Cryptocurrency Terminologies

cryptocurrency terminology

Before we talk about crypto-currency terminologies, I hope you’ve severally heard about the word crypto-currency that’s on the top trend, raising a lot of interest all over the world?

Cryptocurrency is the future of money, and I think everyone needs it. Although, crypto-currency is a big time scam to some people with a closed minds, who refuses to make personal in-depth research about this proof-of-work system; but to you that’s interested in becoming smart early bird, taking advantages of this digital money bandwagon is inevitable.

For the purpose of acquiring enhanced knowledge and fully understanding of how cryptocurrencies works, it terms and crypto-currency terminologies, here are the following terminologies associating with crypto-currency – Bitcoin and its contemporary altcoins.

1. Address

A wallet address is a public portion of the two encrypted keys necessary for a holder to accept or verify a transaction. It is usually a unique long string of alphanumeric characters that enables payment of individual or entity via blockchain. It is more or less, a key to sending, accepting and holding your specific cryptocoins. Although, wallet may vary in structure, majority of altcoins uses the same Bitcoin wallet structure. Here is my Bitcoin wallet address; you can send some free bitcoin

2. Airdrop

This is a coin/token that is being distributed to the community for free or for small tasks completion. This is done to ensure early distribution and to have as many people with “skin in the game” as possible.

3. Altcoin

Because Bitcoin is the first decentralized digital currency, an altcoin is an abbreviation of ‘alt’ for alternative and ‘coin’ for currency. It is short word used to represent any other cryptocurrencies order than Bitcoin, and that’s simply means alternative to Bitcoin. However, there are currently over 1350 altcoins in the cryptosphere. The most popular altcoins includes Ethereum, Litecoin, Ripple coin, Dogecoin etc.

4. Algorithms

Crypto-currency algorithm is a mathematical procedure for programming encryption on data. Through the use of an algorithm, information is made into meaningless cipher text and requires the use of key to transform the data back into original form. Blowfish, AES, RC4, RC5, and RC6 are example of encryption algorithm.

5. Adapting scaling

This is refers to number of measures to ensure that crypto-currency work both in large and small scales.

6. API

This simple mean Application Programming Interface. It is a set of function and procedures that allows the creation of application which access the features or data of an operating system, application, or other service.

7. Arbitrage

Arbitrage is an alternative forgone of a price difference of the same commodity or crypto-currency on two different exchanges. It can be said be differences in the minimum purchasing amounts as applicable in different trading exchanges.

8. ASIC/ASIC Miners

Application Specific Integrated Circuit (ASIC) is a machine the mine at unprecedented speed while consuming less power than FPGA or CPU mining rig.

9. ATH

All-Time-High. Cryptocoins on the consistence increasing or pumping.

10. ASIC

ASIC is refers to Application Specific Integrated Circuit – a chip specifically created to execute one task. ASIC Miners however, is a crafty method of mining various coins at a much faster rate than any normal desktop or Laptop might allow.

11. 51% Attack

A bug in the program, or more commonly a new set of consensus rules that come into existence. This is a situation where more than half of the computing power on the network is being operated by single individual or concentrated group, which give them complete control over the network. By gaining 51% computer power over the network, they have access to halt all mining, halt and manipulate all inter-personal transactions, and also access to using singular coin over and over.

12. Bagholder

Someone still holding an altcoin after a pump or dump crash. Someone holding a coin that’s sinking in value with the hope that it price will rise in the future.

13. Bearish

This refers to an expectation that the coin price is going to decrease.

14. Bitcoin

Bitcoin is the first decentralized crypto-currency, mother of all other cryptocurrencies and most important and trusted cryptocurrency. Bitcoin was invented by unknown man under a group of individual known as Satoshi Nakamoto.

15. BitcoinTalk

Bitcoin talk is a popular online cryptocurrency forum for Bitcoin and altcoins discussion. This is also where all new and uprising cryptocureencies (decentralized and centralized) can be analyze by various crypto investors, traders and developers.

16. Blockchain

Blockchain is a data system that allows for creation of a digital ledger transaction on a non-centralized network. It is a decentralized digital ledger where transaction is made in Bitcoin or other altcoins, recorded in a chronologically and publicly.

17. Block

Blocks are essentially pages in a ledger or record keeping book. A file of unalterable data relating to network and transaction permanently stored. Block is otherwise the solved complex, computational mathematical puzzle by miners as the purpose of disseminating new coins in a decentralized manner, as well as allowing nodes to react to temper resistance consensus.

18. Block Explorer

Block explorer is an online tool to view all transactions, past and current, on the blockchain. They provide useful information such as network hash rate and transaction growth.

19. Block Height

Block height is the number of blocks preceding the genesis block (first block) on the chain. Considering that a new Bitcoin Block is made every 10 minutes, you can work out certain time related pieces of information if you have the total length of the chain.

20. Block Reward

This is a reward allotted for hashing, or solving the mathematical equaltion related to a block. For example, a reward for mining a Bitcoin block is 25 Bitcoins per block mined, which will halve every 210,000 blocks. In other word, we can say that Block reward simply transaction fees going to miners.

21. Bollinger band

A margin around the price of cryptocurrency that helps indicates when a coin is over bought or oversold.

22. Bonus

Bonus in cryptocurrency is a rate of discount given to token or coin investors, usually at the presale or ICO period. Bonus is usually in stages, the higher the stages, the lower the percentage of bonus offered.

23. Bounty

Bounties are simply jobs, tasks, or project that has usually been created by the coin developers requiring a completion with a reward afterward. This is never too complicated or involves computer programming; it’s usually a typical promotion of the new coin on social media, designing of the coin logo or so.

24. Buying wall

Evaluation of current coin market buying point.

25. Centralized ledger

Centralized ledger is an opposite of decentralized ledger, where shared, replicable and synchronized data is being controlled by a singular network or individual.

26. Circulating supply

Circulating supply is an approximation of the number of coins or tokens that are circulating in the public.

27. CMC

This term is simply refers to CoinMarketCap.

28. Coin

Coin simply means ‘currency’ while coins are referred to currencies. Coins are also known as digital coins.

29. Cold storage

A process of moving your crypto-currencies offline as a way of safekeeping your coins from hacking. Example: storing coins on Ledger Nano wallet.

30. Consensus

This term in crypto-world refers to achievement of all participants network that agreed to a validation of transaction, ensuring that ledgers are exact copies of each other.

31. Crowdfunding

This is a process of raising money from large number people, typically via internet for funding a project or venture.

32. Crowdsale

This is a blockchain project that releases their cryptocurrency to the general public through crowdfunding.

33. Cryptocurrency

Cryptocurrency is a digital currency that is generally decentralized and uses cryptography for adding security, making it difficult to counterfeit or manipulated.

34. CPU

Central Processing Unit, the first mining software that was less fast before introduction of FPGA and ASIC.

35. Crypto

Crypto is simply a combining form of concealed; secret.

36. Cryptocoin

Cryptocoin is more or less the same as cryptocurrency, while cryptocoins can be said to be referred to cryptocurrencies or altcoins.

37. Cryptography

Cryptography is a process by which cryptocurrencies uses encryption to control the creation of the coins, and verifying transaction.

38. Cryptographic hashes

Cryptographic hashes produce a fixed-size and unique hash value from variable-size transaction input. The SHA-256 computational algorithm is an example of a cryptographic hash.

39. DAO

A decentralized Autonomous Organizations can be thought of as corporations that run without any human intervention and surrender all forms of control to an incorruptible set of business rules.

40. Dapp

Decentralized Application, an application that uses ethereum smart contract as back-end code.

41. Digital currency

Since traditional currency is a physical object (USD representing gold for example), digital currency is a therefore, a cryptocurrency, whose coins are stored in a digital wallet, and is transferred digitally to other people digital wallets with no third party involvesment.

42. Distributed Consensus

This is refers to a collective agreement by various computer in a network that allows it to work in a decentralized, 2P2 manner without the need of central authority to deter dishonest network participants.

43. Decentralization

Not all cryptocurrencies are decentralized. Some are centralized and thus, their creation can be regulated by third parties. Decentralized cryptocurrenies are open source, controlled by peer-to-peer networkwith no single entity that can affect the currency.

44. Decentralized Application (dAPP)

Decentralized APP is a software program that runs on a decentralized P2P network rather than on a singular computer.

45. Distributed Ledger

A distributed ledger is an agreement of shared, replicable and synchronized data, in this case spread across multiple networks, across many CPU’s.

46. Distributed Network

A type of network where processing power and data are spread over the nodes rather than having a centralized data centre.

47. Dump

Dump or dumping is an opposite of pumping. A situation where the anticipated currency is dropping drastically in price and value.

48. DYOR

Because cryto-currency requires acute knowledge, carefulness and its most case sensitivity, it’s seems to have involves high level of risk as regards to your monetary investment. In-spite the hundreds and thousands of uprising promising altcoins, don’t forget that scamcoin are also on the lead. As a new crypto student, investor, or traders in the system, you are always warned to “Do You Own Reaserch” before investing, so you don’t fall a pray to buying fake coins.

49. EEA

Enterprise Ethereum Alliance, a team forces of investors, traders, developers and startups corporations trying to figure out the best way to maximize cryptocurrency’s space. Example, introduction of Ethereum smart contract.

50. EVM

The Ethereum Virtual Machine (EVM) is a Turing complete virtual machine that allows anyone to execute arbitrary EVM Byte Code. Every Ethereum node runs on the EVM to maintain consensus across the blockchain.

51. Exchange

Exchanges are cryptocurrencies ‘trading platforms’, where a particular cryptocoin can be listed live for trading and exchanges. Most popular of cryptocurrency exchanges includes Binance, HitBit, Bittrex, Cryptopia etc.

52. Fiat

A set of digital currency that is not traditional currency like USD, Euro, Yen etc.

53. Flippening

A perceive situation where Ethereum’s market cap surpasses Bitcoin’s market cap, making ethereum the most valuable cryptocurrency in the world.

54. FPGA

Field Programmable Gate Array, a specialty bitcoin mining device /processors that attached to computer using convenient USB connection. This came as a result of less fast enough of CPU.

55. FOMO

The overwhelming sensation that you need to get on the train when the prices of the cryptocurrency start to skyrocket is what is known Fear Of Missing Out.

56. Fork

This is a permanent divergence of an alternative operating version of the current blockchain. This came into existence since the 51% attack occurs. This happen when a development team creates and inserts notable substantial changes into the system. The successful fork is decided by the height of the blocks.

57. FUD

Fear, Uncertainty, and Doubt. A baseless negativity spread intentionally by someone that want the coin price to drop.

58. FUDster

Someone that is spreading FUD.

59. Gas

Gas is usually known as Gas limit, which is a measurement of processing limit for ethereum nwtwork transaction. Requiring more Gas limit for ethereum transaction is like requiring muti-signature for bitcoin transaction confirmation.

60. Gas price

Gas price is more or less a transaction fee. It is the amount of ether to be spent for each gas unit of a transaction.

61. Going long

A margin trade line that profits if the price is decreasing.

62. Going short

A margin trade that profits if the price increases.

63. Gwei

A denomination of ether that’s most used to measure Gas limit – (1000000000)

64. Halving

Halving is a reduction of minable reward after so many blocks. For Bitcoin, the reward is halved after the first 210, 000 blocks are mined, and then every 201,000 thereafter.

65. Hard Fork

Hard fork is a type of fork that renders previously invalid transactions valid, and vice versa. This type of fork requires all nodes and users to upgrade to the latest version of the protocol software.

66. Hardware wallet

Hardware wallet is often regarded as the most secured way to hold cryptocurrency, being a device that can securely store crypto-currencies.

67. Hashrate
The speed at which a block is discovered and the rate at which the related math problem is solved. Certain tools have been built to allow for higher hashrate. Example: ASIC

68. HODL

Hodl is simply referring to “Hold” or “Holding”. It emanated as a result of a miss spelling (typo error) of ‘hold’ to ‘hodl’ in a post on a BitcoinTalk Forum. See it here.

69. ICO

ICO is refers to an Initial Coin Offering. It is an early period where the project coins or tokens offered to investors at discount rates before finally goes public at various exchanges for trading. ICO period is usually not too long, and the aim is to raise fund from the investors for supporting and development of the coin project.

70. KYC

Known your custumers.

71. Lamo

What we’re going to buy when we are rich.

72. MACD

This is simply Moving Average Convergence, a trend indicator for determining relationship between two moving average of a coin price.

73. Margin trading

The act of magnifying the intensity of your trades by risking your existing coins.

74. Market Cap

Market cap simply means ‘market capitalization’, which is referring to Coin Market Capitalization (CMC). It is the total value of the coin, calculated by multiplying the total supply by the current price of an individual unit.

75. Market order/buy/sell

A simple purchase or sale on exchanges at the current price.

76. Mining

Mining is simply validation of Blockchain transaction, a discovering and solving of block along blockchain. A reward given to miners for solving the algorithm and lengthening the chain as a reward.

77. Mining rig

This is specially designed for processing proof-of-work blockchains, like Ethereum, often containing multiple high-end graphic processors (GPUs) to maximize their processing power.

78. Mooning

In crypto, mooning is refers to a situation the cryptocurrency is soaring exponentially in price.

79. Multisig

This is also known as multi-signature. It is refers to having more than one signature to approve transaction. The sole aim is for beefing up security for accurate transaction verification. Some transaction requires multi-signature to completely verify the transaction.

80. Node

Node is a computer connected to the blockchain network that supports the network through validation and relaying of transaction while receiving a copy of the full blockchain itself. It is a copy of the ledger operated by a participant of the blockchain network.

81. Oracles

Oracles work as a bridge between the real world and the blockchain by providing data to the smart contracts.

82. Open Source

Open source is a system network controlled by codes, and relied on peer-to-peer network. Real cryptocurrencies are open source, meaning that developers can APIs without paying a fee and anyone can use or join the network.

83. Peer-to-peer

P2P is a very large focus of blockchain as one of the biggest selling points is decentralization.

84. Pre-sale

A pre-sale stage is the same things as an ICO stage, a situation where sales takes places (with attached bonus percentage) before the coin is offered publicly at the exchanges; usually for generating fund for building and developing the project at the early stage.

85. Pre-ICO

This is more or less the same thing as pre-sale, the token sale event that blockchain enterprise run before the official crowdsales or ICO campaign goes live.

86. Project developers

Project developers are the team members of the cryptocoin project, basically working on the technical aspect of the project development.

87. Proof-of-stake (POS)

POS is the method of validating coins, which is considered as a greener alternative to proof-of-work (pow). Proof-of-stake system requires the power to show ownership of a certain amount of money or stake.

88. Proof-of-work (POW)

This is simply an idea of giving work value to the coin. Proof-of-work is a hard to produce but very easy to verify complex, computational mathematical puzzle to limit exploitation of cryptocurreny mining. It’s essentially like hard to “catpcha” requiring a lot of computational power. It is also process by which nodes reacting to solve temper resistant consensus by the addition of ‘block’ to the ledger.

89. Pseudonymity

Since cryptocurrencies owners are made to keep their digital coins in encrypted digital wallets with coins holder’s identities, and since the ledgers are open to the public, the relationship between the cryptocurrencies and their respective owners is not anonymous but pseudonymous, since ledger could be used to glare information about group of individual network.

90. Public/Private key

This is a cryptographic key that can be utilized by any party to encrypt a massage.

91. Pump

This is also known as pumping, a situation where the is getting tons of demand, leading to the fast increase in price.

92. Raiden Network

An upcoming protocol, changed to Ethereum that will enable high speed transaction across ethereum network, similar to planned Bitcoin Lightening Network.

93. Roadmap

Road map in crytocurrency is refers to the schedule achievable goals of the invented project or cryptocurrency for ensuring success. It is also an architectural vision and mission statement of the coin project.

94. ROI

A percentage of how much money has been made compared to an initial invest

95. Satoshi

This mean Bitcoin unit of account, a smallest sub-unit of bitcoin for buying and selling bitcoin

96. Satoshi Nakamoto

The pseudonym for the mysterious creator of bitcoin, no one truly knows who created bitcoin.

97. Scamcoins

Scamcoins are coins created in “get rich quick” scheme in order to make money only by their creators and small group of individual involved in instamine or premine.

98. Scrypt

A type of cryptographic algorithm and is used by Litecoin. Compared to SHA256, this is quicker as it does not use up as much processing time.

99. Selling wall

Using a depth chart to determine the current coin market selling.

100. SHA-256

SHA-256 is a cryptographic algorithm used by cryptocurrencies such as Bitcoin. However, it uses a lot of computing power and processing time, forcing miners to form mining pools to capture gains.

101. Sharding

This is a sealing solution of blockchain that allows nodes to have partial copies of the complete blockchain in order to increase the overall network performance and consensus speed.

102. Signature

The mathematical operation that lets someone prove their sole ownership over their wallet, coin, data etc.

103. Smart Contract

This is a two ways small contract that’s unalterable agreement stored on thr blockchain that has specific logic operation akin to the real world contract. A set of code installed into ethereum blockchan network, often directly interacting with how money flow, allowing you to send money from mr A to mr B, on the condition that mr C happened.

104. Software wallet

This is a store of cryptocurrency that exit purely as software file on a computer that can be generated free. Example: MyEtherWallet.

105. Solidity

This is similar to JavaScript, and its one of the popular language smart contract is built upon.

106. Stable coin

A crypto-currency with extremely low volatility that can be used to trade against the overall market.

107. TA

Trend Analysis or Technical Analysis. Examination of the coin trading chart for predicting and determining which way the coin market is leading.

108. Team

Team – the brain behind every successful or unsuccessful crytocurrencies. One of the quality of accessing the strength of any uprising cryptocureency is the quality of the team project.

109. Testnet

A test blockchain used by developers to prevent expending assets on the main chain.

110. Token

Token is the project accompanied coin or trading currency built upon the ethereum network that has raised money via using their own tokens. Example:
REP – Augur
BAT – Basic Attention Token
C20 – Crypto20

111. Total supply

This is refers to the total number of the coins or tokens in existence, including public market circulated coin, both in reserved or locked up.

112. Trading

Trading is an act of buying, selling and exchanging cryptocurrencies at the exchanges or trading platforms.

113. Trading platform

Trading platform is also known as exchanges. Trading platform seem familiar to forex trading sites, and is indifference from exchanges platforms where coins are listed live for buying, selling and exchanges.

114. Transaction Block

A collection of transactions gathered into a block that can then be hashed and added to the blockchain.

115. Transaction Fee

All cryptocurrency transactions involve a small transaction fee. These transaction fees add up to account for the block reward that a miner receives when he successfully processes a block.

116. Volume

Total number of traded coin at a particular exchange platform, usually in the past 24hours.

117. Wallet

Wallet is different from your wallet address. Wallet is your digital purse just like your physical wallet, purse or bank. They are where your cryptocoins are stored, and can be use to send and receive digital currency.

118. Wei

A smallest denomination of ether, where 1Ether = 1000000000000000000 wei.

119. Whale

Someone that own absurd amount of cryptocurrency.

120. Whitelisting

This is refers to registered and approved participants that are given exclusive access to contribute to an ICO or presale.

121. WhitePapper

Whitepaper is refers to a documentary information basically for informing and educating public about the philosophy, objective, and the technology behind the coin or project initiative.

Finally, learning crypto-currency terms and terminologies will help you get acquainted with various crypto-tech languages, which further helps build your crypto-currency knowledge base, positioning you as an authority in the crypto-world in the field.

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