Crypto Terminology - Part I

Good day everybody,

I hope you are all having a great day. Welcome to CryptoGod-1's blog on all things crypto. Today I am going to do the first of a three part series on Crypto Terminology. We all had that initial moment when we first stumbled upon the crypto space where a specific term caught us out, or left us feeling like we didn't really understand the space at all. Hopefully the guide below will help any newcomers, and experienced users alike, to ensure they have a grasp of the lingo. While it is in no way definitive, it will hopefully cover the main terms that are used throughout the crypto space.

Crypto Terminology - Part I - A through I

• - An address in crypto is a string of characters which acts as a place where individuals can receive, store, or send cryptocurrency. Each address is unique, similar to people's post codes or phone numbers.
• - A distribution of a token, coin, NFT, or other digital asset associated with a project. These assets are given freely to the community.
• Air-gapping - This is the act of ensuring your digital information and assets are stored in a secure way without any means of unauthorised access. This is generally achieved by storing your assets in a machine which is isolated from the internet, ensuring its enhance security.
• - An altcoin is a cryptocurrency which is not Bitcoin and sometimes also includes Ether. It is a common phrase for describing all other cryptocurrencies.
• - Anti-Money-Laundering is a legal framework used by governments across the globe to stop financial crimes like money laundering, terrorist financing, fraud, and more.
• - All-Time High is the highest price point an asset has achieved at any point in its history.

• - This is a term given to the amount of a particular crypto an individual has.
• Bag-Holder - This refers to an investor who bought a coin at a higher price that it currently is, and they still retain the coins in hope of a price increase in the future.
• -The is a term which indicates that investors feel the market is in a downtrend and that prices will decrease.
• Bear Market - A market which has falling prices and negative sentiment throughout, which can usually accompany sell off and a lack of buyers / demand.
• - The original Cryptocurrency of the modern era, it was the first decentralized coin and released in 2009.
• Bitcoin Maximalist - This refers to a person who defends Bitcoin against all other cryptocurrencies because they believe it is the only crypto with true value.
• Blockchain - A blockchain consists of a series of blocks, similar to a public digital ledger, which verifies all the records/transactions made with a particular cryptocurrency. This is done by using cryptography to link together all the blocks in a chain, ensuring that each block is linked with the previous one chronologically. This prevents any tampering or revisionist history from occurring since it would be recognised immediately by other users on the network, ensure the data is legitimate.
• - The blocks make up the blockchain, with each one carrying the historical database of all the transactions conducted on a crypto until it becomes full.
• Block Height - This refers to how many block make up the total height/length of the blockchain, starting from block #0, also known as genesis block.
• Block Reward - This is the incentive for individuals to mine a block successfully, which involves computational resources and electricity costs hence giving them a monetary reward. 
• Block Size Limit - This is the maximum limit of data which can be included within a block, and is measured in bytes. 
• - This is a technical indicator used as part of technical analysis by traders to measure market volatility. It consists of three lines plotted at standard deviation levels above and below a centre line.
• - Buy The Dip, a sentiment that the price is cheap so its a good time to buy this coin / token.
• - Buy The F*cking Dip, a sentiment that the price is incredibly cheap and traders are telling others to purchase this digital currency while its price is low.
• - A term which indicates that investors feel the market is in an uptrend and that prices will increase.
• Bull Market - A market which has rising prices and positive sentiment throughout, where investors can expect a return on their investment and a high level of demand.

• Centralised - A system where the power is controlled by a central authority. It is often associated with a dictatorial style of rule and a single point of attack.
• Centralised Exchange (CEX) - A system that allows for users to buy, sell, and trade cryptocurrencies via a third party organisation. The exchange will often offer a variety of coins/tokens along with the facilities to complete transactions such as derivates, margin trading, market and limit orders, along with taking fees for every transaction.
• - This is a process of sending false signal between nodes on a network via a fake IP address. This is done through making consensus impossible for any new data being added onto the chain. It works effectively against 51% attacks where attackers are trying to introduce invalid blocks into the chain because other miners will not recognise these blocks or make sense of what they are seeing thanks to the chaffing.
• Coinless ProtocolA decentralised network where all incentive mechanisms are built into the protocol itself and not as an additional layer on top of it (like Ethereum). The purpose is to create fully autonomous systems with no need for central management.
• Confirmation - This represents the amount of transactions which have been completed and added to the LEDGER so far since it began existing, either through mining or other means. Confirmed transactions cannot be reversed without cooperation from others involved with keeping records on the network's shared ledger.
• Crowd Sale - When funding is generated though the selling of coins or tokens via crowdfunding, usually prior to the new project launching on the blockchain, giving these early investors bonus incentive to buy early.
• CryptocurrencyThis is a form of digital asset which makes use of cryptography as its main security measure, by controlling the creation of additional units and verifying transactions on its decentralised network.
• Crypto Derivatives - This is a financial instrument which derives its value from an underlying asset. They are usually contracts traded between two parties based on the price of a certain item, rate or index at some future date.
• Crypto Economics - Through the combination of cryptography, information theory, computer science, and game theory, the result is secure economic systems that incentivise proof-of-work consensus models through mechanisms such as decentralised control, immutability, and trustless transactions.
• Cryptography - This is the use of mathematical techniques which encrypt messages sent between parties, which are then decrypted using a key for security purposes.
• Crypto Native Assets - These are digital tokens on a Blockchain platform that get their value from the decentralised consensus formed among all/ a majority of its users. This is the opposite of traditional money which gets its value from an external source.

• Dead Coin - A failed project which originally launched with ambitions of being a digital currency.
• Decentralised - When something does not have any central control but rather operates independently through peer-to-peer networks and consensus algorithms instead, transactions cannot be reversed once confirmed on blockchains that do not have any central authority or place of residence since they are decentralised. Essentially it ensures one person or organisation cannot have control over the entire protocol.
• Decentralised applications (DApps) - Decentralized app are essentially software programs and applications built and hosted on blockchains. They provide users with various functions through peer-to-peer action rather than depending on traditional intermediaries such as governments or banks. Decentralised apps are frequently used to execute decentralised finance operations.
• Decentralised autonomous organisation (DAO) - A company, community, or business which is run by smart contracts and governed by its token-holding community. Ever token holder has a say and a vote on decisions for the DAO.
• Decentralised exchange (DEX) - A system that allows for the trustless, peer-to-peer trading of cryptocurrencies without a third party or intermediary taking fees along the way. This is the opposite of a centralised exchange.
• Decentralised finance (DeFi) - Decentralized Finance is the movement and development of alternative decentralised blockchain-based financial applications to enable peer-to-peer transactions without middleman. DeFi apps include lending platforms, exchanges, prediction markets and many more solutions built on top of various protocols like Ethereum or Bitcoin.
• Digital gold - Different cryptocurrencies are sometimes compared to actual gold based on their storage and appreciation. Bitcoin is sometimes referred to as digital gold.
• Distribution - The selling of coins, especially by whales who hold large amounts to stabilise prices and avoid crashing them.
• Distributed ledger - A database which is spread across multiple nodes in various locations and countries, ensuring it remains decentralised as well as transparent to those involved with keeping records on it. Each node contains a complete copy of the ledger which is updated regularly through consensus algorithms when new transactions take place.
• Double Speed - When someone tries to send a transaction, but ends up sending it twice since they did not wait for the first one to be confirmed on-chain. Often this is done by those with malicious intent and it can lead to losing all of your funds if you fall victim.
• - The process of offloading large quantities of coins onto exchanges all at once which then drives down the prices because there is more supply available than the demand for that particular cryptocurrency.
• - Do Your Own Research is a term which refers to investors needing to do their own research on a project instead of taking the word of others, and ensure they are well versed on the research before investing.

• Entry and Exit Points - These are points which investors decide to enter (buy) and exit (sell) in their trade or asset.
• - This is the technical standard for smart contracts on the Ethereum Blockchain. It ensures that all tokens and transactions comply with the standard rules, such as the amount of decimal points.
• Ethereum Virtual Machine (EVM) - This is a Turing complete virtual machine which helps to run smart contracts on Ethereum's Blockchain. It keeps track of their state and allows them to be executed simultaneously across the entire network through consensus, while calculating the gas prices before transactions are conducted. This avoids spam code and endless loops which could garner fees on every transaction otherwise.
• - This is a webtool which allows everyone to explore all the transactions on the Ethereum Blockchain. It also provides various charts to visualize said data as well as a list for those who want to track specific activity on the network.
• Exchange - A platform which allows users to buy, sell, and trade cryptocurrencies and some FIAT currencies. Exchanges are vital in providing users with opportunities to access crypto funds.

• Fear & Greed Index - This is a technical indicator which measures the current market sentiment and indicates this via a score on the index.
• - This is a term for state and government issued currencies, such as US Dollar or EURO. It is used in a broader sense to describe any currency controlled by a central authority.
• FIAT Gateway - This is a cryptocurrency exchange which allows users to deposit FIAT currency and trade that for cryptocurrencies.
• - Financial Independence, Retire Early. This is a financial movement defined by frugality and extreme savings and investment.
• - Fear Of Missing Out. An acronym which describes when investors buy or sell an asset due to others opinions and actions, causing them to act on emotion and generally miss out on more profitable opportunities. 
• - Fear, Uncertainty, and Doubt. An acronym made for the discussions on crypto.
• -A trading contract where users buy an asset with a prediction of whether the price will rise or fall at a future time / date.

• - This is the transaction cost used for processing a smart contract and completing its transaction on the Ethereum Blockchain, amongst other. The gas is then passed on to the network participants as a reward, in the form of fees.
• Genesis Block - This is the first block in the Blockchain, also known a #0, and is generally hardcoded into the coin's system and used to bootstrap its network.

• Halving - This is a process where the rewards of mining Bitcoin are halved, after around 210,000 blocks have been mined. It generally takes places around every four years, and ensures the number of Bitcoin in circulation does not rise exponentially.
• Hard Fork - This is a software update that is not backwards compatible with previous versions of the same cryptocurrency protocol, meaning it results in the creation of a brand new branch from block 0.
• Hardware Wallet - Also referred to as cold storage, this is a piece of hardware which can be used for offline transactions and keeping your private keys safe. Considered more secure and safe than most other forms of wallets since they're harder to access if you lose them, and can be kept offline to ensure no malicious attempts from hackers can access it.
• Hash Rate - This is a measure of the computing and processing power used in crypto mining. A higher hash rate indicates a more robust network. 
• Hedging - The use of two different strategies in order to reduce the risk involved with one strategy. For example, you could hedge by taking a long position and shorting it simultaneously; this would result in your exposure being less than if you just went long or short on that particular asset/trade alone.
• - An intentional typo for the word "hold" originally posted by an anonymous user on the Bitcointalk forum, which the crypto community later turned into slang for holding a cryptocurrency long term despite market volatility.
• Hot Wallet - Opposite to a hardware wallet, this is cryptocurrency wallet that is connected to the internet and therefore at a higher risk of being hacked; they're not recommended for long-term storage, but rather as a way of sending/receiving funds where necessary.

• - Initial Coin Offerings are a process of raising funds for Blockchain projects. This is done in tandem with their virtual currency launch and gives the investors the opportunity to acquire the coins / tokens for a cheaper price compared to when the wider general public can purchase them.
• Initial Decentralized Offering is similar to an ICO but allows users to interact with a project before it goes live.
• - Initial Exchange Offering is when a coin is listed for the first time on an exchange.
• Inflation - A term often brandished in crypto communities, this is an economic condition where the general prices of good and services are increasing, meaning the purchase power of traditional currency is falling.

I hope you enjoyed the article and found it beneficial, I will be following this up with part II which will contain info from letters J to R.

CryptoGod-1.

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