Glossary
A
AML
In full, Anti-Money Laundering. The related regulations require companies to obtain personal data about customers and their financial activities.
API
Application Programmer Interface, a toolkit for developers to create applications.
ATH
All-Time High, the highest price a crypto has ever reached.
ATL
All-Time Low, the opposite of ATH (see above).
Accredited Investor
An accredited investor (US) has a net worth of over $1 million and/or an annual salary exceeding $200,000-300,000.
Airdrop
The distribution of tokens of a new crypto, usually for free, to a large number of wallet addresses.
Algorithm
A process or set of rules to be followed within problem-solving operations. In blockchain technology, a "consensus algorithm" is used to verify transactions.
Altcoin
Bitcoin was the first crypto to ever be invented, all other cryptos are known as altcoins, or "alternative coins".
Angel Investor
Investors who wish to provide capital to startups for convertible debt or equity.
Simultaneously buying and selling the same coins on different exchanges to benefit from price differences.
Atomic Swap
The automatic exchange of one coin/token for another coin/token without the participation of a third party - via a time-specific smart contract.
B
BTC
A commonly used ticker symbol for Bitcoin. However, the official ISO standard ticker symbol is: XBT.
Batched Transaction
Multiple transactions combined in one to increase efficiency and decrease fees.
Bear
A trader or person who is pessimistic about the future crypto prices.
Bear Market
A market showing mostly falling prices.
Bear Trap
A drop in an asset (crypto or otherwise) price to fool investors, or "bears", into thinking it will be dropping, when the price actually goes higher up.
Bearish
Being pessimistic about the future developments of a crypto price.
Bitcoin
The first decentralized crypto invented in 2009. Bitcoin is the most widely known and popular coin.
Bitcoin Cash
The very first Bitcoin fork that occurred on August 1, 2016.
Bitcoin Core
The original Bitcoin wallet that is considered to be one of the safest wallets available.
Block Explorer
Websites designed to check transaction details based on its address or ID.
Block Size
The amount of data that can be stored in one block of a blockchain.
Blockchain
A digital ledger in which transactions made in bitcoin or another cryptocurrency are recorded chronologically and publicly.
Blockchain 2.0 refers to the new applications of a given database, or programmable transactions instead of just storing and transferring value.
Blockchain Bloat
This is when the data stored in a blockchain reaches high volumes, thus affecting transaction speed.
Bollinger Bands
A price analysis tool or "indicator", used to identify price trends of an asset.
Bull
A trader or person who is optimistic about future crypto prices.
Bull Market
A market showing mostly rising prices.
Bull Trap
Contrary to Bear Trap, Bull Trap is a short rise in a crypto price that tricks investors into thinking that the price will be rising, whereas it falls instead.
Bullish
Being optimistic about the future developments of a crypto price.
Burn
Burn is a mechanism that destroys a certain amount of coins/tokens, affecting the total crypto coin supply.
C
Central Ledger
A final list of all the transactions that have ever taken place on a platform.
Centralized
As opposed to decentralized in cryptos, centralized means controlled by a group or within an area.
Circulating Supply
The total amount of one type of crypto coins in circulation at a given time.
Circulation
Free circulation of the existing coins between individuals.
Coin
Any crypto that functions based only on its own or proprietary blockchain.
Cold Wallet
An offline crypto wallet that is considered to be much safer than hot wallets.
Cypherpunks
Members of the crypto community involved in the early stages of Bitcoin development, advocating strong encryption.
D
Decentralized Autonomous Organization that allocates funds to crypto-related projects.
DDoS
Distributed Denial of Service Attack. A means by which a malicious individual shuts down another individual's Internet connection by overloading it with requests.
DEX
An exchange that allows peer-to-peer transactions where no centralized wallet is used as a custodian.
DPoS
Delegated Proof of Stake, a consensus mechanism in which nodes of a blockchain choose its correct version.
Darknet
The Darknet is a restricted network with limited access. As opposed to the internet, which is freely open to all. It was one of the first networks to use cryptos for transactions.
Darksend relates to Darkcoin and allows users to make anonymous transactions.
Decentralized
Distributed amongst individuals, not controlled by a certain group or within an area.
Deepweb
Encrypted sections of the internet only accessible via special software.
Deflation
crypto supply shortage that results in price increase.
Delegated Byzantine Fault Tolerance
Protection against nodes sending imperfect information inside a distributed computing system.
Demurrage
A tax on crypto holdings to encourage spending coins.
Desktop Wallet
Software for storing cryptos on your personal computer.
Digital Asset
Any owned or controlled non-physical object of value, such as a document, a file, etc.
Digital Asset Array
A crypto collection or portfolio.
Digital Identity
Data used to represent an entity or individual on a network or on the Internet.
Digital Signature
A unique digital signature used for digital identities and authenticity confirmation.
Distributed Autonomous Company
A company that earns profit for its shareholders, creating value for the free market.
Distributed Ledger
A transaction list on every computer that has blockchain software installed.
Distributed Network
A distributed network uses nodes in many locations worldwide to achieve decentralization.
Double Spend
An attack where two or more transactions are sent in rapid succession to try and fool a consensus algorithm in a double credit.
Dump
Selling in a foreign market at a low price.
Transfers of too small a value to be sent due to the high fee incurred.
E
EOS (EOS)
The native cryptocurrency of the EOS.IO blockchain protocol – a decentralized system that enables the development, hosting, and execution of commercial-scale decentralized applications. See "dApps".
ERC20 Token
The most commonly used type or iteration of token issued on the Ethereum platform. Others include ERC223, ERC721, etc.
ETCF
Exchange Traded crypto Fund is a CoinMetro exclusive, meaning that a group of assets can be bought or sold as a single asset.
A messaging functionality that is extremely secure.
Escrow
A trusted third party that acts as a financial intermediary between monetary transactions.
Ethereum (ETH)
Ethereum is a cryptocurrency invented by Vitalik Buterin that was the first blockchain-based technology to enable smart contracts and decentralized applications.
Exchange
a digital marketplace where traders can buy and sell crypto or exchange crypto for fiat currencies.
F
FOMO
Fear of Missing Out, as in fear of missing the profits.
FUD
Fear Uncertainty and Doubt – the opposite of FOMO. FUD is disinformation spread in an attempt to cause panic selling or put off buyers from entering the market.
Faucet
A website that sends small amounts of cryptos and makes profit by means of advertising.
Fiat Currency
Fiat currency is paper money and default currency issued by the governments, e.g., the US Dollar, the Euro, etc.
Forging Reward
Coins paid to users for their participation in PoS consensus.
Fork
A fork is a change in the original software code. There are hard and soft forks. A hard fork is a change incompatible with the original version, whereas a soft fork is still compatible with the original version.
Founders’ Reward
A percentage of block reward paid to the founders of a crypto.
The property of a good or a commodity whose individual units are essentially interchangeable.
G
Gas
The pricing value required to successfully conduct a transaction or execute a contract on the Ethereum blockchain.
Genesis Block
The very first block to be mined on a blockchain.
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 physical device used to store private keys.
Hash
Output from an algorithm to maintain consensus on a blockchain.
Haskell
A programming language that was used to develop some cryptos, e.g. Cardano (ADA).
Hot Wallet
An online wallet used to store cryptos.
A hybrid consensus mechanism that uses both PoS and PoW algorithms.
I
IBO
An Initial Bounty Offering is a limited process of making a new cryptocurrency public and distributing it to people who earn rewards by investing resources. Rewards can be earned by doing marketing, translations or other similar tasks.
ICO
Initial Coin Offering, or a crypto project going public, offering tokens in exchange for funds.
IEO
An IEO, or Initial Exchange Offering, is similar to an ICO, except that it relies on having an exchange to function as the counter-party. Project developers mint the tokens and send them to the exchange, which will then sell the tokens to individual contributors.
IPO
An Initial Public Offering is the primary release of shares to the public by a private company.
IRS
Internal Revenue Service, the US tax collection agency.
Inflation
An increase in crypto supply that results in a price decrease.
Instamine
A compressed time frame shortly following the launch, when a large portion of assets are mined. The mined assets are usually quickly distributed to investors.
Interoperability
A theory of enabling blockchains to be compatible with each other and to enhance each other's features.
Issuance
The release of a new cyprotcurrency. The issuance can differ depending on the parameters set by the creators of the cryptocurrency.
J
JOMO
JOMO stands for "Joy of Missing Out". The term is often used by people who do not possess crypto assets to express their disbelief in crypto during price drops. It is the opposite of FOMO, which stands for "Fear of Missing Out".
Jihan Wu
CEO of Bitmain, the largest distributor of crypto mining machines.
K
KYC
Know your customer ("KYC") is the process of a business identifying and verifying the identity of its clients.
Keccak
A versatile cryptographic function. It is used for many purposeses but it's best known as a hash function that increases security levels compared to older hash algorithms (such as SHA-1 and SHA-2).
Kimoto Gravity Well
This algorithm is used in various altcoins to regulate difficulty.
L
Leverage
Leverage is the additional buying power created by margin trading, allowing you to effectively pay less than full price for an asset using borrowed funds.
Lightning Network
The Lightning Network is a "second layer" payment protocol that operates on top of a blockchain. It theoretically enables fast transactions between participating nodes.
Liquidity
Liquidity, roughly speaking, is a measure of how easy it is to convert an asset into cash quickly and without loss.
Liquidity Swap
An exchange that deals specifically with assets and currencies.
Litecoin
A type of crypto that was created by former Google employee, Charlie Lee, in 2011.
Long
Going long on a crypto means that you’re buying it with the expectation of selling it at a higher price (without hedging).
M
Mainnet
A mainnet is a blockchain network that transfers a digital currency from a sender to a recipient.
Margin Call
An act of investor selling their position to repay the loan lender.
Margin Trading
Margin trading is the practice of buying an asset using funds borrowed from a broker.
Market Cap
The total value held in a crypto-asset. It is calculated by multiplying the circulating supply of coins/tokens by the current price of an individual unit.
Market Order
A trade executed immediately at the best available price.
Masternode
A node that serves many more purposes than regular nodes.
Merged Mining
The simultaneous mining of two different cryptos, provided that the same consensus algorithm is used.
Micro-transaction
Any transaction that is relatively small in value.
Miner
A person who applies computing power to verify transactions on a blockchain in return for a block reward.
Mining
The creation of new coins by verifying transactions on a network.
Mining Algorithm
Set of heuristics and calculations that creates a model from data.
Mining Pool
A joint group of cryptocurrency miners who combine their computational resources over a network.
Minting
Minting is a process in which PoS blockchain users verify transactions and get new coins.
Mixing Service
A third party that groups payments together, enabling anonymous transactions.
Mnemonic
Keywords that are used to recover an e-wallet or account.
Mobile Wallet
This type of wallet allows users to store cryptos on mobile devices.
Monero
A crypto that is popular for its privacy and the anonymity it can offer. Monero transactions are designed to be untraceable to any particular user or real world identity.
Money Laundering
The act of concealing the transformation of profits from illegal activities into "legitimate" assets.
Multi-Signature
The requirement that transactions have two or more signatures before they can be executed.
Multisig
See "Multi-Signature".
N
Namecoin
An experimental open-source technology which improves decentralization, security, censorship resistance, privacy, and speed of certain components of the internet infrastructure, such as DNS and identities.
Emergent properties that occur when the value of a network increases with the number of its nodes.
Node
A computer that possesses a copy of the blockchain and is working to maintain it.
Non-Accredited Investor
(US Definition) Any investor who does not meet the income or net worth requirements set out by the Securities and Exchange Commission (SEC) - See also SEC.
Nonce
Arbitrary number used only once in a cryptographic communication.
O
OTC Exchange
Over-the-counter (OTC) trading is done directly between two parties, without the supervision of an exchange.
Off Blockchain Transaction
The movement of value outside of the blockchain.
OpSec
Operations Security as in protection of assets.
Open Source
A project with open source code is a project which can be checked, changed and expanded by anyone.
Oracle
An agent that finds and verifies real-world occurrences and submits this information to a blockchain to be used by smart contracts.
Orphan
Valid blocks which are not part of the main chain.
P
P2P
In a peer-to-peer connection, two or more computers network with each other without a centralized third party being used as an intermediary.
Paper Wallet
An offline mechanism for storing coins. The process involves printing the private keys and addresses onto paper.
Parent Chain
A crypto's main blockchain, which connects sidechains.
Peercoin
Peercoin seeks to be the most secure cryptocoin at the lowest cost, by rewarding all users for strengthening the network.
Phishing Attack
A type of social engineering attack often used to steal user data, including login credentials and credit card numbers.
Plasma
A solution for Ethereum that provides for more transactions per second thanks to adding other blockchains to the main Ethereum blockchain.
Pre-Sale
A period before an ICO goes public when private investors or community members are able to buy the crypto token.
Premine
Premining is the mining or creation of a number of crypto coins before the cryptocurrency is launched to the public.
Price Bubble
A price bubble occurs when an asset's market value is higher than it actual worth.
Privacy Coin
Privacy coins are designed to give users more anonymity in a robust and decentralized manner.
Private Key
A sophisticated form of cryptography that allows a user to access his or her crypto-assets.
Proof of Existence
Proof of Existence is an online service that verifies the existence of computer files as of a specific time via timestamped transactions in the blockchain.
Proof of Stake (PoS)
An algorithm that rewards participants who solve difficult cryptographic puzzles to achieve distributed consensus.
Proof of Work (PoW)
An algorithm that rewards participants who solve difficult cryptographic puzzles to verify transactions on a blockchain.
Public Key
This is the unique wallet address, which appears publicly as a long string of numbers and letters. It is used to receive crypto-assets into a wallet.
Pump
This is a term used to refer to an upward price movement, usually driven by "whales" investing large sums of money in a cryptocurrency.
Q
QR Code
A special code that bears information that can be read by any device that has a camera.
Quantitative Easing
Pumping money into the system by buying assets.
Quantum Computing
Advanced computing that solves even the most complex issues quickly.
R
Remittance
The act of sending money as a payment for something.
Ripple
Ripple is a real-time gross settlement system, currency exchange and remittance network created by Ripple Labs Inc. Ripple technology uses the XRP cryptocurrency.
A roadmap is a strategic plan that defines a goal or desired outcome, and includes the major steps or milestones needed to reach it.
S
SEC
The Securities and Exchange Commission, a US agency responsible for enforcing federal securities laws, proposing securities rules, and regulating the securities industry.
SPV mode
Simple Payment Verification (SPV) is a technique described in Satoshi Nakamoto's whitepaper. SPV allows a lightweight client to verify that a transaction is included in the Bitcoin blockchain, without downloading the entire blockchain.
Satoshi
The pseudonym of the alleged Bitcoin creator. It's also 1/100,000,000 of a Bitcoin.
Satoshi Nakamoto
The individual, or group of individuals (it has never been confirmed) who created bitcoin.
Scalability
Scalability refers to how well a technology can grow while still maintaining efficiency.
Scam
A fraudulent scheme performed by a dishonest individual, group, or company in an attempt to obtain money or something else of value.
Scamcoin
The Scamcoin refers to a digital token which basically helps only those who create it and maintain it but impoverishes those who hold it.
Usually, a seed is a phrase or a series of words that can be used to regenerate your wallet ID if you lose it. Definitely something to keep very secret!
SegWit
Acronym for “segregated witness”. The processes of separating digital signature data from transaction data. This lets more transactions fit onto one block in the blockchain, improving transaction speeds.
Self-Executing Contract
A smart contract is self executing contract where the terms and conditions are defined and enforced using software. See also "Smart Contracts".
Sharding
Sharding is a way of splitting up the full blockchain history so each full node doesn’t need the whole copy of it. It’s used as a scaling solution for blockchains.
A platform that functions alongside the existing blockchain protocol and allows transactions to be made off the main blockchain.
Signature
Used to confirm that a document being transmitted electronically is authentic.
Small Blocker
A person who believes that bitcoin block sizes need to be small for everyone to be able to run a full node.
Smart Contracts
Agreements between two parties that execute automatically when the required terms are met and also cancel the same way when the terms are not met.
SmartCoins
A SmartCoin is a cryptocurrency whose value is pegged to that of another asset, such as the US Dollar or gold.
Soft Cap
Generally refers to the minimum amount that an Initial Coin Offering (ICO) needs to raise. If the ICO is unable to raise that amount, it may be cancelled and the collected funds returned to participants. See also:
Solidity
One of the most popular languages that smart contracts can be written in. Has some similarities to Javascript. See also "Smart Contracts".
Staker
A user who voluntarily locks some of their tokens or coins up to verify blockchain transactions for a staking reward.
Stale Block
Stale Blocks are blocks that are no longer part of the current best blockchain because they were overridden by a longer chain.
Subchain
A subchain runs separately from a main blockchain and uses the native currency for transactions, boosting scalability.
Supply Chains
Basically, delivering products and services from providers to customers.
SwiftTX
When a user chooses to send a transaction as a SwiftTX, the transaction will be sent to Masternodes to process and it gets verified and guaranteed by them almost instantly.
T
TOR
Free software for enabling anonymous communication.
TPS
Transactions per second (TPS) measures how many transactions occur in one second through an information system. In the crypto market, transactions per second are an important area of research, since high transaction rates can be difficult to maintain within a decentralized blockchain.
Testnet
An alternative blockchain, to be used for testing.
Timestamp
The moment in time when a transaction was encrypted and regarded as proof that the data compiled in that transaction existed.
Token
The “coin” of a cryptocurrency is a token. Effectively, it’s the digital code defining each fraction, which can be owned, bought and sold.
Total Coin Supply
The total amount of coins that can exist within the scope of a single crypto.
Trade Volume
Trade volume measures how frequently and how much a financial asset, like crypto, is bought and/or sold during a given time period.
Trader
A person who buys and/or sells financial assets – such as cryptos.
Trading Pair
A trade between one type of crypto-asset and another, e.g. BTC/LTC.
Transaction Fee
Usually very small fees given to the miners involved in successfully approving a transaction on the blockchain.
Two-Factor Authentication
A security process in which the user provides two different authentication factors to verify themselves to better protect both the user's credentials and the resources the user can access.
Tx
A shortened form for "transaction".
U
UIA
User-Issued Assets, or tokens that can be created on BitShares.
UTXO
Unspent transaction Output – This refers to the amount of crypto sent to an entity but not sent on elsewhere. These amounts are considered unspent and are the data stored in the blockchain.
Unstoppable Code
Software that provides for irreversible changes in an environment.
V
Vanity Address
An address that holds crypto, for which specific words and phrases can be used.
Velocity of Money
The rate at which money is exchanged from one transaction to another.
Venture Capitalist
An investor who either provides capital to startup ventures or supports small companies that wish to expand but do not have access to equities markets.
Virgin Coins
Coins that have been mined but never spent.
Volatility
The fluctuation in an asset’s price is measured by its volatility. Cryptocurrency prices are notoriously volatile compared to other assets, as dramatic price shifts can happen quickly.
W
Wallet
Special software or devices containing public and private keys allowing users to store cryptos.
Whale
A term used to describe extremely wealthy investors or traders who have enough funds to manipulate the market.
Whitelist (ICOs)
Prior to an ICO, interested parties can sign up/register their involvement and intent to purchase or even purchase under pre-sale conditions. The list of these parties is referred to as the whitelist.
Whitepaper
An informational document that generally informs readers on the philosophy, objectives and technology of a project or initiative.
Wire Transfer
A method of electronic funds transfer from one person or entity to another.
X
XBT
A ticker for Bitcoin (and the same as BTC) used on some crypto exchanges.
XCM
XCM, or COIN, is an ERC-20 utility token and the native token used on the CoinMetro exchange and trading platforms. All services on these platforms are paid for in XCM.
Z
Z-Score Formula
A formula that uses data to make predictions about how financially secure businesses are.
Zero Confirmation Transaction
Alternative phrasing for an unconfirmed transaction.