A Cryptocurrency Glossary
10x would give the trader 10 times the initial margin and so on. The higher the “x” factor, the higher the risk and higher the reward for that trade.
Whitepaper – A document that contains essential information such as details concerning technology, objectives, and the philosophy behind an initiative or project. A whitepaper is typically provided prior to the launch of a new cryptocurrency token or coin. Whale – An entity who possesses cryptocurrency glossary a majority percentage of any cryptocurrency. Vanity Address – A cryptocurrency address that begins with a set of customized letters and numbers that hold a special meaning for the user. Utility Token – Utility tokens are digital units that provide access to a specific product or service.
Crypto Exchange– A website where one can purchase and sell cryptocurrencies. Cold Storage– A form of offline cryptocurrency storage such as an offline computer or USB. BTG – Shorthand for Bitcoin Gold, which is renowned for democratizing the Bitcoin mining process by rendering specialized mining equipment obsolete. Atomic Swap – A peer-to-peer method for exchanging one cryptocurrency for another at current rates. Our complete cryptocurrency glossary is designed to help you build a solid foundation that enables you to discuss and read about crypto with confidence. Pick terminology that piques your curiosity or dig deep and study each term to enhance your understanding of its importance and where it fits into the overall language of cryptocurrency.
When you navigate to a new page, you’ll receive a short definition of the cryptocurrency term in question, along with a longer explanation when applicable. With more than one hundred crypto terms to sink your teeth into, it’s designed to give cryptocurrency glossary you more than simple translations. X is the symbol used to define the multiplier used in leverage trading, i.e. 2x, 10x, 100x. For example, using 2X leverage on a trade would give the trader twice the initial margin put up for that trade.
Fiat money is not backed by a commodity such as gold or silver, however, it is traded in recognizable forms such as coins or paper bills. Fiat money can also be represented electronically, i.e. as available credit on a credit card.
Cracking The Cryptocurrency Terms: Glossary
LTC – Litecoin, which is a cryptocurrency based on Bitcoin technology. Lightning Network – A P2P cryptocurrency micropayment system cryptocurrency glossary that focuses on instant, low-latency payments. Ledger – A record of transactions, to which new transactions can be added.
Bitcoin Competition: The Rising World Of Altcoins
U.S. dollars, for example, are backed by the “full faith and credit” of the United States government. Crypto-marketing.A scheme in which promoters of securities tied to cryptocurrencies recruit investors cryptocurrency glossary to pitch the investments, often to friends and family and through social media and blogs. In return, these investors are promised a generous return plus the promise of commissions on their sales.
Hard forks are when a blockchain fails to reach consensus and has to do a hard reset and splits off into two chains. One chain adopts one set of rules and another continues the original set of rules. There are soft forks, where a cryptocurrency maintains its value and its rules are simply rolled cryptocurrency glossary forward and changed in a reversible manner, usually with the assent of the majority of the community. 5 out of 9 signers to approve of a transaction for it to go through. This is useful for corporate wallets, where many owners and employees have to approve before a transaction is sent.
- In many cases, the process of mining can be a resource hog; it can eat up a lot of processing time and space on computers.
- The public key is a way to positively identify someone making a transaction, even though their actual name or personal information is not embedded in the key itself.
- Contrast this with a private key—which is not publicly known, and should be closely guarded—which is used to accept and validate a transaction.
- If your currency is online—on an active drive on a computer that’s turned on, or accessible through cloud computing– that means it’s also accessible by other computer users.
- This can lead to hacking and theft, since cryptocurrency—by design—isn’t connected directly to any one person.
- As such, it’s important to keep your unique currency information offline as often as possible; it’s best to do so unless the currency is directly in use for a transaction.
Institution – A financial institution or FI is a company that handles financial / monetary transactions of different types. Inflation – Inflation is a measure of the rate at which the average price of goods and services increases over a set period of time. Hidden Cap – An unknown limit to the amount of funding a new cryptocurrency may receive from its investors during its ICO. Hash – A unique identifier inside a block, similar to a signature or fingerprint. Frictionless – When there are no transaction costs and no restraints exist on trading, then a system is considered to be frictionless. Full Node – Nodes that download a blockchain’s entire history to fully enforce its rules.
The person referring to the crypto as “Shitcoin” is the one who holds that opinion. Soft Fork – Any backward compatible software update or update to a blockchain’s protocol. Scrypt – Pronounced “ess-crypt,” this challenging algorithm is designed to foil hackers by encrypting keys in such a manner that cryptocurrency glossary a vast amount of RAM is required for hashing. Ripple – Also known as XRP, Ripple is a cryptocurrency that was built by OpenCoin, founded in 2012.Earn rewards on Ripple cryptocurrencyat Celsius Network. Public Key – An alphanumeric address that is used to receive cryptocurrency from other parties.