Cryptocurrency has taken the world by storm in recent years, with more and more people becoming interested in the world of digital assets. However, with so many new terms and definitions to learn, it can be difficult to keep up with the fast-paced and ever-changing world of cryptocurrency. In this article, we aim to demystify the world of crypto by providing an extensive glossary of hundreds of cryptocurrency definitions.
Whether you are new to the world of crypto or a seasoned investor, this guide will provide you with a comprehensive understanding of the most commonly used terms in the industry. So, let's dive in and explore the world of cryptocurrency together!
51% attack
A 51% attack is a type of attack on a blockchain network where a single entity or group of entities controls more than 50% of the network's mining power. This enables the attacker to manipulate the blockchain's transactions and potentially double-spend coins or rewrite transaction history, which can lead to a loss of trust and value in the network.
51% attack protection
51% attack protection refers to measures taken by blockchain networks to prevent or mitigate the impact of a 51% attack. Some common protection measures include increasing the network's mining difficulty, implementing consensus mechanisms that require multiple validators to confirm transactions, and encouraging decentralization by discouraging large mining pools or validators. Additionally, some networks offer bug bounties or other incentives to encourage responsible disclosure of potential vulnerabilities.
Abenomics
Abenomics refers to a set of economic policies implemented by the Japanese government under the leadership of Prime Minister Shinzo Abe in 2013. The policies aim to revive the country's economy through a combination of monetary easing, fiscal stimulus, and structural reforms.
Accredited investor
An accredited investor is an individual or entity that meets certain criteria, typically related to their income or net worth, that qualifies them to participate in private investments and other high-risk financial opportunities that are not available to the general public. Currently, to qualify as an accredited investor, the individual will have to provide proof of an income over 200,000 USD or a net worth of 1 million USD, excluding the main residence.
Activist Investor
An activist investor is an individual or group that purchases a significant stake in a company with the intention of influencing its decision-making processes. Activist investors often use their ownership position to push for changes that they believe will increase the value of their investment, such as replacing management or restructuring the company.
Crypto addresses are alphanumeric strings used to transfer, receive, and store bitcoin. Bitcoin and Ethereum use different addressing systems. It uses public and private keys to sign transactions and prove asset ownership.
AFK stands for "Away From Keyboard" and is commonly used in online gaming and chat environments to indicate that a user is temporarily unavailable. In the context of cryptocurrency trading, AFK can indicate that a trader is not actively monitoring their trades.
Air gapped
An air-gapped system is a computer or network that is physically disconnected from the internet or any other external network, making it highly secure and protected from cyber threats such as hacking and malware attacks.
To promote cryptocurrency adoption, crypto airdrops deliver free tokens. It lets users trial new cryptocurrencies if they fit the criteria. Before engaging, check for frauds.
An algorithm is a set of instructions or rules that a computer program follows to perform a specific task or solve a problem. In the context of cryptocurrency, algorithms are used for various purposes, including mining, trading, and security.
All Time High (ATH
The all-time high (ATH) refers to the highest price level that a cryptocurrency or any other asset has ever reached. ATH is an important metric for investors and traders, as it indicates the potential for significant gains, but it can also serve as a warning of potential market bubbles.
"Altcoin" refers to a cryptocurrency other than Bitcoin. Each has its own set of rules, properties, and specific use cases. Altcoins could be completely new technologies or forks of existing cryptocurrencies.
"Anti-Money Laundering" policies and procedures prevent money laundering and terrorist financing. AML requirements require crypto firms to verify identities, conduct customer due diligence, and report questionable transactions.
Anarcho Capitalism
Anarcho-capitalism is a political philosophy that advocates for the complete abolition of the state and the establishment of a free market system where all goods and services are provided through voluntary exchange and private property rights are fully respected. Anarcho-capitalists believe that the government is inherently coercive and that its functions can be better served by market mechanisms.
Taking advantage of price differences between different cryptocurrency exchanges or markets. Traders buy cryptocurrencies on one exchange where the price is lower and sell them on another where the price is higher, making a profit from the price difference.
Ascending/Descending Channels
Ascending and descending channels are technical analysis tools used to identify trends in price movements. An ascending channel is formed by drawing a trendline connecting a series of higher lows, while a descending channel is formed by connecting a series of lower highs. These channels can help traders make buy or sell decisions based on whether the price is expected to continue trending in the same direction or break out of the channel.
ASIC or Mining Rig
ASIC stands for "Application-Specific Integrated Circuit, and it refers to specialized hardware such as High end GPU’s being used for mining cryptocurrencies.
ATH / ATL
“All-Time High / All-Time Low” This refers to the highest or lowest the price has ever been for a given asset.
Atomic Swap
An atomic swap is a smart contract technology that enables the peer-to-peer exchange of one cryptocurrency for another without using centralized intermediaries.
A very new Bitcoin address format used in the crypto world that offers improved security and lower transaction fees. It is important to note that it's all lower case or sometimes all upper case, never a mixture.
"Bart" or "The Bart Simpson Formation" is a sharp price change that resembles Bart Simpson's head. Market manipulation creates this. A cryptocurrency surges strongly, stays flat, and sinks back to where it started.
Bear Market
A bear market is the reverse of a bull market, where outlooks are negative as market prices seem to be on a downward trend.
Byzantine fault tolerance allows a distributed system to survive a given number of detrimental nodes. BFT is used in crypto to reach consensus among blockchain nodes. In decentralized systems, BFT algorithms are fault-tolerant and attack-resistant.
The Bitcoin Improvement Protocol is a design document outlining proposed changes or improvements to the Bitcoin protocol. For example, BIP38 concerns the protocol for encrypting a paper wallet.
Bitcoin, the first cryptocurrency, uses a peer-to-peer blockchain network. Users transact directly. Cryptography verifies network transactions. Blockchains record them. Satoshi Nakamoto created Bitcoin. 2009 saw its open-source release.
Bitcoin Core
Bitcoin Core is a software program, initially just named Bitcoin but later renamed, that serves as the reference implementation for the Bitcoin network, providing the backbone of the entire Bitcoin system.
Bitcoin Maxi
A Bitcoin Maxi is a term used to describe an individual who strongly believes in the superiority of Bitcoin over other cryptocurrencies and is highly committed to its success. Bitcoin Maximalists argue that Bitcoin's decentralization, security, and limited supply make it the best store of value and digital gold.
A unit of the code that comprises the blockchain It is a record of transactions that have occurred since the last block was created and a confirmation of previous transactions. Each block links to the block before it, thus creating a full chain back to the original, or “genesis” block.
Blockchain
A digital, decentralized, public LEDGER of all bitcoin transactions that grows chronologically as "completed" blocks or the most recent transactions are recorded. Market players can track digital currency transactions without central record-keeping. Full nodes automatically download the blockchain.
Block Height
Block height refers to the number of blocks that have been added to a blockchain network since its inception. Each block contains a record of transactions and a unique identifier, and the block height is used to identify the chronological order of these blocks in the network's ledger.
Block Reward
Miners, master node owners, or validators create blocks, and the creation of a block rewards them with a block reward. This block reward initializes mining. This takes the form of newly minted cryptocurrency, which is used as an incentive for participants to help keep the blockchain running.
Block Size
Block size refers to the maximum amount of data that can be included in a single block on a blockchain network. Larger block sizes can allow for faster transaction processing but can also lead to increased network congestion and higher transaction fees.
Bollinger Bands are a technical analysis tool used to measure a cryptocurrency's price volatility. The bands consist of a moving average line and two standard deviation lines above and below the moving average, which can help traders identify potential buying and selling opportunities based on the price's deviation from the average.
An automated software program or artificial intelligence that performs various tasks, such as market analysis, trading, and portfolio management, without the need for human intervention.
BTD or Buy
BTD or "Buy The Dip" is a trading strategy used by investors who believe that the price of a cryptocurrency will eventually increase after a temporary dip in price. The strategy involves buying the dip in price and holding the asset until it reaches its target price.
A "bubble" refers to an extremely overbought market situation where the price of a particular cryptocurrency rises quickly and unsustainably due to hype, speculation, and irrational exuberance, eventually resulting in a sharp decline in price or crash.
Bull Market
A "bull market" describes the phenomenon where market prices are generally trending upward over a given period and public perception is positive.
Buy Order
Instructions given by a trader on a crypto exchange refer to the purchase of a specific cryptocurrency. The purchase is made at a designated price or lower.
Buy Wall
A large concentration of people executing buy orders on a specific crypto at a given time is represented on a graph as a wall. A "sell wall" usually opposes this wall. This helps to indicate if a pump or strong buying pressure is taking place, potentially creating a support level for the price.
A Central Bank Digital currency is the fiat currency of a particular nation or region, issued and regulated by the country’s monetary authority. Thus, CBDC is money that a government establishes and backs through its central bank using blockchain technology.
Chaffing is a privacy-enhancing technique used to obfuscate a user's real message by adding random data to it before sending it over a communication channel. In the context of cryptocurrency, chaffing can be used to improve the anonymity of transactions by adding fake transaction data to hide the real transaction.
Cloud Mining
Cloud mining refers to a process where a miner leases mining hardware from a remote provider and uses their computing power to mine cryptocurrency without having to maintain the hardware themselves. Customers purchase contracts that give them a specific amount of mining power.
Currency Pair
A "currency pair" refers to two different cryptocurrencies that can be traded against each other. It's a market that shows the exchange rate between two coins. The price of one cryptocurrency determines the value of the other one in the pair.
Refers to a digital asset or token that operates independently of a central bank or government, utilizing blockchain technology to enable peer-to-peer transactions with transparency and security.
The transaction inside a block pays the miner his block reward. The largest Bitcoin broker in the world It allows users to buy, sell, and store various cryptocurrencies, including Bitcoin, Ethereum, and others, through fiat money.
Gregory Maxwell's Bitcoin anonymization approach is CoinJoin. It conceals Bitcoin transactions and those who are involved by merging them into one. This makes tracing the transaction nearly impossible.
Cold Wallet
Crypto storage that is not connected to the internet refers to a physical device or offline storage device used to store the private keys of cryptocurrencies offline, providing a high level of security against potential cyberattacks or theft.
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