Cryptocurrency Glossary

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

The practice of buying and selling the same coins on different exchanges at the same time to take advantage of price differences.

A process for solving a mathematical problem. In blockchains consensus algorithms are used to verify transactions.

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 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.

Highly specialized computing machines that are far more efficient for mining than CPUs and GPUs. Jihan Wu (a Chinese businessman) is responsible for creating and selling many ASIC Miners.

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

Optimistic about the future of a cryptocurrency’s price.

A trader or speculator who believes cryptocurrency prices will rise.

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

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

The amount of data that can be stored in one block of a given blockchain. For example, the Block Size limit of Bitcoin is 1MB. Larger block size allows for more transactions per block. Thus, it’s not that transactions are “faster” or “slower”. It’s that transactions may be seemingly faster because the network is handling more transactions at a time.

Pessimistic about the future of a cryptocurrency’s price.

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 first blockchain-based peer-to-peer protocol that allows its users to store and transfer wealth.

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

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.

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

a high-yield ponzi scheme in the cryptocurrency market, guarantee profits to investors. Customer losses are estimated to have exceeded $1 billion and was shut down in January 2018.

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 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 short rise in a cryptocurrency’s price that makes investors think the price will continue to rise. Instead, the price falls significantly following the rise, fooling the “bulls.”  

An individual who believes that increasing Bitcoin’s block size would improve its scalability. Roger Ver is the most notable Big Blocker.

A regretful investor who bought a crypto (or cryptos) believing they would appreciate in value. Instead, the crypto decreased in value and the investor is left "holding bags."

A segment of data recorded on the blockchain that can contain transactions and other information.

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

A condition that affects cryptocurrencies when the data stored reaches very large sizes due to increasing numbers of users and transactions. When blockchain bloat gets severe, transaction speed suffers.

An offline wallet for holding cryptocurrencies. Considered more secure than hot wallets.

A general agreement among participants using and mining a cryptocurrency.

Free movement of coins between individuals.

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.

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

Controlled by one group or within one certain area.

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. 

An aspect of the Bitcoin Core wallet that allows users to specify which coins they wish to spend and which Change Addresses any remaining balance will be sent to.

An asset, of any kind, that a lender will accept to secure a loan. If the borrower doesn't pay back the loan -- the lender keeps or sells the asset.

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

Decentralized Autonomous Organization. An organization governed by smart contracts founded to allocate funds to cryptocurrency projects.

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

A consensus mechanism that uses professional nodes to broadcast a version of the blockchain. If two thirds or more of the nodes agree, that block is written onto the chain. 

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

An application created to run on a user's PC.

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

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

A cryptocurrency that uses the “Doge” meme with a cult-like following.

A unique, encrypted output that cannot be duplicated. Useful for creating digital identities and confirming authenticity.

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

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.

Directed Acyclic Graphs. Also referred to as “Tangle.” DAG is an alternative to the “chain of blocks” architecture used in many crypto projects.

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

DAA. A collection or portfolio of assorted cryptocurrencies. For example, one Digital Asset Array could contain BTC, ETH, and DASH.

A feature which allows KyberNetwork to maintain high levels of liquidity. The DRP keeps reserves of cryptocurrencies and establishes rates of exchange between them, allowing any user to easily trade one crypto for another.

A digital wallet address is a combination of letters and numbers that pseudonymously represent an account number for digital holdings. 

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

Online platforms on which individuals can buy and sell cryptocurrencies.

A third party used to facilitate transactions and increase security.

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

Exchange Traded Fund. A group of assets that can be bought or sold as a single asset.

The predominant standard for creating smart contracts on the Ethereum blockchain. Others may include ERC 721, ERC888, and more

A change in a cryptocurrency’s software that makes it incompatible with the original version. For example, any block size increase in the Bitcoin protocol constitutes a hard fork.

An amount of coins paid to users for participating in PoS consensus.

A change in the original code of a software.

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.

Fear of Missing Out. Investors with FOMO buy cryptocurrency (emotionally rather than logically) for fear of missing out on profits.

Fear Uncertainty and Doubt. The emotional (rather than logical) belief that cryptocurrency prices will fall.

A percentage of block reward that is paid to the founders of a cryptocurrency rather than to its miners. Zcash is a cryptocurrency with a Founders’ Reward.

The first block mined on a blockchain.

LTV stands for Loan-to-value. The ratio expresses the amount of a loan compared to the value of an asset. For example: taking a $1,000 loan and putting up $2,000 worth of Bitcoin as collateral = 50% LTV. The loan is worth 50% of the bitcoin collateral securing it.

Graphics Processing Unit. Hardware that can be used for mining some cryptocurrencies.

The power of a mining rig. Similar in concept to the Horse Power of a vehicle.

Output emitted from an algorithm for maintaining consensus on a blockchain.

The number of hashes a miner performs over a given period of time.

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.

The process of intermittently decreasing the block reward given to cryptocurrency miners by 50%.

Someone who does not sell, but holds on to his coins. "HODL"  was originally a typo but it gained the status of a funny backronym: “Hold on for dear life”.

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

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

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

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.  

Internal Revenue Service. A US tax collection agency that demands information from cryptocurrency exchanges for various reasons.

A feature of Komodo that offers its users private payments. Jumblr works by exchanging the cryptocurrency being used for payment and mixing it among other cryptos prior to the making an anonymous transaction.

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

Software that records every button press of an individual’s keyboard. Often used to hack into accounts by recording passwords.

Purchasing a coin with the expectation to sell it at a higher price sometime in the future for a profit. Basically profiting from the rising price of an asset.

A cryptocurrency meme, short for Lamborghinis. When investors' coins' prices go to the Moon, they can buy Lambos.

Borrowed money used to trade assets.

The measure of how quickly an asset can be exchanged for usable currency.

The practice of borrowing money to buy and sell assets.

A pre-planned trade set to execute if a cryptocurrency reaches a certain price.

The ability of machines and computers to integrate data and learn from it without being programmed to do so.

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

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

An agreement that allows individuals to sell their computing power for the purposes of verifying transactions on a blockchain.

The process by which users on a PoS blockchain verify transactions and receive new coins for their participation.

The version of a protocol that uses real money. A cryptocurrency is generally considered to be “live” after the first Mainnet block (the genesis block) is mined.

A sub-unit of Bitcoin: 1000 mBTC equal 1 BTC.

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

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

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.

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

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

An individual that volunteers computing power to verify transactions on a blockchain in exchange for block rewards.

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

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

A popular framework for JavaScript code to be written in. 

The quality by which cryptocurrencies become more useful as more people use them.

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

Operations Security. Refers to how well assets are protected.

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

The initiator of communication on a cryptocurrency network.

Any cryptocurrency that focuses on maintaining private transactions between users. Examples are Dash, ZCash, and Monero.

Proof of Work. A consensus mechanism for verifying transactions with computing power that creates new coins in the process.

An address that individuals share with others to receive cryptocurrency.  

A physical piece of paper containing a private key, a public key, and often corresponding QR codes.

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

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 social attack in which a malicious individual masquerades as a trustworthy person in an attempt to fool the victim into giving up personal information (like passwords).

Outputs of an algorithm that can be examined and verified. This term is commonly used in cryptocurrency gambling.

Pseudonymity is an almost anonymous state in which users have a unique identifier that is different from their real name.

PoS. A method of minting new coins and securing a platform by allowing users to stake their coins and receive more coins as a reward. Introduced as an energy efficient alternative to PoW (Proof of Work).

A consensus mechanism for verifying a blockchain in which miners send coins to an unspendable address

Short for Price Down Limit. PDL is a price set by DeFi platforms. If the collateral crypto price decreases below the PDL set , customers' collaterals will be sold.

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

PoI stands for Proof-of-Importance. It is a new consensus algorithm that requires users to stake currency to participate in the consensus. Compared to PoS, it adds importance to staking. Thus, it takes into account one’s involvement in the network. PoI was introduced by NEM.

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

QRTs. Customizable tokens that can be created using Quantum Resistant Ledger. QRTs are resistant to attacks from quantum computing.

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

A site that aggregates a nearly endless range of topics. Subreddits exist within Reddit to focus on specific topics.

A platform that connects banks, payment providers, and digital asset exchanges to provide frictionless transactions.

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

Radio Frequency Identification chips. RFID chips are attached to physical objects to make them easier to identify and track.

A blockchain that runs separately from a cryptocurrency's main blockchain, using the native currency to carry out transactions. Subchains help scalability by reducing the amount of data stored on a cryptocurrency's main blockchain, often called the "parent chain."

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

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.

Typically a person posing as a legitimate user of a product but who is, in fact, being paid or otherwise compensated to promote said product.

An alternative to mining rewards. Staking rewards are earned by putting a certain amount of your cryptocurrency up as a 'stake' to confirm transactions. Rewards are given for doing this.

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

An indication of support for a feature, often sent out by miners to inform the general public of their opinion.

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).

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 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.

A popular exchange service created by Eric Voorhees that allows individuals to trade most altcoins anonymously for a small fee.

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

A derogatory term used to describe altcoins that are based on faulty technology or have little promise for the future.

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

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

Price-stable cryptocurrencies that achieve stability through pegging their value to another asset, like the US dollar.

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

The anonymous person or group that created Bitcoin.

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.

A measure of how frequently and how heavily a cryptocurrency is bought and/or sold during a given time period. 

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.

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

An identical version of a protocol that uses fake money to discover bugs without the consequences such bugs would have on a Mainnet protocol.

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.

A measure that describes how many coins of a given cryptocurrency can exist (after all mining is completed, if applicable).

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

A computing system that can perform a whole set of computational functions is considered “Turing Complete.”

Transmission Control Protocol/Internet Protocol. A set of protocols that allow multiple computers to communicate.

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

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

A unit of currency consumed in a process. For example, an arcade token that gets used when a game is played or a coin like BNB Binance token, which is used to pay exchange fees.

Unspent transaction output. For example, if an individual receives 1 BTC and holds it, they possess a UTXO.

A measure that describes how rapidly an asset tends to fluctuate in price.

A highly respected programmer responsible for writing Ethereum's white paper and co-creating Ethereum's technology.

Coins which haven’t ever been spent. Virgin coins were mined and left alone.

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

A technical document that outlines a project’s features, technology, and vision.

An electronic transaction in which value is sent from one party to another.

The native currency of Monero.

A formula that uses data to make predictions about how financially secure businesses are.

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 cryptocurrency that uses the Bitcoin protocol but offers increased anonymity in transactions.