Cryptocurrency Lingo Cheat Sheet

Cryptocurrency Lingo Cheat Sheet

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cryptocurrency lingo

Usually referred to as the “crypto market,” which refers to the cumulative cryptocurrencies and projects operating within the industry. Long A situation where you buy a cryptocurrency with the expectation of selling it at a higher price for profit later. Liquidity Pool Liquidity pools are cryptocurrency lingo crypto assets that are kept to facilitate the trading of trading pairs on decentralized exchanges. Internet of Things Internet of Things is a global interconnected network of devices, sensors and software that can collect and exchange data with each other in real-time over the Internet.

Timelock

When a bitcoin holder is mocked for not being rich yet, they’re being bitshamed. The case of bitcoin advocate Andreas Antonopoulos is a great example of this. An avid bitcoin lecturer for years, he revealed in December that he’s actually not a bitcoin millionaire, and sold his coins early to cover rent and bills.

Coin A coin is a cryptocurrency that can operate independently. Co-Signer A person or entity that has partial control and access over a cryptocurrency wallet.

Sharding Sharding is a scaling approach that enables splitting of blockchain states into partitions containing states and transaction history, so that each shard can be processed in parallel. Sell Wall A situation where a large limit order has been placed to sell when a cryptocurrency reaches a certain value. This can cryptocurrency lingo sometimes be used by traders to create a certain impression in the market, preventing a cryptocurrency from rising above that value, as supply will likely outstrip demand when the order is executed. Selfish Mining A situation in which a miner mines a new block but does not broadcast this new block to the other miners.

A Definitive Glossary Of Blockchain And Cryptocurrency Terms

The price of a bitcoin fell from a high of about $1,160 in December to under $400 in February. Concerns abound that altcoins may become tools for anonymous web criminals. According to PricewaterhouseCoopers, four of the 10 biggest proposed initial coin offerings have used Switzerland as a base, where they are frequently registered as non-profit cryptocurrency lingo foundations. Atomic swaps are a mechanism where one cryptocurrency can be exchanged directly for another cryptocurrency, without the need for a trusted third party such as an exchange. Some cryptocurrencies have no transaction fees, and instead rely on client-side proof-of-work as the transaction prioritization and anti-spam mechanism.

Faucet A cryptocurrency reward system usually on a website or app, that rewards users for completing certain tasks. It is mostly a technique used when first launching an altcoin to interest people in the coin. This is possible to be automated using smart contracts on the blockchain. Dust Transactions Minuscule transactions that flood and slow the network, usually deliberately created by people looking to disrupt it. cryptocurrency lingo Dominance Also known as BTC Dominance for Bitcoin Dominance, it is an index that compares the market capitalization of Bitcoin with the overall market cap of all other cryptocurrencies in existence. Difficulty A relative measure of how difficult it is to discover a new block. In Bitcoin, the difficulty is adjusted periodically as a function of how much hashing power has been deployed by the network of miners.

cryptocurrency lingo

The company stated that it had lost nearly $473 million of their customers’ bitcoins likely due to theft. This was equivalent to approximately 750,000 bitcoins, or about 7% of all the bitcoins in existence.

cryptocurrency lingo

Storage Decentralized storage refers to the concept of storing files online by splitting them into encrypted fragments and delegating these fragments to multiple nodes on a distributed network, e.g. a blockchain. Spot Market A public market in which cryptocurrencies are traded for immediate settlement. It contrasts with a futures cryptocurrency lingo market, in which settlement is due at a later date. Side Chain A blockchain ledger that runs in parallel to a primary blockchain, where there is a two-way link between the primary chain and sidechain. This allows the sidechain to operate independently of the primary blockchain, using their own protocols or ledger mechanisms.

Futures A futures contract is a standardized legal agreement to buy or sell a particular commodity or asset at a predetermined price at a specified time in the future. cryptocurrency lingo They are different from forward contracts, which can be customized for each trade and can be conducted over-the-counter, instead of being traded on an exchange.

All The Bitcoin Lingo You Need To Know As Crypto

  • With digital currency, however, it’s a different story.
  • Mining – the process of using computer power to secure and verify bitcoin transactions on a decentralized network.
  • The transaction data is added to the public ledger, and each 1 MB group of transactions is called a block.
  • But generally, once you spend $20 at the store, that bill is in the clerk’s hands.
  • Blocks build on one another to form the above-described blockchain.
  • Software with which you send and receive cryptocurrency.

Basically, it is all kinds of coins we know and use on a daily basis (USD, Euro, CAD, etc.). Most of the crypto exchanges allow crypto-to-crypto trading only. However, the larger ones also allow crypto-to-FIAT trading. The most popular exchanges are Binance, Coinbase, Kraken, Bitstamp, and BitFinex.

Instamine A period in time, shortly after launch, when a large portion of total mineable coins or tokens are mined in a compressed time frame, and may be unevenly and quickly distributed to investors. Initial Coin Offering A type of crowdfunding, or crowdsale, using cryptocurrencies as a means of raising capital for early-stage companies. It has come under fire due to the occurrence of scams and market manipulators.

What Drives Tezos’ Prices?

Change Bitcoin transactions are made up of inputs and outputs in a system called Unspent Transaction Output. When you send bitcoins, you can only send them in a whole output, and the rest are sent back as change. Central Ledger A central ledger is a physical book or a computer file used to record transactions in a centralized manner. Buy Wall A buy wall is a disproportionately large buy limit order placed on a cryptocurrency exchange. Blockchain A blockchain is a continuously growing, append-only, list of records called blocks, which are linked and secured using cryptography.

Graphical Processing Unit More commonly known as a graphics card, it is a computer chip that creates 3D images on computers, but has turned out to be efficient for mining cryptocurrencies. 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. Gas Price A term used on the Ethereum platform that refers to the price you are willing to pay for a transaction. Setting a higher gas price will incentivize miners to prioritize that transaction over others.

Derivatives Market A public market for derivatives, instruments such as futures contracts or options, which are derived from other forms of cryptocurrency assets. Deflation Reduction of the general level of prices in an economy. May also refer to deflationary monetary policy, such as Bitcoin, where there is a fixed supply of coins. Decentralized Exchange A peer-to-peer exchange that allows users to buy and sell cryptocurrency and other assets without a central intermediary involved. Correction A correction is a reverse movement of at least 10% in a cryptocurrency or general market, to adjust for over- or under-valuations. Cold Wallet A cryptocurrency wallet that is in cold storage, i.e. not connected to the internet.

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