Dictionary
an extra security layer to your account. In addition to a password, you also need a numeric code to access your account. Usually you receive the code via SMS or an app like Google Authenticator.
a threat to the blockchain network, which comes from the potential of a single party accumulating more than 50% power of the entire network.
a digital address for your cryptocurrency portfolio is the place from which digital coins are sent, received or stored. It usually looks like a string of random letters: sfwor3043r9e4598fe547Sfe0RGe0.
event through which a new project distributes free coins to the early adopters of that protocol. It is also a marketing campaign through wich a projects asks the community to do some tasks for the awareness of the project in exchange for the coins or NFTs.
set of rules that guide the computer to perform specific tasks.
any currency that is not Bitcoin. Example: ETH, EGLD, WAM, HEART, etc.
represents a market cycle, a considerable increase in price over a short period of time for altcoins. In that period of time, the Bitcoin dominance decreases.
the set of laws, regulations and procedures designed to prevent criminals from obtaining, concealing or moving illicit funds.
an algorithm or software application developed to help two information systems connect and communicate.
the process of buying currencies on one exchange where prices are low and selling them on another exchange where prices of the same currency are higher.
a hardware unit consisting of specially designed chips, motherboards and power supplies built for the purpose of mining cryptocurrencies.
the minimum price a seller is willing to accept for a token
the highest price at which a cryptocurrency has been traded.
the lowest price at which a cryptocurrency has been traded.
is the name of the technology that allows two parties to exchange cryptocurrencies directly from their wallets even those tokens are on different blockchains, and without the need for a third party or intermediary.
it is the total cost of your tokens divided to the number of tokens you have in your wallet
investor who continues to hold the currency for a period of time after its price has fallen significantly in value.
market pattern that occurs when the performance of a currency shows false downward signals.
when prices are declining for a long period of time
the highest price a buyer is willing to pay for a token
the first decentralised cryptocurrency that uses encryption techniques to secure and verify transactions.
ATM that can be used to buy and sell Bitcoin and other cryptocurrencies.
the day that marked the first commercial transaction using Bitcoin as a payment method (22 May 2010).
a brokendown cryptocurrency and financial service, in which the public has invested their Bitcoins in exchange for a promise of guaranteed high returns.
a group of transactions or permanently written records.
a value that measures the size of the blockchain.
a form of motivation for the miner who successfully computes the hash function of a block. Checking transactions on the blockchain generates new coins, and the miner is rewarded with a share of these coins.
a permanent and secure digital ledger of cryptocurrency transactions.
a privately owned and operated blockchain that is transparent and public.
a website for tracking blockchain activity.
a mobile app for tracking a portfolio of cryptocurrencies. It was rebranded to FTX and the it collapsed.
a term used to describe a situation in which most cryptocurrencies fall very quick in price.
a software application designed to perform repetitive and/or automated tasks.
a specific task assigned by the developers of a coin which, when completed, rewards those who have completed the tasks in cryptocurrencies.
trial and error method that hackers use to gain access to personal information such as passwords and PINs.
a bubble is a type of market cycle characterised by rapid inflation in cryptocurrency prices, which is usually followed by a sharp decline.
one of the trend movements in the market. It refers to the upward movement of the market in which prices start to rise (the opposite of the bear move).
a market pattern that occurs when the performance of a cryptocurrency shows false signals towards an upward price trend.
a type of sentiment for the buyers. They become very optimistic and strongly believe the prices are going up.
the opposite of "Bear Market", more precisely, it is used when prices are rising for a long period of time.
a purchase order; an instruction to buy a certain amount of cryptocurrency at or below a specified price.
refers to a temporary drop in cryptocurrency prices when the value of a particular currency is rising. It is a common expresion on social media to encourage other buyers to buy at those levels and maximize their profits.
when an entity has control of all financial records, they are part of a central register.
because each cryptocurrency has its own blockchain, the process of connecting the chains occurs when transferring one cryptocurrency to another. This requires the transaction to be recorded in two separate blockchains, so they must be connected.
a process that takes place in a node and involves transforming an input into a fixed encrypted alphanumeric string, which is stored in a blochckain.
the total number of tokens from a specific project which are already minted and exist on the market. Some of these can be locked or staked, so they are not available for public trading. Circulating supply is important if you want to know the value of that project (the number of tokens on the market x the price of the token).
term used by darknet users to refer to the ordinary internet, accessible through any browser.
the process of moving coins to a public address where private keys cannot be obtained, making it impossible to spend them. This brings scarcity to the project and increases the price of the token.
a cryptocurrency wallet, where private keys are stored in an offline environment. It is a very high layer of security for your portfolio.
network approval of a transaction and permanent attachment to the blockchain.
when a transaction is made, all nodes in the network check if it is valid on the blockchain and if so, there will be a consensus.
refers to the nodes that are responsible for maintaining the blockchain ledger so that consensus is reached when a transaction is made.
is a period when the price is moving sideways without any significant advancement in the upward or downward direction
digital or virtual currency, decentralised and created through cryptography.
mathematics branch dealing with securing information, authentication and restricting access in a computer system. The aim is to protect the information being transmitted from being read and understood by anyone other than those to whom it is addressed.
method of financing projects by using the Internet as a channel of communication between project initiators and people wishing to invest in those projects.
the process of obtaining services or ideas requested by the community.
a network of people and organisations interacting in the crypto field.
a hashing algorithm designed specifically for processing CPU and GPU miners.
any activist who supports the use of cryptography and other privacy-oriented technologies as a means of social and political change.
the algorithm that encrypts and decrypts the information.
an emerging form of legal structure that has no central governing body and whose members share a common goal to act in the best interest of the entity.
an app which operates on a blockchain or Peer to Peer (P2P) system of computers, outside the control of a single authority or institution.
an overlay network within the Internet that can only be accessed with specific software, configurations, or authorization, and often uses a unique customized communication protocol.
is made up of several darknets, including many smaller networks such as peer-to-peer (P2P) and larger networks (Tor or I2P). Not to be confused with the Deep Web.
the process of making multiple trades in a day
a temporary increase in price following a continued decline, similar to bulltrap
a system that does not operate on the basis of a central organization or institution, but operates in a networked system across multiple computers.
the process of transforming data that has been rendered unreadable through encryption back to its unencrypted form.
that part of the Internet that is not indexed in search engines.
movement that encourages alternatives to traditional, centralised forms of financial services.
an economic phenomenon that is the opposite of inflation, characterised by price drops for goods and services.
this type of wallet is created by producing several keys from a seed. If a person loses this wallet, their key can be recovered from the seed.
a type of cryptocurrency exchange which allows for direct peer-to-peer cryptocurrency transactions to take place online securely and without the need for an intermediary.
in crypto, the term refers to the cost of mining activity at any given time.
an intangible asset, which is transferred electronically and has a certain value. It has no physical existence and can only be transmitted by electronic means.
used to confirm that a document being transmitted electronically is authentic.
a register that is kept in multiple locations so that records in it can be accessed and checked by multiple people.
when someone tries to send the same cryptocurrency to two different wallets or locations at the same time.
a problem unique to digital currencies in which one user can spend the same digital asset more than once.
a gradual decline in value over time, even though the currency may rise in the short term. Similar to bearmarket, but not that long.
an electronic payment system that allows customers to pay for goods and services electronically without the use of checks or cash.
Electronic/Digital Wallet
the process of encoding a message or information in a form that cannot be easily understood by anyone other than authorised persons.
information or sequence of characters controlling the encryption and decryption of the message.
when an intermediary is used to hold funds during a transaction, to check if the transaction is correct and to transfer the funds to the buyer and seller. It is used to increase the trust between 2 or more people or businesses.
Ethereum cryptocurrency token, which can be transferred between accounts and used for compensation between Ethereum nodes for calculations.
one of the top three cryptocurrencies by market capitalisation. Although it is open sourced and based on blockchain technology, it differs from Bitcoin in that it allows developers to create decentralised applications and use smart contracts.
a Turing complete programmable machine that can execute scripts to produce arbitrary outcomes. It has been built with the purpose of being a “world computer” and has immense power.
platform where cryptocurrencies exchanges are made.
currency that a government has declared legal tender, but is not backed by a physical commodity (e.g. gold).
currency that a government has declared to be a legal tender but is not backed by a physical commodity. The value of money is determined by the relationship between supply and demand, not by the physical value from which the money is made.
refers to new technologies aimed at improving and automating the provision and use of financial services.
theoretical event in which another currency overtakes Bitcoin, as the leading cryptocurrency in terms of market capitalisation.
feeling you should get involved in something before it's too late. Used by investors, it is apt to explain the reason for entering the market.
happens when a split occurs in the blockchain, when a new branch is created.
a communication tactic used to influence people towards having a negative perception of something, generally through deliberate misinformation or inciting fear.
a program that fully validates transactions and blocks.
contracts that an investor buys or sells at a price designated in the future.
a pre-agreed contract between two entities to perform a transaction when the value of the cryptocurrency reaches a certain price.
the measurement unit of an operation in the ETH network that relates to the computing power required to complete it. This refers to the fee offered to the miners processing the transaction.
when users make a transaction on the Ethereum network, they set their fuel limit, which is the highest amount they are willing to pay as a fee for that transaction.
is the fee required to successfully conduct a transaction or execute a contract on the Ethereum blockchain platform. The exact price of the gas is determined by supply, demand, and network capacity at the time of the transaction.
the first block ever mined on a blockchain.
every time miners approve transactions on the Bitcoin blockchain, they earn Bitcoin; as each block on the blockchain is completed with transactions, a certain amount of Bitcoin enters the miners' wallets. This amount halves every 4 years. The number of Bitcoins is finite and locked at 21 million, so the amount of Bitcoin earned by miners for completing the block set as the last in the current 4-year cycle is halved when that block is completed.
during an ICO, the initiator can set a maximum limit, i.e. the maximum amount they intend to raise.
a fork of a blochckain that turns transactions previously labeled as invalid into valid and vice versa.
a physical device, similar to a USB stick, that stores cryptocurrencies in their encrypted form. It is considered the most secure way to store cryptocurrencies.
performance indicator showing how many hash operations a computer can perform per second.
the hash rate of a computer, measured in kH/s, MH/s, GH/s, TH/s, PH/s or EH/s.
Hold On For Dear Life. On a Bitcoin forum, somebody misspelled the word "hold". It often refers to hold the crypto assets that you own for an extended period, even through a highly volatile bearmarket.
cryptocurrency wallets in which private keys are stored in an environment regularly connected to the internet, like a centralized exchange.
a form of investment attraction that appeared thanks to the development of cryptocurrencies, one which blockchain startups widely use. It involves selling a fixed amount of the project's cryptocurrency tokens to investors.
an applied way of fundraising whose objective is to reduce the risk for coin buyers by introducing a trusted intermediary between the project development team and the buyer.
economic phenomenon characterised by rising prices for goods and services.
know-your-customer policy consisting of a set of rules and regulations by which companies and financial institutions identify their customers through an identification process.
a record of financial transactions, which cannot be modified, new transactions can be entered in it. It can also refer to a cold wallet brand (Ledger).
how easily a cryptocurrency can be bought and sold without affecting the total market price.
In cryptocurrency, timelock (or locktime) is a restriction mechanism built into crypto transactions that define an actual time or block height to confirm a transaction on the blockchain network. Think of this as functionality for scheduling transactions.
you bet on a market rise, purchasing cryptocurrencies with the aim of selling them after a price rise.
the total value of a cryptocurrency. It is calculated by multiplying the current price of a single unit of the coin by the total number of units that exist on the market.
a part of the infrastructure that sustains cryptocurrencies such as Bitcoin, Ethereum and Dash. Unlike regular nodes, master nodes do not add new blocks of transactions to the blockchain. Instead, they verify new blocks and perform special roles in governing the blockchain.
the summary of transactions in that block, providing a single-line summary of all transactions passed together by the hash function.
contributors to a blockchain taking part in the process of mining. They can be professional miners or organisations with large-scale operations, or hobbyists who set up mining rigs at home or in the office.
the way in which new cryptocurrencies can be generated. It consists of adding a block to the blockchain, an activity that involves spending computing power to solve a cryptographic problem.
an investment in mining hardware, whereby computing power is leased for a certain period of time.
multiple miners combine their computing power to try to complete the transactions required for a new block on the blockchain.
where the approval of a transaction requires several users to provide a unique code.
if a miner moves from one cryptocurrency blockchain to another, depending on the profitability offered by the network at that time, he engages in mining from multiple pools.
all nodes involved in a blockchain operation.
when a miner finds the solution to the hash function of a transaction, a random number, called a nonce, is generated.
a principle according to which the source code of software is made available by the copyright holder to anyone for any purpose.
smart contracts stored on the blockchain are locked in the network. The community can access them through a program called an oracle, which sends data between the smart contract and the outside world. Oracles are commonly found in the Ethereum network.
a user's order to buy or sell a cryptocurrency at a certain price.
it is an ad hoc exchange between two people, i.e. without an intermediary.
a document on which the cryptocurrency address and its associated private key are printed.
a pattern that tends to repeat itself. Patterns like this are created to see a possible market direction.
a direct relationship between two or more computers on the network, without the need for a centralised third party intermediary.
when two or more computers are connected and share the workforce or resources without depending on a centralized server. It also refers to an exchange between two wallets, without the need of an intermediary.
a platform that facilitates group mining of a coin. The pool divides the workload fractionally among several users to finish processing a block in the expected time. Ensures small but fast returns, unlike mining alone where you have to wait hours/days/months/years to see results.
time period before an ICO goes public, when private investors or members of a particular community can buy cryptocurrency, usually at a lower price.
a unique code consisting of numbers and letters for a user to conduct cryptocurrency transactions at a public address. It serves as a password for the crypto wallet and is non-transferable.
a private key that gives the holder the right to create blocks in the private blockchain.
a cryptocurrency consensus mechanism for processing transactions and creating new blocks in a blockchain. A consensus mechanism is a method for validating entries into a distributed database and keeping the database secure. In the case of cryptocurrency, the database is called a blockchain—so the consensus mechanism secures the blockchain.
with the POW approach, the people behind the network (called "miners"), use their hardware (usually graphics processing units or CPUs) to solve complicated mathematical puzzles. In reality, the miners compete with each other to do the calculations needed for the network to create each block. The winner gets the reward.
the set of rules that define how data is transferred within a network.
a blockchain that can be accessed by anyone through a full node.
an alphanumeric string that is mathematically derived from a private key.
a purchase attack, followed by immediate sale, by a group of investors for the purpose of market manipulation.
is the rally of a currency, i.e. its sudden and considerable rise.
from "wrecked"; used to define someone who has experienced a catastrophic loss.
the smallest Bitcoin unit. One Bitcoin consists of 100 million Satoshi. This is also the pseudonym of the anonymous creator of Bitcoin (Satoshi Nakamoto).
the capacity of a process, network, software or system to scale up and manage a large workload.
an algorithm that encrypts a key so that cracking it requires a considerable amount of RAM.
a seed phrase, or recovery phrase, is a series of words that grants access to your cryptocurrency wallet. Seed phrases work like a master password, so you can recover your crypto assets even if you lose your password, phone or hardware device. You’ll likely have a regular password for daily login to your wallet, but a seed phrase serves as a backup in case of an emergency.
processes for separating digital signature data from transaction data. This allows multiple transactions to fit in a block in the blockchain, improving transaction speed.
phenomenon encountered when a miner finds or creates a new block in the blockchain and does not share this information with the network.
is a quick sale of a cryptocurrency in a short time frame. Because of the law of supply and demand, it causes a significant price drop, specially when there is low liquidity.
the name of the cryptographic hash function used by Bitcoin.
method of sharing the entire blockchain history, so that each complete node does not need to hold a full copy.
a trading position when you bet against the market.
a horizontal price movement that occurs when supply and demand are relatively equal.
a part of a system that, if it fails, will lead to damage to the whole system.
automatic contracts that trigger certain reactions when pre-determined conditions are met.
a shared wallet, where a person's private key is stored in software files on a computer. It is a system used by a person who wants to create an account on an online wallet that is not associated with an exchange.
a programming language similar to JavaScript, but focused on developing smart contracts.
the difference between the ask and bid price of a cryptocurrency.
a digital currency that is pegged to a “stable” reserve asset like the U.S. dollar or gold. Stablecoins are designed to reduce volatility relative to unpegged cryptocurrencies like Bitcoin.
a feature inbuilt in the crypto exchanges to prevent further losses on a trade that you have already done. After, all we trade for profits and not for losses. Stop-loss is a form of order that can be set in the exchanges and will be executed automatically when the preset conditions are satisfied.
traders who trade occasionally, usually a few times a week. They don't rely on rapid fluctuations over the course of a day, but on slightly longer term, up to a week.
an attack through which a user creates multiple identities for a malicious purpose.
an alternative blockchain used to conduct experiments without using real currency.
when a cryptocurrency creator tests a new version of the blockchain, it does so on a test network that runs as a second version, without affecting the first.
stablecoin designed to reflect the value of the US dollar.
term given to an arrangement in which a third party agrees to hold and settle funds transferred from one party to another.
symbol composed of letters, numbers and characters, assigned to an asset traded on an exchange.
a defined time during which the fluctuations of a currency are observed.
a digital signature of the sender or receiver on a document, which can be verified against public key infrastructure (PKI). It is used to verify data and assign a time or date of creation for digital documents or events. It is also a data stored in each block used to determine the exact moment in which the block has been mined
a digital signature of the sender or receiver on a document, which can be verified against public key infrastructure (PKI). It is used to verify data and assign a time or date of creation for digital documents or events. It is also a data stored in each block used to determine the exact moment in which the block has been mined
a digital asset that operates on a blockchain. It represents an investor’s stake in an organization and can fulfill economic purposes. In other words, one can use them to purchase goods and services or trade them like financial instruments to make financial gains1. Crypto tokens are built on an existing cryptocurrency’s blockchain and can be used as investments, to store value, or to make purchases
a digital asset that operates on a blockchain. It represents an investor’s stake in an organization and can fulfill economic purposes. In other words, one can use them to purchase goods and services or trade them like financial instruments to make financial gains1. Crypto tokens are built on an existing cryptocurrency’s blockchain and can be used as investments, to store value, or to make purchases
usually known as "tokenomics", is an umbrella term used by cryptocurrency enthusiasts to describe how a token is used inside the project ecosystem and how it will be distributed between the team, investors, community, marketing, staking, exchanges, advisors, treasury, etc.
sometimes called an Initial Coin Offering (ICO), is the first stage of a token offering, where a group of buyers become the first to reserve a portion of the project’s token supply.
the process of converting a real-world physical material into a digital symbol.
a collective term used to capture a token’s economics by describing the factors that affect a token’s use and value. Such factors include the token’s creation and distribution, its supply and demand, incentive mechanisms, as well as its burning mechanism, airdrops, etc.
the total number of coins currently in existence.
number of transactions a system can process in one second.
a person who engages in the buying and selling of financial assets in any financial market, either for themselves or for other persons/institutions.
used to describe two cryptocurrencies that can be exchanged or traded with each other.
a software application that automatically executes trades based on various trends and indicators.
the process by which cryptocurrencies and crypto assets are transferred from one user to another, withing the blockchain network.
the process by which cryptocurrencies and crypto assets are transferred from one user to another, withing the blockchain network.
the amount of money paid to the miners involved in the approval of a transaction on the blockchain. This fee can vary depending on the difficulty a transaction encounters and the overall capabilities of the network at that time. The fee is paid even the transaction is successful or failed.
a payment charged to users making a crypto transaction.
a unified code used to identify crypto transactions.
a system that does not depend on a trusted central entity to perform and verify transactions.
term used for people who do not have access to a bank or other financial institution.
when a transaction is proposed, it is not confirmed until the network has examined the blockchain to ensure that there are no other pending transactions involving the same cryptocurrency.
the largest decentralized exchange (or DEX) operating on the Ethereum blockchain. It allows users anywhere in the world to trade crypto without an intermediary.
a transaction that is left unspent after being completed, similar to leftover change after making a purchase.
price movement when the trend is upwards.
type of token mainly used to access a company's product or service.
a blockchain or software project that is in concept stage and does not have a working product.
a Russian-Canadian computer programmer primarily known as the co-founder of the cryptocurrency Ethereum - one of the top coins.
Volatility
a number/amount of cryptocurrencies that has been traded over a certain period of time. The volume can show the direction and movement of the coin, but also predict its price and demand.
an application/harware that stores private keys and allows users to interact with the blockchain and their crypto assets.
a type of market manipulation. When a trader/entity buys and sells crypto in order to create misleading market conditions.
term used to describe a person who sells their cryptocurrencies by the first sign of a price drop.
a person/organisation holding a large quantity of a cryptocurrency, which is sufficient to affect the market, thus giving them the ability to manipulate prices.
an international informational document published by a company or non-profit organisation to promote or solve a problem, product or service.
a document where all the information about the project is stored. A whitepaper throws light on two major aspects of a crypto project – its purpose and the technology behind it. The whitepaper also helps a coin/token differentiate itself from others.
it represents the candlestick's two final components, stands in for the high and low. Wicks are thin lines that extend from the body either upward or downward.
the action of putting money into decentralised finance applications (DeFi) as a liquid provider to earn interest, fees or commissions.
a transaction broadcasted to the network, but not added to the blockchain.
Politically Exposed Person - who is or has been entrusted with a prominent function such as Head of State, Minister, State Secretary, Member of the Parliament, etc.