Trusted and well explained list of terminologies used in Crypto World
An address is digital representation of the wallet that is used to store data, it is used to send, receive and store the digital data. An example of bitcoin address: 1Ma2DrB78K7jmAwaomqZNRMCvgQrNjE2QC
Altcoin is used to any cryptocurrency other than Bitcoin, e.g. litecoin, xrp, ethereum etc.
When there is price difference in the same commodity in two different exchanges then user can perform trading between two exchanges to gain profit.
All-Time-High is the maximum value that particular cryptocurrency has reached in its life time so far.
Referred to someone holding altcoin even after a pump and dump crash.
BTC represents Bitcoin the first cryptocurrency in the world based on blockchain technology.
It represents that the price are going in upward direction.
An expectation that the price is going to decrease.
In a blockchain network blocks represent the ledger pages where transaction data is stored. Once the data is stored into blocks and verified it cannot be altered.
Blockchain is a chain of transactions stored in the blocks in a distributed network.
Band or margin around the price of a crypto that indicates when a coin is over bought or over sold.
Cryptography is a technique that is used to store the data secretly in encrypted form.
Term “crypto” is derived from cryptography that is the root technology used in cryptocurrency.
Cryptocurrency is a digital asset that represents the data in encrypted format using cryptography to make the transactions secure across the network. e.g. bitcoin, ether, xrp, litecoin, tron etc.
In decentralized network there is no single server or machine controlling the entire network data. Blockchain network is an example of decentralized network, there is no single authority to control the entire network it is managed in distributed fashion.
ETH represents the cryptocurrency ETHER for ethereum.
Exchange is a platform (website or mobile app) where we can trade cryptocurrencies. Any user registered with exchange can either buy or sell any number of coins or tokens as per the exchange guidelines.
Below is the list of some of the most popular crypto exchanges in the world:
FIAT is Government issued currency e.g. US dollar.
Fear of Missing Out. When the price starts to skyrocket then everybody wants to get it due to high sensation.
When existing blockchain splits into two chains. Forks are of two types- Hard Fork and Soft Fork.
Fear, Uncertainity and Doubt. Baseless negative news spread by someone in order to drop the price.
Someone that is spreading FUD.
A unit to measure the processing required by the ethereum network to process a transaction. Simple transactions require low Gas while complex transactions require high Gas.
It is the amount of ether to be spent for each gas unit on a transaction. The gas price is paid by the initiator of the transaction. Ethereum network processes the transactions with higher gas price on priority basis.
A margin trade that profits if the price of any asset/coin increases.
A margin trade that profits if the price of any asset/coin decreases.
Initial Coin Offering is similar to IPO as in regular non-crypto exchanges in the world. This is simply a token that is offered by startups to its customers.
Order placed by trader to buy or sell a cryptocurrency.
Moving Average Convergence Divergence. Indicates the relationship between two averages of prices
A buy or sell that is executed on whatever price is available in current timestamp.
Margin trading is the practice of using borrowed fund from a broker to perform trade.
Total value held in a crypt currency is termed as Market Cap.
Market Cap= total supply of coins * current price
The process of trying to solve an algorithm for the next block. It requires heavy computation in order to resolve the problem and it results in form of some Bitcoin(s) as a reward.
A computer designed for processing proof-of-work blockchains, like Ethereum. They often consist of multiple high end graphic processors (GPUs) to maximize their processing power.
When the price of any cryptocurrency shoots up then this term is used.
Pump and Dump
When there is sudden increase in the price of an altcoin and then followed by a huge crash.
Return on Investment. If anybody invests $100 and gains 50% profit on it, then ROI=$50.
Sell wall/buy wall
The limit of sell or buy value.
Shilling – Pumping
Term used to advertising another cryptocurrency.
Software wallet is used to store the cryptocurrency in form of a file. It holds the private key for the cryptocurrency.
Smart contract is managed by an algorithm that is based on some pre-conditions where two parties agree to execute the transaction when those conditions become true in future. There is no human interference in between.
Hardware wallet consists of a device that stores the details of the crptocurrency. This is the most secure way to store the cryptcurrency.
In order to protect the cryptocurrency from hackers we can store it in following ways:
- Printing the QR code of the software wallet and store it safely.
- Software wallet’s files can be moved to USB drive
- Hardware wallet can be used to storing it safely
A cryptocurrency which has very low volatility.
Segwit (Segregated witness) is a change in the protocol that changes the existing way how data is stored and managed into the blocks.
Trend Analysis or Techical Analysis. This is used to predict the market as per the historical data.
Represents particular asset or currency in blockchain network e.g.
Someone that owns large amount of cryptocurrency.