The Common Cryptocurrency Layman Words/Terms – The Crypto Dictionary…
The truth is that starting out in the cryptocurrency dynasty can be intimidating. Why? Because there are so many crypto terms and common words you will surely bump into.
And believe me, you may be screwed if you were reading a very interesting crypto post but got busted by a certain BIG cryptocurrency term.
For instance, the crypto slangs which has to do with Blockchain is enormous – a long walk I guess.
About the Blockchain common words, to say that you may be overwhelmed is an understatement, the whole truth is that you will encounter a whole lot of crypto slangs and terms used mostly on social media and forums.
And the result?
A big deal of a confusion which may lead to a crypto concussion – just kidding.
Now the big question is, what are the common cryptocurrency terms every crypto beginner must know, or what are the commonest Cryptocurrency slangs you’ve ever heard?
I guess you’ve heard HODL, FUD, and FOMO, but not crypto slangs such as Bollinger Band, Taint, P2PKH, TCP/IP and so on (unless you are not a beginner)
Don’t worry, I have put more time that you could imagine in order to make sure you “get along” with all of the cryptocurrency glossary words.
Okay, be my guest as I invite you to the Cryptocurrency Layman Words/Terms Banquet?
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LIST OF CRYPTO/BLOCKCHAIN TERMINOLOGY GUIDE – CRYPTO GLOSSARY
A crypto trading term meaning a profit of 10 times your amount.
For an example, 10x means that you’ve made 10 times of your amount. That is $10 x 10 = $100.
This is a cryptocurrency term that explains a situation where more than half of the computing power on a network is operated by a single individual or concentrated group, which gives them complete and total control over a network.
Sure, this is a way to disrupt a cryptocurrency’s Blockchain. And one of the ways to disrupt a cryptocurrency’s Blockchain is to control more than 51% of the network.
But see what it requires…
A massive computing power, and while possible on paper, the resources, coordination, and finances required to do this would make it almost impossible to achieve.
In this case, a 51% attack is only theoretical.
(Welcome to the Blockchain world – processes translates theoretically and physically)
An identifier of about 28 – 35 alphanumeric characters that represents a possible destination for crypto payment.
Also, an address is a hashed version of the public key. For an example, if it is a Bitcoin address, it will begin with 1, 2 or 3.
This is a short abbreviation for a Crypto key or public address. For an example, if someone wants to send you some Cryptos, he/she can say “Kindly tell me your ADDY.”
On the other way round, it makes it crypto transaction go “Private” as a non-crypto person wouldn’t know what that means should you two were in a public place.
A set of mathematical instructions or rules that need to be followed when solving a problem.
Any cryptocurrency other than Bitcoin. On the other hand, they are usually known as alternatives” to Bitcoin.
Some of them include Litecoin, Ethereum and more. You can find them in 1000s here.
A LONG POSITION
Purchasing of a specific cryptocurrency with an expectation that it will rise in value.
A SHORT POSITION
Selling of a specific cryptocurrency with an expectation that it will drop in value.
This means Altcoin market.
An event where the investors/participants are able to receive free tokens or coins into their digital wallet.
It was first carried out by Auroracoin in early 2014.
Defines Anti-Money Laundering laws.
A kind of wealthy individual who funds startup businesses with capital in exchange for debt or equity in the business (later on).
The class of cryptocurrencies that are based upon the platform cryptocurrencies. Check Out Platform Cryptocurrencies
The generation of risk-free profits by trading (simultaneous buying and selling of the cryptocurrency) on two different exchanges which have different prices for the same asset.
A trading situation whereby the price of a particular coin on one exchange is much higher than other trading platforms wherefore you can transfer your funds between those platforms for earning a good profit – (going for the best).
A situation when someone ends up losing all his money.
This connotes Application Specific Integrated Circuit.
A computer processing chip that is designed to perform 1 function only.
ASIC computers are mostly used to mine Bitcoin.
These computers can be connected directly to a computer or network wirelessly or with the use of an Ethernet cable.
All-time high. The A – all, T –Time & H – high.
This describes a situation when a cryptocurrency reaches its highest value point. We saw this in December 2017.
This connotes “not to be trusted” decentralized platform which is used for prediction markets.
Augur’s incentive ensures that the outcome of the prediction is free of prejudice, honest and accurate.
AUTONOMOUS DECENTRALIZED ORGANIZATION
A business or organization whose decisions are made electronically by a written computer code or through the vote of its members.
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A trader or investor who presently has to face negative consequences for holding on to a particular crypto for a substantially long span of time.
In another way, it means someone that is still holding a particular coin following a market crash typically as a result of a pump and dump situations.
The crypto community – people who expect the price of a coin to go down. They’re usually pessimistic!
An expectation that the value of a specific cryptocurrency is going to decrease.
When it finally happens as they predicted, that becomes Bearishness.
A market relating a down in the price of cryptocurrencies.
A manipulation of a stock or commodity by investors.
In another term, it defines a situation where a general uptrend reverses briefly and subsequently continues its upward movement.
Here, the Traders who “set” the bear trap do so by selling the stock until it fools other investors into thinking its upward trend in value has stopped or is dropping.
Funny enough, those who fall into the bear trap will often sell at that time, fearing a further drop in value.
At that point, the investors who set the trap will buy at the low price and will release the trap—which is essentially a false bear market. Once the bear trap is released, the value will even out, or even climb.
The bear trap is relative to FUD. So, beware of where you get your market new and analysis!.
A chain of blocks with each block referencing the block that preceded it. The most difficult blockchain to recreate is the Best Blockchain.
A sub-unit of Bitcoin. Often, it is expressed as either 0 or 1 in binary notation.
1 BTC is equivalent to 0.00000001 or 1,000,000 bits
However, this unit is more convenient for pricing tips, goods, and services. You will understand more when you transact on an exchange.
A open source virtual currency.
The very first open source and decentralized digital currency created by a Nakamoto.
Bitcoin was designed to regulate itself to deal with inflation and mathematically generate no more than 21 million Bitcoins. Currently, total Bitcoins mined stands at 17 Million.
Bitcoin is also known as a reserve currency for the altcoin ecosystem.
Digital files where data pertaining to a cryptocurrency network is permanently recorded.
In another understanding, a block is thus a permanent store of records which, once written, cannot be altered or removed.
A block records some or all of the most recent transactions that have not yet entered any prior blocks.
Thus a block is like a page of a ledger or record book.
A non-polluted distributed, public ledger that contains the history of every bitcoin transaction that ever occurred is recorded through the creation of new blocks.
Transactions made in bitcoin are recorded chronologically and publicly maintained by peer-to-peer network of computers.
As Google is a search engine to users, the Block Explorer is also a search engine for cryptocurrencies.
Block explorers allow you to query transactions, addresses, and other information. With it, you can view the contents of individual blocks, the status of transactions, the transaction histories as well as the balances of addresses.
An 80-byte header belonging to a single block hashed repeatedly to create a proof of work.
The number of blocks preceding the genesis block (first block) on the chain.
A Genesis block will always have a height of zero because nothing precedes it.
So Block Height is a metric used to create a bearing on time in the programming world as well as a few other functions such as maintaining counter-party and betting in the crypto world.
Coins that are paid to the computer (or pool of computers that find a working hash to complete a block in the mining process of cryptocurrencies.
The Verification of these transactions and the addition of blocks to the blockchain will essentially create new coins and the miner will be rewarded with a fraction of those new coins.
An open source, cryptographic protocol which operates on the Bitcoin network.
This protocol sets the “rules” for how the network runs.
A decentralized, peer-to-peer network which maintains the Blockchain. This is the powerhouse that processes all Bitcoin transactions.
Popularly known as a desktop wallet, BitcoinQT is an open source software client used by your computer.
This open source software client contains a copy of the Blockchain and once installed it turns your computer into a node in the Bitcoin Network.
BITCOIN DAYS DESTROYED
An estimate for the “velocity of money” within the Bitcoin network.
This is used because it gives greater weight to Bitcoins that have not been spent for a long time, and better represents the level of economic activity taking place with bitcoin than total transaction volume per day.
The margin around the price of a crypto that helps indicate when a coin is overbought or oversold.
In another understanding, it means Bands that use historical data in a market to indicate possibly volatility.
A brain wallet is a wallet that a user remembers their mnemonic phrase/private key and never writes it down.
BTC NEXT RSISTANCE
A crypto trading term meaning a sell point or range, as specified.
This signifies a selling point. That is, sell at that point.
BTC NEXT SUPPORT
BTC & XBT
Abbreviations for Bitcoin. On certain exchanges, XBT stands for Bitcoin.
BitMEX Trading exchange is one of them that lists it as XBT.
Connoting Buy The Dip.
This translate to Buying a coin when its value has experienced a significant decrease. Currently, we are facing BTD – as at 6/13/2018.
This connotes “Buy the Fucking Dip”. This crypto term aims to convince you to buy a coin even when it has been dumped in a grave manner.
An instability of a Blockchain due to an influx of more transactions. These transactions coming in which will eventually increase the Block Size.
A situation when a general downtrend reverses briefly and subsequently continues its downward movement.
Also, Bull Trap signifies a buying period.
An expectation that the value of a specific cryptocurrency is going to increase.
These are the crypto enthusiasts who expect the price of a coin to go up. They’re mainly optimistic!
So, I can say ICON coin will be bullished in two days’ time, right?
When it finally happens as they predicted, that becomes Bullishness.
A market that Cryptos are going up. The term relates to the direction in which a bull attacks (horns low to the ground, a bull strikes upwards)
The range you’ve got to buy and stop. For an example “#NXT 4500 – 4800 Satoshis”. This means buy NXT Coin between 4500 – 4800. Note, any negligence to this may result in loss of your bitcoin or Cryptocoins – based on your source of trading signal.
Buy below a certain threshold.
For an example, buy below 490 Satoshis. This means “buy 400 fractions of Bitcoin”.
A Huge amount of buy orders at the current market price.
Cryptocurrency Trading chart.
A deliberately distorted pronunciation of China which is one of the biggest players in crypto space dominating all trading and mining activities.
Set of methods or protocols to create, represent and manage real assets on the Blockchain Bitcoin.
A central ledger is an agreement of shared, replicable and synchronized data, spread across singular networks, across many CPU’s cryptography Cold storage keeping a reserve of crypto for security reasons in an offline wallet.
This comes in two types; hardware and paper wallet.
Securing a crypto in this way means that the private key could be written on a piece of paper or stored on a USB flash drive.
The Transaction that has been processed by the network and is highly unlikely to be reversed.
Also meaning a verification by nodes of all transactions on the Blockchain.
Even a single confirmation can be considered secure for low-value transactions, although, for larger amounts like 1000 US$, it makes sense to wait for 6 confirmations or more.
So, each verification of the transaction is called a confirmation.
A situation whereby several (usually most node in a network) all have the same block in their locally validated Blockchain.
A Consensus is achieved when all participants of the network agree on the validity of the transactions, ensuring that databases are exact copies of each other.
The block validation that full nodes follow to stay on a Blockchain.
The instability of cryptocurrencies in terms of price value.
A bubble occurs when an asset’s price exceeds its intrinsic value.
A cryptocurrency is a digital or virtual currency that uses advanced cryptography for security.
A cryptocurrency is difficult to counterfeit because of this security feature. This is how it was designed by Nakamoto Satoshi.
Cryptocurrencies can also be known as cryptocoins, cryptos, altcoins, digital coins and digital assets.
The process of using codes and ciphers to encrypt and decrypt sensitive information, messages or data.
The use of someone else’s computers to mine cryptocurrency without their consent.
This defines a security bug which may result when there is a rejection on a cached invalid outcome.
A decentralized application that exists on a Blockchain. Dapps are known for having proven 100% uptime.
Connotes Decentralized Autonomous Organizations
It defines A blockchain technology inspired organization or corporation that exists and operates without human intervention.
Darksend also known as Darkcoin’s means a decentralized mixing implementation, which was designed to give users of Darkcoin greater transactional privacy/anonymity.
Also known as deepweb.
This is a content online not indexed by search engines making it difficult to access.
The majority of content on the internet resides on the Darkweb and can be accessed using a program called TOR and other powerful VPNs.
As a matter of fact, this is where the illegal site Silk Road exists.
A cryptocurrency size cap due to transactions made on each coin recorded on the block. Bitcoin blocks for example were originally hard capped at 1MB, which is about 2,020 transactions. The Block size expands as transactions continue to grow.
DEAF AT BOUNCE
A short-lived price recovery after a huge market crash.
A copy of the Blockchain or digital ledger on every device connected to the network. It is an exact copy of the information that is open for everyone to see.
A decrease in the general price level of goods in an economy.
This takes place when a currency’s demand collapses.
We saw it some time ago when Mt.Gox sold an enormous amount of Bitcoin out from its storage.
Some believed that the sale made Bitcoin jumped from $17,000 to what it is today.
However, it is nothing new because the Crypto communities are used to it.
A fee charged as a penalty on users for hoarding unspent coins.
This fee may increase as time passes.
A wallet that stores the private keys on your computer, which allow the spending and management of your bitcoins.
This type of wallet is seemingly safe but malware can play with your coins.
A wallet based on a system of deriving multiple keys from a single starting point known as a seed.
This seed is all that is needed to restore a wallet if it is lost and can allow the creation of public addresses without the knowledge of the private key.
DEVCON OF ETHEREUM
This connotes “Developers Conference”. The Developers Conference is an annual event which consists of several days of meetings and conferences around the Blockchain of Ethereum.
A measure of the amount of computing power required to solve the hash of a block. The Difficulty comes in when the purpose is the mining of cryptocurrencies.
This amount of computing power is what increases to counteract increasing network hash rate in order to maintain a 10 minute confirmation time; re-adjusts every 2016 blocks.
Worthy to note that this consumes a lot of electrical power/energy.
Long red or green candles. This is a crypto signal that tells you that it is not favorable to trade at the moment.
A digital record of money received and maintained simultaneously by a network of computers. This sharing attitude makes it difficult for the Blockchain to be hacked or compromised.
This ledger is updated in every location, all at once, each time a transaction is made.
A hyper intelligence technique to outsmart the bitcoin network. How?
The act of spending the same bitcoins twice.
Now, if a malicious user tries to spend their bitcoins to two different recipients at the same time, this is double spending.
However, this is not always possible because the Blockchain plus Bitcoin mining exist to confirm all transactions and to prevent such fraud.
These are transactions so small that they are considered “spam” by the network. They are in Satoshis.
However, they are not relayed to stop people accidentally or deliberately clogging the blockchain.
This connotes Do Your Own Research.
Due to the volatility and the speculative nature of Cryptocurrencies, buyers and investors are always admonished to do their own research before committing resources to any crypto investment.
This way, they won’t need a therapist to regain their right mind or health imbalance.
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Cryptocurrency or digital tokens of Ethereum Blockchain network.
A Decentralized Platform, based on a Blockchain, allowing its network of users to create smart contracts. The Blockchain of Ethereum works with the currency “Ether”.
Unlike the Blockchain of bitcoin, focused on the monetary aspect, the Blockchain of Ethereum has options to accommodate very diverse programs. This options has made it possible for most Tokens to come to existence.
Connotes Exchange Traded Fund.
These are investment funds traded on stock markets that track the price index of an underlying asset.
The practice of having a third party act as an intermediary in a transaction. This third party holds the funds on and sends them off when the transaction is completed.
We have escrows in form of crypto exchanges. The best common examples are Remitano, LocalBitcoins.
A platform (centralized or decentralized) for exchanging (trading) different forms of cryptocurrencies.
These exchanges makes the cryptocurrency revolution worthwhile as cryptos are easily exchanged to local currency – paper money.
Some popular exchanges are BitMEX, Coinbase, Bittrex, and more.
An abbreviation for Fundamental Analysis.
A website which gives away free cryptocurrencies.
In here, no country is restricted from getting these free bounties as far as they are connected.
Generally known as local currency. Fiat money is a currency that is usually backed by a government or group and whose value is tied to the investing public’s confidence in the government that backs it.
Meaning, it has been declared legal tender by fiat (order or decree). Some examples are Rupees, US Dollar, British Pound, Euro, etc.
Taking an immediate action based on signal or purchasing a coin.
FOMO Line means “Fear of Missing Out.”
It can also be seen as an emotion experienced by those who haven’t bought any cryptocurrency and see prices continually rising.
Also, in the opposite direction, it can create a mindset that causes people to purchase a stock based on the premise that they may miss out on a good thing.
The effect is that it can lead to irrational decisions at inflated prices.
A split resulting in a new (updated) version of the original cryptocurrency.
This is possible when two separate computers create a block at the same time and block height.
Since both blocks are authentic, new blocks can then be built on the resulting split, known as a fork.
In reference to payment systems, a system is “frictionless” when there are zero transaction costs or restraints on trading.
Also, it defines a situation in payment system when there are zero transaction costs or restraints on trading.
“Fear, Uncertainty, Doubt” about a particular coin value. FUD like FOMO can also lead to irrational trading or investment decisions.
However, this news or propaganda as designed can lower the price of a specific coin.
Someone who spreads FUD.
This is a computer that connects to a Blockchain.
A positive quality where two or more of the same thing have identical value.
Here, a group of things may be substituted for another and it won’t change the value.
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The first block in the Blockchain. Like the Beginning block on the Blockchain.
This connotes “Graphics Processing Unit”.
The GPU is a specialized processor originally designed for the high graphics requirements of computer games.
These are also used to mine cryptocurrency since they outperform CPUs.
A 50% decrease in block reward after the mining of a pre-specified number of blocks.
Every 4 years, the “reward” for successfully mining a block of bitcoin is reduced by half. This is referred to as “Halving”.
For instance, the initial reward for mining a BitCoin Block was 50 BitCoins, which was reduced to 25 in 2012 after the first “halving” and half again to 12.25 bitcoins after the next halving.
The maximum amount a crowd sale will receive. Usually, we see this often with ICOs. It just defines the threshold amount of money they will get at the end of their sale. Maybe $50 Mln.
A permanent divergence from the previous software version of the Blockchain for a cryptocurrency, and nodes running previous versions will no longer be accepted by the newest version.
In another understanding,
It is a complete change to the protocol used for a particular cryptocurrency. Hard fork commonly occurs when non-upgraded nodes can validate blocks created by upgraded nodes following the newer consensus rules.
BitcoinCash for an example is a hard forked currency from Bitcoin.
Physical wallet devices that can securely store cryptocurrency maximally. Some examples are Ledger Nano S, Digital Bitbox and more.
A mathematical process that converts inputted data into a fixed length string, usually 32 characters.
A hash has to follow certain rules and formats and is formulated using very specific information, and must contain the previous hash and block information within itself together with some “dummy data” (a nonce) to produce a randomized hash.
Hash Rate measures the speed of how much computing power is being used to mine a coin on a network.
Hash rate is all about calculations for a mining process.
The network must make difficult mathematical operations for the purpose of security.
Initially, a misspelled version of “HOLD,”. HODL connotes “Hold On for Dear Life.”
This is a common acronym act of holding onto your coin disregarding the market sentiments and FUDster agents.
The acronym takes its root from a drunken typo on a message board and has become a folksy rallying cry for those who have held onto Bitcoin throughout its extreme volatility.
An opportunity to get access below – limited.
Similar to Initial Public Offering, ICO connotes “Initial Coin Offering”.
Startups issue their own token in exchange for ether. This is a typical crowdfunding on the ethereum platform whereby tokens or coin are offered to the investors normally in exchange against other stable cryptocurrencies like Bitcoin as well as Ethereum.
A clearer view: ICO occurs when someone plans on creating a new cryptocoin and wants to start selling it to the public.
Currently, these Blockchain projects are going on now.
Increasing your portfolio by buying more (cryptocoins for instance).
Experienced most with Fiat currencies, this defines an increase in the general price level of goods in an economy.
A reference to an output of a previous transaction. These inputs in a transaction contain three fields; an out point, signature script and a sequence.
Also, these Inputs to an address are added up, and this amount determines the amount a wallet can spend in outputs.
This connotes the “Joy Of Missing Out”. Perhaps you missed out buying some coins in a Deep, so you are excited.
KIMOTO GRAVITY WELL
A mining difficulty readjustment algorithm which was created in 2013 for Megacoin, an altcoin. The well allows difficulty readjustment to occur every block, instead of every 2016 blocks for Bitcoin
This was done as a response to concern about multi-pool mining schemes.
This connotes “Know Your Customer”.
Used to describe a series of laws and regulations which require businesses to know the identity of their customers.
This is important when considering the verification and authentication of a user.
Again this is mostly necessary if you want to use a credit card to purchase a coin or buy in large figures.
This stands for Lamborghini.
It comes to play as crypto enthusiasts would say, “I’m going to buy a Lambo with all of my profits trading Bitcoin/Cryptos.”
Also known as a “mixing service”.
This is the combination of combined funds from various users and redistributing them, thereby making tracing the bitcoins back to their original source very difficult by mixing their “taint”.
Trading with borrowed capital (margin) in order to increase the potential return of an investment.
Another version is trading with “borrowed” bitcoins/money.
This defines both the Limit Buy and Limit Sell wherefore an order placed by the traders to purchase or sell a cryptocurrency at a predefined price.
A limit buy order will only be executed at the limit price if not lower while a limit sell order will only be executed at the limit price if not higher
One of the first and best notable “altcoins”. Having a total coin supply of 84 million coins, Litecoin was created by Bobby Lee to be a “silver to bitcoin’s gold”. Also, instead of SHA256, Litecoin uses the Scrypt mining algorithm.
Based on usage, Litecoin has a 2.5 minute max confirmation times.
The availability of an asset to be bought and sold easily, without affecting its market price.
A situation where investors offer loans to others to trade within exchange for a set return.
As a financial instrument on cryptocurrency exchanges, liquidity swaps are contracts.
This connotes “Moving Average Convergence Divergence”.
It is a typical trend indicator that shows the relationship between two moving averages of prices.
A short-term for Market Capitalization.
Market Capitalization refers to the market value of a particular cryptocurrency.
It is computed by multiplying the Price of an individual unit of coins by the total circulating supply of the coins.
How to determine each currency on the Market Cap, you will have to do this = (Price of Individual Unit of Coin) X (Circulating Supply).
The trading of assets or securities bought with borrowed money.
When a margin order is placed, the money that you are using is essentially borrowed from other users in the exchange that offers their funds as loans.
Here, a trader usually contributes an initial amount which is then used as collateral for their debt.
This form of trading is no-go-area for beginners as it is highly risky.
A crypto exchange that offers this is CEX.
Market Order defines both Market buy/Market Sell.
On a plain term, it is an order placed by the traders to be executed on the spot at the best price that the market currently offers.
Market Orders are filled as long as there are sellers and buyers willing to perform the trade.
A situation whereby a miner has to work on multiple Blockchains simultaneously, contributing to the hash rate (and thus security) of both currencies being mined.
An example of a crypto that has implemented merged mining with Bitcoin is Namecoin.
The Transaction of a few cents or small to tiny sums of money. Micro-transactions if with our local banks may be too costly to achieve because fees are indeed higher than the amount of the transactions). So, with the Blockchain, the problem is solved.
This denotes a metric of Bitcoin.
For instance, a metric of 1 thousandth of a bitcoin equals (0.001 BTC).
A computer participating in any cryptocurrency network performing proof of work. This is usually done to receive block rewards.
The process by which transactions are verified and added to the public ledger, known as the Blockchain, and also the means through which new Bitcoins are released.
Anyone with access to the internet and suitable hardware can participate in mining. The mining process involves compiling recent transactions into blocks and trying to solve a computationally difficult puzzle or algorithm.
The participant who first solves the puzzle gets to place the next block on the Blockchain and claim the rewards.
The algorithm used by a cryptocurrency to sign transactions. These vary across different cryptocurrencies.
Bitcoin’s mining algorithm is SHA256, whilst Litecoin & Dogecoin’s are Scrypt.
A method of investing in bitcoin mining hardware, allowing anyone to rent out a pre-specified amount of hashing power, for an agreed amount of time.
The mining service takes care of hardware maintenance, hosting and electricity costs, making it simpler for investors.
A group of miners who have decided to combine their computing power for mining. This allows rewards to be distributed more consistently among participants in the pool.
A computer specially designed for processing proof-of-work Blockchain, like Ethereum.
They often consist of multiple high-end graphics processors (GPUs) to maximize their processing power.
The process of rewarding users in proof of stake coins. New coins are minted as the reward for verifying transactions in a block.
The combination of combined funds from various users and redistributing them, thereby making tracing the bitcoins back to their original source very difficult by mixing their “taint”.
A wallet which runs a “mobile client”, allowing people to have bitcoin wallets on their phones and tablet computers and pay on the go.
Most Mobile Wallets are available for both iOS and Android users.
A situation the price of a coin rapidly increases in value.
So, it’s “shooting up to the moon” or “mooning” signify a great appreciation.
The act of trying to “clean” money earned from criminal activity by converting these profits to what appear to be legitimate assets.
A Bitcoin exchange based in Japan that collapsed in February 2014 due to poor security practices and incompetent management.
Also, it was the very first crypto exchange that suffered a MAJOR heist in HISTORY Of theft.
The exchange was managed by Mark Karpeles.
Also known as multi-signature, this refers to having more than one signature to approve a transaction. This form of security is beneficial for a corporate organization receiving money into their BTC wallet.
If a company wants to keep her Bitcoin or Cryptocoins in a wallet such that one employee doesn’t have an access to transact with it individually/privately, Multisig allows a transaction to be verified by the parties that gave their initial signatory (before withdrawals or any transaction can be completed).
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Also known as NMC, Namecoin is an Altcoin which implemented a distributed DNS (domain name system) amongst other features.
This distributed DNS helps people using the .bit website domain to resist internet censorship.
An increase in the value of a good or service that occurs when its use becomes more widespread.
NFC Connotes “Near Field Communication”. In essence, NFC is a low power, short range method of wireless communication.
NFC can be used to build upon RFID systems and is what contactless smart cards (Oyster cards) and payment systems (Paypass) use. The most recently implemented in the Apple Pay app.
A computer that connects to a cryptocurrency network and helps to verify the Blockchain’s accuracy.
The node can also be a copy of the ledger operated by a computer that connects to the blockchain network is regarded as a node.
A random number used once when a miner attempts to hash a transaction block. The parameters of these numbers are set by the “difficulty”.
OBSERVE THE CANDLE
A crypto trading term meaning to watch or observe the trading chart.
OFF BLOCKCHAIN TRANSACTIONS
Exchanges of value which occur off the Blockchain between trusted parties. These occur because they are quicker and do not bloat the Blockchain.
A valid block which is discarded by the network after the Blockchain has “forked” and then re-achieved consensus on a single Blockchain again.
In a clearer term, this means valid blocks which are not part of the main chain.
Orphanded Block usually happens after two miners simultaneously solve a block, temporarily resulting in two valid blocks in the Blockchain.
Also, it can be caused by an attacker (with enough hashing power) attempting to reverse transactions
The practice of sharing the source code for a piece of computer software, allowing it to be distributed and altered by anyone.
This connotes “Over the Counter”.
These exchanges are places where trading is done directly between the two parties involved in the transaction, allowing traders to escape some of the limitations set by trading on formalized exchanges.
A part of the transaction which contains instructions for sending of bitcoin.
A sequentially numbered index of outputs in a single transaction starting from zero.
This connotes “Over The Counter”.
This connotes Peer to Peer Network or a person-to-person.
Peer-to-peer has become a very large focus of Blockchain as it decorates the beauty of decentralization.
The Blockchain is all about p2p, so, nearly every interaction on the Blockchain is P2P fulfilled.
This P2P cancels out all centralized variable like a store, bank or notary.
A bitcoin payment address containing a hashed public key thereby allowing the spender to create a standard Pubkey script that pays to public key hash.
P2PKH connotes Pay to Public Key Hash.
A form of “cold storage” where the private keys are printed onto a piece of paper and stored offline.
Considered as one of the safest crypto wallets, the truth is that it majors in sweeping coins from your wallets.
Using means you know how to spell the word 100% CAREFULNESS.
This is a computer that connects to the Blockchain network.
A focus on the verification of the Blockchain transactions.
Platform cryptocurrencies provide the foundation as well as buildings blocks that allows the swift development of other decentralized apps/cryptocurrencies.
The mining of a cryptocurrency by its developers before it is released to the public.
Cryptocurrencies mined by developers before it is released to the public which is non-regulated and may be vague coins or what is called scammy coins.
Price Bubble is used to define both Pump and Dump. Ordinarily, it is an economic cycle in which the price of a security or asset will surge unsustainably, and then crash as a selloff occurs.
This is usually caused by speculation and has been observable in bitcoin’s past prices. When done deliberately, this is known as a “Pump and Dump”. See Surge…
The advent of privacy a cryptocurrency grants her investors. Some of the coins that are good at this are Monero and Zcash.
Unlike Bitcoin, what they do is to shield the fund stored in a given address from the public.
A private portion of a keypair which can create signatures that other people can verify using the public key.
Another definition, a Private Key is a string of secret alpha-numeric characters which allows you to access your tokens in a specific wallet.
This alphanumeric codes should be kept secret at all times as it is instrumental in accessing your crypto wallet. It should never be disclosed to anyone other than the owner of the address.
Also, if you call it password or passcode, you won’t be wrong.
PROOF OF BURN
A method of “burning” one Proof of Work cryptocurrency in order to receive a different cryptocurrency.
This is a form of “bootstrapping” one cryptocurrency off another and is done by sending coins to a verifiable unspendable address. See Proof of Work.
PROOF OF EXISTENCE
A service provided through the Blockchain that allows anyone to anonymously and securely store a proof of existence for any document they choose online.
This allows people to prove that a document existed at a certain point in time and demonstrate their ownership of it, without fear of that proof being taken from them.
PROOF OF STAKE (POS)
A consensus distribution algorithm which essentially rewards you based upon the amount of the coin that you own.
In other words, more investment in the coin will leads to more gain when you mine with this protocol In Proof of Stake, the resource held by the “miner” is their stake in the currency.
Mostly know as POW, this is the type of mining algorithm Bitcoin uses, and it’s a method of determining who signs transactions in the Blockchain.
In a simpler term, it means doing more “work” or in other words, providing more computational power in order to get rewarded with more coins.
PROOF OF WORK (POW)
The competition of computers competing to solve a tough crypto math problem.
The first computer that does this is allowed to create new blocks and record information.” The miner is then usually rewarded via transaction fees.
Proof of work and proof of stake are 2 algorithms for reaching consensus across a blockchain.
To ensure the safety, security, incorruptibility, and anonymity of cryptocurrencies being traded without the need for a centralized database or bank, there needs to be a way prove your work (PoW) or prove that you have a stake (PoS)
A unique address consisting of numbers and letters that you give out to receive cryptocurrencies.
This unique keypair can be used to verify signatures made by the public portion of the keypair.
In a clearer term, a public key is just like a bank account number. It is used to accept cryptocurrency to your wallet. See below.
33SukfqMSapz5gjwHz2jVaAcSHZyD92cVk – Bitcoin wallet address; starting with the digit – 3.
PUMP & DUMP
Massive buying and selling activity of cryptocurrencies (sometimes organized and to one’s benefit ) which essentially result in a phenomenon where the significant surge in the value of coin followed by a huge crash take place in a short time frame.
This occurs when traders artificially inflate the assets price and then exit their positions, causing a price collapse.
Pump & Dump can be caused by FUDsters and Whales.
This is a script included in output which sets the conditions that must be fulfilled for Satoshis to be spent.
A form of monetary policy where a Central Bank purchases government securities with cash which did not exist before, in order to increase the money supply and lower interest rates.
This connotes “Quick Response” code.
The QR codes are 2d Barcodes which can have data encoded onto them.
This defines the process of billing a spender on a regular schedule.
A set of phrases you are given whereby you can regain or access your wallet should you lose the private key to your wallets – paper, mobile, desktop, and hardware wallet.
These phrases are some random 12-24 words.
A recovery Phrase can also be called as Recovery seed, Seed Key, Recovery Key, or Seed Phrase. So, you want to save the words.
A transaction where there is a refund of some or all cryptocurrencies already received. This can happen maybe as a compensation due to a hack or whatever reason as it might be.
A slang referring to the word “wrecked”. It defines a situation whereby an investor or trader who has been ruined utterly following the massive losses suffered in crypto industry.
A sum of money being sent, usually internationally, as a payment or gift.
A period a recordable peer-to-peer transaction is verified on the Blockchain.
This is important because recordable transactions can become time-consuming with the number of Blocks involved. Bitcoin, for instance, is currently creating one Block every minute.
This term is mostly used in crypto trading.
It defines a situation whereby you’ve closed a trade in profit.
This refers to an investor or trader who cannot predict price movements properly.
An alternative payment network to Bitcoin based on similar cryptography.
The ripple network uses XRP as currency and is capable of sending any asset type.
ROI connotes Return on Investment.
It defines the percentage of how much money has been made compared to an initial investment.
A popular metric to measure the profitability of an investment, calculated via dividing the net profit by the net investment amount X 100%.
For an example, a 100% ROI indicates that you have doubled your money.
Connoting Relative Strength Index, RSI, is a trading indicator which is frequently employed in a technical analysis
The smallest unit of a bitcoin currently available (0.00000001BTC).
Satoshi can be earned and sold in tiny amounts!
This was the pseudonym for the mysterious creator of Bitcoin.
Always had been known as the mysterious creator of Bitcoin. But yet, just a few days ago, his true identity was revealed. Check out Bitcoin for Dummies as you go on.
The ability of a cryptocurrency to contain the massive use of its Blockchain. Many believe that Bitcoin shall have this problem. Yet, there are ways to curb it for now. But other cryptocurrencies like Zilliga, EOS and more have all come in to help out.
Coins created as get rich quick schemes by their developers. These coins usually have certain properties, such as being clones of an existing coin and being pre-mined.
Usually, investors are advised to know the coins they get involved with.
A Pubkey Scripts in code. See PUBKEY?
An alternative Proof of Work scheme to SHA256.
This mining algorithm is used by Altcoins. Some of them include Litecoin, Dogecoin, and many other cryptocurrencies.
Originally touted as being “ASIC resistant” due to its heavier memory requirements, ASICs have now been released for mining Scrypt.
The private key used in a “deterministic wallet”.
SELF EXECUTING CONTRACT
Also known as “smart contracts”, these are protocols that facilitate or enforce the obligations of a contract without the need for human intervention.
SEGREGATED WITNESS SOFT FORK
A software designed primarily to solve transaction malleability and improve the capped Block size issues.
SEGWIT (Segregated Witness)
An improvement to the core way Bitcoin handles transactions in order to make the Bitcoin network approve more transactions with each block.
A scaling solution for the Blockchain. It is generally a method that allows nodes to have partial copies of the complete blockchain in order to increase overall network performance and consensus speeds.
These are theoretical, independent Blockchains which are “two way pegged” to the Bitcoin blockchain.
These independent Blockchains can have their own unique features and can have bitcoins sent to and from them.
A signature defines a mathematical operation that lets anyone prove their sole ownership over their wallet, coin, or data.
An example is how a Bitcoin wallet may have a public address, but only a private key can verify with the whole network that a signature matches and a transaction is valid.
Look at it as your normal signature. So, this is only known to the owner and are mathematically impossible to uncover.
An abbreviation for Simplified Payment Verification (SPV). This defines a Data generated by a spender which is always used as variables to satisfy a Pubkey.
Also, it is a method for validating if (a particular) transactions are included in the block without downloading the whole block.
However, this method is used primarily by some bitcoin network clients.
The signature scripts in terms of codes.
The online marketplace where drugs and other illicit items were traded for Bitcoin.
This marketplace is using accessed through “TOR”, and VPNs.
In October 201, a Silk Road was shut down in by the FBI.
Certain computational benchmarks or barriers that have to be met in turn for money or data to be deposited or even be used to verify things such as land rights.
A two-way smart contract is an unalterable agreement stored on the blockchain that has specific logic operations akin to a real-world contract.
Rule 1. Once signed, it can never be altered.
An individual who speculates on the price of bitcoin or any other form of asset aiming to make profits by buying and selling at different prices.
This connotes “Simplified Payment Verification”. This allows mobile clients to make payments without needing a copy of the entire blockchain.
Spreading buzz by heavily promoting a particular coin in the community to create awareness.
Coin with little potential or future prospects.
An amount received at which a crowd sale will be quantified as a success.
Essentially similar to a hard fork, this is a change to bitcoin protocol wherein only valid blocks/transactions are made valid.
During soft fork, one Blockchain of a cryptocurrency will remain as the users adopt the modifications and update.
A soft fork is backward-compatible.
A crypto wallet that exists purely as software files on a computer. Usually, software wallets can be generated for free from a variety of sources.
An Ethereum’s programming language for writing/implementing smart contracts.
Any second a block needs to be “solved.” That is, everyone else in the world working on that block must stop, and restart their work.
Continuing to work after that point is known as working on a “stale block” because it is old data and old transactions.
A block that has already been solved and thus cannot offer miners any reward for further work on it. Just see it as an already excavated land.
A cryptocoin with an extremely low volatility that can be used to trade against the overall market.
This always gives an impression that the coin would go up significantly in terms of its value, most of the time with the pretense of sincerity.
A process where a cryptocurrency appreciates or goes up in price.
This defines a Zig Zag price movement of crypto. The swing just explains the Upward and downward movement of coins – the volatility effect.
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An abbreviation for Technical Analysis or Trend Analysis. TA defines a financial analysis that takes advantage of the patterns in market movement in order to identify trends and perform relevant predictions.
An example of a Technical analyzer can be found at CoinTracking.
A measure of correlation between two addresses, this is used in attempts to track a coin’s history.
The opposite of “mooning.”
We say a coin is Tanking when there is a crash in a crypto market.
This connotes “Transmission Control Protocol”/“Internet Protocol” and is the connection protocol used by the internet.
An alternative Blockchain on which developers can test and experiment with changes to a cryptocurrency without the risk of damaging or interfering with the real Blockchain.
THE MARKEL TREE
A tree constructed by a hashing paired data, then pairing and hashing the result until a single hash remains.
A proof that a piece of data existed at a certain point in time. For Bitcoin, this is the cryptographic proof of when transactions have taken place.
A unit of value that is created on a Blockchain that acts as a host for it. Ordinarily, Tokens do not have their own Blockchain (house).
Also, Tokens are projects built on the Ethereum network (house). The Ethereum Tokens are known as ERC-20 Tokens. Some of the examples are EOS, ICON, BNB, and Golem and more.
This connotes “The Onion Router” and is a free web browser designed to protect users’ anonymity and resist censorship.
Tor is usually used surfing the web anonymously and access sites on the “Darkweb”.
TOTAL COIN SUPPLY
A limit on the total number of coins that will ever come into existence. For an example, Bitcoin’s total supply is capped at 21 million coins.
TO THE MOON
This is a situation whereby the value of a coin rises to astronomical heights. Something like ATH.
A group of transactions that are collected and hashed on the Bitcoin network by being added to the Blockchain.
The category which cryptocurrency is originally intended for – to remove the control of central authority and cutting out the middleman in our day to day transaction.
An amount of money users are charged from their transaction when sending cryptocurrencies.
This is “optional” and used to give miners incentive to quickly process their transaction since they receive the fee as a reward for doing so.
Also, certain crypto exchanges may have their own transaction fees, at times calling it service fees/charges.
This connotes “Transaction Identifiers”.
They are used to uniquely identify a particular transaction special to the sha256d hash of the transaction. See an example below.
An ability for a receiver to encode payment so spenders don’t have to manually enter an address and other details.
An unspent transaction output that can be spent as an input in a new transaction.
A cryptocurrency designed for a specific purpose. Siacoin is one of the notable examples. Why? Siacoin is designed to facilitate a decentralized storage network which is a fairly unique concept and novel application of Blockchain technology.
We have others like EOS, Ontology, Monero, and more.
A bitcoin address which contains a desired word/pattern or sequence of numbers. Kind of a customized LAMBO Number Plate.
An Example is: 1JAMES2K4rWaduCmCds36ox2VXdeBE7LNd – as a Bitcoin Wallet Address.
A project that has been advertised but never actually implemented.
The rules that full nodes follow to stay in a consensus with other nodes.
VELOCITY OF MONEY
An indicator of how quickly money received is then spent again.
For bitcoin, we use “bitcoin days destroyed” to measure its velocity, this can indicate whether people are hoarding or spending their bitcoins.
Like angel investor, this is an individual or organization that provide initial funding for start-up business ventures that cannot access public funding.
This money is known as “seed funding”, and is usually exchanged for equity in the start-up.
A bitcoin that has been received by a miner as a block reward, and thus has never been “spent” before.
A measure of fluctuations in the price of a financial instrument over time. High volatility in bitcoin is seen as risky since its shifting value discourages people from spending or accepting it.
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A storage facility to securely lock away your cryptocurrency private keys.
There are a number of different wallets; web wallets, desktop wallets, hardware wallets, mobile wallets, paper wallets and brain wallets.
Someone that is in possession of a tremendous amount of cryptocurrency or fiat money.
Also, a whale has the power to influence prices easily.
Before now, an example was Mr. McAfee.
A comprehensive report or guide made to understand an issue or help decision making.
It is also seen as a technical write up that most cryptocurrencies provide to take a deep look into the structure and plan of the cryptocurrency/Blockchain project. Satoshi Nakamoto was the first to release a whitepaper on Bitcoin, titled “Bitcoin: A Peer-to-Peer Electronic Cash System” in late 2008.
An electronic method of transferring money from one party to another.
A project aimed at implementing true anonymity into the Bitcoin network.
ZERO CONFIRMATION TRANSACTION
Also known as “unconfirmed transactions”, Zero Confirmation transaction is a bitcoin transaction that has been relayed to nodes in the Bitcoin network but has not yet been incorporated into a block.
That was a kind of Cryptocurrency technical terms and meanings you will ever live to remember.
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Great, you have seen the Common Cryptocurrency Layman Words/Terms you might not have known.
Alright, do let me know if there is/are more Crypto slangs you’ve come across that it not enlisted here
Source Codes: Cryptoverze.com, Investopedia.com. Cryptomustache.com, decryptocurrency.com, Kryptonomics.com