Cryptocurrency Glossary

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

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

A unique, alphanumeric identifier used as destination for transferring cryptocurrencies. 

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

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

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.

Application Programmer Interface. A type of toolkit provided for developers for creating applications.

Komodo's Decentralized Exchange which connects all of its independent blockchains and allows atomic swaps.

A trader or speculator who believes cryptocurrency prices will fall.

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

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

The amount of money one has available to him/her.

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

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."

The unofficial website of Bitcoin Core.

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

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

The payment given to a miner for securing a blockchain that uses POW (Proof-of-Work) consensus

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

The total number of blocks on a blockchain since the genesis block (first block) was mined.

Optimistic about the future of a cryptocurrency’s price.

A trader or speculator who believes cryptocurrency prices will rise.

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.

BNB (Binance Coin) is an ERC20 token that lives on the Ethereum blockchain. The token has multiple forms of utility, essentially being the underlying gas that powers the Binance Ecosystem. Most important, it can be used to pay for trading fees on the exchange, obtaining the equivalent of a 50% discount on trades during the first year, 25% during the second year and so on.

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

Pessimistic about the future of a cryptocurrency’s price.

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.

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

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.

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.

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

A trade on a popular cryptocurrency exchange.

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

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. 

The usage of remote servers (rather than personal computers) to store, manage, and process data.

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

Software for storing cryptocurrency that offers decreased risk of losing funds because of its ability to generate unlimited addresses from a single starting point, or "seed."

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

Transfers of value that are too small to be sent due to the proportionately high fee incurred. 

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

Distributed Apps. Applications without centralized control.

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

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

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

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

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

Any non-physical object of value, like a document, an audio file, or a logo, that can be owned and controlled.

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

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

Distributed amongst its users rather than controlled by one group or within one certain area.

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

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

An extremely secure messaging functionality offered by QRL.

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

Transforming data into unrecognizable code that can only be decoded with the exact decryption key.

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.

A token issued on the Ethereum platform.

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

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.

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

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.

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

A fee which must be paid to execute network transactions.

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.

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.

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.

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

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.

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.

Initial Coin Offering. An event in which a cryptocurrency project “goes public,” selling early coins in exchange for funds.

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

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

The process of increasing a cryptocurrency's supply, which usually drives its price down.

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.

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

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.

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

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

A trade in which an investor sells their position to repay the lender of a loan.

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.

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.

A popular online wallet that supports Ether and most ERC20 tokens.

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

A cryptocurrency meme that refers to the skyrocketing of a coin's price. When Hodlers’ coins go to the Moon, they can all buy Lambos.

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

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

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

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.

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

The process of allowing two different cryptocurrencies using the same consensus algorithm to be mined simultaneously. 

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

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

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

Cardano's Proof-of-stake algorithm. It is used to randomly pick the next node to produce a block in. Ouroboros divides physical time into epochs, and then slots. Slot leaders have the sole right to produce one block and are chosen from the group of stakeholders.

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.

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

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

A permissioned system is a private and closed system. Not anyone can join the network freely.

An address that individuals share with others to receive cryptocurrency.  

A rapid rise in a cryptocurrency’s price.

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.

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.

If you are running a full node, a “peer” is some else also running a full node.

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).

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.

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

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 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.

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

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.

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.

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

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

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

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.

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

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 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.

Self-custody means only you hold and have access to your digital assets. This means that you choose not to use a third party, and will manage your private key yourself.

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

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

A stop order, or stop-loss order, is an order to buy or sell a stock once the price of the stock reaches a specified price, known as the stop price.

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

A memory-intensive hash function designed discourage hacking attempts by requiring large amounts of RAM. It is used by Litecoin, as an alternative to SHA-256.

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

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.

The pseudonym of the original creator(s) of Bitcoin. Also the smallest sub-unit Bitcoin can be divided into: 1 Satoshi = 1/100,000,000 of a Bitcoin.

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

The anonymous person or group that created Bitcoin.

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.

Transactions per second. A measure which describes how fast a cryptocurrency can handle its users' transactions.

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

An individual who buys and sells cryptocurrency.

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

The first hardware wallet, created by a Bitcoiner called “Slush.”

Commonly known as 2FA. A measure of security used for protecting accounts. 2FA requires users to have not only a username and a password to login, but an extra piece of information, as well.

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.

An amount of value that must be paid to transfer value on a blockchain.

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

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.

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

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

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,

Software or devices that contain public and private keys for storing cryptocurrencies

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.

Ticker for Bitcoin used on Kraken and some other exchanges. Same as BTC.

eXtensive Business Reporting Language. A language for defining and exchanging financial data that makes extracting useful data from a large body of data easier.

Two Factor Authentication. A protective measure that uses one-time passwords to prevent keyloggers from gaining unauthorized access to accounts.

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.

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