Address

A virtual location where cryptocurrency can be sent to and from. It consists of alphanumeric characters and can be shared publicly in the form of text or QR code.

• Address is not intended to be permanent, as it represents itself a token, designed for a single transaction use only.
• Address can be changed, but it’s recommended to keep them consistent.

Airdrop

A method of distributing tokens and coins to a large number of wallet addresses. Airdrop campaigns are usually initiated by cryptocurrency creators to increase the popularity of a token or coin.

Types of Airdrops

• Random selection
• Publishing in airdrop-related bulletin boards or newsletters

All-Time-High (ATH) and All-Time-Low (ATL)

The highest peak of a coin’s price for the whole period of its existence, according to market capitalization rate.

Altcoin

Any digital cryptocurrency similar to Bitcoin falls under the term “altcoin” (“alternative to Bitcoin”).

Anti-Money Laundering (AML)

Any policy or piece of legislation that is aimed at preventing money laundering activities and corruption.

API

API stands for Application Programming Interface. It represents itself a set of routines, protocols, and tools for building software applications.

APR and APY

The annual percentage rate (APR) is the amount of interest gained per year.

Arbitrage

Cryptocurrency arbitrage is a practice that allows you to take advantage of differences in price by buying a crypto on the exchange where the price is low and then immediately selling it on another exchange where the price is high.

ASIC

A microchip designed for a special application, such as a particular kind of transmission protocol or a hand-held computer.

Ashdraked

A phenomenon when one loses all the invested capital by shorting Bitcoin.

Auto

The practice of using automated trading software to buy and sell cryptocurrencies.

Automatic Market Makers

Automated Market Makers are decentralized exchanges that make use of mathematical equations to automatically compute and determine how much each token should go for on the market.

Buy Wall

A situation where a large limit order has been placed to buy when a cryptocurrency reaches a certain value.

Byzantine Fault Tolerance (BFT)

A situation, when the two nodes can communicate safely across a network, knowing that they are displaying the same data.

Candlesticks

Candlesticks have a wick and a body. The wick is the line, and the fat green or red portion is the body.

Cash

Physical fiat currency, such as paper money or coins.

CeFi

CeFi stands for centralized finance, which is a system in which people can only trade and borrow cryptocurrencies through the use of collaterals.

Central Ledger

A general ledger that contains all the accounts for recording transactions relating to a company’s assets, liabilities, owners’ equity, revenue, and expenses.

Central Processing Unit (CPU)

A central processor, or main processor, is the electronic circuitry within a computer that carries out the instructions of a computer program by performing the basic arithmetic, logic, controlling, and input/output (I/O) operations specified by the instructions.

Centralized

An organization structure in which a small number of nodes is in control of an entire network.

Chain Split

A synonym to the term “fork”.

Change

In a system called Unspent Transaction Output, Bitcoin transactions are proceeded in the form of inputs and outputs. The difference between the whole output and input is sent back as change.

Chargeback

A kind of fraud related to credit cards, when a paying customer asks the issuing bank to reverse a transaction made with a merchant.

Cipher

An algorithm for performing encryption or decryption in order to convert information into cipher or code.

Circulating Supply

A much reliable metric than Total Supply for defining the market capitalization.

Client

A local desktop computer or workstation that is capable of accessing and processing blockchain transactions.

Coin

Any cryptocurrency that operates on the market.

Coinbase

The content of the ‘input’ of a generation transaction.

Cold Storage

Cold storage, or the synonym – cold wallet, represents itself the hardware device for storing Bitcoin or other altcoins in the offline mode.

Confirmations

The term “confirmation” in crypto industry usually refers to the transactions, which are included in a block of blockchain.

Consensus

A specific order and content of blocks, as well as transactions contained in those blocks, which the participants of the network have agreed on.

Consortium Blockchain

A privately operated blockchain in which a consortium shares information not readily available to the public, while relying on the immutable and transparent properties of the blockchain.

Correction

A negatively colored term that refers to reverse movement of at least 10% in a cryptocurrency or general market, to adjust for over- or under-valuations.

Crypto-jacking

A kind of cyber attack in which a hacker hijacks a target’s processing power to mine cryptocurrency on the hacker’s behalf.

Cryptoasset

An asset class that consists not only of decentralized cryptocurrencies, but also of commodities, digital goods and services that combine the technologies and markets.

Cryptocurrency

A digital asset that uses strong cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets.

Cryptographic Hash Function

A hash function which takes an input (or’message’) and returns a fixed-size string of bytes.

Cryptography

A way of protecting information and communications through the use of codes so that only those for whom the information is intended can read and process it.

Custodial

A custodial set-up is one in which private keys are being held by the service provider while they provide a login account

Cypherpunk

Any activist advocating widespread use of strong cryptography and privacy-enhancing technologies as a route to social and political change.

D

Dark Web

Some Internet content kept on darknets, the access to which requires special software, configurations or authorization.

Date of Launch

The official start of token sale during the ICO event.

Dead Cat Bounce

The term is used when the prices rapidly go up after a long period of decrease.

Decentralized

The process of distributing and dispersing power, which is not controlled or managed by any central authority.

Decentralized Applications (dApps)

Digital applications or programs that exist and run on a blockchain or P2P network of computers instead of a single computer, and are outside the purview and control of a single authority.

Decentralized Autonomous Initial Coin Offerings (DAICO)

A new fundraising concept initially proposed by Vitalik Buterin, which unites the major benefits of Decentralized Autonomous Organizations (DAOs) and Initial Coin Offerings (ICOs) in order to improve the current format of digital token sales.

Decentralized Autonomous Organizations (DAO)

An enterprise that is run through rules encoded in smart contracts.

Decentralized Exchange (DEX)

A peer-to-peer exchange where traders can buy and sell cryptocurrency without any third party intervention.

Decryption

The process of transforming data that has been rendered unreadable through encryption back to its unencrypted form.

DeFi

DeFi or Decentralized Finance is a system that enables users to trade cryptocurrencies without the need for collateral or a third party.

Deflation

Economic term that refers to the overall decline in prices for goods and services caused very low inflation rate.

Delegated Proof-of-Stake (dPOS)

A consensus algorithm maintaining irrefutable agreement on the truth across the network, validating transactions and acting as a form of digital democracy.

Depth Chart

A constantly changing visual chart that displays the total number of orders to buy and sell an asset and thus, demonstrates the point at which the market is most likely to accept a transaction.

Derivative

A financial contract between two or more parties that derives its value from an underlying asset, in this case, cryptocurrencies.

Derivatives Market

A market where derivatives, futures contracts or options are being traded.

Deterministic Wallet

A system of deriving keys from a single starting point known as a seed.

Difficulty

This number determines how difficult is it to hash a new block.

Digital Commodity

An interchangeable good or product which can be exchanged in against of any other commodities without any mentioned value.

Digital Currency

Electronic form of currency, which is usually contrasted to fiat paper money.

Digital Identity

An online or networked identity adopted or claimed in cyberspace by an individual, organization or electronic device.

Digital Signature

A mathematical scheme generated by key encryption, which is used for verifying the authenticity of digital messages or documents.

Dildo

A long green or red bar found on a graph showing the changes in price of a cryptocurrency, in relation to the green and red candles found on price charts.

Distributed Consensus

A consensus, when various computers in a network decide to work in accordance with the principle of decentralization, abandoning the intervention of any intermediaries.

Distributed Denial of Service (DDoS) Attack

A kind of cyber criminal activity, targeted at making an electronic device or a network unavailable by overloading the system with requests.

Distributed Ledger

Distributed are called the ledgers, in which the data is stored across a network or decentralized nodes.

Distributed Ledger Technology (DLT)

The technology of storing data in distributed ledgers.

Distributed Network

A type of network, which stores data in decentralized nodes, which are not controlled by any authority.

Dolphin

In crypto field, the term referrers to a person who owns a large quantity of cryptocurrency.

Dominance

The short term for “Bitcoin Dominance”, which means an index that compares the market cap of Bitcoin with the overall market capitalization.

Double Spending

Repeating selling of the same asset.

Dump

A situation, when a person sells all his crypto assets.

Dumping

A collective selling of the assets with an aim to make the prices decline.

Dust Transactions

Usually referred to harmful activity, when someone uses minuscule transactions so that to flood and slow the network.

E

Error

A mistake or malfunction in the system that can affect the transaction.

F

Financial Terms

Asset

A valuable item, property, or resource.

Business

An organization or company.

Cash Flow

The movement of money into or out of a business.

Capital

A source of funds used to invest in a business.

Commodity

A raw material or product.

Company

A business entity.

Credit

A loan or debt.

Currency

A medium of exchange.

Debt

A financial obligation.

Earning

Income from a business.

Equity

The value of a business.

Fiat

A currency issued by a government.

Financial Instrument

A security that represents an ownership interest in a company or asset.

Investment

A financial undertaking involving the investment of funds.

Interest

A return on investment.

Loans

A form of borrowing money.

Profit

The gain from a business.

Return

A payment or compensation.

Stock

A security that represents ownership in a company.

Treasury

The government’s financial assets.

Value

The monetary worth of a business or asset.

Key Terms

• Accounting
• Asset
• Balance sheet
• Bookkeeping
• Budgeting
• Cash flow
• Capital
• Commodity
• Company
• Credit
• Currency
• Debt
• Earning
• Equity
• Fiat
• Financial Instrument
• Investment
• Interest
• Loans
• Profit
• Return
• Stock
• Treasury
• Value

Gold Standard

A system where a currency is pegged to a gold reserve.

Great Depression

A period of severe economic downturn that lasted from 1929 to the late 1930s.

Hyperinflation

A period of extremely high inflation that can cause a currency to lose its value.

Inflation

A sustained increase in the general price level of goods and services in an economy.

Interest Rate

The cost of borrowing money.

Market Capitalization

The total value of a company’s outstanding shares.

Monetary Policy

The actions taken by a central bank to control the money supply and interest rates.

Price Stability

A stable price level in an economy.

Quantitative Easing

A policy of injecting liquidity into an economy through the purchase of assets.

Recession

A period of economic decline.

Supply and Demand

The interaction between the amount of a good or service available for purchase and the amount of people willing to buy it.

Treasury Bond

A type of government bond.

Unemployment Rate

The percentage of the labor force that is unemployed.

Value-Added Tax

A tax on goods and services.

Wholesale

The sale of goods or services in bulk.

Withholding Tax

A tax on income earned by individuals.

Yield

The return on investment.

Z-Score

A measure of the likelihood of default.

Gordon Gekko

A fictional character who says “Greed is good”.

Greenspan

A nickname for Alan Greenspan, a former Federal Reserve Chairman.

Grayscale

A type of investment vehicle.

Globalization

The increasing interconnectedness of the world’s economies.

Growth

An increase in the size or amount of something.

Key Terms

• Balance sheet
• Bookkeeping
• Budgeting
• Cash flow
• Capital
• Commodity
• Company
• Credit
• Currency
• Debt
• Earning
• Equity
• Fiat
• Financial Instrument
• Investment
• Interest
• Loans
• Profit
• Return
• Stock
• Treasury
• Value

H

Hybrid

A combination of two or more different things.

International Trade

The exchange of goods and services between countries.

Investment

A financial undertaking involving the investment of funds.

IOU

A note or certificate promising to pay a debt.

K

Keynesian

A school of economic thought that emphasizes the importance of government intervention in the economy.

L

Liquidity

The ability to easily convert an asset into cash.

Liquidity Crisis

A situation where there is a shortage of liquidity in the market.

Loan

A form of borrowing money.

Long-term Bond

A type of bond with a longer maturity period.

Low-Inflation

A situation where inflation is low.

Money Supply

The amount of money in circulation.

Mortgage

A type of loan used to purchase a home.

Multiplier Effect

A situation where an increase in one sector of the economy leads to an increase in other sectors.

New Economy

A concept that describes the transition from a traditional economy to a new economy.

Nominal Value

The actual value of an asset.

Non-Profit

An organization that does not aim to make a profit.

Option

A contract giving the buyer the right, but not the obligation, to buy or sell an underlying asset or instrument at a specified strike price.

Order Book

A list of buy and sell orders that are waiting to be executed.

Overdraft

A situation where an individual or business exceeds its available credit limit.

Oversold

A situation where the price of a security has fallen below its value.

Pension Plan

A plan that provides financial support to individuals in retirement.

Personal Finance

The management of personal financial resources.

Portfolio

The total number of cryptocurrencies that belong to a single person or entity.

Pre-Mine

The process of mining or creating of a number of crypto coins before the cryptocurrency is launched to the public.

Pre-Sale

A phase that takes place before the official token sale and allows investors to buy tokens before they go public.

Promotion

The act of promoting a product or service.

Public Address

A hashed version of the public key.

Pseudonym

A false name that is used by a creator of something.

Randomization

The act of making something random.

Real Estate

Property that is held for personal or investment purposes.

Regulation

The action of governing or controlling something.

Research

The act of investigating or analyzing something.

Securities and Exchange Commission (SEC)

A US government agency that regulates and oversees the securities industry.

Security

A type of asset that represents ownership in a company or asset.

Selfish Mining

A malicious mining strategy that is targeted at discrediting blockchain network integrity.

Senders and Receivers

The parties involved in a transaction.

Sidechain

A blockchain ledger that runs in parallel to the primary blockchain.

Silk Road

An online black market that was shut down by the FBI.

Simulation

The act of simulating something.

Smart Contract

A computer protocol that controls cryptocurrency transfer guaranteeing its traceability, transparency, and irreversibility.

Solvency

The state of being solvent.

Solvent

A solvent is someone who has sufficient assets to pay their debts.

Taxation

The process of assessing and collecting taxes.

Technical Analysis

Analytical activity, which is conducted to monitor the coin history, its price and volume trends.

Testnet

Another blockchain that is identical to the main one, which is used for testing updates without interrupting the processes in the main blockchain.

Think Long Term

A strategy that involves planning investments for long periods of time.

Token Generation Event (TGE)

An event, that is held to launch a token.

Tokenize

The process of converting physical assets into their digital representation that exists on the blockchain.

Trade Volume

The amount of shares or contracts traded for a specified security per 24 hours.

Treasury

The government’s financial assets.

Trustless

Transactions proceeded on a blockchain are called trustless. That means that the two parties conducting a transaction don’t need any third party to verify and approve it.

Tumbler

A service that mixes potentially identifiable or ‘tainted’ cryptocurrency funds with others.

Twitter

A social media platform.

Unlimited Supply

A supply of a cryptocurrency that is unlimited.

Uncle Block

A block that is not part of the main chain.

Ursula

A reference to a mythical figure who may be helpful in this context.

Variable Costs

The costs that vary depending on the level of production.

Vertical Integration

A situation where a company has control over all stages of production.

Viral Marketing

A marketing technique that relies on the power of social networks.

Volatile

A situation where the price of an asset is highly unpredictable.

Whale

A person who owns a large quantity of cryptocurrency.

Whitepaper

A detailed report that outlines the goals and objectives of a project.

Withdrawal

The act of taking money or assets out of an account.

Wall Street

A term that refers to the financial district in New York City.

Web3

A term that refers to the next generation of the web.

Wealth

A high level of financial resources.

Yahoo

A search engine and internet portal.