Glossary

The address is used to send and receive crypto on the network on blockchain. It’s kind of a back account number where you can make crypto transactions. As every back has its own address, every cryptocurrency also has its particular address. Bitcoin addresses will be different from Ethereum, for example, so be careful.

It is disconnecting computers from the internet or any other network that can compromise the security of crypto data. To secure the cryptocurrency data, air-gapping works as a break away from the threats posed by hackers and online scams.

Altcoin, short for alternative cryptocurrency, is any type of cryptocurrency other than widely known Bitcoin. Many cryptos followed the Bitcoin revolution and are now called altcoin or alternative cryptocurrencies collectively.

Trading in the crypto market extensively in order to make a profit by exploiting market loopholes is called arbitrage. Arbitrage works best when you buy and sell simultaneously and make a profit from the difference in values in the running market.

Laws and litigation to prevent illegal money laundering across borders relate to the AML regime. The laws prevent money laundering and related criminal activities from securing the transactions and keeping the money flow above board.

The highest value any crypto has ever achieved is termed ATH or all-time high. This term is useful to understand the potential of a cryptocurrency relative to other cryptos.

Bitcoin is the pioneer cryptocurrency that introduced the world to decentralized currency on the internet. The identity of the developer is unknown to this day, and people know that person by the pseudonym, Satoshi Nakamoto.

Bagholder is a buyer who holds crypto to sell at a higher rate to achieve breakeven when the market goes in a bullish mode. When buyers purchase at a higher price, and the market falls, bagholders keep on waiting for the market to go up again instead of making any trades.

A block is a set of transactions of the cryptocurrency on the internet that are registered on the blockchain. Every block is recorded, and this record is the account holder’s digital account information.

Blockchain is the decentralized, permanent, and consensus record of all the transactions that have yet happened and will happen in the future. A digital bank account that keeps the record of people’s crypto and digital money and is the fundamental building block of crypto phenomena. You can call it a digital ledger.

The total number of transactions in a blockchain is termed block height. The first transaction starts from block zero and builds up as the number of block transactions increases in the blockchain. Miners are given block rewards when they successfully hash a transaction block.

These are the people who believe only Bitcoin is a worthy currency and disregard other currencies as useless. Bitcoin maximalists only trade, deal, and talk about Bitcoin and are only concerned about the price of bitcoin in the market.

The margin of profit or loss around a particular cryptocurrency indicates whether the coin was purchased at a higher price or a lower price than its original value. Traders have an intense interest in Bollinger Band as it determines their profits.

A bullish trend in a market is when the prices are going up, and profits are soaring. The bullish market keeps on rising, and traders get the maximum profits by selling. This trend halts when more people are selling, and fewer are there to purchase.

Bearish is the opposite of Bullish, and here the market goes in a downward trend. There could be many reasons but primarily, the selling increases while buying decreases; therefore, the rates go down.

A cryptocurrency exchange agency that is operational and is run by an organization that has complete control over its operations. It’s a centralized exchange and keeps records of all the relevant transactions.

Also called an altcoin, it’s a digital representation of a digital asset generated and stored on an independent blockchain, which represents the value of that particular digital currency.

Cold storage is similar to air gapping, and here, you store the crypto offline in order to maximize security. The risk of hackers, spam, and fraud is absent when you store crypto offline in your wallet.

A decentralized digital currency that is stored on the blockchain network and is held online by crypto traders and keepers. The major cryptocurrency is Bitcoin, but many others in the market are also now faring well online.

An autonomous organization that does not come under the control of a government or any other centralizing organization and its rules and procedures are cryptic to protect it from any kind of scrutiny.

These apps work with blockchain, are not under any central authority, and function independently. Blockchain is protected by these apps from any scrutiny from a centralizing authority.

Decentralized exchange does not work under a specific centralizing agency or organization and is decentralized across the internet. Unlike a centralized exchange, DEX does not have any controlling authority.

DeFi or decentralized finance is an internet-based monetary network that does not have any role of a centralized entity over its operations. It works organically on the blockchain network and does not come from any authority.

This is one of the most important terms as it represents addresses to crypto wallets where you can send cryptocurrency. You can understand it as a bank account number of a specific person. Every individual has a unique digital address to his or her digital wallet.

A digital asset is a transferable, convertible, and tangible asset upon which there is consensus and has a market value that can be purchased and sold online through electronic transactions. A cryptocurrency is also a form of digital asset, but there are many other centralized assets available as well.

Digital signature refers to an encrypted code generated by a public key to verify the contents of an electronically transmitted document. It gives authority to the document and makes it legally accepted for other users and authorities to present as evidence.

This is a digital account to keep your cryptocurrency safe and secure. A digital wallet can be online or offline based on a user’s choice. You can install a digital wallet on your mobile, laptop, or offline location.

An exchange is a digital stock market where you can buy and sell cryptocurrency. It is an exchange for digital currencies same as a traditional money exchange where you can buy and sell your currencies. One example is Coinbase.

Any currency issued by a central authority such as a government, which is accepted by the national and international buyers and sellers and for which a government provides sureties and safeties.

A futuristic event that may make an altcoin gain a huge value is to surpass Bitcoin as the largest crypto in terms of market share. There is a potential chance that such an event in the green production of crypto becomes a necessity, and an altcoin becomes a green coin.

Going long on trade is when an investor expects profits by keeping the asset until the prices rise. The profit is made by holding on to the cryptocurrency and happens when investors see a bullish trend in the market. This makes their profit margins become thicker and thicker.

Opposite to going long is going short, where investors sell their assets to make a profit when the market is expected to go into a bearish trend. In the crypto world, the trade is mostly happening on these two principles, going long and going short.

Hash rate refers to the speed of a computer that is mining a particular cryptocurrency. Hash rate is important, and a higher hash rate means you mine more coins and earn more profits for mining a coin. Usually, large computers and huge servers are required to increase the hash rate.

Cryptocurrencies such as Bitcoin have a finite supply, and every four years, their supply becomes half of what it was before. This event is called halving. This makes Bitcoin valuable as scarcity ensures competition. Final halving will occur in the year 2140, and the total number of Bitcoins that will ever be produced is 21 million.

When crypto holders don’t want to sell their digital currencies and hold on to them, it’s called HODL (Hold On for Dear Life). Many investors who are reluctant to sell their assets are firm believers in Hodling. Such people are called Hodlers.

A crypto trader can put a limit to his or her trade, and when that limit reaches, a trade will be executed. A buyer can put a limit to make a purchase of any digital currency from the exchange, and when that limit comes, the order is automatically processed.

Market capitalization (market cap) is the total value of any coin in the market. So far, Bitcoin dominates the cryptocurrency market in terms of both trade and assets and has the largest market cap in the digital world. All other cryptos are compared to Bitcoin for market cap.

Market order for any crypto is the sale or purchase of any digital currency at the current market price. A buyer or a seller can make a market order from an exchange, or they can make one directly through different platforms.

Mining is the creation of new blocks of cryptos on the blockchain and is equivalent to mining a precious metal from scratch. It requires a high amount of energy and computing power and is a difficult process. Most cryptos, including Bitcoin, can only be mined to a finite number, and that’s why they are valuable.

A large computer system that can mine cryptocurrency and create registers or blocks on the blockchain network. A mining rig usually takes a lot of energy and has been criticized for being harmful to the environment. A typical mine consumes the same amount of energy that otherwise can power a small village.

Crypto blockchain records are kept on different computers and not as a centralized currency. Any computer that possesses a blockchain copy and maintains it for the record is called a node.
A computer that, online or offline, possesses a copy of the blockchain and is in the process of maintaining it.

A seed or private key is the password for each wallet and is used to access it by the user. The private key is highly valuable and must be kept safe, and the best practice for this is to keep it written on a notebook instead of a computer file. A computer that, online or offline, possesses a copy of the blockchain and is in the process of maintaining it.

When the price of crypto increases to a large extent in a short span of time, this process is called pumping. One example was when Elon Musk announced that bitcoin could be used to purchase Tesla cars. The prices for digital currencies reached an all-time high in a single day.
An extraordinary large increase in the price of crypto.

Pumping refers to creating an artificial price hike for crypto, and dumping refers to selling it before the price goes down to its normal value. Mostly, the low market cap crypto miners do these tricks to gain profits.

Satoshi is the cent unit of Bitcoin and is also the pseudonym of the Bitcoin creator Satoshi Nakamoto. The original identity of Satoshi is not known, and the name is taken from the man who published the first Bitcoin whitepaper.

Stablecoins are cryptos that are backed by a tangible asset, such as the US dollar, and offer stable prices over a period. Unlike Bitcoin and other cryptos, the profits margins are low, but there is much less uncertainty.

Crypto specialists do technical analysis using historical data, insights, and events to predict the price of Bitcoin and other cryptos in the future. This analysis contains an overall awareness of the market and the market trends under certain conditions in the past.

A token is an asset retrieved from an existing blockchain and does not need mining from scratch. These are easily transferable and are unique. They are also digitally scarce but are different from coins.

The total market cap of cryptocurrency is the sum of all the digital currency assets, including Bitcoin and other cryptocurrencies. The total market cap contains every single crypto and adds its value to the total value.

The total market cap of cryptocurrency is the sum of all the digital currency assets, including Bitcoin and other cryptocurrencies. The total market cap contains every single crypto and adds its value to the total value.

Whitepapers are quite common in the crypto world and are used to inform readers about certain aspects related to digital currencies. They are also an effective medium for cryptocurrency advocacy, and crypto enthusiasts use them to convince people of crypto effectiveness and usefulness.