Comprehensive Crypto Encyclopedia: Explore the World of Cryptocurrency!

Crypto Glossary

Cryptocurrencies have taken the world by storm in recent years, and it seems like everyone is talking about Bitcoin, Ethereum, and other digital currencies. But if you’re new to the world of crypto, all the technical jargon and unfamiliar terms can be overwhelming. This crypto glossary comes in handy. It’s a resource that explains the most common terms used in the cryptocurrency world, from “blockchain” to “wallet” to “mining.” You can quickly look up any unfamiliar term and get a clear, easy-to-understand explanation.

A

Absolute Advantage: A term used to describe a situation where one entity has a significant advantage over another in a specific activity or market.

Active Management: A strategy used in investment management where a fund manager actively makes decisions about buying and selling assets.

Ad Hoc: A Latin term used to describe something done for a particular purpose or situation, often without prior planning or preparation.

Address: A unique string of characters that identifies a wallet or an account on a blockchain network.

Airdrop: A marketing tactic where cryptocurrency or tokens are distributed to a large number of users for free.
💡 Learn more about Airdrops

Algorithm: A set of rules or instructions used to solve a problem or perform a task, often used in computer programming.

All or None Order (AON): An order type where the entire order must be executed at once or not at all.

All-Time High (ATH): The highest price point that a particular cryptocurrency or asset has reached historically.

Allocation: The distribution of assets or funds to different investments or strategies.
💡 Learn more about Asset Allocation

Alpha: A term used in investment management to describe the excess return of an investment compared to a benchmark. In crypto, it is used to describe exclusive or important information that is hardly accessible.

Altcoin: Any cryptocurrency that is not Bitcoin.

Angel Investor: A wealthy individual who provides funding for startup companies, often in exchange for equity.

Anti Money Laundering (AML): A set of regulations designed to prevent the use of financial systems for money laundering and other illegal activities.
💡 Learn more about Anti Money Laundering (AML)

Application Programming Interface (API): A set of protocols and tools used to build software applications.

Application-Specific Integrated Circuit (ASIC): A specialized piece of hardware designed to perform a specific task, often used for cryptocurrency mining.

Arbitrage: The process of buying and selling assets simultaneously on different markets to take advantage of price differences.

ASIC-resistant: A term used to describe a cryptocurrency algorithm that is designed to resist ASIC mining, which is seen as a way to promote decentralization.

Ask Price: The lowest price a seller is willing to accept for an asset.
💡 Learn more about the Ask Price

Asset Management: The management of a portfolio of assets, often done by professional asset managers.
💡 Learn more about Asset Management

Asynchronous: A term used in computer science to describe a process where different parts of a system operate independently of each other.

Atomic Swap: A type of cryptocurrency trade where two parties exchange different cryptocurrencies without the need for an intermediary.
💡 Learn more about Atomic Swaps

Attack surface: The various points of vulnerability in a computer system that can be exploited by hackers.

Auction: A process where buyers and sellers come together to buy and sell assets or products.

 

B

Bags: A term used to describe a large amount of a particular cryptocurrency that an investor holds.

Beacon Chain: A part of the Ethereum 2.0 upgrade that is responsible for coordinating the network’s validators.

Bear Market: A market condition where prices are falling and investor sentiment is pessimistic.

Benchmark: A standard or point of reference used to evaluate the performance of an investment.

BEP-2: A token standard used on the Binance Chain.

BEP-20: A token standard used on the Binance Chain.
💡 Learn more about BEP-20

BEP-721: A token standard used for non-fungible tokens (NFTs) on the Binance Chain.

BEP-95: A token standard used for the Binance USD stablecoin on the Binance Chain.

Beta (Coefficient): A measure of the volatility of an investment compared to the overall market.

Beta (Release): A software release that is still in the testing phase and is not yet considered stable.

Bid Price: The highest price a buyer is willing to pay for an asset.
💡 Learn more about the Bid Price

Bid-Ask Spread: The difference between the highest price a buyer is willing to pay (bid) and the lowest price a seller is willing to accept (ask) for a particular asset.
💡 Learn more about the Bid-Ask Spread

Binance Community Vote: A voting system implemented by the Binance cryptocurrency exchange that allows the community to choose which tokens will be listed on the platform.

Binance Ecosystem Fund (BEF): A venture capital fund established by Binance to support and invest in blockchain projects.

Binance Labs: The venture arm of Binance that invests in and incubates early-stage blockchain and cryptocurrency projects.

Bitcoin: The first and most well-known cryptocurrency, created in 2009 by an anonymous person or group using the pseudonym Satoshi Nakamoto.
💡 Learn more about Bitcoin

Bitcoin Core: The open-source software that serves as the reference implementation for the Bitcoin network.

Bitcoin Dominance: A metric that measures the percentage of the total cryptocurrency market cap that is made up of Bitcoin.

Bitcoin Pizza: A reference to the first documented transaction in which Bitcoin was used to purchase a physical item, a pizza, in 2010.

Black Swan Event: A rare and unexpected event that has a major impact on the economy or financial markets.

Block: A collection of transaction data that is added to the blockchain.
💡 Learn more about Blocks

Block Explorer: A tool used to view and explore the contents of a blockchain.

Block Header: The metadata for a block in a blockchain, which includes the block’s timestamp, the hash of the previous block, and a reference to the Merkle tree of transactions in the block.

Block Height: The number of blocks that have been added to the blockchain since the genesis block.

Block Reward: The amount of cryptocurrency that is awarded to the miner who successfully adds a new block to the blockchain.

Blockchain: A decentralized, distributed ledger that is used to record transactions and maintain the integrity of a network.
💡 Learn more about Blockchain

Blockchain Charity Foundation: A charitable organization established by Binance that uses blockchain technology to improve transparency and efficiency in the donation process.

Bloom Filter: A probabilistic data structure used to test whether an element is a member of a set.

BNB: The native cryptocurrency of the Binance exchange.
💡 Learn more about BNB

Bollinger Bands: A technical analysis tool used to identify trends and volatility in financial markets.
💡 Learn more about Bollinger Bands

Bounty: A reward offered for completing a specific task or achieving a particular goal.

Break-Even Point (BEP): The point at which the cost of producing a good or service is equal to the revenue generated from its sale.

Breakeven Multiple: A metric used in trading to determine the minimum price movement required for a trade to reach breakeven.

BUIDL: A play on the word “hodl”, meaning to build or develop in the cryptocurrency space.

Bull Market: A financial market characterized by rising prices and investor optimism.

Buy Wall: A large buy order that is placed at a specific price point in order to provide support and prevent the price of an asset from falling further.

 

C

Candidate Block: A block that a miner is attempting to add to the blockchain.

Candlestick: A charting tool used in technical analysis that displays the open, high, low, and close prices of an asset over a given time period.
💡 Learn more about Candlesticks

Capitulation: A market condition in which investors give up hope and sell their assets at any price.

Censorship-resistance: The ability of a system to resist attempts to censor or control the information it contains.

Centralized Exchange (CEX): A financial system to exchange cryptocurrencies, controlled by one entity, company or government.
💡 Learn more about Centralized Exchanges

Central Bank: A financial institution that is responsible for implementing monetary policy and regulating a country’s money supply.

Central Processing Unit (CPU): The part of a computer that executes instructions and performs calculations.

Centralized: Refers to a system or organization where a single entity has control and decision-making power.

Cipher: A method of encryption or decryption used in cryptography.

Circulating Supply: The total number of units of a cryptocurrency that are available in the market and in circulation.

Cloud: A technology that allows data to be stored, managed and processed on remote servers accessed via the internet.

Coin: A unit of digital currency or cryptocurrency.
💡 Learn more about Coins

Collateral: An asset or security provided by a borrower to a lender as a guarantee for a loan.

Colocation: A practice of placing computing equipment in a data center facility that provides power, cooling, and network connectivity.

Commodity Futures Trading Commission (CFTC): A U.S. federal agency that regulates and oversees futures and options markets.

Confirmation Time: The amount of time it takes for a transaction on a blockchain network to be validated and added to the blockchain.

Confluence: A situation where multiple technical analysis indicators point to the same conclusion or trend.

Consumer Price Index (CPI): A measure of the average change in prices of goods and services in an economy over time.

Credentials: Information used to verify the identity of an individual or system, such as usernames and passwords.

Crypto Winter: A period of prolonged bearish market sentiment and declining prices in the cryptocurrency market.

Cryptocurrency: A digital or virtual currency that uses cryptography for security and operates independently of a central bank.
💡 Learn more about Cryptocurrencies

Cryptography: The practice of secure communication in the presence of third parties.

Custody: The safekeeping of assets by a third-party custodian, often used for storing cryptocurrency.

 

D

Daemon: A background process that runs continuously on a computer.

Dead Cat Bounce: A temporary recovery in the price of an asset that is followed by a continued decline.

Decentralized Application (DApp): An application that runs on a decentralized network, such as a blockchain.
💡 Learn more about Decentralized Applications

Decentralized Autonomous Cooperative (DAC): An organization that is operated and managed by its members through smart contracts on a blockchain.

Decentralized Autonomous Organization (DAO): An organization that is run through rules encoded as computer programs on a blockchain, with no central authority.
💡 Learn more about Decentralized Autonomous Organizations

Decentralized Exchange (DEX): A cryptocurrency exchange that operates on a decentralized network.
💡 Learn more about Decentralized Exchanges

Decentralized Finance (DeFi): A financial system built on decentralized networks, using smart contracts and blockchain technology.
💡 Learn more about Decentralized Finance

Decryption: The process of converting encrypted data back into its original form.

Deep Web: The part of the internet that is not indexed by search engines and is not easily accessible to the general public.

Delisting: The removal of a cryptocurrency from a cryptocurrency exchange.

Design Flaw Attack: An attack on a system or network that exploits a flaw in its design.

Diamond Hands: A term used to describe a cryptocurrency investor who holds onto their investments for a long time, even during periods of volatility.

Difficulty: A measure of how hard it is to find a new block on a blockchain network.

Difficulty Bomb: A feature of some blockchain networks that makes it increasingly difficult to mine new blocks over time.

Divergence: A situation where two or more technical analysis indicators show conflicting signals.

Diversification: A strategy of investing in a variety of assets to reduce risk.

Do Your Own Research (DYOR): A common piece of advice in the cryptocurrency community to encourage individuals to conduct their own research before investing in a cryptocurrency.

Dollar Cost Averaging (DCA): An investment strategy where an individual invests a fixed amount of money at regular intervals, regardless of the market price.

Double Spending: The act of spending the same cryptocurrency twice.

 

E

Eclipse Attack: A type of attack on a blockchain network where a malicious node or group of nodes monopolizes the connections to a victim node, preventing it from receiving valid transactions or blocks from the rest of the network.

Efficient Market Hypothesis (EMH): A theory that suggests that financial markets are “informationally efficient” and that asset prices reflect all available information at any given time.

Encryption: The process of encoding information in such a way that only authorized parties can read it.

Enterprise Ethereum Alliance (EEA): A group of companies and organizations that aims to promote and support the development of applications on the Ethereum blockchain.

ERC-20: A technical standard used for smart contracts on the Ethereum blockchain that governs the creation and transfer of fungible tokens.
💡 Learn more about ERC-20s

ERC-721: A technical standard used for smart contracts on the Ethereum blockchain that governs the creation and transfer of non-fungible tokens.
💡 Learn more about ERC-721s

Exchange: A platform where buyers and sellers can trade assets, such as stocks, currencies, and cryptocurrencies.

 

F

Fakeout: A market movement that appears to be the start of a trend reversal but is actually a temporary price movement before the trend continues.

Falling Knife: A term used to describe a stock or asset that is rapidly decreasing in price.

Fear Of Missing Out (FOMO): A psychological phenomenon where people experience anxiety or regret for not taking action on a potentially profitable opportunity.

Fear, Uncertainty and Doubt (FUD): A tactic used to spread negative or false information about an asset or project in order to create fear and panic among investors.

Fiat: A government-issued currency that is not backed by a physical commodity, such as gold or silver.

Fill Or Kill Order (FOK): A type of order in which a trader specifies that the entire order must be filled immediately or canceled.

Finality: The property of a blockchain transaction that guarantees that it cannot be reversed or modified once it has been confirmed and added to the blockchain.

First-Mover Advantage (FMA): The advantage that a company or project gains by being the first to enter a market or create a new product or service.

Fiscal Policy: The use of government spending and taxation to influence economic activity and stabilize the economy.

Flappening: A hypothetical event in which the market capitalization of Ethereum surpasses that of Bitcoin Cash.

Flippening: A hypothetical event in which the market capitalization of Ethereum surpasses that of Bitcoin.

Forced Liquidation: The process of automatically selling a borrower’s collateral to repay a loan in the event that the borrower is unable to maintain the required collateralization ratio.

Forex (FX): The market for trading currencies.

Formal Verification: A process of verifying the correctness of a software program or smart contract using mathematical proof.

Full Node: A computer connected to a blockchain network that stores a complete copy of the blockchain and participates in validating transactions and blocks.
💡 Learn more about Nodes

Fundamental Analysis (FA): A method of analyzing the value of an asset by examining its underlying economic and financial factors.

Fungibility: The property of an asset that makes it interchangeable with other assets of the same type and value.

Futures Contract: A contract between two parties to buy or sell an asset at a predetermined price and date in the future.

 

G

Gas: The unit of measurement for the computational work required to execute a transaction or smart contract on the Ethereum blockchain.

Gas Limit: The maximum amount of gas that can be used for a single transaction in a blockchain network.

General Public License (GPL): A widely-used free software license that allows users to use, copy, distribute and modify software as long as the same rights are granted to downstream users.

Genesis Block: The first block in a blockchain, which sets the initial state of the blockchain.

GitHub: A popular web-based platform used for software development and collaboration, particularly for open-source projects.

Golden Cross: A technical analysis term used in the stock market to describe when a short-term moving average crosses above a long-term moving average, indicating a bullish trend.

Gossip Protocol: A method used by nodes in a decentralized network to share information and maintain consensus.

Gwei: A unit of measurement for the cost of gas in the Ethereum network.

 

H

Hacker: A person who uses their technical expertise to gain unauthorized access to computer systems or networks.

Haha Money Printer Go Brrrrr: An internet meme that mocks the idea of printing more money to solve economic problems.

Halving: A programmed reduction in the reward given to miners for validating a block of transactions in a blockchain network, typically used in cryptocurrencies to manage inflation.

Hard Cap: The maximum amount of funds that a project can raise during a fundraising round, such as an Initial Coin Offering (ICO).

Hash: A mathematical function that takes in data of any size and produces a fixed-size output, often used in blockchain technology to ensure data integrity and security.

Hash Rate: The speed at which a miner is able to solve a cryptographic puzzle in a blockchain network, measured in hashes per second.

Hashed TimeLock Contract (HTLC): A smart contract used in blockchain networks to ensure the secure exchange of assets between parties.

High-Frequency Trading (HFT): A type of trading in financial markets that uses advanced algorithms and technology to execute trades at a high volume and speed.

HODL: A slang term used in the cryptocurrency community to encourage users to hold onto their assets instead of selling them.
💡 Learn more about HODLing

Honeypot: A security mechanism used to lure attackers into a trap, allowing defenders to gather information and take action against the attacker.

 

I

Iceberg Order: A large order that is split into smaller orders to avoid moving the market price of an asset.

Immutability: A property of blockchain technology that ensures that once a transaction has been added to the blockchain, it cannot be altered or deleted.

Index: A benchmark used to track the performance of a group of assets or securities.

Initial Coin Offering (ICO): A fundraising mechanism used by blockchain projects to sell tokens in exchange for cryptocurrency or fiat currency.
💡 Learn more about Initial Coin Offerings

Initial Exchange Offering (IEO): A fundraising mechanism similar to an ICO, but the token sale is conducted through a cryptocurrency exchange.
💡 Learn more about Initial Exchange Offerings

Initial Public Offering (IPO): The first time that a company’s shares are offered for sale to the public.

Integrated Circuit (IC): A microchip that contains multiple electronic components, often used in computer hardware and other electronic devices.

Interoperability: The ability of different systems or devices to communicate and exchange information with each other.

InterPlanetary File System (IPFS): A protocol and network designed to create a decentralized method of storing and sharing files.

IOU: An abbreviation for “I owe you,” used to signify a debt or obligation.

Isolated Margin: A trading mechanism used in cryptocurrency exchanges that limits the amount of funds that a trader can lose in a single trade.

Issuance: The creation and distribution of new coins or tokens in a blockchain network.

 

K

Keccak: Keccak is a family of cryptographic hash functions that was selected as the winner of the SHA-3 competition organized by the National Institute of Standards and Technology (NIST).

Know Your Customer (KYC): KYC is a process that financial institutions and other regulated entities use to verify the identity of their clients or customers.
💡 Learn more about Know Your Customer

 

L

Latency: Latency refers to the delay between the time that data is sent and the time that it is received. In computer networks and trading systems, low latency is important to ensure fast and accurate data transmission.

Law of Demand: The law of demand is a fundamental principle of economics that states that the quantity of a good or service demanded by consumers will decrease as the price of that good or service increases, all else being equal.

Layer 2: Layer 2 refers to scaling solutions for blockchains that are built on top of the base layer or mainnet. Layer 2 solutions can improve transaction throughput and reduce fees by processing transactions off-chain and then settling them on-chain.
💡 Learn more about Layer 2 solutions

Ledger: A ledger is a record of financial transactions or other data that is maintained by a company or organization.

Library: A library is a collection of books or other resources that can be borrowed or accessed for research or leisure.

Lightning Network: The Lightning Network is a Layer 2 scaling solution for Bitcoin and other cryptocurrencies that enables faster and cheaper transactions by processing them off-chain.
💡 Learn more about the Bitcoin Lightning Network

Linux: Linux is a free and open-source operating system that is widely used in servers, supercomputers, and other computing systems.

Liquidity: Liquidity refers to the ease with which an asset can be bought or sold without affecting its price. High liquidity is desirable for investors and traders.

Liquidity Provider: A liquidity provider is a financial institution or individual that offers liquidity to a market by providing buy and sell orders for a particular asset.
💡 Learn more about Liquidity Providers

Listing: A listing refers to the process of adding a cryptocurrency or other asset to an exchange or other trading platform.

 

M

Mainnet: Mainnet is the live and operational version of a blockchain, where transactions and other activities take place.

Mainnet Swap: A mainnet swap is the process of exchanging tokens that were issued on a testnet or other network for tokens that are now issued on the mainnet.

Maker: Maker is a decentralized finance (DeFi) protocol that allows users to create and trade stablecoins and other financial instruments.

Malware: Malware is a type of software that is designed to harm, disrupt, or take control of computer systems and networks.

Margin Trading: Margin trading is a practice in which an investor borrows funds from a broker or exchange to trade with a larger position than they could with their own funds.
💡 Learn more about Margin Trading

Market Capitalization: Market capitalization is the total value of a company’s outstanding shares of stock. It is calculated by multiplying the current market price of each share by the total number of shares outstanding.
💡 Learn more about Market Capitalization

Market Momentum: Market momentum is a technical analysis indicator that measures the rate at which the price of an asset is changing. It can be used to identify trends and potential turning points in the market.
💡 Learn more about Market Momentum

Market Order: A market order is a buy or sell order to be executed immediately at the current market price.
💡 Learn more about Market Orders

Masternode: A masternode is a full node on a blockchain network that is incentivized to perform certain tasks to help maintain the network.

Maximum Supply: Maximum supply is the total amount of a cryptocurrency that will ever exist.

Mempool: A mempool is a collection of unconfirmed transactions waiting to be included in the next block of a blockchain.

Merged Mining: Merged mining is the process of mining two or more cryptocurrencies simultaneously using the same hashing algorithm.

Merkle Tree: A Merkle tree is a data structure used in computer science to efficiently verify the integrity and authenticity of large sets of data.

Metadata: Metadata refers to data that describes other data. In the context of blockchain, metadata can be used to provide additional information about transactions or other on-chain activity.

Metaverse: A metaverse is a virtual world that is fully immersive and interactive, often built on blockchain technology.
💡 Learn more about the Metaverse

Mining: Mining is the process of validating transactions and creating new blocks on a blockchain network. It is often done through the use of specialized hardware and software.
💡 Learn more about Mining

Mining Farm: A mining farm is a facility that houses a large number of mining rigs or other specialized hardware used for mining cryptocurrencies.

Monetary Policy: Monetary policy refers to the set of rules and regulations that govern the supply and circulation of money in an economy.

Moon: Moon is a slang term used in the cryptocurrency community to describe a significant increase in the price of a particular cryptocurrency.

Multisignature: Multisignature is a security feature that requires multiple signatures or approvals before a transaction can be executed.

 

N

Node: A node is a computer or device that is connected to a blockchain network and is responsible for maintaining a copy of the blockchain.
💡 Learn more about Nodes

Non-fungible Token (NFT): A non-fungible token is a unique digital asset that represents ownership of a specific item, such as a piece of artwork or a collectible.
💡 Learn more about Non-fungible Tokens (NFTs)

Nonce: A nonce is a random number that is added to a block header in the process of mining a new block. It is used to create a unique hash for the block.

 

O

Off-chain: Off-chain refers to activities or transactions that occur outside of the main blockchain network, but are still related to it in some way.

Offshore account: An offshore account is a financial account held in a foreign country.

One Cancels the Other Order (OCO): An OCO order is a type of order that allows a trader to set up two separate orders at the same time, with one order automatically cancelling the other when it is executed.

Open-Source Software (OSS): Open-source software is software that is developed and distributed with its source code publicly available for anyone to access and modify.

Oracle: An oracle is a trusted source of data that provides information to a blockchain network, often used in smart contract applications.
💡 Learn more about Oracles

Order Book: An order book is a list of all the current buy and sell orders for a particular cryptocurrency or other asset.
💡 Learn more about Order Books

Orphan Block: An orphan block is a block that is valid, but not part of the main blockchain due to a temporary fork.

 

P

Paper Wallet: A paper wallet is a physical piece of paper that contains the public and private keys for a cryptocurrency wallet.
💡 Learn more about Paper Wallet

Passive Management: Passive management refers to an investment strategy in which a portfolio is designed to track a particular market index, rather than attempting to outperform it.

Peer-to-Peer (P2P): Peer-to-peer refers to a network in which participants can communicate directly with each other, rather than through a central intermediary.

Pegged Currency: A currency whose value is fixed to the value of another currency or asset.

Permissionless Blockchain: A blockchain that anyone can join and participate in without needing permission.

Phishing: A fraudulent activity where an attacker tries to trick a victim into providing sensitive information or access to their accounts.
💡 Learn more about Phishing

Plasma: A scaling solution for Ethereum that creates side chains that can handle more transactions than the main chain.

Polkadot Crowdloan: A mechanism for users to support and participate in Polkadot network’s parachain auctions.

Ponzi Scheme: A fraudulent investment scheme where returns are paid to earlier investors using the capital of new investors.
💡 Learn more about Ponzi Schemes

Price Action: The movement of the price of an asset over time.

Prisoner’s Dilemma: A classic game theory scenario where two parties can either cooperate or defect, and the outcome depends on their choices.

Private Key: A secret key used to access and control an individual’s cryptocurrency holdings.

Private Sale: A type of investment sale where shares or tokens are sold to a limited group of investors.

Progressive Web application (PWA): A web application that uses modern web technologies to provide a user experience similar to a native mobile app.

Proof of Attendance Protocol (POAP): A protocol used to distribute and verify digital badges to event attendees using blockchain technology.

Proof of Reserves (PoR): A mechanism used by cryptocurrency exchanges to prove that they have sufficient reserves to cover customer deposits.

Proof of Stake (PoS): A consensus mechanism used by some blockchain networks where validators stake their tokens to secure the network and earn rewards.
💡 Learn more about Proof of Stake

Proof of Work (PoW): A consensus mechanism used by some blockchain networks where people use computers and ASIC miners to secure the network, validate transactions and earn block rewards.
💡 Learn more about Proof of Work

Pseudorandom: A sequence of numbers that appears random, but is generated using a deterministic algorithm.

 

Q

Quantum Computing: A type of computing that uses quantum-mechanical phenomena to perform operations on data.

 

R

Race attack: An attack on a blockchain network where multiple transactions are submitted simultaneously with the intention of being the first to be accepted.

Ransomware: Malware that encrypts a victim’s data and demands a ransom payment in exchange for the decryption key.

Rekt: Slang term for losing a significant amount of money on an investment.

Relative Strength Index (RSI): A technical analysis indicator used to measure the strength of an asset’s price action.
💡 Learn more about the Relative Strength Index

Resistance: A level on a price chart where selling pressure is expected to be high and may cause the price to decrease.
💡 Learn more about Resistance

Return on Investment (ROI): A measure of the profitability of an investment.

Roadmap: A plan that outlines the development and milestones of a project.

Routing Attack: An attack on a blockchain network where an attacker manipulates the routing of network traffic to redirect transactions or cause a network split.

Rug pull: A type of exit scam where developers abandon a project and take investors’ money with them.

 

S

Satoshi: The smallest unit of Bitcoin, equal to one hundred millionth of a Bitcoin.

Satoshi Nakamoto: The pseudonym used by the unknown creator(s) of Bitcoin.
💡 Learn more about Satoshi Nakamoto

Secure Asset Fund for Users (SAFU): A fund set up by cryptocurrency exchange Binance to compensate users in the event of a security breach.

Securities and Exchange Commission (SEC): A regulatory agency in the United States that oversees securities markets and enforces securities laws.

Security Audit: A process of reviewing and testing the security of a software or system.

Seed Phrase: A sequence of words used to generate a private key for a cryptocurrency wallet.
💡 Learn more about Seed Phrases

Segregated Witness (SegWit): A soft fork upgrade to the Bitcoin protocol that separates transaction data from signature data, allowing more transactions to be included in a block.

Selfish mining: A mining strategy where a miner or a group of miners attempt to gain an unfair advantage by withholding mined blocks from the network.

Sell wall: A large limit order or series of orders placed at a specific price point on a cryptocurrency exchange’s order book to prevent the price from increasing beyond that point.

Sentiment: The general feeling or attitude of market participants towards a particular asset, which can affect the asset’s price and trading volume.

Sharding: A scaling solution for blockchain networks that involves partitioning the network into smaller, more manageable subsets called shards.

Sharpe Ratio: A measure of an investment’s risk-adjusted returns, calculated by dividing the excess return of an investment above the risk-free rate by its standard deviation.

Smart Contract: Self-executing contracts with the terms of the agreement between buyer and seller being directly written into lines of code.
💡 Learn more about Smart Contracts

Snapshot: A point in time where the state of a blockchain is recorded, which can be used for various purposes such as network upgrades, airdrops, or forking.

Source Code: The human-readable instructions used to create a program or software application.

Stablecoin: A type of cryptocurrency that is designed to maintain a stable value relative to a specific asset or currency.
💡 Learn more about Stablecoins

Staking Pool: A group of cryptocurrency holders who pool their resources together to increase their chances of earning staking rewards.

State Channel: An off-chain payment channel that enables two parties to conduct multiple transactions without recording each transaction on the blockchain.

Store of Value: An asset that is used to store purchasing power and retain its value over time.

Supercomputer: A computer that is designed to perform highly complex computations at a much faster rate than a regular computer.

Supply Chain: The sequence of processes involved in the production and distribution of a product, from raw materials to finished goods.

Support: A price level on a cryptocurrency exchange where there is significant demand, which can prevent the price from falling further.
💡 Learn more about Support

 

T

Taker: A market participant who places an order that is executed immediately at the best available price.
💡 Learn more about Takers

Tank: A sudden and significant drop in the price of a cryptocurrency or other asset.

Ticker: A short code or symbol used to represent a specific asset or currency on a financial market.

Token: A digital asset that is used to represent ownership or access rights to a particular asset or service.
💡 Learn more about Tokens

Token Lockup: A period of time during which a certain number of tokens are frozen and cannot be traded or transferred.

Token Sale: A type of fundraising mechanism used by cryptocurrency projects to raise capital by selling tokens to investors.

Total Supply: The total number of tokens or coins in circulation or that will be issued.

Transaction ID (TXID): A unique identifier assigned to a transaction on a blockchain.

Transactions Per Second (TPS): The number of transactions that a blockchain can process per second.

Trustless: A term used to describe systems or processes that do not require trust between parties.

Turing Complete: A programming language or system that is capable of simulating any other programming language or system.

 

U

Unit of Account: A monetary unit used to represent the value of goods and services.

Unspent Transaction Output (UTXO): A transaction output that has not been spent and can be used as an input in a new transaction.

User Interface (UI): The graphical interface or application used by users to interact with a software application or system.

 

V

Verification Code: A code or password used to verify the identity of a user or transaction.

Virtual Machine: A software environment that emulates a computer system and allows users to run programs as if they were running on a physical machine.

Vladimir Club: A term used to refer to a group of early adopters and enthusiasts of Ethereum, named after Ethereum co-founder Vitalik Buterin’s first name.

Volatility: A measure of the amount and speed of changes in the price of an asset or security over a certain period of time.

Volume: The total number of shares or contracts traded in a financial market over a specific period of time.
💡 Learn more about Volume

 

W

Wallet: A digital wallet is a software application that stores and manages digital assets, such as cryptocurrencies or tokens.
💡 Learn more about Wallets

Weak Hands: A term used to describe investors who sell their assets quickly and easily in response to market fluctuations or changes in sentiment.

Weak Subjectivity: A type of consensus algorithm used in blockchain networks that allows for some degree of subjectivity in the validation of transactions and blocks.

Web 1.0: The first generation of the World Wide Web, which was primarily focused on static web pages and basic forms of interactivity.

Wei: The smallest unit of ether, the cryptocurrency used on the Ethereum network.

Whale: A term used to describe investors or traders who hold a significant amount of a particular asset or cryptocurrency, and whose buying or selling activities can significantly impact the market.

Whiskers: In financial charts, whiskers refer to the lines extending from the top and bottom of a candlestick, which show the range of prices traded during a given period.

Whitelist: A list of approved addresses or entities that are authorized to access certain services or features, often used in the context of blockchain networks.

Wick: In financial charts, the Wick is the thin vertical line that shows the price range of a given asset during a given time period.

Win Rate: A measure of the percentage of trades or bets that are won by a particular trader or system over a given period of time.

Wrapped Ether (WETH): A tokenized form of ether that is used on some decentralized exchanges to enable trading of ether in the form of an ERC-20 token.

 

Z

Zero-Knowledge Proofs: A type of cryptographic protocol that allows one party to prove to another party that a particular statement is true, without revealing any additional information beyond the truth of the statement itself.
💡 Learn more about Zero-Knowledge Proofs

zk-SNARKs: A specific type of zero-knowledge proof that is used in some blockchain networks to enable private transactions and data sharing.

zk-STARKs: A more recent development in zero-knowledge proof technology that allows for greater scalability and flexibility in the implementation of these protocols.

Newton & Kepler

Introducing Newton & Kepler, our expert authors who bring you the latest in crypto education and finance. We chose these names as a tribute to two of the greatest minds in science and mathematics: Isaac Newton and Johannes Kepler. These pioneers made groundbreaking contributions in their respective fields and laid the foundation for much of the modern knowledge we have today. Just as Newton and Kepler searched for truth and knowledge, our authors strive to educate and enlighten our readers about the ever-evolving world of crypto and finance. By honoring these historical figures, we aim to inspire our readers to seek out their own understanding and wisdom in this exciting and complex arena.
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