A Comprehensive List Of Terms Used In The Crypto Space, As Well As Popular Slang Terminology Used By Enthusiasts And Influential People
51% Attack: Has not occurred yet and is purely hypothetical. Involves an individual or group that hold more that 50% of the hashrate/computing power of a blockchain being able to manipulate payments for their own benefit.
Address: A string of letters and numbers which bitcoins can be sent to and from. A bitcoin address can be shared publicly, and like sending a message to an email address, a bitcoin address can be provided to others that wish to send you bitcoin.
Alt Coin: Is any coin other than BTC. (Alternative Coin)
ASIC: is a term related to mining. Application-Specific Integrated Circuit describes a type of chip that is specialised in a single set of processes. An ASIC miner consists of an ASIC chip, power source, fan, and mining software.
Asynchronous: means not occurring at the same time.
Attack Surface: In computer security, an attack surface refers to the number of places where a malicious user may be able to gain access to a system. In general, a computer running more complex software has a higher attack surface than one running simpler software.
Bitcoin: The first global, decentralised currency.
Bits: A sub-unit of one bitcoin. There are 1,000,000 bits in one bitcoin.
Block: A collection of Bitcoin transactions that have occurred during a period of time (typically about 10 minutes). If the blockchain is thought of as a ledger book, a block is like one page from the book.
Blockchain: The authoritative record of every Bitcoin transaction that has ever occurred.
Block Halving: refers to the Block Reward being halved. For example BTC used to have a Block Reward of 50BTC it then drpped to 25BTC and is now at 12.5BTC. For miners it means a big drop in value.
Block height: refers to the current number “block” in a blockchain. The genesis block, which is the very first block in any blockchain, has a block height equal to zero.
Block Reward: refers to the new coins that are awarded by the blockchain network to eligible miners for each block they mine successfully.
BTC: An abbreviation for the bitcoin currency.
Centralised: Organised such that one or more parties are in control of a service.
Chargeback: The reversal of a bank payment or money transfer after it was authorised. Sometimes used to commit fraud.
Circulating Supply is the number of coins that are “circulating” in the market and in the general public’s hands. Total Supply is the total amount of coins in existence right now (minus any coins that have been verifiably burned).
Cold Storage: The storage of Bitcoin private keys in any fashion that is disconnected from the internet. Typical cold storage includes USB drives, offline computers, or paper wallets.
Cold Wallet: A Bitcoin wallet that is in cold storage (not connected to the internet).
Confirmations: A bitcoin transaction is considered unconfirmed until it has been included in a block on the blockchain, at which point it has one confirmation.
Cosigner: An additional person or entity that has partial control over a Bitcoin wallet.
Cryptocurrency: A type of currency that uses cryptography instead of a central bank to provide security and verify transactions. Bitcoin is the first cryptocurrency.
Cryptography: In the context of Bitcoin, cryptography is the use of mathematics to secure information. Cryptography is used to create and secure wallets, sign transactions, and verify the blockchain.
DAO: (decentralised autonomous organisation). It is not tied to any particular state or nation.
DApp (decentralised application): has its backend code running on a decentralised peer-to-peer network.
Directed Acyclic Graph (DAG): can serve as a viable alternative to blockchain technology as shown in cryptocurrencies such as DagCoin, ByteBall, and IOTA.
Decentralised: Without a central authority or controlling party. Bitcoin is a decentralised network since no company, government, or individual is in control of it.
Distributed: A distributed network is designed so that there is no central server or entity that others must connect to. Instead, network participants connect directly to each other. Bitcoin is a distributed network.
Encryption: The use of cryptography to encode a message such that only the intended recipient(s) can decode it. Bitcoin uses encryption to protect wallets from unauthorised access.
ERC20 (Ethereum Request for Comment): is a technical standard used for smart contracts on the Ethereum blockchain for implementing coins.
Ethereum: While not the boasting the title of worlds first global, decentralised currency like bitcoin, Etherium (ETH) is notable for being the first decentralised smart contract blockchain platform, opening the floodgates for ICO’s the token market and competitor smart contract platforms.
Ethereum Enterprise Alliance: aims to determine the software capable of handling complex and demanding applications at the speed of business.
Exchange: a place where you can buy and sell/exchange Cryptocurrencies. There are many exchanges to choose from. To see information about reputable Exchanges click here
Faucet: A reward system that issues BTC or an Alt currency as a prize or incentive to complete a task/captcha.
Fiat currency: State issued currency declared by government to be legal tender, not backed by a physical commodity.
Fintech (Financial Technology): “is used to describe new technology that seeks to improve and automate the delivery and use of financial services. When fintech emerged in the 21st Century, the term was initially applied to technology employed at the back-end systems of established financial institutions.”
Fork: a hard fork occurs when a coins’s developers decide that changes need to be made to the programming of the coin that create’s incompatibilities between the older and newer versions.
Fungible: means that all like coins are worth the same value. Eg 1 BTC = 1 BTC
Gas: is the internal pricing for running a transaction/contract in Ethereum.
Gwei: is equal to 0.000000001 Ether.
Hack: To gain unauthorised access to data in a system or computer. Typically used to steal coins from an individuals wallet.
Hash: 1) A unique identifier of a Bitcoin transaction. 2) A mathematical function that Bitcoin miners perform on blocks to make the network secure.
Hardware Wallet: A physical or electronic log book containing a list of transactions and balances typically involving financial accounts. The Bitcoin blockchain is the first distributed, decentralised, public ledger. (Ledger, Trezor, Keep Key, Bitbox, Bitfreezer are a few manufacturer examples)
Hot Wallet: A Bitcoin wallet that resides on a device that is connected to the internet. A wallet installed on a desktop computer or smartphone is usually a hot wallet.
ICO (Initial Coin Offering): Selling the Coin before it has been developed. Often used to help fund the development of a coin. An opportunity for the savvy investor to purchase coins and a bargain price but what out for Scams!
Market cap: Refers to the total value of all of a particular coin. It is calculated by multiplying the price of the coin by the total number of coins. For example, a coin with 10 million coins selling at $20 a each would have a market cap of $200,000,000.
Merkle trees: A merkle tree is a structure that allows for efficient and secure verification of content in a large body of data.
MEW: My Ether Wallet. Is a tool for creating a wallet that works with Ethereum.
M of N: The number of cosigners that must provide signatures (M) out of the total number of cosigners (N) in order for a multi-signature bitcoin transaction to take place. A common M of N value is “2 of 3” meaning two of the three cosigners’ signatures are required.
Mimblewimble: is a technology that stops blockchains from sharing personal information. It takes it’s name from a Harry Potter spell.
Miner: A computer or group of computers that add new transactions to blocks and verify blocks created by other miners. Miners collect transaction fees and are rewarded with new bitcoins for their services.
Multi-Signature: Also called multisig. A bitcoin transaction that requires signatures from multiple parties before it can be executed.
Neo: -A decentralised smart contract blockchain platform alternative to Ethereum originally based in china. commonly called “China’s Ethereum” by the crypto community.
NEP-5 token: -(Neo Enhancement Protocol) A smart contract token that sits on the NEO Blockchain.
Node: A participant in the Bitcoin network. Nodes share a copy of the blockchain and relay new transactions to other nodes.`
Open Source: Software whose code is made publicly available and that is free to distribute. Bitcoin is an open source project and arguably the first open source money.
Paper Wallet: A type of cold storage wallet where private keys are printed on a piece of paper or other physical medium.
Peer to Peer: A type of network where participants communicate directly with each other rather than through a centralised server. The Bitcoin network is peer to peer.
Private Key: A string of letters and numbers that can be used to spend bitcoins associated with a specific Bitcoin address.
Proof of Stake (PoS): allows miner to mine or validate block transactions according to how many coins they hold. This means that the more Bitcoin for example owned by a miner, the more mining power they have.
Proof of Work (PoW): A piece of data that requires a significant amount of computation to generate but requires a minimal amount of computation to be verified as being correct. Bitcoin uses proof of work to generate new blocks.
Protocol: The official rules that dictate how participants on a network must communicate. Bitcoin’s protocol specifies how each node connects with the others, how many bitcoins will exist at any point in time, and defines other aspects of the network.
Public Key: A string of letters and numbers that is derived from a private key. A public key allows one to receive bitcoins.
QR Code: A digital representation of a bitcoin public or private key that is easy to scan by digital cameras. QR codes are similar to barcodes found on physical products in that they are a machine-friendly way to embody a piece of data.
RaidenNetwork: provides an off-chain scaling solution with fast, low cost and scalable payments.
Signature: A portion of a Bitcoin transaction that proves that the owner of the private key has approved the transaction.
Satoshi: There are 100 million satoshi’s (8 decimal places) in one bitcoin. One satoshi = 0.0000001 bitcoins.
Satoshi Nakamoto: The inventor of Bitcoin.
Scam: a plan to rip people off. The crypto world has seen many Scams but if you are smart and do your research they are easily avoided.
SHA-256: The specific hash function used in the mining process to secure bitcoin transactions.
Sharding: Related to Ethereum. It is a database partitioning technique that will be used to dramatically scale ethereum’s blockchain and enable it to process more transactions per second.
Smart Contract: is an agreement between two people in computer code run on the blockchain, so they can’t be changed. The transactions that happen in a smart contract processed by the blockchain mean they can be sent automatically without a third party.
Soft Fork: is a change to the software protocol where only previously valid blocks/transactions are made invalid. Since old nodes will recognise the new blocks as valid, a soft fork is backward-compatible. This kind of fork requires only a majority of the miners upgrading to enforce the new rules.
Token: represent a particular fungible and tradable asset in the Crypto world.
TotalSupply is the total amount of coins in existence right now.
Transaction: An entry in the blockchain that describes a transfer of bitcoins from address to another. Bitcoin transactions may contain several inputs and outputs.
Transaction Fee: Also known as a “miner’s” fee, a transaction fee is an amount of bitcoin included in each transaction that is collected by miners. This is to encourage miners to add the transaction to a block.
Transaction Per Second (TPS): is defined as the number of transactions completed per second.
Vaporware: a product or coin that has been advertised but is not yet available to buy. Usually because it is still in the concept stage or is in early development.
Wei: is the smallest denomination of ether.
Whitepaper: It is prepared prior to launching a new currency/ICO. It details everything you need to know about the currency before making up your mind if you want to invest, purchase or use it. This includes commercial, technological and financial details of a new coin in a language that can be understood by someone who is not an expert in the space.
(Cryptonomics does not provide an in depth tutorial on trading, but outlines the most common terms related to trading in the cryptocurrency space.)
Arbitrage: is buying a coin low and selling the coin high. Sometimes different exchanges have different values for the coins which allows for arbitrage trading. It sounds easy in theory but watch out the the exchange fees.
ATH (All Time High): The highest value a particular coin has reached.
Bear Market: – When the Market is on a downwards trend, and the sentiment is persimistic, traders are selling off, and noone is buying to create a rally in prices.
Bollinger Bands: are a type of statistical chart characterising the prices and volatility over time of a coin using a method created by John Bollinger.
Bull Market:- When the Market is on a upwards trend, and the sentiment is optimistic, and prices are on the rise.
Dead Cat Bounce: is when a coin temporally increases after a sharp downturn, to only fall further. Eg $1000 to $500 to $600 to $300.
Dip: -The perceived low point or price in the market trend.
Fibbonnaci:- A commonly used analysis tool used to measure the percentage of gain and loss of a coin, to determine a good percentage to buy or sell at.
Fundamental Analysis: aims to determine whether a particular coin is a viable investment. Due to the variability in the crypto space this is done differently to the tradition stock market. In effect it is completing your research.
MACD(Moving Average Convergence/Divergence Indicator): It is a trend following indicator. It is used to identify new trends in the markets and investigate if a coin is worth purchasing.
Margin Trading: Many exchanges will give you the opportunity to Margin Trade. In essence, you are borrowing money to increase your capital to make bigger/more trades to make more profit. However, this also means you are increasing the amount you can lose. The exchange will always want there money back plus fees/interest. Not recommended for the newbie.
Order:- An request placed on an exchange to buy or sell a coin or token at a defined price
Pair:- When one currency can be sold or bought for another. eg AUD/BTC Bitcoin can be bought or sold for AUD or BTC/ETH Bitcoin can be bought or sold for Etherium.
Pump and Dump: Meaning to conspire to raise the value of a coin and then simultaneously dump/sell the coin for a large profit. Often completed by one or more whales.
Relative Strength Index(RSI): is an indicator that measures the magnitude of recent price changes to evaluate overbought or oversold conditions in the price of a stock or other asset. The RSI is displayed as a line graph that moves between two extremes. It can have a reading from 0 to 100.
Return on Investment (ROI): the way to calculate the ROI is: (Total Return – Initial investment) / Initial Investment. Eg (150-100) / 100 = .5 or 50%
Shorting: Is when you sell a coin hoping it will go down. It is often done by “borrowing” a coin and selling it then buying it pack at a cheaper price therefore making a profit. If however the coin goes up instead of down you make a loss.
STMA:- Short term moving average
Stop Loss:- A sell at a minimum price you want to sell for, it will only be triggered if the price falls down to this point from a previous higher price.
TA:- Technical analysis
Whales: Are powerful investors. An individual is considered a whale when he/she is powerful enough to significantly change the value of a coin. When you see an extreme and sudden jump on the chart of your coin, it is likely that there are one or more whales together influencing the value.
Bag Holder: -Someone who holds a vast amount of a particular cryptocurrency with the hopes of it increases in value.
DYOR: Do your own research
FOMO (Fear Of Missing Out): can result in buying high and selling low or holding a coin too long during a dip.
FUD (Fear, Uncertainty, and Doubt): Often spread on social media or mass media and results in coins losing value based on personal opinions/fears rather than charts or fundamentals. Basically listening to all the negativity about crypto or a specific coin.
HODL: A slang term meaning to hold a crypto currency long term through hard and good times. It was a meme spawned from a drunken rant by some one on bitcoin talk forum that miss spelled “hold” here is a link to the original post HODL ORIG. POST
Lambo: In the height of Bitcoins 2014 rise in value, some early adopters of bitcoin were able to purchase Lamborghini’s directly for bitcoin, while we are not sure if this was the origin of the term, but everyone is excited about the prospect of getting rich in bitcoin/crypto to buy “lambos”
Moon: -A common slang term in the community, crypto enthusiasts believe that at a coin will rise in value “to the moon”. the term is quite often accompanied by pictures of rocket ships heading to the moon.
Rekt: -buying the highest prices in the market just before the fall in price.
Shilling: to shill is to advertise or publicly endorse a coin while secretly being paid. The idea of shilling is to inflate the price of a coin for personal or group gain.
Stacking Sats: Collecting small amounts of Bitcoin (Satoshi’s) with the aim of accumulating a significant amount of Bitcoin.
The Flippening: refers to the potential day when Bitcoin is no longer the leading coin in the market.
Weak hands: -Someone who panic sells when there is a dip in the market.