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CRYPTO GLOSSARY

A B C D E F G H I K L M N O P Q R S T V W Z
A

Active Management

Investing strategy applied to gain maximum profits and outperform the market.

Address

Much like a web address in the crypto world designates the location of a crypto wallet on the blockchain.

Air gapping

It is a cyber security measure that keeps digital information & machinery protected from unauthorized access.

B

Bag holder

A crypto slang that refers to a person who deliberately holds on to their crypto assets even after its price drops.

Bearish/Bullish

A bearish trend in the market indicates a decline in asset prices.

Block height

This refers to the total number of individual blocks in a blockchain network.

C

Candlestick

It refers to a kind of graphical representation of the price trends of the market.

Crowdsale

It refers to the act of selling crypto coins or tokens by crowdfunding.

Casper

Ethereum blockchain’s new proof-of-stake protocol upgrade over the older proof-of-work protocol.

D

Decentralized Autonomous Organisation (DAO)

An organization that is governed by smart contracts, unlike traditional organizations that are governed by an executive body.

DApp

Computer applications that run on decentralized network technologies like a decentralized ledger.

Distribution

The act of selling coins by people having big coin holding. It is done to stabilize the market prices.

E

Encryption

The act of converting data into secure codes to prevent unauthorized access.

Ether

The native crypto token of the Ethereum blockchain network.

Exchange

The place/platform where various kinds of crypto coins/tokens are brought or sold.

F

Fiat currency

The traditional currencies that are regulated by a central bank or authority.

FOMO

Acronym for Fear Of Missing Out which describes the tendency of people to start investing in assets depending on the tendency of other investors.

Futures

A futures contract is simply a binding agreement to buy or sell an asset or security at a predetermined price at a specific time in the future.

G

Gas

It is the name of the pricing mechanism used to ascertain the price of transactions done on various blockchain platforms.

Genesis block

As the name suggests it is the very first block created on a particular blockchain network.

Governance token

A kind of token that gives the owner voting rights on the native blockchain.

H

HODL

Basically a misspelling of the word hold. In the crypto world, it is also considered to be an acronym for Hold On For Dear Life.

Honeypot

A security feature that helps in detecting and defending against unauthorised access.

Hot wallet

It refers to a virtual wallet used to store crypto assets.

I

Initial Coin Offering (ICO)

The first offering that enables the investors to buy or sell a new crypto coin/token.

Initial Decentralised Offering (IDO)

It is similar to ICO, the only difference being that it lets investors interact with the project team.

Initial Exchange Offer (IEO)

The process of selling a crypto coin/token for the first time via a digital currency exchange.

K

Know Your Customer (KYC)

A standard security protocol adopted by most financial institutions. It allows the institutions to identify their customers.

L

Latency

It is the time taken to initiate a transaction till it is completed on the network.

Ledger

A kind of digital or physical file where financial transactions are recorded.

Limit order

The process by which an investor can set a limit while placing a buying or selling order.

M

Memecoin

A crypto coin or token derived from a meme or an online joke.

Metaverse

A feature of the internet of the future. It is a virtual world where people can perform all activities of the real world.

Mining

The act of using multiple networks of computers to solve cryptographic calculations to complete a block on the blockchain.

N

NFT/Non-fungible Token

A token that represents the ownership of a unique digital asset. Each NFT is unique and can not be replicated.

Nocoiner

A crypto slang that is used to refer to someone who doesn’t trust the crypto market and hence stays away from investing in it.

Node

One of the numerous computers working on the same blockchain network that can communicate with the other computers on the same network.

O

On-chain governance

The process which allows the holders of a particular crypto coin/token to take part in the decision-making processes of the blockchain network.

Off-chain

Off-chain transactions refer to the transactions that take place off a blockchain network. These transactions can be registered on the corresponding blockchains later.

Oracle

An oracle is a bridge or a data conduit between the real world and the blockchain network.

P

Peer to peer

The process where two parties can do business transactions with each other without the need of any third party like banks.

Phishing

A common method used by hackers to gain unauthorised access to an account holder’s login credentials.

Private key

The password required by users to access their crypto wallet.

Q

Quantum–proof

It refers to a blockchain that is safe from cyber-attacks from quantum computers.

R

Ransomware

A kind of malware that can infect a computer and can encrypt files on the computer making them inaccessible to the user.

Rekt

A sling that is also a misspelling of the work wrecked. It is used to define an investor who has lost all their holding and hence has become wrecked.

Return on investment (ROI)

A common word that refers to the act of measuring the percentage of return that an asset is giving as compared to the initial investment.

S

Satoshi

The smallest fraction of bitcoin that an investor can buy. The name has been derived from the name of bitcoin’s inventor, Satoshi Nakamoto.

Scalability

It refers to the capability of a system to bear the increasing workload.

Stablecoin

A kind of crypto coin/token that is backed by some sort of physical asset like fiat currencies.

T

Token

It refers to the unit of value used for various purposes in a blockchain network.

Token sale

It is the process of selling crypto coins or tokens to raise funds for blockchain projects.

Transaction fees

It refers to the amount paid to the miners for confirming transactions into blocks.

V

Verification code

It refers to the second layer of security wherein a code is sent to the user’s mobile number or mail without which transactions cannot be completed.

Volatile market

As the name suggests, a volatile market is one where the prices are hard to predict and keeps on changing rapidly.

Volume

It refers to the number of times a single unit of an asset is transacted during a particular time span.

W

Wallet

A wallet is a digital platform where crypto tokens/coins earned by a person are stored, much like a physical wallet.

Weak hands

A crypto slang that refers to individuals who are too scared of the market fluctuations, and cannot hold onto their assets.

Whale

It is used to refer to a person or an organisation that holds a huge amount of crypto coins/tokens.

Z

Zero-knowledge proof

It refers to the process of verifying transactions without giving out transaction details.

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