CryptoABC is a glossary of the key crypto terms, crypto words and their definitions that are related to Cryptocurrency & Blockchain.
Address: Cryptocurrency Address is a long string of characters that enables payments from One Wallet to other wallet. A cryptocurrency address can be shared publicly to those who want to send you cryptocurrency.
Algorithm: a process or set of rules to be followed in calculations or other problem-solving operations, especially by a computer. ( For example let's consider searching something on Google ).
Airdrop: An airdrop is a distribution of a cryptocurrency token or coin, usually for free, to a large number of wallet addresses. Airdrops are primarily implemented as a way of gaining attention and new followers, resulting in a larger user-base and a wider disbursement of coins.
All Time High (ATH): The Highest Price of a cryptocurrency during its entire life cycle.
All Time Low (ATL): The Lowest Price of a cryptocurrency during its entire life cycle.
Altcoin: Any other cryptocurrency apart from “Bitcoin” is considered as Altcoin.
Anti Money Laundering (AML): Anti-money-laundering refers to a set of procedures, laws and regulations designed to stop the practice of generating income through illegal actions.
API: API is referred is a set of functions and procedures allowing the creation of applications that access the features or data of an operating system, application, or other service.
Arbitrage Trading: The simultaneous buying and selling of securities, Cryptocurrency, or commodities in different markets or in derivative forms in order to take advantage of differing prices for the same asset.
ASIC: “Application Specific Integrated Circuit” it is a mining equipment that is used specifically to mine a certain cryptocurrency. It is customized for a particular use, rather than intended for general-purpose use.
Atomic Swap: Atomic Swap is a way of trading. Where people directly exchange one type of cryptocurrency for another on a different blockchain without a centralized intermediary such as an exchange.
Blockchain: A blockchain, originally block-chain, is a growing list of records, called blocks, which are linked using cryptography. Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data. By design, a blockchain is resistant to modification of the data.
Bitcoin:Bitcoin is a cryptocurrency, a form of electronic cash. It is a decentralized digital currency without a central bank or single administrator that can be sent from user-to-user on the peer-to-peer bitcoin network without the need for intermediaries.
Bitcoin Improvement Proposal (BIP):
A Bitcoin Improvement Proposal (BIP) is a design document for introducing features or information to Bitcoin. This is the standard way of communicating ideas since Bitcoin has no formal structure. The first BIP (BIP 0001) was submitted by Amir Taaki on 2011-08-19 and described what a BIP is.
Bitcoin ATM: An Automated Teller Machine from which you can exchange your Bitcoin with cash.
Block: A Block is a collection of transactions or information occurring during a time period on a blockchain.
Block Height: The number of blocks preceding the block in question on the blockchain, or can be thought of as total blocks in the chain before this point.
Block Reward: Cryptocurrency block reward refers to the new cryptocurrencies that are awarded by the blockchain network to eligible cryptocurrency miners for each block they mine successfully.
Bear Market: A market in which cryptocurrency prices are falling, encouraging selling.
Bull Market: A market in which Cryptocurrency prices are rising, encouraging buying.
Bear Trap: It's a technique played by Whales (Also known as group of traders) , aimed at manipulating the price of a cryptocurrency. The bear trap is set by selling a large amount of the same cryptocurrency at the same time, fooling the market into thinking there is an upcoming price decline. In response, other traders sell their assets, further driving the price down. Those who set the trap then release it, buying back their assets at a lower price. The price then rebounds, and they make their profits.
BitLicense: BitLicense is the common term used for a business license of virtual currency activities, issued by the New York State Department of Financial Services (NYSDFS).
Bits: Smaller unit of 1 Bitcoin. There are 1,000,000 bits in 1 bitcoin.
Brute Force Attack (BFA): A Brute Force Attack is the simplest method to gain access to a site or server (or anything that is password protected). It tries various combinations of usernames and passwords again and again until it gets in. This repetitive action is like an army attacking a fort.
Candlesticks: Candlesticks is a technique that is used to show changes in price over time with the help of a graph. Each candle focuses on 4 points of information: opening price, closing price, high price, and low price.
Cipher: The name given to the algorithm that encrypts and decrypts information.
Circulating Supply: It depicts the best approximation of the number of coins that are circulating in the market and in the general public’s hands.
Coin: A coin is a cryptocurrency that can operate independently.
Cold Wallet: A cryptocurrency wallet that is stored in cold storage. In other words, it’s not connected to the internet.
Cryptocurrency: It is a digital medium of exchange using strong cryptography to secure financial transactions & helps in verifying the transfer of assets.
Cryptographic Hash Function: It is a special class of hash function that has certain properties which makes it suitable for use in cryptography. The SHA-256 algorithm is an example of a cryptographic hash function.
Dark Web: It is the World Wide Web content that exists on darknets, overlay networks that use the Internet but require specific software, configurations, or authorization to access.
Decentralized: It refers to the property of a system in which nodes work in a distributed fashion to achieve a global goal.
Decentralized Application (dApp): A decentralized application is an application run by many users on a decentralized network with trust less protocols. They are designed to avoid any single point of failure. They typically have tokens to reward users for providing computing power.
Decentralized Exchange (DEX): A peer-to-peer exchange that allows users to buy and sell cryptocurrency which operates in a decentralized way, i.e. without a central authority.
Delegated Proof-of-Stake (dPOS): A consensus mechanism where users can vote for delegates producing blocks on the blockchain, with votes proportional to their stake. It aims to increase efficiency of blockchain consensus protocols.
Digital Currency: Digital currency, also known as digital money or electronic money, is an internet based currency that is available only in digital form, & acts as a medium of exchange for goods and commodities like traditional money.
Distributed Ledger: These are ledgers in which data is stored across a network of decentralized nodes. It does not necessarily involve a cryptocurrency and may be permissioned and private.
Dolphin: A person who owns a moderate quantity of cryptocurrency.
Dump: To sell off all your coins.
ERC-20: A token standard for Ethereum, used for smart contracts implementing tokens. It is a common list of rules defining interactions between tokens, including transfer between addresses and data access.
Escrow: It is a contractual arrangement in which a third party receives and disburses money or documents for the primary transacting parties, with the disbursement dependent on conditions agreed to by the transacting parties.
Exchange: Crypto exchanges (sometimes called digital currency exchanges) business that allows customers to trade cryptocurrencies or digital currencies for other assets, such as conventional fiat money or other digital currencies.
Fiat: Fiat currency is legal tender whose value is backed by the government that issued it. It can take the form of physical cash, or it can be represented electronically, such as with bank credit.
FUD: It is an acronym that stands for “fear, uncertainty and doubt”. It is a strategy to influence perception of certain cryptocurrencies or the cryptocurrency market in general by spreading negative, misleading or false information.
Fork: A fork, in software language, is a term used when developers take the technology (source code) from one existing software project and modify it to create a new project.
Fish: A fish is someone who holds insignificant amounts of cryptocurrencies.
Genesis Block: The first block of data that is processed and validated to form a new blockchain, often referred to as block 0 or block 1. it's always hard-coded into the software of the applications that utilize its blockchain.
Gas: A term used on the Ethereum platform that refers to a unit of measuring the computational effort of conducting transactions or smart contracts, or launch DApps in the Ethereum network.
Gold-Backed Cryptocurrency: A coin or token issued that represents a value of gold & is stored in a safe and can be traded with other coin holders.
Hard Cap: The maximum amount that an ICO can raise. If a hard cap is reached, no more funds would be collected.
Hash: A hash is created using an algorithm, and is essential to blockchain management in cryptocurrency. An important property of a hash is that the output of hashing a particular document will always be the same when using the same algorithm.
Hash Power / Hash Rate: A hash is the output of a hash function and, as it relates to Bitcoin, the Hash Rate is the speed at which a compute is completing an operation in the Bitcoin code.
HODL: HODL is an acronym for “Hold On to Dear Life”. It is a slang in the cryptocurrency community for holding the cryptocurrency rather than selling it.
Hierarchical Deterministic Wallet (HD Wallet): A wallet that uses Hierarchical Deterministic (HD) protocol to support the generation of crypto-wallets from a single master seed using 12 mnemonic phrases.
Initial Coin Offering (ICO): A type of crowdfunding, or crowdsale, using cryptocurrencies as a means of raising capital for early-stage companies.
Inflation: A general increase in prices and fall in the purchasing value of money.
Instamine: Instamine refers to a distribution of coins in an unfair manner. In most cases, an instamine revolves around issuing a large supply of all future available coins during the first hours of days of the cryptocurrency’s launch.
JOMO: JOMO stands for “Joy of Missing Out” & is the opposite of FOMO. Most often used by no-coiners who declare their happiness that they are not involved in cryptocurrencies, especially in the cases where prices are declining or a scam ICO is revealed in public.
KYC: It is an acronym for “Know Your Customer” & refers to the process of verifying the identity of your customers, either before or during the time that they start doing business with you.
Ledger: It is a record of financial transactions that cannot be changed, only appended with new transactions.
Liquidity: Liquidity is the degree to which a particular asset can be quickly bought or sold without affecting the general stability of cryptocurrency price.
Limit Order / Limit Buy / Limit Sell: Orders placed by traders to buy or sell a cryptocurrency when a certain price is reached. This is in contrast with market orders at which a cryptocurrency is sold at the current best available price.
Market Capitalization / Market Cap: It is a total capitalization of a cryptocurrency’s price. It is one of the ways to rank the relative size of a cryptocurrency.
Market Order: A purchase or sale of a cryptocurrency on an exchange at the current best available price. Market orders are filled as buyers and sellers who are willing to trade. In short, using a Market order you can buy or sell at the best average market price. These are designed for immediate execution.
Max Supply: The best approximation of the maximum amount of coins that will ever exist in the lifetime of the cryptocurrency.
Miners: These are the contributors to a blockchain taking part in the process of mining. They can be professional miners or organizations with large-scale operations, or hobbyists who set up mining rigs at home or in the office.
Multi-Signature (Multi-sig): Multisignature (multi-signature) is a digital signature scheme which allows a group of users to sign a single document. Usually, a multisignature algorithm produces a joint signature that is more compact than a collection of distinct signatures from all users.
Microtransaction: A microtransaction, in the context of digital currencies, refers to any transaction that is relatively small in value; transactional value which can be as low as sending a penny.
Node: A copy of the ledger operated by a participant of the blockchain network.
Network: A network refers to all nodes in the operation of a blockchain at any given moment in time.
Non-custodial: It is a platform that allows users to possess their private keys. The application will either give us a file or have us write down a mnemonic phrase that can consist of 12-24 random words.
Order Book: An order book is a ledger containing all outstanding orders – instructions from traders to buy or sell bitcoin. An order to buy is called a “bid” and an order to sell is called an “ask.” Bids and asks are paired up as soon as their requirements are fulfilled, resulting in a trade.
Offline Storage: It is the act of storing cryptocurrencies in devices or systems that are not connected to the internet.
Open Source: Open source refers to any program whose source code is made available for use or modification as users or other developers see fit. Open source software is usually developed as a public collaboration and made freely available.
Options Market: It is a contract which gives the buyer (the owner or holder of the option) the right, but not the obligation, to buy or sell a cryptocurrency at a specified strike price prior to or on a specified date, depending on the form of the option.
Overbought: A cryptocurrency is considered Overbought when it has been purchased by more and more investors over time, with its price increasing for an extended period of time.
Oversold: A cryptocurrency is considered Oversold when it has been sold by more and more investors over time, with its price decreasing for an extended period of time.
Over The Counter (OTC): It is defined as a transaction made outside of an exchange, often peer-to-peer through private trades. In jurisdictions where exchanges are disallowed or where amounts traded will move the markets, traders will go through the OTC route.
Pair: It means users can trade between one cryptocurrency and another, for example, the trading pair: BTC/ETH.
Paper Wallet: A physical document containing our private key.
Peer to Peer (P2P): The decentralized interactions between parties in a distributed network, partitioning tasks or workloads between peers.
Permissioned Ledger: A ledger designed with restrictions, such that only people or organizations requiring access have permission to access it.
Ponzi Scheme: A Ponzi scheme is a form of fraud which lures investors and pays profits to earlier investors by using funds obtained from more recent investors.
Portfolio: A collection of cryptocurrencies or crypto assets held by an investment company, hedge fund, financial institution or individual.
Private Key: A piece of code generated in asymmetric-key encryption process, paired with a public key, to be used in decrypting information hashed with the public key.
Proof-of-Stake (PoS): Proof of stake is a type of algorithm by which a cryptocurrency blockchain network aims to achieve distributed consensus. The creator of the next block is chosen via various combinations of random selection and wealth or age.
Proof-of-Work (PoW): A blockchain consensus mechanism involving solving of computationally intensive puzzles to validate transactions and create new blocks.
Public Blockchain: A blockchain that is accessible to anyone.
Pump and Dump (P&D) Scheme: Pump and Dump (P&D) is a form of securities fraud that involves artificially inflating the price of an owned stock through false and misleading positive statements, in order to sell the cheaply purchased stock at a higher price.
QR Code: A machine-readable label that shows information encoded into a graphical black-and-white pattern. For cryptocurrencies, it is often used to easily share wallet addresses with others.
Rank: The relative position of a cryptocurrency by market capitalization.
ROI: It is an acronym for “Return on Investment”. In other words, it is defined as the ratio between the net profit and cost of investing.
Ring Signature: In cryptography, a ring signature is a type of digital signature that can be performed by any member of a group of users that each have keys. Therefore, a message signed with a ring signature is endorsed by someone in a particular group of people.
Satoshi Nakamoto: The individual or group of individuals that created Bitcoin.
Satoshi (SATS): The smallest unit of bitcoin with a value of 0.00000001 BTC.
Scam: A fraudulent or deceptive cryptocurrency or ICO.
Securities and Exchange Commission (SEC): It’s a U.S. government agency that oversees securities transactions, activities of financial professionals and mutual fund trading to prevent fraud and intentional deception.
SHA-256: This online tool allows users to generate the SHA256 hash of any string. SHA256 is designed by NSA & it's more reliable than SHA1.
Sharding: Sharding is a type of database partitioning that separates very large databases of blockchain states into smaller, faster, more easily managed parts called as data shards.
Smart contract: A smart contract is a computer protocol intended to digitally facilitate, verify, or enforce the negotiation or performance of a contract. Smart contracts allow the performance of credible transactions without third parties. These transactions are trackable and irreversible.
Soft Cap: The minimum amount that an initial coin offering (ICO) wants to raise. Sometimes, if the ICO is unable to raise the soft cap amount, it may be called off entirely.
Spot Market: A public market in which cryptocurrencies are traded for immediate settlement. It contrasts with a futures market, in which settlement is due at a later date.
Taint: The “taint” of a Bitcoin transaction evaluates the association between an address and earlier transaction addresses.
Technical Analysis (TA): Technical Analysis (TA) describes analyzing historic price and volume trends to predict the future price movements of assets.
Ticker: An abbreviation used to uniquely identify cryptocurrencies.
Timestamp: A timestamp is a sequence of characters or encoded information identifying when a certain event occurred, usually giving date and time of day.
Token: A token is a type of encrypted data that allows only an encrypted token that leads back to the original data to be sent and stored. Cryptocurrency tokens are simply tokens that represent transactions to be recorded on a digital ledger called a blockchain.
Total Supply: Total supply is the complete amount of coins currently available for a cryptocurrency not including any coins that were burnt.
Trade Volume: It is the amount of the cryptocurrency that has been traded in the last 24 hours.
Transaction Fee: A payment for using the blockchain to transact.
Unpermissioned Ledger: A public blockchain
Unspent Transaction Output: An output of a blockchain transaction that has not been spent, and can be used as an input for new transactions.
UTC Time: Coordinated Universal Time. It is the primary time standard by which the world regulates clocks and time.
Validator: A participant on a Proof-of-Stake (PoS) blockchain, involved in validating blocks for rewards.
Volatility: Volatility is the degree of variation of a trading price series over time as measured by the standard deviation of logarithmic returns.
Volume: The amount of cryptocurrency that has been traded during a certain period of time, such as the last 24 hours or more. It depicts the direction and movement of the cryptocurrency as well as a prediction of future price and its demand.
Wallet: A cryptocurrency wallet is a secure digital wallet used to store, send, and receive digital currency.
Whale: A term used to describe investors who have uncommonly large amounts of crypto, especially those with enough funds to manipulate the market.
Whitelist: A list of interested participants in an ICO, who registered their intent to take part or purchase in a sale.
Whitepaper: A document that is prepared by an ICO project team to gain interests of investors with its vision, technical information, & a roadmap.
YTD: Stands for Year to Date.
Zero Knowledge Proof: In cryptography, a zero-knowledge proof is a method by which one party can prove to another party that they know a value x, without conveying any information apart from the fact that they know the value x.