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Glossary

A

Altcoin

Bitcoin was the first crypto to ever be invented, all other cryptos are known as altcoins, or "alternative coins".

Accredited Investor

An accredited investor (US) has a net worth of over $1 million and/or an annual salary exceeding $200,000-300,000.

AML

In full, Anti-Money Laundering. The related regulations require companies to obtain personal data about customers and their financial activities.

ATH

All-Time High, the highest price a crypto has ever reached.

ATL

All-Time Low, the opposite of ATH (see above).

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.

Airdrop

The distribution of tokens of a new crypto, usually for free, to a large number of wallet addresses.

Angel Investor

Investors who wish to provide capital to startups for convertible debt or equity.

Arbitrage

Simultaneously buying and selling the same coins on different exchanges to benefit from price differences.

API

Application Programmer Interface, a toolkit for developers to create applications.

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

Block Explorer

Websites designed to check transaction details based on its address or ID.

Batched Transaction

Multiple transactions combined in one to increase efficiency and decrease fees.

BTC

A commonly used ticker symbol for Bitcoin. However, the official ISO standard ticker symbol is: XBT.

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.

Bitcoin Core

The original Bitcoin wallet that is considerd to be one of the safest wallets available.

Bitcoin Cash

The very first Bitcoin fork that occurred on August 1, 2016.

Bitcoin

The first decentralized crypto invented in 2009. Bitcoin is the most widely known and popular coin.

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.

Bull

A trader or person who is optimistic about future crypto prices.

Bull Market

A market showing mostly rising prices.

Bearish

Being pessimistic about the future developments of a crypto price.

Bear

A trader or person who is pessimistic about the future crypto prices.

Bear Market

A market showing mostly falling prices.

Bollinger Bands

A price analysis tool or 'indicator', used to identify price trends of an asset.

Blockchain

A digital ledger in which transactions made in bitcoin or another cryptocurrency are recorded chronologically and publicly.

Block Size

The amount of data that can be stored in one block of a blockchain.

Blockchain 2.0

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.

Burn

Burn is a mechanism that destroys a certain amount of coins/tokens, affecting the total crypto coin supply.

C

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.

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.

Central Ledger

A final list of all the transactions that have ever taken place on a platform.

Coin

Any crypto that functions based only on its own or proporietary blockchain.

Circulation

Free circulation of the existing coins between individuals.

D

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.

Distributed Network

A distributed network uses nodes in many locations worldwide to achieve decentralization.

Dump

Selling in a foreign market at a low price.

DPoS

Delegated Proof of Stake, a consensus mechanism in which nodes of a blockchain choose its correct version.

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.

DAO

Decentralized Autonomous Organization that allocates funds to crypto-related projects.

Delegated Byzantine Fault Tolerance

Protection against nodes sending imperfect information inside a distributed computing system.

Distributed Ledger

A transaction list on every computer that has blockchain software installed.

Digital Signature

A unique digital signature used for digital identities and authenticity confirmation.

Darksend

Darksend relates to Darkcoin and allows users to make anonymous transactions.

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.

Deepweb

Encrypted sections of the internet only accessible via special software.

Deflation

crypto supply shortage that results in price increase.

Demurrage

A tax on crypto holdings to encourage spending coins.

Desktop Wallet

Software for storing cryptos on your personal computer.

Dust Transactions

Transfers of too small a value to be sent due to the high fee incurred.

Digital Asset

Any owned or controlled non-physical object of value, such as a document, a file, etc.

Digital Identity

Data used to represent an entity or individual on a network or on the Internet.

Decentralized

Distributed amongst individuals, not controlled by a certain group or within an area.

Digital Asset Array

A crypto collection or portfolio.

Distributed Autonomous Company

A company that earns profit for its shareholders, creating value for the free market.

DEX

An exchange that allows peer-to-peer transactions where no centralized wallet is used as a custodian.

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".

Ethereum (ETH)

Ethereum is a cryptocurrency invented by Vitalik Buterin that was the first blockchain-based technology to enable smart contracts and decentralized applications.

ERC20 Token

The most commonly used type or iteration of token issued on the Ethereum platform. Others include ERC223, ERC721, etc.

Exchange

a digital marketplace where traders can buy and sell crypto or exchange crypto for fiat currencies.

Escrow

A trusted third party that acts as a financial intermediary between monetary transactions.

ETCF

Exchange Traded crypto Fund is a CoinMetro exclusive, meaning that a group of assets can be bought or sold as a single asset.

Ephemeral Layer

A messaging functionality that is extremely secure.

F

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.

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.

Fungibility

The property of a good or a commodity whose individual units are essentially interchangeable.

Founders’ Reward

A percentage of block reward paid to the founders of a crypto.

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.

Forging Reward

Coins paid to users for their participation in PoS consensus.

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

Hardware Wallet

An physical device used to store private keys.

Hash

Output from an algorithm to maintain consensus on a blockchain.

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.

Hot Wallet

An online wallet used to store cryptos.

Haskell

A programming language that was used to develop some cryptos, e.g. Cardano (ADA).

Hybrid PoS/PoW

A hybrid consensus mechanism that uses both PoS and PoW algorithms.

I

ICO

Initial Coin Offering, or a crypto project going public, offering tokens in exchange for funds.

IRS

Internal Revenue Service, the US tax collection agency.

Inflation

An increase in crypto supply that results in a price decrease.

J

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.

Kimoto Gravity Well

This algorithm is used in various altcoins to regulate difficulty.

L

Long

Going long on a crypto means that you’re buying it with the expectation of selling it at a higher price (without hedging).

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.

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.

Litecoin

A type of crypto that was created by former Google employee, Charlie Lee, in 2011.

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 assests and currencies.

M

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.

Margin Call

An act of investor selling their position to repay the loan lender.

Mainnet

A mainnet is a blockchain network that transfers a digital currency from a sender to a recipient.

Mnemonic

Keywords that are used to recover an e-wallet or account.

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.

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 Pool

A joint group of cryptocurrency miners who combine their computational resources over a network.

Multi-Signature

The requirement that transactions have two or more signatures before they can be executed.

Margin Trading

Margin trading is the practice of buying an asset using funds borrowed from a broker.

Market Order

A trade executed immediately at the best available price.

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.

Mining Algorithm

Set of heuristics and calculations that creates a model from data.

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.

Mobile Wallet

This type of wallet allows users to store cryptos on mobile devices.

Money Laundering

The act of concealing the transformation of profits from illegal activities into "legitimate" assets.

Multisig

See "Multi-Signature".

Masternode

A node that serves many more purposes than regular nodes.

N

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".

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.

Network Effect

Emergent properties that occur when the value of a network increases with the number of its nodes.

Nonce

Arbitrary number used only once in a cryptographic communication.

O

Orphan

Valid blocks which are not part of the main chain.

OpSec

Operations Security as in protection of assets.

Oracle

An agent that finds and verifies real-world occurrences and submits this information to a blockchain to be used by smart contracts.

Off Blockchain Transaction

The movement of value outside of the blockchain.

OTC Exchange

Over-the-counter (OTC) trading is done directly between two parties, without the supervision of an exchange.

Open Source

A project with open source code is a project which can be checked, changed and expanded by anyone.

P

Paper Wallet

An offline mechanism for storing coins. The process involves printing the private keys and addresses onto paper.

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.

Phishing Attack

A type of social engineering attack often used to steal user data, including login credentials and credit card numbers.

Proof of Stake (PoS)

An algorithm that rewards participants who solve difficult cryptographic puzzles to achieve distributed consensus.

Premine

Premining is the mining or creation of a number of crypto coins before the cryptocurrency is launched to the public.

Pre-Sale

A period before an ICO goes public when private investors or community members are able to buy the crypto token.

Private Key

A sophisticated form of cryptography that allows a user to access his or her crypto-assets.

Privacy Coin

Privacy coins are designed to give users more anonymity in a robust and decentralized manner.

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.

Peercoin

Peercoin seeks to be the most secure cryptocoin at the lowest cost, by rewarding all users for strengthening the network.

Price Bubble

A price bubble occurs when an asset's market value is higher than it actual worth.

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.

Plasma

A solution for Ethereum that provides for more transactions per second thanks to adding other blockchains to the main Ethereum blockchain.

Parent Chain

A crypto's main blockchain, which connects sidechains.

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.

Roadmap

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

Seed

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!

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.

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.

SEC

The Securities and Exchange Commision, a US agency responsible for enforcing federal securities laws, proposing securities rules, and regulating the securities industry,

Small Blocker

A person who believes that bitcoin block sizes need to be small for everyone to be able to run a full node.

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: "Hard Cap".

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.

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.

Solidity

One of the most popular languages that smart contracts can be written in. Has some similarities to Javascript. See also "Smart Contracts".

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".

Stale Block

Stale Blocks are blocks that are no longer part of the current best blockchain because they were overridden by a longer chain.

Sidechain

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.

Scalability

Scalability refers to how well a technology can grow while still maintaining efficiency.

Staker

A user who voluntarily locks some of their tokens or coins up to verify blockchain transactions for a staking reward.

SmartCoins

A SmartCoin is a cryptocurrency whose value is pegged to that of another asset, such as the US Dollar or gold.

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.

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.

T

Trader

A person who buys and/or sells financial assets – such as cryptos.

Testnet

An alternative blockchain, to be used for testing.

TOR

Free software for enabling anonymous communication.

Tx

A shortened form for "transaction".

Transaction Fee

Usually very small fees given to the miners involved in successfully approving a transaction on the blockchain.

Total Coin Supply

The total amount of coins that can exist within the scope of a single crypto.

Timestamp

The moment in time when a transaction was encrypted and regarded as proof that the data compiled in that transaction existed.

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.

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.

Trading Pair

A trade between one type of crypto-asset and another, e.g. BTC/LTC.

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.

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.

U

Unstoppable Code

Software that provides for irreversible changes in an environment.

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.

UIA

User-Issued Assets, or tokens that can be created on BitShares.

V

Vanity Address

An address that holds crypto, for which specific words and phrases can be used.

Virgin Coins

Coins that have been mined but never spent.

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.

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.

Velocity of Money

The rate at which money is exchanged from one transaction to another.

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.

White Paper

An informational document that generally informs readers on the philosophy, objectives and technology of a project or initiative.

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.

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.

Z

Zero Confirmation Transaction

Alternative phrasing for an unconfirmed transaction.

Z-Score Formula

A formula that uses data to make predictions about how financially secure businesses are.

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