Here’s a list of some of the most widely used cryptocurrency terms.
What Is Bitcoin (BTC)?
-Bitcoin: the first cryptocurrency ever created, and still one of the most popular.
What are Alternative Coins (Altcoins)?
-Altcoin: a term for any other cryptocurrencies that are not bitcoin; often used when referring to coins with smaller market capitalizations than Bitcoin.
What Is A Blockchain?
-Blockchain: a digital ledger in which transactions made in bitcoins or another cryptocurrency are recorded chronologically and publicly. The blockchain is an immutable record of all transactions on its network since it was launched by Satoshi Nakamoto in 2009.
What is ATH (All-Time High)?
The price of a cryptocurrency is constantly changing and it can be difficult to keep track. ATH, or All-Time High, refers to the highest point reached by a particular coin in its history And all-time low (ATL) refers to the lowest point in value for a coin or token on any given day and time.
What is a Centralized Crypto Exchange (CEX)?
A centralized crypto exchange (CEX) is an online marketplace where digital currencies can be bought or sold. Centralized exchanges are often used by traders who want to trade quickly and securely, without the need for a personal wallet. CEXs typically require users to open an account before they can start trading with real money; some allow only cryptocurrency deposits while others offer both fiat currency and cryptocurrencies on deposit.
What is Block Reward?
Block rewards are the incentives that a blockchain network uses to encourage people to validate transactions. They work by rewarding miners who use their computing power and energy in order to secure blockchains through mining, which is essentially solving complex mathematical puzzles. When they successfully mine blocks of data, these individuals get rewarded in form of cryptocurrency such as Bitcoin or Ethereum, etc.
Who is a Bitcoin Maximalist?
Bitcoin Maximalists are people who believe in Bitcoin as the only cryptocurrency that will survive. They see altcoins and other cryptocurrencies as a threat to Bitcoin’s dominance, which they want to protect at all costs. Many of them also promote an ideology called “Bitcoin maximalism,” where you should invest your money into bitcoin because it is the future of digital currency and has more potential than any other coin on the market today.
What is a DAO?
A decentralized autonomous organization (DAO) is a type of organization that uses blockchain technology to operate without any form of human management or control. DAOs are run on rules encoded as computer programs called smart contracts, which can be executed and enforced autonomously by the network of computers running the software.
A DAO’s financial transaction record and program rules are maintained on an immutable public ledger known as a blockchain; this ensures transparency in how it operates, but also makes them vulnerable to hacking because they’re not stored centrally.
What are dApps?
Decentralized applications, also called dApps are a new way of creating software. Usually, these apps run on the blockchain and they don’t require a central server or any company to operate them. Instead, they’re powered by many different computers all over the world running coordinated software that updates itself in much the same way as Bitcoin does.
What Is DEX?
A decentralized exchange is not controlled by any one entity, but instead, it’s run on a distributed public ledger called the blockchain. The goal of the DEX is to provide traders with an alternative to centralized exchanges that are often hacked or manipulated for profit-making purposes.
What Is DeFi?
DeFi is a shorthand for decentralized finance, which refers to the use of blockchain-based technologies in financial services. Blockchain technology has enabled new ways to provide peer-to-peer lending and crowdfunding platforms without requiring centralized intermediaries such as banks or payment processors. It also allows individuals with access to capital (e.g., cryptocurrencies) but no credit history (or who would otherwise be unable to borrow from traditional sources due to unfavorable terms)
What Is CeFi?
Centralized finance is a system where all of the financial transactions and records are kept in one place. This can be done through an online banking site, or it could also be done with paper-based systems that require manual inputting.
What is a Digital Address?
A digital address is a string of numbers that identifies where to send or receive information online. Digital addresses are used in many ways including logging into websites and sending or receiving money.
What is a Digital Wallet?
A digital wallet is a means to store and transact with cryptocurrencies. It can be used as the only way of storing such currencies, or it may be just one option for managing them in conjunction with other more traditional storage methods like bank accounts. A typical digital wallet will allow you to buy, sell and trade different cryptocurrency coins through your computer or mobile device.
What is FIAT?
FIAT is an acronym for “fiat money.” It refers to any legal tender that a government has declared as being of value, even if it does not have intrinsic worth.
What is FOMO?
FOMO is an acronym for “fear of missing out”. The term was first used by a Canadian university student in 2002, but the phenomenon has been around since the advent of social media. FOMO describes a person’s anxiety that they are not doing what others might be doing and therefore will miss something important or fun.
What is FUD?
FUD is an acronym for “Fear, Uncertainty, and Doubt.” It’s a strategy that unscrupulous traders use to influence the market in their favor. The goal of FUD is to cause panic through negative or false comments about certain coins.
What is HODL?
HODL is a slang term for holding on to cryptocurrency or Bitcoin rather than selling it. The phrase was popularized in December 2013 by an episode of the American TV series “The Good Wife” and has been associated with Bitcoin ever since. HODL can be interpreted as a misspelling of “hold”, but also as intentional gibberish that conveys the message “hold on for dear life” (HOLD).
What is Halving?
The halving process was designed into Bitcoin’s code to ensure a steady rate of bitcoin production, which will eventually lead to an upper limit on how many bitcoins can exist at any given time. This prevents inflation from occurring due to over-production and ensures scarcity for digital currency users.
What is ICO?
An initial coin offering (ICO) refers to the process by which new projects sell their underlying crypto tokens in exchange for bitcoin and ether. It’s similar to an IPO but with some notable differences: ICOs are unregulated as they come under the domain of crowdfunding rather than traditional securities offerings like IPOs do; additionally – unlike IPOs where shares represent ownership in company stock- token buyers have no rights regarding how assets will be managed once acquired after purchase.
What is IEO?
Initial Exchange Offerings (IEO) are a new type of token sale, which is modeled after the ICO model. The primary difference between an IEO and IPO is that instead of buying tokens from a company or organization in order to fund their project, investors buy tokens from cryptocurrency exchanges.
What is KYC?
KYC is an abbreviation for “Know your customer”. The term refers to the process of a business verifying the identity of its clients and screening them against lists of people or organizations with which they are not allowed to do business. KYC policies have become stricter following recent global financial crises, as banks seek to avoid being used for money laundering or other dubious activity.
What is Mining? Who are the Miners?
-Mining: this is how most cryptocurrencies are created; miners solve complex math problems to verify transactions on the blockchain by competing with other computers to be first. The miner who solves these equations then receives new coins as payment, giving them an incentive to keep mining more blocks of data. Mining can also refer time or power into making sure that each block gets mined correctly without tampering from outside sources like hacking attempts or bad actors trying desperately to mine their own coin instead of just using existing ones.
What is Bitcoin to the Moon?
A term that is often employed as a verb (mooning) to describe a cryptocurrency that is under a strong upward market trend.
What is Proof-of-Stake (PoS)?
Proof of stake is a type of algorithm by which consensus on the blockchain network is achieved. The proof-of-stake system was developed to address problems with the proof-of-work (POW) systems, such as high energy consumption and unfair distribution of rewards.
What is Proof-of-Work (PoW)?
Proof-of-Work (PoW) mining is a system that ties together the actions of miners into blocks. The process of mining validates transactions, provides security against double-spending, and creates new bitcoins to reward miners for their work. Miners are rewarded with transaction fees as well as newly created coins when they discover proof of work solutions that validate bitcoin transactions on the blockchain.
What is a Private Key?
A private key is a string of data that allows the holder to access their bitcoin or other cryptocurrencies. Private keys are often stored in wallets and can be encrypted with a password, passphrase, or both. A person may also store their private key offline on an air-gapped storage device like a USB hardware wallet for maximum security against malware and hackers.
What is Pump & Dump?
Pump and dump schemes involve artificially inflating the price of a cryptocurrency through false and misleading positive statements, in order to sell the cheaply purchased shares at a higher price.
What is Satoshi?
A satoshi is the smallest unit of Bitcoin. It’s a hundredth of a millionth BTC, or 0.00000001 bitcoin!
What is a Shitcoin?
A shitcoin is a cryptocurrency that was essentially created as a way to raise funds to pay the developer of a cryptocurrency. These currencies quickly died off.
What is the Total Market Cap?
The total market capitalization of a cryptocurrency is the sum value of all outstanding shares (coins) in that currency. The term can be used to describe either the entire crypto-market or just one coin.
Who is a Bitcoin Whale?
Bitcoin whales are anonymous owners of large bitcoin wallets. The bitcoin whale phenomenon began in 2013, when several bitcoin users built large balances before selling for a profit. Bitcoin whale wallets typically hold 1% or more of the total bitcoin supply. The two largest bitcoin wallets, according to Blockchain, are Bugsy and Jonald Fyookball, both held by the same person, who reportedly bought and then sold 3.6 and 4.7 million bitcoins, respectively, in 2013.
What is Whitepaper?
Written documents that explain how a cryptocurrency works.
What Is ASIC Miner?
-ASIC miner: Short for an application-specific integrated circuit, which is an electronic device that finds solutions to mathematical problems in order to mine bitcoins faster than a standard computer could do alone.
What Does BUIDL Mean?
Keep your head down and build the next financial system.
What Does SAFU Mean In Crypto Terms?
SAFU: Funds Are Safe
What Does (DYOR) Mean?
Do Your Own Research (DYOR), Don’t trust, verify.
What Does AML Mean In Crypto Terms?
Regulations that prevent criminals from hiding their money.
