CoinFresh

Crypto Glossary

Address

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

API

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

Altcoin

Alternative Coin. Bitcoin is known as the first and foremost cryptocurrency, so any cryptocurrency that is not Bitcoin is an altcoin.

ATH

All-Time High. The highest price a cryptocurrency has ever reached.

Arbitrage

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

ATL

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

Erc20

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

Fomo

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

Fork (hard)

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.

Airdrop

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

Bull Trap

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.”

Blockchain

A digital, distributed ledger which contains data for all the transactions that have ever taken place using a given cryptocurrency.

Block

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

Bullish

Optimistic about the future of a cryptocurrency’s price.

Bull

A trader or speculator who believes cryptocurrency prices will rise.

Bear trap

A short drop in a cryptocurrency’s price that makes investors think the price will continue falling. Instead, the price rises significantly following the drop, fooling the “bears.”

Bull Market

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

Bear

A trader or speculator who believes cryptocurrency prices will fall.

Bear Market

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

Bag holder

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.”

Burn

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

Cold Sorage

In the cryptocurrency sphere this term refers to storing cryptocurrency in a location that is offline and thus inaccessible by anyone on the internet.

Cold Wallet

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

Cyberpunks

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

Centralized

Controlled by one group or within one certain area.

Circulating supply

The volume of coins being held and spent at a given time for a given cryptocurrency.

DEX

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

Dao

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

Daaps

Distributed Apps. Applications without centralized control.

Dump

The act of selling cryptocurrency.

Git Hub

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

Gas

A fee which must be paid to execute network transactions.

Hash

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

Hardcap

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

Hold

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.

Holder

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”.

Halving

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

ICO

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

IPO

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

KYC

Know Your Customer. Information gathered by cryptocurrency exchanges in compliance with AML (Anti Money Laundering) laws.

Lambo

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

Liquidity

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

Long

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.

Limit Order

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.

Multi Signature

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

Market Capital

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

Moon

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.

Minting

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

Node

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

Nonce

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

Proof Of Burn

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

Road map

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

Reedit

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

Seed

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

P2P

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

Pump & Dump

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.

Pre Sale

A public or private offering of tokens to interested investors, generally offering a cheaper price than the coin’s ICO price. Pre-sales are commonly seen as marketing gimmicks.

Public Key

An address that individuals share with others to receive cryptocurrency.

Paper Wallet

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

Pump

A rapid rise in a cryptocurrency’s price.

Passphrase

Similar to a password but often longer. Where a password is generally a single word — a passphrase can be a combination of words.

POS

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

Private Key

Private keys are used to spend cryptocurrencies.

Sharding

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

Satoshi

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.

Scam Coin

An altcoin that is marketed as technology with potential, but is really just sold to make money with no promise of a future use case.

Smart Contract

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

Solidity

A programming language used to create smart contracts.

Supply Chains

All processes involved in delivering products and services from their providers to their customers.

Volatility

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

Whale

A very wealthy individual capable of making large trades.

Wallet

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

Testnet

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

Tokenize

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

Utility Token

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.

Trading Pair

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.

Trading Bot

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.

Transection Fee

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

Tx

Transaction.

Total Supply

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

Tether

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.

Scalability

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

Soft Cap

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

Shit Coin

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

Whitelist

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.

White Paper

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