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Some basic terms of Cryptocurrency World

A blockchain address is a collection of unique numbers and letters that points to a specific destination where cryptocurrency can be sent and received within a blockchain network.

This is a marketing campaign that refers to the expedited distribution of a cryptocurrency through a population of people. It usually occurs when the creator of a cryptocurrency provides its coin to low-ranked traders or existing community members in order to build their use and popularity. They are usually given away for free or in exchange for simple tasks like sharing news of the coin with friends.

The highest price ever achieved by a cryptocurrency.

The lowest price ever achieved by a cryptocurrency.

Any blockchain-based coin or token that is considered an alternative to Bitcoin. Popular Altcoin examples include Ether, Litecoin and Dogecoin.

Acronym for “Anti-Money Laundering”

Ask me anything refers to actions where individuals of certain profession (eg. fireman, nurse, journalists) or company (eg. CEO of Tesla) conduct a session for users to ask them questions.

A person who is holding a large quantity of cryptocurrency which is declining in value or becoming worthless.

A term used to indicate negative sentiment towards the market or an asset, where investors believe that there will be downward price movement.

Contrary to bull market, it indicates the direction of the market going for downward trend.

First created in 2008, Bitcoin is the first cryptocurrency that uses a decentralized model with no need for a central bank.

A record that stores data — commonly transactional in nature.

A series of blocks that are bound together using cryptographic signatures. Because of the use of secure encryption methods and a distributed database structure, blockchains are helpful in securing important data such as cryptocurrency.

An emerging technology for decentralized data storage. It’s appealing because it’s transparent, verifiable, traceable and tamper-proof.

Refers to the number of confirmation a particular block has. Each block ahead of the referenced block adds one block confirmation to it.

Application or websites which display information such as status of transactions or data contained in a block of a given public blockchain network.

One of the mechanisms built into a blockchain to incentivize validators.

Refers to software or programmes that automatically trade based on preset behaviours.

A term used to indicate positive sentiment towards the market or an asset, where investors believe that there will be upward price movement.

A bull market indicates the direction of the market going in an upward trend.

An encouraging rally by asset/cryptocurrency supporters to buy during a price decline.

It is a digital fiat currency issued by the central banks, contrary to cryptocurrency that issued by non-legislative party.

An organization structure wherein a small handful of actors have control over the entire network.

An approximation of the number of coins or tokens that are currently not locked and available for public transactions.

The complete history of ownership. A chain of custody helps prove data integrity and tamper-proof protections.

The use of blockchain to represent the value of a digital asset that is native to the blockchain network. Examples of coins include Bitcoin, and Altcoins such as Ether, Litecoin and HNC Coin.

A method of storing cryptocurrency that is not connected to the internet. Cold wallets are added protection against malicious activities to steal or disrupt the integrity of digital coins/tokens.

It is a speculation in the cryptocurrencies and the price of cryptocurrencies would go extremely high before the bubble bursts.

A digitized form of currency that is secured with cryptography and decentralized networks using blockchain technologies.

The science of creating secure communications using codes. These codes are protected so only the sender and receiver of the information can access the contents of the communications.

Protective care or guardianship of an asset.

On a blockchain, users interact with one another through their addresses, and daily active addresses (DAA) refers to the number of addresses which fulfills the defined activity parameter on a given blockchain.

A system where there are no centralized points of failure or organization with no central authority figure.

Applications that run on decentralized peer-to-peer networks such as Ethereum.

Decentralized Finance (DeFi) refers to the movement of building decentralized financial applications that have no central authority and is censorship free.

A consensus mechanism where selected members of a network are voted as delegates to validate transactions and produce blocks on a blockchain.

Ledgers whose data is stored and synced across a network of nodes.

Typically refers to Bitcoins’ market capitalization dominance.

A common term used to describe downward market movement, or to describe the action of selling an individuals holdings. “The market is dumping!” “I’m dumping all of my tokens”.

Stands for “Ethereum request for comments” and is a summation of proposed improvements to the Ethereum system.

The standard to which each Ethereum token complies. It defines the way that each token behaves so that transactions are predictable. Other cryptocurrencies also use the ERC-20 standard, piggybacking on the Ethereum network in the process.

An open source blockchain platform and cryptocurrency developed in 2013 that is currently the most active blockchain in the world. The platform enables other developers to build distributed, blockchain-backed applications. The native cryptocurrency of the platform is called Ether and is Bitcoin’s main competitor.

A virtual machine, effectively sitting in the cloud, that is Turing complete and is used by all nodes on the network during blockchain confirmations. It allows those on the node to execute random EVM Byte Code, which is part of the Ethereum Protocol.

A business that provides a convenient online location for the exchange of cryptocurrencies — or to exchange traditional fiat currencies with cryptocurrencies. Popular cryptocurrency exchanges include Binance, Coinbase and Kraken.

Stands for “Explain Like I’m 5”, typically used in cases where technical/difficult scenarios are broken down into simple, and easy to understand terms. In a way, the goal is literally explain a concept in a manner that is simple enough for a five-year-old to understand.

If you find a website that offers to give you free cryptocurrency for connecting with them, it is termed a faucet. The majority of these are scams.

A currency issued by a government that is not backed by any type of commodity. Instead, the currency is backed — or guaranteed — by the issuing government. Fiat currency is different from traditional commodity money that was originally backed by real assets such as gold, salt and tea.

An acronym for “fear of missing out”.

A split, change or alternative version of a blockchain. For blockchain technology to work, all nodes within a blockchain network must run the same underlying core software. If enough nodes wish to change or alter the core software, a fork occurs, splitting the nodes into two separate networks.

The ability to replicate data in such a way that each replicated unit can replace any other. From a cryptocurrency perspective, each coin or token is fungible as each one has the same value. Thus, each coin/token is considered identical and interchangeable.

Acronym for “fear, uncertainty and doubt”.

Some nodes download a blockchain’s entire history in order to enforce its rules completely. As they fully enforce the rules, they are considered a full node.

A method through which you can attach value to a coin by looking at similar economic and financial factors and researching the underlying motives of the creators and market opinion.

This is a pre-approved contract between two entities to fulfill a transaction when the value of cryptocurrency hits a certain price. It’s different than a limit order in that the buyer and seller are already nominated and bound. A future contract becomes relevant when a buyer wants to go short and a seller wants to go long on the asset.

Gains are defined as increases in value. When used to describe cryptocurrency, it is an increase in value and profit.

Writing a transaction into a public blockchain requires the use of computing power. This is accomplished by miners who allocate compute resources on a distributed network. Gas is a fee charged by the miner as a form of compensation. Usually, the fee is paid in the form of cryptocurrency.

Gas limit is an amount of ethereum and it is multiplied by a very small amount of ethereum to pay people to record transactions and do other software actions. If the amount of gas is insufficent to complete the work, the work will fail. On the other hand, you can pay a bit more gas and expect the computers to complete your task sooner.

Gas is calculated by multiplying a very small amount of ethereum, known as “gwei” and “gas price”, and multiplying that by how much you want to spend, known as the “gas limit”. Gas limit is calculated in large numbers, think tens of thousands. The average gas limit for sending ethereum is 21,000. Because some software actions may require a larger gas limit, you need to be sure you include a large enough gas limit or your task will fail.

Gas price is a very small amount of ethereum and it is multiplied by an amount known as gas limit to pay people to record transactions and do other software actions. If the amount of gas is insufficent to complete the work, the work will fail. On the other hand, you can pay a bit more gas and expect the computers to complete your task sooner. Gas is calculated by multiplying a very small amount of ethereum, known as “gwei” and “gas price”, and multplying that by how much you want to spend, known as the “gas limit”. The very small amounts of ethereum used in gas price are known as gwei. 1 ethereum = 1 billion (1,000,000,000) gwei. A typical gas price is 20 gwei, but it can go as high as 50 during peak usage and as low as 2 gwei for a slower transaction.

The Genesis Block is the first block of data ever created on a blockchain network.

It is a bullish signal in technical candlestick pattern by comparing two lines of short-term moving average and long-term average. It is a golden cross when the short term moving average broke its long-term moving average.

Event that serves to reduce in half the reward of the Proof-of-Work miners that operate in the blockchain network.

It is a permanent divergence of a blockchain into two blockhains. The original blockchain does not recognize the new version.

A hash function is an output code (unique and alphanumeric) that we obtain from an input string,

Hashgraph is a distributed ledger system that has been compared to the blockchain idea as a continuation or successor.

Total processing power of a blockchain or what is the same, are the amount of hash values that can be made in a period of time.

A crypto slang of saying holding the assets rather than selling it. A crypto slang encouraging investors to hold on to their assets rather than selling it.

It is a tool that store your cryptocurrencies and always connected to internet.

It is the allowance for both Proof-of-Stake and Proof-of-Work distribution consensus to work on the same network.

Initial Exchange Offering (IEO) is a spin-off of Initial Coin Offering (ICO), where the sale of tokens are conducted on an exchange rather than by the coin team themselves.

Temporary loss of funds due to volatility leading to divergence in price between token pairs provided by liquidity providers.

Initial Coin Offering (ICO) is the equivalent of Initial Public Offering (IPO), where a company/cryptocurrency venture raises funds through crowd sales.

KYC stands for “Know Your Customer”, a process for business entities are required to verify its clients and assessing them.

Shorthand for Lamborghini, which is how someone might refer to themselves if they are getting rich quickly. The idea being there is so much money coming in that they are going to go buy an exotic car.

A record of financial transactions. A ledger cannot be changed, it can only be appended with new transactions.

A loan of sorts offered by a broker on an exchange during margin trading (see below).

Orders placed by traders to buy or sell a cryptocurrency when a certain price is reached.

How easily a cryptocurrency can be bought and sold without impacting the overall market price.

If a transaction request comes with a rule delaying when it can be processed to a certain time or certain block on the blockchain, that is referred to as the locktime.

When you intend to take a large amount of cryptocurrency and stockpile it with the anticipation that it will grow in value, you are going long (or taking a long position).

A proof of stake consensus mechanism by Tezos that slightly differs from Delegated Proof of Stake.

Margin call takes place when investor’s margin account falls below the required amount to stay afloat.

It is a way of investing by borrowing money from a broker (or in crypto, an exchange or platform) to trade.

In Crypto, market cap is measured by multiplication of the circulating supply of tokens or currency and its current price.

Participant of the market who creates buy and orders.

A market order is a buy or sell order of stocks or cryptocurrency at the best price available in the current market as soon as possible.

Computers that are responsible for processing blockchain transactions and receive a reward when a block is mined.

Contributors to a blockchain taking part in the process of mining.

It is the process of the miners verify and adding transaction recors into a block.

Combination of resources of several miners to obtain a higher mining power and thus achieve greater rewards for the opening of blocks.

The reward resulting from contributing computing resources to process transactions.

A mnemonic phrase (also known as mnemonic seed, or seed phrase) is a list of words used in sequence to access or restore your cryptocurrency assets.
“Moon” or “To the moon” is a crypto slang that describes an exclamation when the cryptocurrencies prices are rising and when it hit the peak, the coin is said to be “mooning”.

Within the blockchain network, the nodes are computers that connect to the network and have an updated copy of the blockchain.

Abbreviation for ‘number only used once’ It is of vital importance next to the hash in the verification of data from the Bitcoin blockchain network.

It is a decentralized type-of-wallet, where the users owns its private keys.

They are collectible elements within the Ethereum blockchain under ERC-721, where each token refers to a single element with a certain value.

It refers to transactions occuring outside the blockchain and executed instantly.

The price at which a cryptocurrency opens at a time period, for example at the start of the day; the price at which a cryptocurrency closes at a time period, for example at the end of the day.

It is a financial instruments that refers to a contract offers the buyer the right to buy or sell an underlying assets at a specified price and time.

An electronic list of all buy and sell orders in an exchange.

It refers to the process that cryptocurrencies are being traded outside exchange and it is done directly between two parties.

Storing your wallet code (your private key) on a physical document makes it a paper wallet. It’s also sometimes referred to as cold storage.

Acronym for “pump and dump”.

A period before an ICO goes public when private investors or community members are able to buy the cryptocurrency.

A string of numbers and letters that are used to access your wallet. While your wallet is represented by a public key, the private key is the password you should protect (with your life). You need your private key when selling or withdrawing cryptocurrencies, as it acts as your digital signature.

A private key that gives the holder the right to create the blocks in a private blockchain. It can be held by a single entity or a set number of entities. This is an alternative to the proof-of-work model, as instead of getting multiple random nodes to approve a transaction, a group of specific nodes are given the authority to approve. This is a far faster method.

Another alternative to proof of work, this caps the reward given to miners for providing their computational power to the network at that miner’s investment in the cryptocurrency. So if a miner holds three coins, they can only earn three coins. The system encourages miners to stick with a certain blockchain rather than converting their rewards to an alternate cryptocurrency.

In order to receive a reward for mining a cryptocurrency, miners must show that their computers contributed effort to approve a transaction. A variable is added to the process of hashing a transaction that demands that effort before a block can be successfully hashed. Having a hashed block proves the miner did work and deserves a reward – hence proof of work.

A blockchain that can be accessed by anyone through a full node on their computer.

This is your unique wallet address, which appears as a long string of numbers and letters. It is used to receive cryptocurrencies.

The frowned-upon practice of buying a lot of one cryptocurrency to drive up its price and encourage others to invest, then selling the lot when there is a suitable margin.

Abbreviation “Quick Response Code”, QR code is a machine readable optical label that stores up to 3Kb of data.

A shorthand slang for “wrecked”, typically describes bad trades that results in losses.

Relative Strength Index (RSI) is a popular technical indicator used to analyse financial markets. By charting the current and historical closing prices to evaluate overbought/oversold conditions, RSI oscillates between 0 – 100, with <30 indicating oversold and >70 indicating overbought.

Short for “Return on Investment”, the ratio between the net profit and cost of investing.

Sudden removal of liquidity which typically leads to asset prices crashing from the lack of liquidity to absorb buy/sells.

A unit measure for the smallest divisible unit of a bitcoin. 1 bitcoin is equal to 100 Million Satoshi.

The pseudoym used in publishing the Bitcoin Whitepaper. Identity is unknown.

Secondary network or framework built atop an existing blockchain to address transaction speed and scalability issues.

A value used to initiate generation of pseudorandom number, ususally a string of 12 commen English words.

When a large limit order has been placed to sell when a cryptocurrency reaches a certain value, that is a sell wall. This can prevent a cryptocurrency from rising above that value, as supply will likely outstrip demand when the order is executed.

One who poses as a enthsiastic customer to swindle others as a form of covert advestising.

Also known as short selling, this is a concept whereby traders sell an asset they don’t have. The hope is that they can then buy the asset at a lower price than which they sold it to complete the deal. Thereby they earn a margin in the interim.

Self executing contracts on the blockchain without needing human executors or notary.

Cryptocurrency with a price peg to fiat currencies or commodity.

The state of locking-in significant amount of token to participate as a validator of a Proof-of-Stake network.

Security Token Offering (STO) refers to a public offering for tokenized digital securities, or in short security tokens traded in cryptocurrency exchanges.

Conditional market order to sell at the next available price, excuted if the price of an asset falls below set-upon limit.

Blockchain based unit of value issued by an organization, which grants token holders a right to participate in a network.

An event in which tokens are verifiably removed permanently removed from circulation.

All the tokens and coins that will exist in a cryptocurrency network.

Total Value Locked (TVL) represents the number of assets that are currently staked in a protocol or the total quantity of underlying amount of funds that a DeFi protocol has secured.

Trading volume is considered a reference point for how active is a market is performing. It also implies liquidity as higher trading volume implies more traders in the market.

A payment to the network for performing a transaction to be recorded on the blockchain.

Cryptocurrency tokens with specific utilities on a network besides being used as medium of exchange and investment vehicle.
A block-signing participant of a Proof of Stake blockchain network, whom have significant tokens staked on the network.
The fluctuation in an asset’s price is measured by its volatility. Cryptocurrency prices are notoriously volatile compared to other assets, as dramatic price shifts can happen quickly.
Software client that handles storage of cryptocurrencies and allows users to send cryptocurrencies.
The address in which cryptocurrency can be stored, sent to and receive.
Someone who holds an enormous amount of cryptocurrency and has the ability to wave the market.
An expression used by investors to ask when the price of a coin would hit a peak.
List of approved participants that will be given access to a token sale (ICO, IEO, STO etc…).
An introductory paper to consicely explain an issue and a possible solution on the issue.
Yield farming involves putting cryptocurrency into a DeFi protocol to collect interest on trading fees.