Glossary

Glossary

A

Altcoin. It stands for “alternate coin”, Any cryptocurrency other than Bitcoin.

ASIC. An acronym for an application-specific integrated circuit. An ASIC is a powerful and expensive computing device used for mining cryptocurrency.

Address. A special identification number that acts as a virtual address for sending the cryptocurrency. 

Airdrop. Airdrops involve blockchain-based companies and developers giving away free tokens to encourage adoption.

Algorithm. A clear set of mathematical instructions used to calculate an answer to a problem.

AllTime High (ATH). The highest price at which a cryptocurrency is traded.

B

Bitcoin (BTC). The first cryptocurrency created on decentralised blockchain technology.

BNB. Is a native coin of Binance that can be used to trade and pay fees on the Binance cryptocurrency exchange.

Buy the dip. This means buying an asset when its price has fallen.

Blockchain. The technology is used by nearly all cryptocurrencies. A blockchain is essentially a complete ledger of transactions held simultaneously by multiple nodes on a network.

C

Coin. A synonym of  cryptocurrency.

Cold wallet. stores cryptocurrency on a system that isn’t linked to the internet, shielding the wallet from illegal access, online hacking, and other risks.

Cryptocurrency. A type of digital currency where records are kept and transactions are validated by a decentralised system employing encryption as opposed to a central authority.

Cryptography. A system for secure communication and information that were developed using mathematical principles and a series of computations based on rules.

D

dApp. A decentralised application which is a hosted on a centralised server, it is distributed across a peer-to-peer network.

DeFi. Short for decentralized finance, is a fresh take on banking and finance that uses blockchain technology to enable peer-to-peer payments.

DAO. An acronym that stands for a decentralized autonomous organization. A DAO is run exclusively by its individual members, who jointly decide on important project decisions, including technical improvements and budget allocations.

Distributed ledger. Refers to the protocols and accompanying systems that enable computers in various places to submit and approve transactions and synchronise record updates across a network. A blockchain is a type of distributed ledger.

Decryption. the process of undoing an encryption so that ciphertext, which is unreadable data, can be transformed into readable data.

E

Exchange. A market where traders meet to buy and sell crypto assets.

Ether (ETH). The native cryptocurrency token of the Ethereum platform

Ethereum. Decentralized and open-source, Ethereum is a blockchain that supports smart contracts. The platform’s native cryptocurrency is ethereum. Ether has the second-highest market capitalisation among cryptocurrencies after bitcoin.

Encryption. The plaintext version of the information, which was its original representation, is changed into ciphertext by this method.

F

Fiat currency. To differentiate traditional cash from cryptocurrencies, the term “fiat currency” is frequently used.

Fork. Changes to the blockchain’s software protocol are introduced through forks. They frequently include the issuance of new tokens. A fork can be either accidental or intentional. Intentional forks are further categorized as either soft forks or hard forks.

G

Gas. Gas is the cost necessary to complete a transaction or carry out a contract on the Ethereum blockchain.

Graphics card. A GPU, or graphics processing unit, is responsible for the digital rendering in a computer system.

Gwei. the smallest unit of ether (ETH), a cryptocurrency used on the Ethereum network to trade goods and services.

H

Hash rate . refers to the amount of computational power that a network is using to process transactions. Investors can use it to evaluate a cryptocurrency’s network’s stability and security.

Hot wallet. a wallet that is constantly linked to the internet; you may store, transmit, and receive tokens with them.

HODL. it’s a short form of ‘hold on for dear life’. Buy a cryptocurrency and hold it for a very long time. 

I

ICO. Initial coin offerings, or ICOs for short, are a common way for cryptocurrency ventures in their early stages to raise money.

J

Jager. The smallest BNB denomination, Jager, has an 8-digit division..

K

Know Your Customer (KYC). Knowing a customer’s identity, financial activities, and risk is necessary for effective KYC.

L

Ledger. Ledger is a cold wallet for cryptocurrencies. They are among the most reputable in the sector and were in charge of launching the first hardware wallets.

Liquidity. an indicator of how quickly assets, whether they be digital or not, can be turned into money.

Listing. Token is made tradable by listing. The token will be freely available for purchase and sale by members of the project community, providing both the project and the token a chance to prosper.

M

Market capitalization. Market Capitalization, abbreviated as “Market Cap,” is determined by multiplying the current coin price of a specific crypto market by the number of coins that are currently in circulation.

Mining. the competitive process for a cryptocurrency that employs the proof-of-work algorithm that verifies and adds new transactions to the blockchain.

Meme coin. Meme coins are digital assets that were created as a satirical joke.

N

Node. is a device that connects to a network for cryptocurrencies. It plays important role by validating and relaying transactions.

NFT. A blockchain-based, one-of-a-kind digital identity that is used to verify ownership and validity and cannot be copied, replaced, or divided.

O

Onchain. Cryptocurrency transactions that take place on the blockchain and are will remain dependent on the network.

Order book. A digital list of purchase and sell orders for particular assets arranged by price level.

Orphan block. A block that has been solved inside of the blockchain network but was rejected by the network.

P

P2P. a mechanism that enables merchants to conduct business directly with one another without the need of a central third party.

Private key. The private key, which acts as the user’s digital ID, is only known to them. The user’s account can be used to make purchases, withdrawals, transfers, and other types of transactions with the help of the private key.

Public key. The public key is a cryptographic code that enable transactions between parties and enable users to receive cryptocurrency in their accounts.

Proof of work. A decentralised consensus process that prevents system abuse by making network participants work hard to solve a random mathematical puzzle.

Proof of stake. Created as an alternative to Proof-of-work. This allows owners of a cryptocurrency to stake coins and create their own validator nodes.

Q

Quantum computing. Quantum computers are special machines that can perform certain calculations significantly faster than everyday computers

R

Rug Pull. A rug pull is a sort of cryptocurrency scam that takes place when a team pumps the token for their project before vanishing with the money and leaving their investors with a worthless asset.

S

Satoshi Nakamoto. – The person or individuals behind the creation of the original version of the bitcoin software go by the pseudonym Satoshi Nakamoto, and it was they who also published a paper in 2008 that popularised the idea of cryptocurrencies.

Smart contract. The term “smart contract” refers to a programme that runs on the Ethereum blockchain. It is a set of data and code that is stored at a particular Ethereum blockchain address.

Seed. Also known as recovery phrase. A string of random words produced by the wallet that users can use to access the stored cryptocurrency.

Stablecoin. A kind of cryptocurrency tied to the value of an underlying asset and intended to keep its price steady over time.

T

Tether (USDC). pegged to the U.S. dollar and backed “100% by Tether’s reserves.

Token. are digital assets constructed on the blockchain of another coin.

U

USD Coin (USDC). A stablecoin that is pegged 1-to-1 with the U.S. dollar.

V

Volume. Is the sum total of actual trades taking place, volume is typically referenced to in a 24-hour period.

Validator. a person who is in charge of verifying blockchain transactions.

Volatility. a way to gauge how much an asset’s price has changed, either up or down, over time.

W

Wallet. a programme or device that keeps your cryptocurrency keys safe and gives you access to your coins..

Wei. The smallest unit of ETH is called a wei, which is equivalent to 10^-18 ETH.

Whitepaper. A document made public by a cryptocurrency project that provides technical details regarding its concept and a growth and success trajectory.

Whale. A wallet address that holds a huge amount of cryptocurrency.

X

XRP. A cryptocurrency token that runs on the Ripple blockchain.

Y

Yield. A return on investment, expressed as a percentage.

Z


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