Address: An alphanumeric identifier providing a virtual location to where cryptocurrency transactions can be sent. They are intended to be single use and only refer to the destination of a transaction, not where it came from.
Airdrop: The free distribution of a specific cryptocurrency to a targeted group as a means of promoting its adoption or increasing its visibility.
All Time High (ATH): Refers to the highest price a cryptocurrency has ever reached, commonly abbreviated to ATH.
All Time Low (ATL): Refers to the lowest price a cryptocurrency has ever reached, commonly abbreviated to ATL.
Altcoins: A commonly used term to refer to cryptocurrencies that came after Bitcoin; literally alternative coins, i.e coins that are designed to work differently from Bitcoin.
Bag: Slang term for a large amount of cryptocurrency or referring to a portfolio in general e.g ‘what bags are you holding?’ meaning ‘what cryptocurrencies do you currently own?’
Bear Market: The term given to a prolonged period of negative sentiment and falling prices in an asset market e.g ‘Bitcoin is experiencing a bear market’. This was the case for BTC from January 2018 until March 2019. Can also be used as an adjective to describe sentiment e.g ‘The outlook for Ethereum’s price is bearish’. The opposite is Bull Market.
Bitcoin: A monetary system utilising a novel technology called blockchain. Bitcoin also refers to the cryptocurrency unit (small ‘b’) supported by the Bitcoin blockchain. Bitcoin’s blockchain is maintained by a distributed network with no controlling central authority. It ensures accuracy of user balances (the 'double spend problem) through a process called Proof of Work (PoW). PoW incentivises network Nodes - called miners - to issue new bitcoin and validate transactions, in return for committing computing power to secure the blockchain. The idea for Bitcoin was published in October 2008 under the pseudonym Satoshi Nakamoto; the true identity of its creator is unknown.
Blockchain: The name given to a decentralised system for storing data across a peer-to-peer network, without a central authority, the first example being Bitcoin.
Bull Market: The term given to a prolonged period of positive sentiment and rising prices in an asset market e.g Bitcoin is experiencing a bull market. This was the case for Bitcoin from April 2017 until January 2018. Can also be used as an adjective to describe sentiment e.g ‘The outlook for Ethereum’s price is bullish’. The opposite is Bear Market.
CBDC: Abbreviation for Central Bank Digital Currency. This term has been applied to a hybrid type of digital currency that has been issued by a nation’s central bank. Largely inspired by elements of Stablecoin design, CBDCs enable central banks to create digital versions of existing fiat money where they retain control. Most CBDCs are still in an R&D phase, with an estimated 80% of the world’s central banks researching the subject.
Circulating Supply: A measure of the supply of a cryptocurrency that is in general circulation. Given lost or burned coins, this figure is hard to accurately establish. Circulating supply will function as a proportion of Total Supply.
Coin Burn: Permanently removing tokens or coins from the circulating supply. Coin burning is usually done to restrict total supply and thereby control inflation.
Cold Storage: A secure method for storing cryptocurrency that by default is offline (not connected to the internet) and therefore minimises the threat of hacking. Examples are Hard Wallets or Paper Wallets.
The term given to a significant decrease in price that abruptly halts a period of prolonged price appreciation.
The term used to describe who controls the Private Keys for a cryptocurrency wallet., giving them control over funds. Custodial - Controlled by a 3rd party; Non-custodial - controlled by the individual.
Abbreviation for Do You Own Research, widely used in the crypto community to encourage newcomers to make decisions based on their research and understanding, rather than blindly following opinions of others.
The characteristic of a network or organisation that has no central point of authority, decision making is instead delegated to smaller groups or shared across network points (aka nodes). The Bitcoin blockchain enables a money system to be decentralised, taking banks out of the picture, and enabling users to interact directly with each other (P2P).
An application built on a blockchain, using Smart Contracts to perform the business logic. They have no single point of authority or control, and rely on the consensus mechanism of the underlying blockchain to process transactions.
A type of cryptocurrency exchange which has no central trading book but instead facilitates access to liquidity via smart contracts.
Offers new crypto-based financial products in a totally decentralised way. There is no bank or business, no formal account creation, just a protocol managed by smart contract, so all interaction is essentially dictated by code.
In economics, deflation is a decrease in the general price level of goods and services. Deflation occurs when the inflation rate falls below 0%. Generally, deflation is a term used to describe a fall in price levels.
A badge of honour usually specific to DEFI describing someone who approaches opportunities to earn yield with a mindset which blends trading, gaming and gambling.
ERC-20 is the technical standard for smart contracts, token issuance and management on the Ethereum blockchain. It is one of the most common ways new cryptocurrencies are created. ERC stands for Ethereum Request for Comment. It is just one of many standards for interacting with the Ethereum Network.
The second most prominent cryptocurrency after Bitcoin. Created by Vitalik Buterin in 2013, Ethereum is a blockchain intended as a base layer for any application (or dApp) to run on top of using the Ethereum Virtual Machine, aka world computer. It also functions as a decentralised digital money.
Name given to the software that processes smart contracts built on the Ethereum Network. It is described as Turing Complete.
Fear of Missing Out; A description of a type of buying behaviour motivated solely by a desire not to miss out on anticipated further increases in price.
Fear, Uncertainty, Denial. An acronym widely used to describe unsubstantiated criticism intending to create doubt or generate negative sentiment.
A change in the design of a blockchain creating two paths which nodes and miners need to choose, like meeting a fork in a road and deciding which route to take. Each path (fork) is a new blockchain.
Slang term used to describe a pivotal change in price or perception of a cryptocurrency usually in reference to another coin/project e.g. Ethereum, growing to be more valuable and/or more important than Bitcoin.
The unit for measuring the cost of executing Smart Contracts on the Ethereum Network. Gas is paid for in Ether and denominated in Gwei, one Gwei being equal to 0.000000001 ETH (10-9 ETH) so instead of a Gas Fee being 0.000000001 Ether it would be written as 1 Gwei.
Name given to the halving in the block reward paid to Miners for completing the Proof of Work and adding and a new block to the Bitcoin blockchain. It halves every four years and is currently set at 6.25 BTC
A slang term used within the crypto community meaning to steadfastly hold on to your crypto assets especially through big price dips. Hodling is a mentality driven by belief in the underlying use case for crypto. Read about the story of hodl and its origin in our blog.
A cryptocurrency wallet that by default is online (connected to the internet). Hot Wallets are convenient for transacting and trading but are more susceptible to the threat of hacking. Examples are hot wallets are Mobile Wallets and Web Wallets.
Describes an economy where price increases become out-of-control. Most economies aspire to a modest increase in general prices (inflation) e.g 2% annually. Hyperinflation is characterised by inflation of more than 50% per month.
In specific relation to cryptocurrency, issuance means the creation and distribution of new coins, in line with the economic rules governing the supply of the currency.
Abbreviation for Know Your Customer, generally relates to the information new customers must provide to open an account with an exchange and prove their identity. A Centralised Exchanges (CEX) is required by local regulation to collect KYC whereas a DEX isn't bound by the law of any specific location.
Describes the concept of building systems on top of a blockchain, such as Ethereum, to leverage its functionality but avoid on-chain constraints. See our article on layer two, building on top of Ethereum, to understand more.
A high-risk trading approach where exposure to a given trade can be multiplied by an agreed Margin - essentially on credit - thereby increasing both potential gains and losses. A 50x leveraged position will increase profits/losses by that amount e.g €200 price increase on €10,000 trade at 50x leverage will generate 100% profit, while a €200 decline will wipe out your entire investment.
The automated selling of collateral, against which a crypto loan is secured, when it falls below an agreed price. Can also describe a similar process in leveraged trading when the margin requirements are no longer met.
The measure of how much of a cryptocurrency is available for immediate buying or selling. The more liquid, the more efficient the price.
A completely developed, launched and functioning blockchain network. In contrast to a Testnet that is working prototype of a blockchain used to test its function.
Describes the value of a network as the square of the amount of nodes connected to the network. For example if a network has 10 nodes, then its value is 10x10 = 100. Metcalfe's Law is used to mathematically describe network effects.
The name given to the process by which new cryptocurrency is issued. Miners use specific computer hardware - mining rigs - to run arbitrary hashing algorithms (SHA-256 for Bitcoin) with the aim of finding a specific output (like a lottery) which allows the Miner to add new transactions - grouped into a block - to the existing blockchain. In return, successful miners earn a mining reward. This process is known as proof-of-work, as it requires computing power to be committed. The cost of performing the work ensures only valid transactions are added to the blockchain and secures the bitcoin network in proportion to the total computing power of all active miners.
An expression of the exponential growth in the value of a network as new users join. Often used to describe inflection points in the adoption of new technologies like cryptocurrency as the network of users reaches a critical point.
Describes an asset, like cryptocurrency, as being overvalued due to excessive buying. There are technical indicators that are employed to try to establish Overbought or Oversold conditions, see Relative Strength Index.
Describes an asset, like cryptocurrency, as being undervalued due to excessive selling. There are technical indicators that are employed to try to establish Oversold or Overbought conditions. See Relative Strength Index.
Used in reference to a public blockchain where no permission is required to participate, for example by downloading the relevant network software and running a node. Bitcoin is an example of a permissionless blockchain. The opposite to Permissioned.
A 64 character alphanumeric string which controls the movement of unspent funds associated with a cryptocurrency address. Modern HD Crypto Wallets use Seed Phrases rather than requiring the handling of private keys, but the term Private Key is widely used to underscore the importance of being in control of your funds.
A blockchain consensus mechanism where the ability to mine or validate blocks is in proportion to funds staked.
A 64 character alphanumeric address which allows view only access of unspent funds and used to receive funds. The equivalent of bank account details, the address to which crypto can be sent, and the balance seen by anyone.
Short-hand for wrecked, meaning to make a significant, or even ruinous, crypto trading loss.
Return On Investment. Calculated by dividing Profit by Amount Invested. If you make a Profit of €100 from an Investment of €1,000 your ROI is 10%. e.g (€100/€1000)*100.
A leading indicator of price, using an index of 0-100 calculated by aggregating price gains/losses over a 20 day/week period.
A price point which proves difficult to cross and will halt upward or downward momentum.
Slang term for a cryptocurrency with no perceived real world use case.
The difference between the expected price of a cryptocurrency trade and the actual price at execution. Slippage usually occurs when there is high volatility in the market or not enough liquidity to fulfil orders.
A set of rules defined in code that can be executed by an underlying blockchain for a fee e.g smart contracts on Ethereum or Binance Smart Chain.
Depositing a specific amount of cryptocurrency with a provider or protocol under specific conditions and in return for specific rights or rewards.
Something that can be relied on to hold relative purchasing into the future. Gold has historically proven a good store of value, but Bitcoin has consistently outperformed it.
Describes someone with a strong resolve to not sell their crypto even in the face of negative sentiment or declining prices, because of a belief in its fundamental value. Sometimes simply referred to as Diamond Hands.
The analysis of future price direction based purely on historic price movement and volume, and through a range of interpretive indicators.
The analysis of future price direction based purely on historic price movement and volume, and through a range of interpretive indicators.
Abbreviation for traditional finance. The existing range of financial products available through traditional financial businesses and institutions e,g. banks and credit cards.
The cost of sending a cryptocurrency transaction; Fees are collected by miners who validate transactions grouped into blocks. Fees are relative to the specific cryptocurrency, the data size of transaction and the network congestion at the time. As miners earn fees for the blocks they mine (in addition to the block reward) they prioritise transactions with higher fees.
A widely agreed measure of economic value. One the three major functions of money alongside Medium of Exchange or Store of Value.
Blockchains use specific mechanisms for ensuring new transactions are valid, the role of Validators is to use the required consensus mechanism to validate new transactions, often in exchange for rewards.
A means of storing cryptocurrency balance ownership. Made visible on the blockchain by its unique code, or public key, a wallet’s function is to store private keys and is available in several different forms.
Used to describe the behaviour of traders who have made an emotional and/or negative decision that has led to poor performance in the markets. Can also describe someone who doesn’t have faith in a particular position in a market as opposed to Strong Hands.
Individuals or entities that hold large amounts of a particular cryptocurrency - usually Bitcoin. Whales are so-called because they are large enough to ‘disturb the waters’ of the market with their transactions. For reliable Whale analysis see: https://whale-alert.io/
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