Basic vocabulary with explanation

NFT, vocabulary
Like any other field, the world of cryptocurrencies contains a number of concepts that need to be learned and known. Many of these expressions can be derived from knowledge of foreign languages. However, some of the terms are completely new, and if you want to deal with cryptocurrencies in the future, it’s a good idea to become familiar with them. If you miss any word in our vocabulary, be sure to let us know in the comments, we will be happy to add it to the list.

A

Address – each cryptocurrency has its own address, which are used to perform transactions through the network. The address is also called the public key. The cryptocurrency address can be thought of as a bank account number for fiat currencies.
Airdrop – this is the distribution of a small amount of cryptocurrency among the cryptocommunity, in exchange for the performance of certain tasks.
Altcoin – from the English term Alternative coin. These are alternative cryptocurrencies, which include everything except Bitcoin.
Arbitration – from the English Arbitrage. This is an investment strategy in which we use different asset prices in different places and at the same time.
ASIC – Specialized hardware for cryptocurrency mining.
Ask price. This is the lowest price currently available or the lowest price someone is willing to sell an asset for.
ATH – All Time High, the highest market value that a certain cryptocurrency has achieved during its existence.
ATL – All Time Low, the lowest market value that a cryptocurrency has achieved during its existence.
ATM – from English Automated teller machine, ATM.

B

Bearish – the term used for investors who believe the value will drop.
Bear market – bear market. A financial market that is in a phase of decline or has the potential to do so.
Bear trap – bear trap. This is a false signal in which the price of an asset falls below key levels of support, so that a turnaround occurs and the price is raised.
Bid price – bid price or bid. This is the highest price that the buyer is willing to pay for the asset.
Bid – Ask Spread – is the difference between the bid price and the ask price for a given asset.
Binance – the largest and most famous cryptocurrency exchange.
Bitcoin – BTC, is the first decentralized, open source cryptocurrency. It was created in 2008 by a person or group of people performing under the pseudonym Satoshi Nakamoto.
Bitcoin Maximalist – A person who owns only the cryptocurrency Bitcoin or invests in crypto-companies for the purpose of profit in Bitcoin.
Black Swan – black swan. An unpredictable event that is beyond what is normally expected of the situation. The events of the black swan are characterized by their extreme rarity and serious impact on the market.
Blockchain – a decentralized database that serves as an accounting book in which information about transactions is recorded.
Block – a package of data on a blockchain, where transaction data is recorded in an unchangeable way.
BTFD – Buy The Fucking Dip. It is used when the quality cryptocurrency is underestimated.
Buidl – from the anagram of the English word build = build. It is about the development of technologies in the long run.
Bullish – the term used for investors who believe the value will rise.
Bull market – A financial market that is in a growth phase or has the potential to do so.
Bull trap – This is a false signal that the price of the asset will rise, but in fact it will fall.
Buy the Dips – is a motto reflecting the philosophy that one should buy a cryptocurrency when its price has dropped significantly, with the expectation that it will eventually bounce back.
Buy Wall – the size of orders to buy a specific coin is much higher than the number of orders for sale.

C

Centralization – a network dependent on a central authority that manages and regulates it.
Circulating Supply – the total number of coins in circulation.
Coin – coins – A cryptocurrency that works on its own blockchain.
Coinbase – one of the most famous crypto exchanges based in the USA, San Francisco.
Coinmate – Crypto exchange office based and registered in the UK. The founders are Czechs, the possibility of trading in Czech crowns.
Consensus – a consensus algorithm is a mechanism that allows users or machines to coordinate in a distributed setting.
Cryptocurrency – a type of digital currency that uses asymmetric cryptography for its operation.
Cryptocurrency Wallet – A device or application for storing cryptocurrencies.
Cryptocurrency network – a virtual payment network in which the extraction and receipt or sending of payments takes place.

D

DAO – decentralized autonomous organization. An organization that is represented by rules coded as a computer program. Records of financial transactions and DAO rules are maintained on a blockchain.
dApp – decentralized application
Decentralization – a network that is independent of central authority. The whole system is controlled by users who decide how the network will develop.
DEX – short for decentralized exchange.
Digitization – the process of converting information into digital form (into a computer-readable format).
Digital currency – intangible money in electronic form.
Digital signature – a specific type of electronic signature that complies with the strictest legal regulations and provides the highest level of guarantee of the identity of the signatory.
DIP – short-term price decline during price growth in a growing graph.
Distributed network – a type of network where computing power and data are spread across nodes.
Distributed ledger – data is stored across a network of decentralized nodes. It does not have to have its own currency and may have limited rights or be private.
Dogecoin (DOGE) – a cryptocurrency that emerged from the recession but has gained a massive user base. The emblem takes the form of the Shiba Inu meme.
Dominance – Bitcoin dominance, expresses how large share of the total crypto market is taken by Bitcoin in per cent
Dump – a sharply falling price due to the sale of cryptocurrency.
DYOR – from your English Do Your Own Research = Do your own research.

E

ERC 20 – a type of token that is built on the Ethereum blockchain.
Ethereum (ETH) – the largest of altcoins and a network that, in addition to transactions, also offers a system of smart contracts.
Exchange – a place where you can buy cryptocurrencies for fiat currency or, conversely, sell it for fiat currency.

F

Farm – a mining base.
Faucet – a website that provides a reward in the form of a cryptocurrency for performing various tasks.
Fee – transaction fee.
FIAT currency – classic money such as the Czech koruna. Forced currency is legal tender.
FinTech – a group of companies that work with modern information technologies in the sector of traditional financial services.
Flippening – a situation where the leading digital currency (now Bitcoin) is overcome in terms of market capitalization by another cryptocurrency.
FOMO – from the English Fear Of Missing Out. Fear of missed opportunities.
Fork – branching. An alternative version of the blockchain is created. The version runs simultaneously on different parts of the network. We distinguish between hard forks and soft forks.
FUD – from English Fear – Uncertainty – Doubt. Fear, uncertainty and doubts associated with investing.
Fundamental analysis (FA) – is a business strategy in which the investor determines whether it is time to buy or sell an asset. Traders consider a wide range of quantitative and qualitative data in an effort to determine this intrinsic value.

G

Genesis block – historically the first block of blockchain.

H

Halving – It means halving the remuneration for miners for the mined block.
Hard Cap – the maximum amount that is accepted by the startup.
Hard fork – refers to a radical change to the protocols of a blockchain network. In simple terms, it splits a single cryptocurrency into two and results in the validation of blocks and transactions that were previously invalid, or vice-versa.
Hardware wallet – the safest way to store cryptocurrencies; securely stores the keys to the wallets. Also known as cold wallet.
Hash – encoded text that cannot be decrypted.
Hash rate – a unit of computing power of a blockchain network.
Hodl – a term that originated as an anagram of the English hold = hold. Holding a cryptocurrency in your wallet.
Hodler – an investor who buys cryptocurrencies for the purpose of their long-term possession.
Hot wallet – hot wallet; a comfortable cryptograph limping in safety, as everything takes place on a device that is connected to the Internet.
Hybrid PoS / PoW – allows to use Proof of Stake and Proof of Work as a consensus distribution algorithm. This strikes a balance between miners and voters = cryptocurrency holders.

I

ICO, ITO – Initial Coin Offering and Initial Token Offering. Start-up projects that use the sale of their cryptocurrencies to finance their projects.
IEO – Initial Exchange Offering. A method of financing that is more credible because it is managed by crypto exchange offices.

J

JOMO – from the English Joy of Missing Out, the opposite of FOMO. The joy that the user did not buy the cryptocurrency and did well.

K

KYC – from English, Know Your Customer. Customer identification.

L

Ledger – a record of financial transactions that cannot be changed.
Lightning Network – bitcoin network enhancements; to improve its shortcomings – speed and scalability.
Limit – buying or selling on the stock exchange at the best set price. However, the trader determines this in advance. If the price does not fit the limit, the purchase will not take place.
Litecoin – an alternative cryptocurrency.
Liquidity – It is a measure of how easy it is to convert an asset into cash quickly and without loss. The easier it is, the more liquid the asset.
Long term – long term indicator.

M

Mainnet – a sharp version of the system.
Market Cap – market capitalization – the total market value of the cryptocurrency.
Market Makers – is an entity that provides liquidity to the stock exchange by placing limit orders in its order book so that it is possible to trade at different prices.
Miner – He receives a reward for the network service.
Mining – the process of cryptocurrency mining.
Mining pool – a group of miners who combine their computing power and share the profit when extracting a coin.
Mining reward – reward for the extracted block.
Mining rig – equipment designed for cryptocurrency mining.
MOON – Up to the moon. Cryptoslang, which means such an extreme bullish movement of the coin that it heads for the moon.
Multisignature – a way to ensure the preservation of cryptocurrency, token.

N

NFT – Non fungible token. These are unique digital items with blockchain-managed ownership. Examples include collectibles, game items, digital art, event tickets, domain names, and even records of physical asset ownership.
Node – A device connected to a cryptocurrency network that it controls and participates in transactions.

O

Open-source – is a designation of programs whose source code has been provided to other developers. They can study it and usually even modify and further improve it.

P

Pair – a pair in which it is possible to trade cryptocurrencies on the stock exchange.
Paper wallet – Paper copy of your public and private key.
Payment tokens – digital currency using asymmetric encryption.
Portfolio – a set of all cryptocurrencies that one person or company has purchased.
Private key – anyone who knows the private key is the owner of the wallet, password to the wallet.
Privacy coins – are a class of cryptocurrencies that power private and anonymous blockchain transactions by obscuring their origin and destination. Some of the techniques used include hiding a user’s real wallet balance and address, and mixing multiple transactions with each other to elude chain analysis.
Proof-of-Stake (PoS) – It is a consensus algorithm for blockchain networks that is based on a randomly selected state of validators who “bet” native network tokens by locking them into a blockchain to create and approve blocks.
Proof-of-Work (PoW) – The system on which the decentralization of bitcoin and other cryptocurrencies is based. The user of the payment system proves the value of the means of payment through the work expended.
Pump – a sharp rise in price in the tens to hundreds of percent in a very short time.
Pump and dump – driving up the price of a certain coin up (pump) and its subsequent quick sale (dump).
Public key – a public key that can be used to encrypt a message. Address from or to which a specific cryptocurrency is sent.

R

Rank – indicates the position of the cryptocurrency. The aspect is the market capitalization of the currency.
Rekt – from the connection get wrecked. A bad investment was made and we lost a substantial portion of our deposit.
Resistance – This is a price level at which selling pressure is historically greater than buying pressure.
Roadmap – a schedule of each project that is open to the public.
Ripple – XRP, this is a payment network

S

Safu – from English funds are safe – originally used by Binance’s CEO Changpeng Zhao, who also announced Secure Asset Fund for Users (SAFU). The funds are safely deposited.
Satoshi – the smallest unit of Bitcoin and at the same time its alleged creator (Satoshi Nakamoto).
Seed – a set of 12-36 English words used to restore a wallet.
SegWit – is the name of the Bitcoin protocol update, which was activated on August 24, 2017.
Sell ​​Wall – is a large number of sales orders, usually placed in the order book at once, at a seemingly undervalued price.
Secondary Platform – A specialized platform for stock token trading.
Shitcoin – or scamcoin – an untrustworthy or worthless cryptocurrency.
Short term – short term indicator.
Soft fork – a change to the software protocol where only previously valid transaction blocks are made invalid. Because old nodes will recognize the new blocks as valid, a soft fork is backwards-compatible.
Smart contract – Electronic form of contracts expressed by source code in blockchain database.
Spread – the difference between the sale and purchase price.
Stablecoin – a cryptocurrency that is tied in a 1: 1 ratio to one of the fiat currencies (USD, EUR,…); the most famous is Tether (USDT).
State cryptocurrency – a digitized national form of money (CBDC).
Security token – These are shares of a company that has undergone a tokenization process.
Support – This is the price level at which the buying pressure is greater than the selling pressure.

T

Technical Analysis (TA) – is a business strategy that emphasizes the use of mathematical formulas, indicators and patterns to predict where the asset price will go in the future.
Testnet – test version.
Ticker – cryptocurrency abbreviation. For example, Bitcoin – BTC.
Token – a type of cryptocurrency intended mainly for the payment of specific services.
Tokenization – a process that converts a company’s value into a blockchain, digitizing the company’s assets.
Total supply – total number of coins of the cryptocurrency.
Transaction fee – paid to miners for the transfer of cryptocurrencies.
Two-factor authentication – 2-factor authentication (2FA) is the second method of authentication that (in addition to your password) protects your business and other transactions. The most widespread and most used is Google Authenticator.

U

Utility token – Tokens that in the future will allow access to a service or product that will be offered by the company for a cryptocurrency.

V

Venture Capital Fund – It invests in the initial development of the company and participates in it with capital.
Volatility – The rate of increase or decrease in the price of a given cryptocurrency.
Volume – the volume of transactions of a certain cryptocurrency for a certain period, usually in 24 hours.

W

Wallet – A program or device for creating and storing keys to cryptocurrencies and committing transactions.
Whale – A major player on the market, which has considerable capital in that certain asset.
Whitepaper – White Paper of the Project. The task is to acquaint the public with the project.

X

XRP – Is a digital asset built for payments from company Ripple.

Z

Zcash (ZEC) – Is a cryptocurrency focused on maintaining privacy and even anonymity. One of the so called privacy coins.

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