Cryptocurrency Glossary

All-Time Low. The lowest price a cryptocurrency has ever reached.

Artificial Intelligence. As machines advance in intelligence, they are capable of learning from their environments and completing more complex tasks.

A term used to describe coins that do not require expensive equipment for mining. If a coin is ASIC-resistant, its mining is thought to be more fair and decentralized than coins that are not ASIC-resistant.

An event in which individuals that hold existing cryptocurrencies (like Bitcoin and Ethereum) are given tokens of a new cryptocurrency.

Wealthy individuals who contribute significant funds (usually over $1,000,000) to emerging projects.

A famous advocate of Bitcoin who has given speeches and presentations about Bitcoin all over the world.

An investor who has a net worth of over $1 million and/or an annual salary over $200,000-300,000.

Anti-Money Laundering. AML laws and restrictions require exchanges to obtain personal information about their customers and their activities.

A Bitcoin wallet that gives its users an aesthetically pleasing interface while still employing the core Bitcoin protocol.

A tool used to identify moments when an asset's price is relatively high or relatively low to inform trading decisions.

A company led by cypherpunk Adam Back that promotes second layer scaling solutions for Bitcoin.

A mechanism that destroys an amount of coins or tokens, thereby decreasing the total coin supply of a cryptocurrency. 

A transaction that combines multiple transactions into one for increased efficiency and decreased fees.

Bitcoin’s ticker symbol.

Bitcoin Improvement Protocol. New feature proposed for Bitcoin are BIPs.

A trader or speculator who believes cryptocurrency prices will rise.

The time it takes to mine a new block.

The original Bitcoin wallet, considered to be among the safest wallets available.

Pessimistic about the future of a cryptocurrency’s price.

The first successful hard fork of Bitcoin that allows the protocol to grow and scale by removing its block size limit.

A market in which most (or all) prices are falling.

1 Bit is equal to 1/1,000,000 of a Bitcoin. Not to be confused with the computer science definition in which 1 bit equals 0.125 bytes.

The first blockchain-based cryptocurrency, launched in 2009. Bitcoin remains the most influential and widely recognized coin. All other cryptocurrencies are known as "altcoins," simply because they are not Bitcoin.

Someone who uses Bitcoin regularly or is heavily involved in its technology.

A free, open-source web browser that aims to provide its users the best possible user experience by blocking trackers, hiding advertisements, respecting user privacy, and even offering a built in tipping mechanism that allows users to reward content creators.

A term used to describe cryptocurrency projects that facilitate programmable transactions rather than simply acting as methods to store and transfer value. Projects like Ethereum are known as Blockchain 2.0 contracts because they allow their users to create and execute smart contracts and develop decentralized apps.

The largest distributor of ASIC miners, run by Jihan Wu.

The first blockchain-based network that allows its users to store and transfer wealth.

A bank run occurs when many clients withdraw their money from a bank at the same time, because they believe the bank may cease to function in the near future. Banks do not hold everyone's money at once, they lend it out. So if everyone tries to get their money at the same time, they can't.

A new version of the Bitcoin Protocol developed using the Javascript programming language.

A cryptocurrency that relies solely on its own technology to function.

The first exchange that allowed individuals to buy and sell cryptocurrencies.

A trade on a popular cryptocurrency exchange.

Verifications of consensus by miners and/or nodes. After an individual sends payment on a blockchain, confirmations are required before the recipient can accept payment. 

Free movement of coins between individuals.

An irreversible list of all transactions that have ever occurred on a platform.

Advocates of using strong encryption to evade government spying. Cypherpunks were heavily involved in the early development of Bitcoin.

A paper written by Eric Huges that outlines Cypherpunks’ philosophy and vision. This Manifesto was a big influence on many early cryptocurrency enthusiasts.

No longer in production, these were physical coins created by Mike Caldwell that have private Bitcoin keys.

Addresses created to hold the remaining balance when users spend less than a full input. Mostly used in hierarchical deterministic wallets that can create an unlimited number of addresses.

Digital currency that uses cryptography. Bitcoin & Altcoins are all types of cryptocurrency. 

A famous problem that occurs when cryptocurrency is spent more than once. Miners and transaction finality ensure that double-spend cannot occur.

An aspect of the Darkcoin crpytocurrency that allows users to make anonymous transactions.

Distributed Denial of Service. A means by which a malicious individual shuts down another individual's internet connection by overloading it with requests.

Decentralized exchange. A platform (which isn't controlled by any single authority) that allows users to buy and sell cryptocurrencies.

The limiting or decreasing of a cryptocurrency's supply, which usually drives its price up.

Dynamic Proof of Work (dPoW) is currently in the early stages of development. Not many new blockchain projects are experimenting with it.

A set of data used to represent an entity on a network or on the Internet.

A metric for measuring bitcoin inactivity. Each day a Bitcoin remains unspent is another day added to its total number of Days Destroyed.

A tax on cryptocurrency holdings that encourages spending coins because they are constantly being destroyed.

A network that requires special software (like TOR) to access. Websites on the Darknet are much more difficult to shut down than normal websites. The Darknet was one of the first communities to use cryptocurrencies for transactions.

Software that allows its users the ability to store cryptocurrency on their personal computer.

A list of transactions that exists on every computer that elects to run blockchain software.

An organization that operates to earn profits for its shareholders (coin holders) by creating value for the free market.

A measure of how much hashing power (computing power) is required to find the next block on a blockchain. Difficulty increases over time on blockchains.

Uses nodes spread out across many different locations to achieve decentralization.

An over/under guessing game that uses random number generators to output results, allowing individuals to bet using cryptocurrencies.

The act of selling cryptocurrency.

Delegated Proof of Stake. A consensus mechanism that has a blockchain's nodes vote on the correct version of the blockchain. 

A cryptocurrency created by Vitalik Buterin that runs on Ether (ETH). Ethereum was the first blockchain-based technology to make smart contracts and decentralized applications possible.

The native tokens of the Ethereum platform. Required in order to send transactions or execute smart contracts.

Online platforms on which individuals can buy and sell cryptocurrencies.

An extremely secure messaging functionality offered by QRL.

Ethereum Virtual Machine. A testing environment on the Ethereum network for executing smart contracts and promoting security.

The analysis of the economic and political factors that affect the intrinsic value of an asset

A website that sends users small amounts of cryptocurrency intermittently and make money by advertising other services.

Paper money issued by governments as default currency. The US Dollar, Japenese Yen, Chinese Yuan, and Euro are all fiat currencies.

A CNBC show on which cryptocurrencies are frequently discussed.  

The idea that all units in a money supply are exactly equal. Fungibility is considered to be an essential aspect of effective currencies by many economists.

Financial technology (Fintech) is used to describe new technologies that seek to improve the use and delivery of financial services.

A change in a cryptocurrency’s software that does not make it incompatible with the original version.

A change in the original code of a software.

An open-source database for developers to create and share computer coding with a large community.

APR stands for Annual Percentage Rate. It's the interest rate charged during a whole year. For example: borrow $1,000 at 10% APR means at the end of the year you'll pay back $1,100. The extra $100 may be split into 12 payments, once per month, if that is how the creditor asks for them.

DeFi stands for Decentralized Finance. DeFi is a new financial system based on the use of decentralized blockchains and smart contracts to create new types of financial products.

The act of protecting an asset from risk. A hedge can protect against losses or even offset against gains.

A physical device that stores private keys.

A consensus mechanism that employs both Proof of Stake and Proof of Work algorithms.

The maximum amount of money a cryptocurrency’s founders will accept while raising money in exchange for early coins on their platform.

First made popular in a post by a drunken Bitcoiner who advocated buying but not selling Bitcoin, it is now a meme to intentionally misspell “hold.” Hodlers see huge potential in the future of a cryptocurrency and don’t plan on selling anytime soon.

An online wallet for storying cryptocurrencies. Considered less secure than cold wallets.

Hashgraph is a consensus alternative to blockchain. It uses a gossip protocol to spread transactions across the network by sending data to randomly chosen neighbors.

Internet Protocol Address. A series of numbers and periods used to identify computers communicating through a network.

Invisible Internet Project. A network layer that facilitates anonymous, censorship-resistant communication between users.

A request for communication from one node to another node.

The term used to refer to blockchains to describe the way in which blocks cannot be changed after they are recorded.  

Initial Public Offering. An event in which a company “goes public,” selling early shares of their business in exchange for funds.

A popular programming language.

CEO of Bitmain, the largest distributor of cryptocurrency mining machines.

An algorithm used to adjust mining difficulty so that all miners are given a fair chance at earning block rewards.

A limit order is an order where the price is determined by the trader. The trade is only executed if the market price reaches the trader's limit price or better.

Cryptocurrency that has had its origins intentionally obscured to hide evidence of illegal activities.

A cryptocurrency forked from Bitcoin known primarily for its decreased block time, which (theoretically) allows for faster transactions.

A type of exchange used to make it easier for individuals to exchange assets for usable currency.

A network layer that functions on top of the Bitcoin blockchain and allows for a huge number of low-fee microtransactions.

When a blockchain features several levels for scalability and encryption purposes, it can be said to be "Multi-Layered."

A node (device running the full software of a cryptocurrency) that fulfills more purposes than regular nodes - such as increasing privacy, providing instant transactions, and participating in governance.

The total value of a cryptocurrency. Calculated by multiplying a coin’s price by its total supply.

A method of intentionally obscuring the source of illegally-obtained funds.

A feature that requires several keys to authorize a single transaction, especially for dividing responsibility among separate parties.

Metamask is a Chrome extension which allows users to store and transact Ethereum and other ERC-20 tokens.

John McAfee (the creator of McAfee antivirus) is a cybersecurity mogul who is known for promoting cryptocurrency and speculating about altcoins.

A series of words that can be used to recover an account or wallet.

A fee paid to voluntary participants for using their computing power to verify transactions. When a miner mines a block they get a block reward as well as all the transaction fees in it.

A cryptocurrency that is very popular on the Darknet because it is considered to be more anonymous than Bitcoin and similar coins.

A mining rig is a computer used for mining cryptocurrencies. The rig might be a dedicated computer or it could be a computer that fills other needs too.

A mathematical problem that is solved by participants of a blockchain to verify transactions in exchange for block rewards.

The process by which new coins are created as transactions on a network are verified.

A group of people online who agree to combine their mining rigs into one for more collective mining power. They split rewards evenly based on each person's mining power.

A cryptocurrency exchange led by Mark Karpeles that allegedly lost millions of dollars in user funds.

A computer that runs a cryptocurrency’s software and validates transactions.

An individual that trades cryptocurrencies but does not have a high net worth or high salary, and is not elgiible for certain investment opportunities.

Digital agreements between users on NEO's platform that are carried out automatically when their terms are met.

An arbitrary number that is used only once in cryptography to make replay attacks impossible.

A block that is no longer a part of the original blockchain because it was not verified by the majority of miners.

A grouping of addresses that receive coins in a cryptocurrency transaction.

The initiator of communication on a cryptocurrency network.

Transfer of value that takes place outside of a blockchain for reduced fees and quicker transaction time.

A term used to describe software that is made available online so that any individual can view its code and submit improvements.

A cryptocurrency's main blockchain which connects its sidechains or subchains.

Proof-of-Importance is a consensus algorithm similar to PoS. Nodes "vest" currency to participate in the creation of blocks. Unlike PoS, Proof-of-Importance quantifies a person’s support of the network. NEM is using Proof-of-Importance.

A situation that occurs when an asset's market value is far higher than it's actual worth, making a sharp drop in price imminent.

Occurs when a cryptocurrency’s price shoots up and then quickly crashes. Pump and dumps are often coordinated manipulations of the market by groups of individuals for profit.

Peer-to-Peer. Refers to networks in which individuals connect to each other rather than a central authority.

Decentralized networks in which individuals interact with each other directly.

A process of storing information that cannot be changed or deleted.

A scalability solution for Ethereum that allows more transactions per second by introducing additional blockchains to the main Ethereum blockchain. 

A cryptocurrency that uses both PoW and PoS in its consensus mechanism to offer increased security.

a fraudulent type of operation where a company attracts investors to send money, with expected profits in return. The company pays back investor profits using later investors’ money. Once the company can no longer attract new investors, then payments cannot be made to clients, the company collapses and investors lose money.

A portion of the total supply of a cryptocurrency reserved for its founders. These funds are often marked as funds to pay developers or fund future ventures, but cryptocurencies with premines are generally viewed as less legitimate and fair those without premines.

Proof of Stake. A consensus mechanism in which individuals use their holdings of a cryptocurrency to secure the platform in exchange for rewards.

Private keys are used to spend cryptocurrencies.

PoP for short. A consensus mechanism used by DigixDAO to track the movements of physical assets, identify their ownership, and ensure their security.

Freedom from surveillance.

Permissionless refers to public blockchains (like Bitcoin) - anyone can generate an address and transact BTC.

The consensus algorithm introduced by Bitcoin. PoW requires miners to compete against each other to add new block and earn rewards.

An advanced form of computing that allows extremely complex problems to be solved very quickly. For cryptocurrency, quantum computing is important because once it is advanced enough, it may be capable of hacking private keys.

A method of increasing monetary supply (and lowering interest rates) by introducing new money to the market from a central authority.

An individual that contributes their tokens to Kyber Network's Dynamic Reserve Pool to improve the platform's liquidity.

Often referred to as Bitcoin Jesus, he was the first major Bitcoin and cryptocurrency investor.

RNG refers to 'Random Number Generator," which is the technological device responsible for producing random results, based on a game's established Return to Player (RTP) percentage. It is designed to avoid bias.

A plan that sets goals and deadlines for a project's future development.

A mathematical mechanism for combining a public address with a private address to ensure authenticity and prevent forging.

Any cryptocurrency pegged to a stable asset for the purpose of reducing price volatility.

The act of locking up one's coins or tokens to help verify transactions for cryptocurrencies with Proof of Stake consensus mechanisms. Stakers earn staking rewards for providing this service.

An individual who believes that the blocks in Bitcoin should be kept small so that anyone can run a full node.  

A financial instrument (stock, bond, etc) that has monetary value and can be bought, sold, and traded.

The minimum amount of funds that a cryptocurrency's founders wish to raise in an ICO. If an ICO does not meet its soft cap, it will often be canceled until a later date.

Simplified Payment Verification. Allows wallets to function by letting them connect to local nodes that have full copies of the blockchain rather than requiring download of the full blockchain (like Bitcoin Core).

The process by which a full database is split into smaller databases called shards. Sharding helps with the scalability of cryptocurrencies.

An individual who predicts future prices of assets and makes bets based on their predictions.

Secure Hash Algorithm 256. An algorithm used by some Proof of Work consensus mechanisms (most notably, Bitcoin's).

Agreements between two parties that self-execute when their terms are met and automatically cancel when their terms are not met.

A feature of the ARK cryptocurrency which allows separate blockchains to connect with each other and communicate.

Segregated Witnesses. A protocol implemented by Bitcoin to increase transaction speed. SegWit allows more transactions to be written into a single block on a blockchain.

An individual that volunteers to lock some of their coins or tokens up to verify transactions on a blockchain in exchange for staking rewards.

A type of password that an individual can use to recover their wallet.

A feature of PIVX that allows users to complete transactions instantly without needing to wait for confirmations.

Smart Contract. An agreement between two parties that carries itself out once its terms are met.

A block that has been worked on by a miner but is not included in the blockchain because another miner successfully completes another block first.

A fraudulent endeavor. In the cryptocurrency world, this often refers to the practice of fooling investors in some way.

A platform that functions alongside an existing blockchain protocol, allowing transactions to occur off of the main blockchain. Sidechains can be customized to allow features like faster transaction time and increased anonymity.

TradFi is short for Traditional Finance. It refers to traditional retail, commercial, and investment banks, and FinTechs.

A consensus method that allows users to transact anonymously and requires relatively little electricity. An alternative to PoW (Proof of Work) and PoS (Proof of Stake). 

A sequence of numbers used to identify the moment in time that a transaction occurred.

An individual who buys and sells cryptocurrency.

In the cryptocurrency sphere a Tether is a type of coin. This coin is ‘tethered’ or paired 1-to-1 with the U.S. Dollar.

A measure that describes the strength of association between an address and earlier transaction addresses.

The ability of a system to be trusted without the need of trusting the individuals with which you are transacting.

The Onion Router. A web browser that allows users anonymous access to darknet sites.

Test

Software preprogrammed to buy, sell, short, long or execute other trading strategies and commands when the owner is absent. Trading while asleep or away from the keyboard.

A feature of cryptocurrency exchanges that makes it easy for individuals to buy one cryptocurrency with a different cryptocurrency. For example, a BTC/DASH trading pair allows an individual to buy DASH with BTC or vice versa.

The practice of creating digital assets that represent real-world physical assets.

Software that changes an environment irreversibly after its release. For example, once Bitcoin’s code was launched and distributed amongst many machines, it virtually could not be stopped.

An adult person without an account at a bank or other financial institution. 

User-Issued Assets, Tokens that can be created on the BitShares network.

A measure used to describe the rate at which currency is exchanged from transaction to transaction.

Addresses that hold cryptocurrency. Instead of random alphanumeric strings, however, users with vanity addresses can choose specific words and phrases for their addresses, similar to vanity license plates,

An individual that invests in an emerging project with the hopes of earning a large return on their investment when the project succeeds.

A very wealthy individual capable of making large trades.

A list of registered and approved participants in an ICO. Whitelists are used to exclude non-accredited investors in order to better comply with regulations.

The filename which stores public and private keys for a full node.

The native currency of Monero.

Zero-Knowledge Succinct Non-Interactive Argument of Knowledge. Zk-SNARKs is a technology which allows cryptocurrencies to shield transaction information from uninvolved parties.

Even millions of dollars worth of security won't protect an individual if someone threatens to hit them with a $5 wrench unless they give up their passwords. The best defense is keeping quiet about your cryptocurrency holdings.

A hypothetical attack in which a malicious individual gains control of more than half of a cryptocurrency’s hashing power and is then able to re-write old blocks, allowing double-spend.