two different recipients. This can be a problem for cryptocurrencies, as it can lead to the devaluation of the currency.
Dump
A dump is the sale of a large number of coins at once. This can reduce the supply of a particular currency and drive up the price. It can also be used to sell off a large number of coins that were purchased at a low price.
Dumping
See Dump.
Dust
Dust is a trace amount of cryptocurrency that remains in a user’s wallet after a transaction. The value of dust is very low, maybe just a fraction of a penny. The primary reason for dust is a byproduct of transferring one currency to another where the decimal places do not all change to the new currency.
Dust Transaction
A dust transaction can be the act of transferring your dust into useable assets (some exchange wallets allow this), or it can be part of a malicious attack.
DYOR
DYOR stands for “Do Your Own Research.” This term is often used in cryptocurrency to encourage people to learn about a project before investing.
Encryption
Encryption is a process that is used to protect data from unauthorized access. This is done by scrambling the data into an unreadable format. Then, the data can only be accessed using a decryption key known only to the authorized party. Encryption is often used to keep information secure while it is transmitted or stored.
ERC
ERC is an acronym that stands for “Ethereum Request for Comments.” It is a protocol used to propose improvements to the Ethereum network. ERC was created to standardize the development of Ethereum-based applications.
ERC-20
ERC-20 is a protocol used to standardize the development of Ethereum-based applications. This protocol defines a set of rules that all Ethereum-based applications must follow to be compatible with each other. This allows for developing decentralized applications that can be used on the Ethereum network.
Escrow
Escrow is a process that is used to protect against fraud or theft. It involves using a third party or smart contract to hold funds or assets until a transaction is completed. This can help ensure that both parties in a transaction act in good faith and that the transaction will be completed as agreed.
Ethereum
Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of fraud or third-party interference. Ethereum is the first blockchain platform to enable this kind of contract, and smart contracts can potentially change how we live our lives.
Ethereum Virtual Machine
The Ethereum Virtual Machine (EVM) is a virtual machine contained in every node on the Ethereum network. It is used to execute scripts and smart contracts. In addition, the EVM is responsible for verifying and completing transactions on the network.
EVM
Exchange
An exchange is a platform where you can buy and sell cryptocurrencies. Exchanges allow you to use fiat currency (USD, EUR, etc.) to buy cryptocurrencies or cryptocurrencies that you already have to change for different currencies.
FA
See Fundamental Analysis.
Faucet
A faucet is a website or app that rewards users with a small amount of cryptocurrency for completing a task, such as completing a captcha or viewing an ad. Faucets are often used to promote new cryptocurrencies or increase project awareness.
Fiat
Fiat is a term used in cryptocurrency to describe traditional currency, such as the US dollar or the Euro. Fiat currencies are not backed by any asset but are instead supported by the government that issues them. Cryptocurrencies are often seen as an alternative to fiat currencies.
Fiat currency
See Fiat.
FOMO
FOMO stands for Fear of Missing Out and is a term that is used in cryptocurrency to describe the feeling of anxiety that comes from not owning a particular coin or token. FOMO often drives people to make irrational investment decisions.
Fork
A fork is a split in the blockchain of a cryptocurrency. This occurs when two or more blocks are created by different miners at approximately the same time. Forks can be temporary or permanent. A permanent fork is a split that results in two separate blockchain networks. A temporary fork is a split that is eventually resolved by one of the blocks being removed from the blockchain.
Frictionless
Frictionless refers to a state where transactions occur without any hindrance or obstruction. This can be done through smart contracts, which can automate the process of verifying and executing transactions. This can make transactions faster and more efficient.
FUD
FUD stands for Fear, Uncertainty, and Doubt and is a term used in cryptocurrency to describe the spread of negative information about a coin or token. FUD can be used to manipulate the price of a cryptocurrency.
Full Node
A full node is a computer running the Ethereum network with a full copy of the blockchain. This allows the computer to verify and execute transactions on the network. Full nodes are an essential part of keeping the network secure.
Fundamental Analysis (FA)
FA stands for Fundamental Analysis. This is a method of analyzing a cryptocurrency to determine its value by looking at the underlying economic and financial factors. FA is used to find undervalued coins that have the potential for long-term growth.
Futures Contract
A futures contract is a type of contract that allows two parties to exchange an asset at a specified price at a future date. Futures contracts are often used to hedge against price fluctuations. For example, in cryptocurrency, futures contracts are often used to speculate on a coin’s or token’s future price.
Gas
Gas is a term used in cryptocurrency to describe the fee paid to miners or validators for verifying and executing transactions on the network. Gas is used to incentive miners and validators to keep the network secure.
Gas Limit
The maximum amount of gas that can be spent on a single transaction is the gas limit. This limit is set by the transaction’s sender and is used to prevent denial-of-service attacks.
Gas Price
The gas price is the amount paid to miners or validators for verifying and executing transactions on the network.
Genesis Block
The genesis block is the first block in the blockchain of a cryptocurrency. This block is often hardcoded into the currency’s software and cannot be changed.
Group Mining
Group mining is a process where miners work together to find a block. This can be done by forming a group or pooling their resources together. Group mining can increase the chances of finding a block and reduce reward variance.
Gwei
Gwei is a unit of measurement for Ethereum used to calculate the fees paid to miners or validators. For example, 1 Gwei is equivalent to 0.00000000001 ETH.
Halving
Halving is a process that reduces the number of new coins created in a cryptocurrency’s blockchain. This occurs when the block reward is cut in half. Halvings often occur every four years and can significantly impact the price of a coin.
Hard Cap
A hard cap limits the total number of coins or tokens that can be created. This limit is often set by cryptocurrency developers and cannot be changed.
Hard Fork
A hard fork is a type of fork that results in two separate blockchain networks. This can happen when the software of a cryptocurrency is updated, and the new software is not compatible with the old software. Hard forks can also happen due to disagreements within the community about the direction of the currency.
Hardware Wallet
A hardware wallet is a physical device that is used to store cryptocurrencies. This device allows users to store their coins offline and provides increased security. Hardware wallets are often considered to be the safest way to store cryptocurrencies.
Hash
A hash is a cryptographic function that takes an input of any size and produces an output of a fixed size. This output is known as the hash value or hash code. Hashes are used in cryptocurrency to secure transactions and verify data’s legitimacy.
Hash Rate
The hash rate is the number of hashes that are calculated per second. This rate is used to measure the performance of a cryptocurrency’s network.
Hashing Power
Hashing power is a term used in cryptocurrency to describe the computing power that is used to verify and execute transactions on the network. Miners or validators require a high level of hashing power to maintain the network’s security.
Hash Time-Locked Contracts
Hash time-locked contracts (HTLC) are a type of smart contract that is used in cryptocurrency to facilitate atomic swaps. HTLCs allow two parties to exchange assets without needing a third party.
HODL (Hold On for Dear Life)
HODL is a term used in cryptocurrency to describe the act of holding onto one’s coins or tokens. HODLing is often considered to be the best strategy for long-term investors.
ICO
Initial Coin Offering
ICO stands for Initial Coin Offering. An ICO is a way for cryptocurrency startups to raise money by selling their tokens or coins to investors. These tokens or coins are often used to access the startup’s services or products.
JOMO
JOMO is a term used in cryptocurrency to describe the Joy Of Missing Out. This term is often used to describe the feelings of relief or happiness investors experience when deciding not to invest in a particular coin or token.
KYC
KYC is short for Know Your Customer. KYC is a process that requires companies to verify the identity of their customers. The financial industry often uses this process to combat money laundering and fraud. KYC can also be used in cryptocurrency to protect investors from fraudulent activities.
LAMBO
LAMBO is short for Lamborghini. This term is often used in cryptocurrency to describe the act of cashing out one’s coins or tokens and buying a luxury car.
Ledger
Ledger is a term used in cryptocurrency to describe a physical device that is used to store cryptocurrencies. This device allows users to store their coins offline and provides increased security. Hardware wallets are often considered to be the safest way to store cryptocurrencies.
Leverage
Leverage is a term that is used in finance to describe the use of borrowed money to increase the potential return on investment. In cryptocurrency, leverage can be used to increase the buying power of an investor. This can lead to increased profits but also increased risks.
Lightning Network
The Lightning Network is a proposed solution to the scalability problem of Bitcoin and other cryptocurrencies. The Lightning Network allows transactions to be processed off-chain, reducing the load on the main blockchain. This network is designed to enable faster and more secure transactions.
Limit Order/Limit Buy/Limit Sell
A limit order is an order to buy or sell a security at a specific price or better. A limit buy order is an order to buy a security at or below the current market price. A limit sell order is an order to sell a security at or above the current price.
Liquidity
Liquidity is the ability of an asset to be sold quickly and at a fair price. In cryptocurrency, liquidity is often measured by the volume of transactions that are taking place on the network. High liquidity indicates that an asset can be quickly sold without causing a price decline.
Locktime
Locktime is a term used in cryptocurrency to describe the time after a transaction can be executed. This term is often used to prevent transactions from being executed before a certain time or event.
Long
In cryptocurrency, a long position is an investment where the investor expects the asset price to increase. This type of investment is often considered riskier but also has the potential for greater rewards.
MACD
See Moving Average Convergence Divergence.
Margin Bear Position
A margin bear position is a bet where the investor expects the asset price to decrease. Also known as a short position.
Margin Bull Position
A margin bull position is a bet where the investor expects the asset price to increase. Also known as a long position.
Margin Trading
Margin trading is the act of buying and selling securities with the use of borrowed money. In cryptocurrency, margin trading can be used to increase the buying power of an investor. This can lead to increased profits but also increased risks.
Market Cap
Market capitalization, or market cap, is a term used in finance to describe the size of a company’s outstanding shares. In cryptocurrency, market capitalization is often used to measure the size of a particular coin or token. This value is calculated by multiplying the total number of coins or tokens by the current market price.
Market Order
A market order is an order to buy or sell a security at the current market price. This type of order is often used when an investor wants to buy or sell a security quickly and without paying a premium.
MCAP
See Market Cap.
Meme Coin
See Shitcoin.
Mining
Mining is the process of verifying and adding new transactions to the blockchain. To do this, miners are rewarded with cryptocurrency for their efforts. This process is often considered to be the backbone of the cryptocurrency network.
Mining Contract
A mining contract is an agreement between a miner and a buyer in which the miner agrees to mine a certain amount of cryptocurrency for the buyer. This contract can ensure that the buyer receives a specific amount of cryptocurrency on a set schedule.
Mining Pool
A mining pool is a group of miners working to verify and add new transactions to the blockchain. This process is often considered to be the backbone of the cryptocurrency network. By working together, miners can increase their chances of verifying a transaction and receiving rewards.
Money Services Business
A money services business (MSB) is a company that provides financial services such as money transmission, currency exchange, or check to cash. In the United States, MSBs are regulated by the Financial Crimes Enforcement Network (FinCEN).
Moon
In cryptocurrency, the moon often refers to a large price increase that is considered “out of this world.” A coin or token that moons often sees a significant increase in value.
Moving Average Convergence Divergence
MACD stands for Moving Average Convergence Divergence. This is a technical indicator used to measure a cryptocurrency’s momentum. MACD can be used to indicate when a cryptocurrency is overbought or oversold.
MSB
Multi-Signature (Multi-Sig) Wallets
Multi-signature is a security feature that requires more than one signature to authorize a transaction. This can help to ensure that transactions are only executed if multiple parties agree. Multi-signature wallets often use this security feature to protect funds from being stolen or lost.
Multipool Mining
Multipool mining is a mining technique where miners use a single pool to mine multiple cryptocurrencies. This can help to increase the miner’s chances of finding a new block and receiving rewards.
Network
In cryptocurrency, the network is often used to describe the computer group responsible for verifying and adding new transactions to the blockchain.
NFT
NFTs, or non-fungible tokens, are unique digital assets that can’t be replaced. This makes them ideal for collectibles like digital art, music, and even virtual real estate. Because NFTs are stored on the blockchain, they can’t be counterfeit or duplicated.
Node
A node is a computer that is connected to a cryptocurrency network. These computers help to verify and add new transactions to the blockchain. By serving as a node, these computers can help to support the network and receive rewards for their efforts.
Nonce
In cryptocurrency, a nonce (Number Once) is a number used to create a unique signature for a transaction. This number is used to ensure that the transaction is only executed once. Miners use this number to help verify transactions and receive rewards.
OCO
See One Cancels the Other Order.
One Cancels the Other Order
OCO stands for “one cancels the other.” This type of order allows an investor to cancel one order if a better price is found. OCO orders can help save money on commissions and ensure the best price is found.
Oracles
An oracle is a type of computer in a cryptocurrency network that helps verify and add new transactions to the blockchain. These computers help ensure that the network runs smoothly and that transactions are processed correctly. These computers can receive rewards for their efforts by serving as an oracle.
Overbought
In cryptocurrency, overbought often refers to a coin or token that has seen a significant price increase. When a coin or token is considered overbought, it may be difficult to see further price increases.
Oversold
In cryptocurrency, oversold often refers to a coin or token that has seen a significant price decrease. When a coin or token is considered oversold, it may be difficult to see further price decreases.
P2P
See Peer to Peer.
Paper Wallet
A paper wallet is a physical copy of a cryptocurrency wallet. This can help to protect funds from being stolen or lost.
Peer to Peer
Peer-to-peer (P2P) is a type of network where transactions are processed between two parties without needing a third party. This can help to reduce the costs and time associated with processing transactions. P2P networks often use blockchain technology to help process transactions.
PND
See Pump and Dump.
Pre-Sale
In cryptocurrency, a pre-sale is a sale that takes place before the official launch of a coin or token. This can help raise money for developing a new coin or token. Pre-sales often offer investors a discount on the initial price of the coin or token.
Private Key
A private key is a secret code that is used to authorize cryptocurrency transactions. This code is often stored in a cryptocurrency wallet and can be used to access funds. By keeping your private key safe, you can help ensure the security of your funds.
Proof of Authority (PoA)
Proof of Authority (PoA) is a consensus algorithm that helps ensure that transactions are processed correctly. This algorithm relies on a set of approved nodes to help verify and add new transactions to the blockchain. These nodes can be trusted to help ensure the security of the network.
Proof of Stake (PoS)
Proof of stake (PoS) is a method of confirming transactions on a blockchain. This method uses a set of approved nodes to help verify and add new transactions to the blockchain. These nodes are randomly chosen based on their stake in the network. Using a proof of stake, networks can help reduce the energy needed to process transactions.
Proof of Work (PoW)
Proof of Work (PoW) is a method of confirming transactions on a blockchain. This method uses a set of approved nodes to help verify and add new transactions to the blockchain. These nodes are chosen based on their computational power. Using proof of work, networks can help ensure that transactions are processed quickly and efficiently.
Protocols
Protocols are a set of rules that help govern the operation of a cryptocurrency network. These rules help to ensure that transactions are processed correctly and that the network remains secure. By following the correct protocols, networks can help ensure their users have a positive experience.
Public blockchain
A public blockchain is a type of blockchain that is open and accessible to all. This can help to ensure transparency and trust in the network. Using a public blockchain, networks can help ensure that all users have access to the same information.
Public Key
A public key is a code that is used to receive transactions. This code is often shared with others so they can send you cryptocurrency. Sharing your public key can help ensure that transactions are processed quickly and efficiently. However, sharing it with too many people puts you at risk of dust attacks.
Pump
A pump is an event where a group of individuals colludes to buy an asset to boost the price.
Pump and Dump
A pump and dump is a type of scam where a group of individuals colludes to buy an asset to boost the price. Once the price has been artificially inflated, the group will sell their assets, causing the price to crash. This can often lead to financial losses for unsuspecting investors.
REKT
REKT is an acronym that stands for “wrecked”. It is often used to describe someone who has lost a lot of money in crypto.
Relative Strength Index (RSI)
The relative strength index (RSI) is a technical indicator used to measure the magnitude of price movements. This indicator can help determine when a particular asset is oversold or overbought.
Ring Signature
A ring signature is a type of digital signature that helps ensure users’ privacy. This type of signature uses a group of cryptographic signatures to help hide the sender’s identity. This can help to ensure that transactions are processed securely and anonymously.
Satoshi Nakamoto
Satoshi Nakamoto is the creator of Bitcoin and the blockchain. He is a pseudonymous figure who has remained anonymous since his creation. While his true identity remains a mystery, his work has helped shape the world of cryptocurrency.
SATS (Satoshis)
SATS is a measurement unit used to describe a cryptocurrency’s value. In general, 1 SATS is equal to 1/100,000,000 of a bitcoin. This unit can be helpful when measuring the relative value of different cryptocurrencies.
Scrypt
Scrypt is a type of algorithm that is used to secure cryptocurrencies. This algorithm helps to ensure that transactions are processed quickly and efficiently. It can also help protect networks from attacks.
Seed
A seed is a code that is used to generate a cryptocurrency address. This code is often stored in a cryptocurrency wallet and can be used to access funds. By keeping your seed safe, you can help ensure the security of your funds.
Segregated Witness
Segregated Witness, or SegWit, is a proposed change to the Bitcoin protocol that would help to improve the network’s scalability. This change would help reduce the size of Bitcoin transactions, allowing them to be processed more quickly and efficiently.
SEGWIT
See Segregated Witness.
Selfish Mining
Selfish mining is a type of attack that can be used to disrupt a cryptocurrency network. This attack occurs when a miner mines blocks selfishly instead of working for the benefit of the network. This can lead to instability and chaos on the network.
Sell Wall
A sell wall is a type of order that is used to sell a large amount of cryptocurrency. This order can help to artificially inflate the price of an asset. By buying into this order, investors can help to push the price even higher.
SHA-256
SHA-256 is another type of algorithm that is used to secure cryptocurrencies. This algorithm helps to ensure that transactions are processed quickly and efficiently. It can also help protect networks from attacks.
Sharding
Sharding is a proposed solution to the current scalability problem on many blockchain networks. This solution would help divide the network into separate shards, each of which would be able to process transactions more quickly and efficiently. This could help to improve the performance of these networks dramatically.
Shitcoin
A shitcoin is, unfortunately, a subjective term depending on the person. However, the definition of shitcoin is a cryptocurrency that serves no purpose or function – sometimes called a MEME coin.
Short
A short is a type of investment strategy that can be used to profit from a falling cryptocurrency market. This strategy involves borrowing cryptocurrency tokens from another investor and selling them at the current market price. If the price falls, the investor can buy back the tokens at a lower price and return them to the original owner.
Signature
A signature is a type of code that is used to verify transactions on a blockchain network. This code is often created using a public/private keypair and helps ensure the security and anonymity of transactions.
Smart Contract
A smart contract is a self-executing contract that is stored on a blockchain network. This contract can be used to automate the negotiation and execution of agreements between parties. Smart contracts are trustless, meaning they do not require third-party intermediaries to function.
Soft Fork
A soft fork is a protocol change that would help improve the network’s scalability. This change would help reduce the size of transactions, allowing them to be processed more quickly and efficiently.
Software Wallet
A software wallet is a type of cryptocurrency wallet that is installed on a computer or mobile device. This wallet allows users to store, send, and receive cryptocurrencies. Software wallets are often considered more secure than some other types of wallets, but they can also be more difficult to use.
Solidity
Solidity is a programming language that is used to create smart contracts on blockchain networks. This language helps ensure that contracts are properly executed and can help protect networks from attacks.
TA
See Technical Analysis.
Technical Analysis
TA, or Technical Analysis, is a type of analysis that can be used to predict the future price movements of a cryptocurrency. This analysis is based on the theory that past price movements can be used to predict future ones. TA can be used to help investors make informed decisions about where to invest their money.
Test Net
The Test Net is a network that is used to test new cryptocurrency protocols and features. This network allows developers to experiment with new ideas without affecting the live network. The Test Net can also be used to trial new software and wallets.
Timestamp
A timestamp records the time that a particular transaction occurred on a blockchain network, making the same action impossible to happen again in the future.
Token
A token is a type of cryptocurrency that is used to represent a value within a particular network. These tokens can be used to pay for goods and services or traded on exchanges. In many cases, companies issue tokens to raise funds for their projects.
Tokenless Ledger
A tokenless ledger is a type of blockchain network that does not use tokens. This network is designed to be more efficient and scalable than traditional blockchain networks. Tokenless ledgers are still in development, but they could potentially offer a better solution to the current scalability problem on many blockchain networks.
Tokens
See Token.
TOR
TOR, or The Onion Router, is software that helps protect users’ privacy when surfing the internet. This software allows users to browse the web anonymously and can be used to hide their location and identity. TOR is often used by criminals and hackers to conceal their activities online.
Transaction
A transaction is a unit of data that is used to record the movement of cryptocurrency between two parties. This data is stored on a blockchain network and helps ensure the security and anonymity of all transactions.
Transaction Fee
A transaction fee is a fee that is charged by a cryptocurrency network for processing transactions. This fee helps to cover the costs of maintaining the network and helps ensure that transactions are processed quickly and efficiently. The fee amount can vary depending on the network and the type of cryptocurrency being transferred.
See also, Gas Price.
Turing Completeness
Turing Completeness is a property that is used to describe a computer system or programming language. This property states that the system or language is capable of completing any calculation that can be done by a human. Turing Completeness is important in cryptography because it helps ensure that contracts are executed properly and can help protect networks from attacks.
Unconfirmed
Unconfirmed refers to a transaction that has not yet been verified by the network. Until a transaction is confirmed, it is considered to be in a pending state. Unconfirmed transactions can be canceled or reversed at any time.
Unspent Transaction Output
An unspent transaction output (UTXO) is a data unit that tracks a cryptocurrency wallet’s balance. The UTXO is updated to reflect the new balance when a transaction is made. This data helps ensure the accuracy of the blockchain network and prevents double-spending.
UTXO
See Unspent Transaction Output.
Volatility
Volatility is a measure of how much the price of a cryptocurrency changes over time. This measure helps investors determine the risk of investing in a particular currency. Various factors can affect volatility, including political events, news, and regulatory changes.
Wallet
A wallet is a software program or hardware device that stores the private and public keys needed to access and spend cryptocurrency. Wallets can be used to safely store various types of cryptocurrencies, including Bitcoin, Ethereum, and Litecoin. Wallets are important for security and privacy and should be kept safe at all times.
Wallet Address
A wallet address is a unique string of characters that is used to identify a cryptocurrency wallet. This address is needed to send or receive cryptocurrency. Wallet addresses are typically long and difficult to remember, which is why most wallets provide a QR code that can be used instead.
Also, see Addresses.
Whale
A whale is a term used to describe someone who has a large amount of cryptocurrency. These individuals can significantly impact the market due to their large holdings. Whales can use their power to manipulate the market by buying or selling large amounts of cryptocurrency at a time.
Whitelist
A whitelist is a list of approved addresses allowed to participate in a particular cryptocurrency network. This list is used to help ensure the security and integrity of the network. Only addresses that are on the whitelist can send or receive transactions.
Whitepaper
A whitepaper is a document that is used to describe a cryptocurrency or blockchain project in detail. This document typically includes information about the project’s goals, team, and technology. Whitepapers are important for investors as they help them understand the project in detail and determine whether or not to invest.
Zero Confirmation Transaction
A zero-confirmation transaction is a transaction that has not yet been verified by the network. Until a transaction is confirmed, it is considered to be pending. Unconfirmed transactions can be canceled or reversed at any time.
Also, see Unspent Transaction Output.
Conclusion
Unfortunately, there will be terms that we have missed or that you come across that you are unsure of – that is often part of cryptocurrency. However, if you find something that you would like us to add to this list, please contact us on Telegram.
