Here is an explanation of some of those weird and wonderful terms which are appearing in the crypto world.
Addresses consist of between 26 and 35 characters and represent a unique wallet ID on the blockchain, much like an account number.
Taking advantage of a difference in price of the same commodity on two different exchanges.
Any cryptocurrency other than Bitcoin
Someone still holding crypto after a pump and dump crash. Can also just refer to someone holding a coin that is sinking in value with few future prospects.
An expectation that price is going to decrease.
This is a distributed ledger secured using cryptography. It’s a database that’s accessible for everyone to read but data can only be changed by ledger owners. Data isn’t stored on a centralized server, but is instead shared by thousands of computers around the globe.
A margin around the price of a crypto that helps indicate when a coin is overbought or oversold. More information available at: http://www.investopedia.com/terms/b/bollingerbands.asp
An expectation that price is going to increase.
The process of moving cryptocurrency ‘offline’, as a way of safekeeping your cryptocurrency from hacking. There are a variety of ways to do this, but some methods most commonly used are a paper wallet, printing out the QR code of a software wallet and storing it somewhere safe, such as a safety deposit box. Moving the files of a software wallet onto a USB drive and storing it somewhere safe.
Consensus is reached when all network participants approve the validity of the transactions by ensuring that ledgers are exact copies of one another.
This is a type of digital asset used as a medium of exchange in business transactions.
Cryptography is used to maintain the security of transactions and control the creation of additional currency coins or tokens.
Not all cryptocurrencies trade as coins or currencies.If they are digital stores of value, they are termed digital assets.
Decentralized Application. This refers to an application that runs on a blockchain
Decentralized Autonomous Organization. An investor-directed venture capital fund built on the Ethereum network that was hacked in June 2016. The hack stole about a third of the DAO’s funds and led to Ethereum being hard-forked the following month. The DAO is often cited as one of Ethereum’s biggest stumbles thus far.
Dollar Cost Averaging
This is an investment technique used to reduce the impact of market volatility by spreading out buys and sells over an extended period of time.
Enterprise Ethereum Alliance. A coalition of startups and corporations trying to figure out the best way to use this dang thing.
Websites where you can buy and sell cryptocurrencies
Government-issued currency, such as the US dollar.
Fear Of Missing Out. The overwhelming sensation that you need to get on the train when the price of something starts to skyrocket
A situation where a blockchain splits into two separate chains
Fear, Uncertainty, and Doubt. Baseless negativity spread intentionally by someone that wants the price of something to drop.
Someone that is spreading FUD
A measurement of how much processing is required by the ethereum network to process a transaction. Simple transactions, like sending ether to another address, typically do not require much gas. More complex transactions, like deploying a smart contract, require more gas.
This describes the very first block in any blockchain.
Another denomination of ether. Gas prices are most often measured in Gwei. 1 Ether = 1000000000 Gwei. (109)
A margin trade that profits if the price increases.
A margin trade that profits if the price decreases.
Bitcoins have a finite supply which limits the number of coins issued to 21 million.
New Bitcoins are generated by actions such as mining, the quantity of Bitcoins generated decreases by 50 percent every four years, a process that’s known as halving. This has the effect of increasing the value of the currency as the supply is limited, historically having events always precede a bull run.
The final halving will occur in 2140.
This transforms a large amount of data into a fixed-length hash, or string of characters for a cryptographic key. Hash algorithms are central to blockchain and cryptocurrency transactions.
This refers to the speed at which a piece of hardware can decrypt hashes. This is the basis of cryptocurrency mining.
Welcome to the volatile ride of holding an investment in cryptocurrency.
Holding On For Dear Life
Or perhaps it just started by someone making a typo…?
An Investbox is a feature offered by a few exchanges where you deposit some crypto, typically fake low value coins and earn interest.
These typically start of high and then decrease in value at a greater rate than the interest you are earning.
Often bundled with small daily tasks to complete.
Be very weary of these…
Initial Coin Offering, somewhat similar to an IPO in the non-crypto world
Be careful dabbling in these, many many scams !!!
Limit Order / Limit buy / Limit Sell
Orders placed by traders to buy or sell a cryptocurrency when the price meets a certain amount
Market Order / Market Buy / Market Sell
A simple purchase or sale on an exchange at the current price.
The act of ‘magnifying’ the intensity of your trades by risking your existing coins.
Very risky, only for experienced traders and only on certain exchanges
The total value held in a crypto-currency. It is calculated by multiplying the total supply of coins by the current price of an individual unit
Moving Average Convergence Divergence. A trend indicator that shows the relationship between two moving averages of prices. More info: http://www.investopedia.com/terms/m/macd.asp
The process of trying to ‘solve’ the next block. It requires obscene amounts of computer processing power to do effectively, but is rewarded with ether.
A computer especially designed for processing proof-of-work blockchains, like Ethereum. They often consist of multiple high-end graphic processors (GPUs) to maximize their processing power.
When a cryptocurrency coin goes on a market run and drives the price up quickly, it’s referred to as mooning.
Multi-signature, or Multisig
This refers to a situation where multiple signatures are required to authorize a transaction. This increases the security of cryptocurrency transactions and reduces the risk of theft.
A computer that possesses a copy of the blockchain and is working to maintain it.
Pump And Dump
The recurring cycle of an altcoin getting a ton of attention, leading to a fast price increase, and then of course followed by a huge crash.
This is used to validate the creation of cryptocurrency by miners who are required to solve complex calculations. This difficulty is instituted so as to make it harder for cyber attackers to add invalid blocks to the chain.
Individuals can gain rewards via a proof of stake in this case they hold more currency in their wallets for a length of time.
This is the key – or password – which unlocks a wallet. It shouldn’t be shared with anyone.
A public key is a wallet address that can be shared with other parties to effect transactions.
Return on Investment. The percentage of how much money has been made compared to an initial investment. (i.e., 100% ROI means someone doubled their money).
Sell Wall / Buy Wall
Using a depth chart, traders can see the current limit buy and sell points. The graphical representation on the depth chart looks like walls
Shilling / Pumping
Someone advertising a cryptocurrency with exaggerated claims
A cryptocurrency with extremely low volatility that can be used to trade against the overall market
A scaling solution for blockchains. Typically, every node in a blockchain network houses a complete copy of the blockchain. Sharding is a method that allows nodes to have partial copies of the complete blockchain in order to increase overall network performance and consensus speeds.
A smart contract contains encoded rules governing business transactions. It’s created in a programmable language for storage on the blockchain and it’s enforced by network participants.
Spoofing occurs when investors with large holdings trade with themselves to create the illusion of volume.
Storage for crypto-currency that exists purely as software files on a computer. Software wallets can be generated for free from a variety of sources
Trend Analysis or Technical Analysis. Refers to the process of examining current charts in order to predict which way the market will move next.
A potential future event wherein Ethereum’s market cap surpasses Bitcoin’s market cap, making Ethereum the most ‘valuable’ crypto-currency. This site shows the progress of the Flippening in real-time: http://www.flippening.watch/
A device that can securely store cryptocurrency. Hardware wallets are often regarded as the most secure way to hold cryptocurrency.
Ledger Nano S / Trezor
Two of the most popular hardware wallet models.
What else would you buy with all that money after bitcoin moons
MyEtherWallet. A free site that can generate ethereum software wallets for you.
The price going up to astronomical levels.
The smallest denomination of ether. 1 Ether = 1000000000000000000 Wei (1018)
Someone that owns absurd amounts of cryptocurrency.