Cryptocurrency Glossary

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A

Address

A secure identifier marked by a unique string of characters that enables payments to an individual or entity

Altcoin

A cryptocurrency that is an alternative to bitcoin.

Ask

The price that a seller is willing to accept per coin/token

ATH

“All time high” – The highest ever recorded price of a specific coin/token

Averaging Down

Buying more of a coin/token as the price goes down so your average purchase price decreases

B

Back Testing

Applying a strategy to historical data to see if it is valid

Bag-Holder

A person who is stuck holding coins in large quantity after a bearish move in the market

Bear Market

A period of declining value, usually accompanied by investor pessimism.

Bearish

Negative price movement

Bid

The price that a buyer is willing to pay for a coin/token

Block

A collection of data related to transactions that are bundled together. A block has a predetermined size and is processed for transaction verification and eventually becomes part of a blockchain.

Blockchain

A decentralized, digital ledger where transactions made in Bitcoin or other cryptocurrencies are recorded chronologically and publicly.

BTFD

“Buy The Fucking Dips” – An indication to buy a coin when it’s price is low

Bull Market

A period of rising value, usually accompanied by investor optimism.

Bullish

Positive price movement

C

Circulating Supply

An approximation of the number of coins/tokens that are circulating in the public market.

Cold Storage

Storing cryptocurrency coins/tokens offline using a paper or hardware wallet as a way of safeguarding your assets from hacking

Cost Averaging

See Averaging Down

Crowdsale

See ICO

Cryptocurrency

A type of digital currency that is generally decentralized and uses cryptography for added security, making it difficult to counterfeit or manipulate.

D

dApps

“Decentralized applications” – A type of software program that runs on a decentralized P2P network rather than on a single computer. Ethereum is a popular development platform for creating dApps.

Day Trading

The practice of buying and selling within the same trading day

Decentralized

A state where there is no central control, power or function, or in reference to infrastructure, no central point of failure.

Distributed consensus

Collective agreement by various computers in a network

Dump

To sell off a coin/token

DYOR

“Do Your Own Research”

E

ERC-20

A type of token standard for Ethereum which ensures the tokens perform in a predictable way. This allows the tokens to be easily exchangeable and able to work immediately with dApps that also use the ERC-20 standard. Most tokens released through ICOs are compliant with the ERC-20 standard.

Exchange

A place in which different assets are traded.

F

Fiat Currency

A currency not backed by a physical commodity that a government has declared to be legal tender

FOMO

“Fear Of Missing Out”

Fork

A situation where a blockchain splits into two separate chains. Forks generally happen in the crypto-world when new ‘governance rules’ are built into the blockchain’s code.

FUD

“Fear Uncertainty & Doubt” – Often misinformation.

Fundamental Analysis

Examining the financial health and strength of a company to determine its coin/token price, future value, and earnings expectations

G

Gas limit

A term used in the Ethereum platform that refers to the maximum amount of units of gas the user is willing to spend on a transaction. The transaction must have enough gas to cover the computational resources needed to execute the code. All unused gas is refunded at the end of the transaction.

Gas price

A term used in the Ethereum platform that refers to the price you are willing to pay for a transaction. Setting a higher gas price will make miners more incentivized to prioritize and validate that particular transaction ahead of those set with a lower gas price. Gas prices are typically denominated in Gwei

Genesis Block

The first block of data that is processed and validated to form a new blockchain, often referred to as block 0 or block 1.

H

Hard Cap

The maximum amount that an ICO will be raising. If an ICO reaches its hard cap, they will stop collecting any more funds.

Hardware Wallet

A device that can securely store cryptocurrency. Hardware wallets are often regarded as the most secure way to hold cryptocurrency.

Hedge

Reducing risk by placing orders to cover two or more possible events in the market

HODL

“Hold” – Holding a cryptocurrency investment for a long period of time, regardless of market volatility. The term was made famous by a typo made in a bitcoin forum.

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I

ICO

“Initial Coin Offering” – A means by which a cryptocurrency venture can raise money from supporters by issuing tokens. Ethereum is currently the most popular platform for launching ICOs.

L

Limit Order

An order to buy or sell a coin/token at a specific price

Long

Margin bull position

M

Margin

Borrowing money to trade

Market Capitalization

The price of a coin multiplied by it’s circulating supply

Market Order

An order to buy or sell a coin/token at its current price

Maximum Supply

The maximum number of coins or tokens that will ever exist for a cryptocurrency

Mining

A process where transactions are verified and added to a blockchain. It is also the process where new bitcoins or certain altcoins are created.

Moon

Continuous upward movement of price

Moving Average

An indicator that gives the average of a token’s price over a period of time, adjusted periodically and gives you an idea of a general trend

N

Node

A computer that possesses a copy of the blockchain and is working to maintain it.

O

Order

An investor’s bid to buy or sell a certain amount of a coin/token

OTC

“Over The Counter” – The peer to peer sale of a coin/token without an exchange

P

PoS

“Proof of Stake” – An algorithm that rewards participants for solving difficult cryptographic puzzles to achieve distributed consensus. Unlike proof of work or PoW, a person can validate transactions and create new blocks based on their individual wealth (i.e. stake) such as the total number of coins owned. One of the key advantages that PoS has over PoW is lower energy consumption.

PoW

“Proof of Work” – An algorithm that rewards the first person or computer to solve a computational problem to achieve distributed consensus. Miners compete to solve difficult cryptographic puzzles in order to add the next block on the blockchain. It prevents spam and cyber attacks such as DDoS as it requires work (i.e. processing time) from the service requester.

Pre-sale

A sale that takes place before an ICO is made available to the general public to participate. Often bonuses are given to presale participants.

Pump and Dump

A scheme in which the development team (or short-term traders) hypes up a project without fundamental basis in order to pump up the price of the tokens temporarily and then sells their holdings immediately after launch to earn a profit. See the US SEC’s investor alert on pump and dump schemes.

Q

Quote

The bid, ask, and last price for a coin/token at a given point in time

S

SegWit

“Segregated Witness” – The process where the block size limit on a blockchain is increased by removing digital signature data and moving it to the end of a transaction to free up capacity. Transactions are essentially split (or ‘segregated’), into two segments: the original data segment and the signature (or ‘witness’) segment.

Shilling

Advertising a cryptocurrency token or platform to create hype.

Smart Contract

An automated mechanism involving two or more parties where digital assets are put in and redistributed at a later time based on some preset formula and triggering event. The contract can run as programmed without any downtime, censorship, fraud or third party interference.

Soft Cap

The minimum amount that an ICO needs to raise. If the ICO is unable to raise that amount, it may be cancelled and the collected funds returned to participants.

Spread

The difference between the bid and ask price.

Stop Order

An order sell a token after it reaches a certain price; at that time, the order turns into a market order. Used often to limit losses or to protect profits (also known as a stop-loss)

T

Technical Analysis

Examining a token’s price through the use of metrics, indicators, past data, and other techniques to identify trends

Token

A unit of measure for a specific cryptocurrency. (aka Coin)

Total Supply

The total number of coins or tokens that are in existence, including those circulating in the public market and those that are locked or reserved. See also: maximum supply and total supply.

V

Volatility

How much a token’s price rises or falls over a period of time; a highly-volatile token will have its price go up and down drastically over a period of time, while a stable token has low volatility.

Volume

The amount of tokens being traded at a given point in time; this gives you an idea of how much interest there is in the token.

W

Wallet

A place to store cryptocurrencies.

Whale

Very wealthy trader who could manipulate the market

Whitelist

A list of registered and approved participants that are given exclusive access to contribute to an ICO or a pre-sale.-

Whitepaper

An informational document that generally informs readers on the philosophy, objectives and technology of a project or initiative. Whitepapers are often provided before the launch of a new token.

Best Hardware Cryptocurrency Wallets of 2018

The Best Cryptocurrency Hardware Wallets of 2018 

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Quick Start

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