Apr 18, 2022
Glossary — Crypto terms and their meaning. (Revamp)
There are many terms used in the cryptocurrency industry. Here are a few notable mentions.
Address
This is like a bank account number but on the blockchain. They’re usually a series of characters. They are unique and used to identify where a cryptocurrency sits on the blockchain.
Airdrop
This is when cryptocurrencies are offered to retailers or small crypto communities to get the crypto in circulation. These coins can be provided to people for free or as rewards for sharing awareness. This is usually a marketing technique used for brand-new crypto assets.
All-time high(ATH)
The highest price attained by a cryptocurrency.
All-time low (ATL)
The lowest price attained by a cryptocurrency.
These are all cryptocurrencies that came after Bitcoin in 2009, including Ethereum.
Asset
Something that has economic value that is either owned by a corporation or an individual.
Different exchanges offer different prices for cryptocurrencies. The act of buying low in one exchange and selling high in another and keeping the difference is Arbitraging.
Algorithmic stablecoins
A stable coin that isn’t tied to any real-world assets but is made stable by a complex algorithm.
Bag
A large quantity or unit of a cryptocurrency.
Bear market
A bear market occurs when the price of cryptocurrencies moves downward.
Bitcoin
The most dominant decentralized peer to peer cryptocurrency made by a mysterious person or group named Satoshi Nakamoto in 2009.
Block
A block is a permanent record of cryptocurrency transactions. Each block is a database of information saved until it is full and then closed.
Blockchain
This is a collection of blocks that are chained together. The blockchain is repeatedly saved onto thousands of computers around the world. They are nearly impossible to hack or alter.
Bull market
A bull market occurs when the price of cryptocurrencies is moving upwards.
Cryptography
This is the process of encrypting and decrypting cryptocurrencies.
Cryptocurrency
A form of decentralized digital money that operates independently of any bank.
DAPs
These are decentralized apps that operate in the blockchain.
DAO
This stands for decentralized autonomous organizations. They are organizations that operate without a centralized head, i.e. a CEO. The group members all contribute to making the DAO work.
Dump
A drastic drop in the price of a cryptocurrency or token due to a large number of the coin’s holders selling it off due to FUD.
Digital signature
This is used to authenticate a crypto transaction. It could be a code generated by the public key.
Exchange
A platform where you can buy and sell cryptocurrencies, i.e. ValorExchange.
Ethereum
This is a decentralized digital blockchain and the second-biggest crypto blockchain in the market.
Escrow
This is when an exchange or private body holds your crypto or money until certain terms are met.
Fomo
This is short for Fear Of Missing Out.
Fiat Currency
Also known as paper money is the currency declared as the legal tender by a country’s government.
FUD
This stands for Fear, Uncertainty, and Doubt.
Gas fee
This is a fee charged for processing a transaction in the Ethereum blockchain.
HODL
This means Hold on for dear life. We have an article dedicated to this topic and why it’s such a popular term in the crypto industry.
Liquidity
It is an asset ability to be sold or converted to cash without affecting its market price.
Mining
This is the process of validating a transaction on the blockchain. In this process, miners solve complex mathematical equations to validate a transaction and are given rewards or payments in crypto.
Moon
A term used to describe a dramatic price movement upwards.
P2P
This means person to person.
POW
Proof of work. Proof of work consensus is a decentralized algorithm that includes miners who can solve complex mathematical problems. This allows them to verify transactions in the blockchain and protect the blockchain from getting hacked or jammed.
POS
Proof of Stake is a consensus mechanism used to validate transactions and add them to the blockchain. Proof of stake reduces the amount of computation in the block verification process. The computers are owned by coin owners. The owners stake their coins as collateral and a chance to validate a block.
Private Keys
These keys are used to access the cryptocurrencies in a wallet. They are usually a large series of numbers and should never be shared publicly.
Public Keys
A public key is like a bank account number that you use to encrypt or receive cryptocurrency transactions. Although anyone could send cryptocurrencies, you would need a private key to decrypt or access the cryptocurrencies.
Pump and Dump
This is a situation whereby scammers create misleading information to get people to buy a cryptocurrency that doesn’t have value. By the time they realize, they’ve already made losses.
Resistance Level
The level at which an asset’s price fails to breakthrough due to intense selling pressure.
Smart Contract
It is a computer program or transaction process intended to execute automatically, control, or document legally relevant actions according to the agreement’s terms.
This refers to a coin or a fraction of one.
Transaction Hash
It is an identifier given to every transaction that is verified and added to the blockchain.
Total supply
This refers to the number of a cryptocurrency in existence.
Volatility
This is the degree at which a thing can change rapidly and unpredictably. If something is highly volatile, it means that it often changes in price, etc.
Wallet
A cryptocurrency wallets allow you to receive, manage, and store your cryptocurrency. The wallet consists of both private and public keys.
