Cryptocurrency A – Z Glossary for Beginners !

An Easy to understand A – Z Glossary of Crypto Currency related words & What they mean in the world of Crypto.

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51 % Attack.

A situation in which more than half the computer power or mining hash rate on a network is run by a single person or a single group of people. This means that entity has complete control of the network.

Crypto Words Beginning with A !

AML.

Stands for anti money laundering. Laws and regulations aiming to prevent disguising illegally obtained assets as legal income.

ASIC Miner.

A computerized device or hardware that uses ASICs (Application Specific Integrated Circuits) for the sole purpose of “mining” digital currency.

ATH.

All time high, the highest value ever recorded by a particular cryptocurrency.

Aave (AAVE)

An Ethereum token, a decentralized non-custodial money market protocol where users can participate as depositors or borrowers.

Address

An identificator (similar to physical address) that you need to provide to get a payment. Note that each address should only be used for a single transaction.

Airdrop

A marketing action when a small amount of new cryptocurrency is sent to digital wallets for free in order to promote new cryptocurrency.

Algorand (ALGO)

The crypto-currency of the Algorand blockchain. The Algorand blockchain has been built to help create an open, borderless economy where everybody can participate..

Algorithmic stablecoin.

The crypto token that uses price stabilisation algorithms to keep the value of an asset, usually at $1.

Altcoin(s)

Any digital currency other than (an alternative to) Bitcoin.

Anarcho-capitalism.

A political philosophy initially conceived by American economist Murray Rothbard that many crypto community members have now embraced.

Aping

Investing in cryptocurrency with hope of short-term profit.

Asset-Backed Tokens.

Digital tokes that are backed by the physical asset, like: gold, oil, real estate, equity or any other tangible asset. If an asset behind such a token is a commodity, then a token is called a commodity based token or a commodity based cryptocurrency.

Atomic Swap.

An automatic exchange contract that allows two users to trade tokens from two different blockchains directly without a third party or intermediary.

AtomicDEX.

A crypto wallet and decentralized exchange rolled into one application available on desktop, mobile, and web.

Halving
The process of reduction of rewards to Bitcoin miners in order to control emison volume. Each 4 year rewards are reduced by 50%.
Hard fork
A radical change in blockchain technology protocol that makes blocks that used to be invalid before valid or vice-versa.
Hardware Wallet
A crypto wallet that stores the user’s private keys (a critical piece of information used to authorize outgoing transactions on the blockchain network) in a secure hardware device. It is also known as a Cold Wallet.
Hash
A mathematical function that maps data of an arbitrary size to a bit array of a fixed size. Has is a vital function to solve a blockchain computation.
Hot Wallet
A cryptocurrency wallet that is always connected to the internet enabling to check its live balance.
Hotbit
The exchange where withdrawal fees are fixed, irrespective of the number of cryptos withdrawn, and it differs from crypto to crypto.
I
ICO
Initial Coin Offering, an action aimed to raise funds for cryptocurrency. Equivalent to the IPO (Initial Public Offering). First introduction of digital currency to the market.
ICO Scam
An ICO that demonstrated fraudulent activity with bad intent.
IDO
Initial Dex Offering, a crypto token offering run on a Decentralized Exchange.
IEO
Initial Exchange Offering, a way for start-up companies to raise capital by selling
cryptocurrency which confer preferred status with the company through a cryptocurrency exchange platform.
J
Joincoin
One of the altcoins. It was generated via mining.
Jubi
A centralized cryptocurrency exchange, providing both spot and everlasting crypto-to-crypto trading (contract trading).
K
Key pair
A combination of a public and private key together. The public key is used to receive funds, and the private key is used to sign transactions to spend the funds.
Kraken
Kraken.com is a U.S. based cryptocurrency exchange.
KuCoin
Kucoin.com is a large Singaporean cryptocurrency exchange.
L
Lambo
(also: When Lambo?) Meaning when will one profit from cryptocurrency enough to buy a Lamborgini.
Ledger Blue
A premium Hardware wallet with an advanced user experience thanks to a large touchscreen interface.
Ledger Nano S
A popular Hardware wallet in the form of a USB stick made by the French company Ledger SAS.
Legion Network
A blockchain ecosystem that enables users to manage their wallets, view and share NFTs, get rewards for playing games and other activities within the Legion network app.
Liquidity Mining
A decentralized finance mechanism wherein participants provide some of their crypto assets into various liquidity pools, from which they’re rewarded with tokens and fees.
Lucky Block (LBLOCK)
A crypto-lottery platform built using blockchain protocols to improve the lottery experience for all stakeholders.
Lumen (XLM)
The Stellar blockchain’s cryptocurrency is a token that trades under the symbol XLM.
M
MEW
An actual, non-custodial Ethereum wallet that you and only you have access to your funds — the abbreviation for MyEtherWallet.
Market Capitalization
Refers to the total value of virtual currencies that have been mined. You can calculate it by multiplying the current number of coins by the current value of the coins.
Masternode
A server run from home or in a data centre, a governing hub in some cryptocurrency networks.
Maximalist
A bitcoin maximalist, is a person who believes that only bitcoin and no other cryptocurrency will take over the world.
Memecoin
A digital currency that is based on internet meme or has no real value and is used for social media purposes.
Metamask
A free crypto wallet software connected to virtually any Ethereum-based platform. It is a popular browser plugin that bridges your cryptocurrency holdings with a website.
Metaverse
A 3D network focused on social connections. It is probably the next stage of internet development where metaverse cryptocurrencies and digitalcurrencies will represent the main form of currency.
Microbitcoin (uBTC)
Represents one-millionth of a bitcoin and is commonly written as 0.000001 BTC.
Millibitcoin (mBTC)
Represents one-thousandth of a bitcoin and is commonly written as 0.001 BTC.
Miner
A piece of hardware that enables mining. Most miners are designed for mining one particular cryptocurrency.
Mining
The process of creating new units of cryptocurrency (e.g. Bitcoins) by solving complicated mathematical problems (completing blocks) that verify transactions in the cryptocurrency.
Mining Farm
A large mining facility.
Mint
Minting refers to verifying information on the blockchain network.
Moon
A slang used to describe a sharp increase in the price of cryptocurrency.
Moon (Mooning)
A cryptocurrency whose valuation is “going to the moon” — experiencing a significant spike in price and volume.
Mt. Gox (or Mount Gox)
The largest and most important exchange for Bitcoin in its early years, based in Shibuya, Tokyo, Japan.
N
NFT(s)
Non Fungible Token, technology that merges digital content (images, videos, songs, etc.) with blockchain that makes that digital piece unique. It allows ownership of this content and the ability to trade it over the blockchain. Also may refer to the particular piece of this content.
Nocoiner
Someone who does not possess any cryptocurrency, believes cryptocurrencies have minimal value and are doomed to fail.
Node
The computer that connects to the cryptocurrency network and supports the crypto network.
Nonce
Short for “number only used once.” This relates to a number added to a hashed or encrypted block in a blockchain.
Noob, or n00b
A person who is not very experienced about a particular topic, and can be generally arrogant and rude.
O
ODN, short from OriginTrail Decentralized Network
A neutral, open-source protocol that enables data sharing between companies and organizations that relies on an off-chain technology stack consisting of several inter-related layers.
OFIN Token
One of the altcoins non-custodial investment protocol that enables novices to invest directly into the funds managed by seasoned crypto traders.
Obsessive Crypto Disorder (OCD)
The state when an individual becomes obsessed with crypto and is willing to consume every bit of information related to cryptocurrency. Also sometimes called Cryptosis.
Omicron Crypto (OMIC
One of the altcoins that surged after the spread of Omicron strain of Covid-19.
OpenSea
Opensea.io is the largest and most well-known NFT marketplace.
Orphan block
A blockchain block that is not further built on. It has been solved within the blockchain network but not accepted due to a lag within the network itself.
P
Parachain
An individual blockchain running in parallel within the Polkadot ecosystem on its network.
Peer-to-peer
Two users interact directly without a third party or intermediary.
Permissioned blockchain
A distributed ledger that is not publicly accessible.
Pizza
One of the first and probably most known Bitcoin transaction ever, when Laszlo Hanyecz offered to pay 10,000 BTC for 2 pizzas. But that time the amount was $40 worth.
Play to earn
Blockchains integrated in games, players get rewards with in-game cryptocurrencies that can be exchanged to other cryptos.
Polka
Short for Polkadot, which is a cryptocurrency similar to Ethereum.
Polkadot
Polkadot is a protocol that connects blockchains allowing value and data to be sent across previously incompatible networks (like Bitcoin and Ethereum, for example).
Privacy coin
A cryptocurrency that obscures transactions on its blockchain to maintain its users’ anonymity and activity.
Private Key
A secret code used in blockchain networks to secure transactions and accounts. It protects a user from theft of funds.
Private blockchain
A blockchain that is not decentralized but is controls by owner(s) as a single authority. Maybe used for research and scientific purposes, or for some governmental affairs.
Proof of Authority (PoA)
A consensus mechanism used in private blockchains, granting a single private key for the authority to generate all of the blocks or validate transactions.
Proof of stake (PoS)
A way of securing transactions over the blockchain. It is an alternative to the Proof of work. Seen as less risky in case of an attack on the network.
Proof of work (PoW
A decentralized way of adding new blocks to the blockchain. The PoW requires members of the blockchain network to prove that they have expended necessary computations.
Public Key
A digital code used to facilitate transactions over the blockchain network.
Q
Quantum-proof
A kind of blockchain that is secure from attacks by quantum computers. Also quantum computers are not yet fully functional. It is believed that their computational power is enough to break the current encryption methods most cryptocurrencies rely on.
R
Raiden Network
A way to make the Ethereum blockchain scalable. It is a separate ERC20 token, and the team held an ICO in 2017.
Ransomware
A kind of malware that encrypts files on computers and services, so owners need to pay to get access back. Such payments are usually made in cryptocurrency.
Regpull
A kind of cryptocurrency fraud where crypto developers abandon the project and disappear with an investors money.
Rekt
A slang term for an investor that has lost all their money for some reason and became “wrecked.”
Ripple
A technology that acts both as a crypto currency and a digital payment network for financial transactions. Ripple is both the name of the company and the network, and XRP is the cryptocurrency token.
Rollups
An element of tools used in the Ethereum network.
S
Sat (Satoshi)
The smallest amount of bitcoin that can be sent or received.
Satoshi Nakamoto
The pseudonym under which the creator (or creators) of Bitcoin is known to the audience. The real identity still remains an enigma. Multiple famous entrepreneurs including Elon Musk are believed to be the real Satoshi Nakamoto.
Scrypt
One of the alternatives to Proof of work. It is mainly used by Altcoins since this algorithm requires less resources compared to PoW and PoS.
Segregated Witness (SegWit)
A solution by which the block size limit on a blockchain is increased by removing signature data from transactions that are included in each block.
Sharding
The process of dividing the blockchain network into smaller groups of nodes called shards. Each shard is responsible for processing parallel transactions.
Shiba Inu (SHIB)
A decentralized cryptocurrency created in August 2020 by an anonymous person or group known as “Ryoshi.”
Shielded transaction
A transaction that is between two shielded addresses.
Shitcoin (Shit coin)
A slang term used to describe cryptocurrency that has poor value, is likely to fail or is probably a scam.
Smart Contract
A digital, self-executing contract with terms and conditions inserted directly into the code. The code is distributed over the blockchain network. The code also controls the execution: all transactions are trackable and irreversible.
Soft fork
A change to blockchain protocol that makes previously invalid blocks valid.
Solana (SOL)
One of the cryptocurrencies. Also Solana is a crypto-computing platform that aims to achieve high transaction speeds without sacrificing decentralization.
Stablecoin(s)
A cryptocurrency with no or minimal price volatility. Stable coins are often linked to fiat currencies and commodities.
Stellar
A decentralized protocol on open-source code to transfer digital currency to fiat money domestically and across borders.
T
Tether (USDT)
A fiat-collateralized stablecoin where the US dollar backs each tether in circulation.
The Flippening
The moment that another cryptocurrency, like Ethereum (ETH), overtakes the market capitalization of Bitcoin (BTC).
Token(s)
A unit of value inside the crypto ecosystem. In fact, a token can represent everything from commodities to cryptocurrencies.
Transaction fee
A commission paid to the miners for completing transactions over the blockchain network.
U
USD Coin (USDC)
A digital stablecoin pegged to the United States dollar.
Uniswap
A program on the Ethereum blockchain for trading ERC20 tokens.
Unspent Transaction Output (UXTO)
Transactions left unspent after someone completes a transaction, similar to the change someone receives after conducting a cash transaction at the store.
Upbit
A South Korean cryptocurrency exchange founded in 2017.
V
VIPER
A programming language used for smart contracts.
Validity proof
A piece of code submitted with certain rollups, to prove that the transactions are valid.
Virtual currency
A digital currency that is mostly unregulated, issued, and controlled by the developers that is accepted and valued by members of a particular virtual community. The virtual currency can refer to a cryptocurrency or to the in-game currency.
Vitalik Buterin
A Russian-Canadian developer who is one of the co-founders of Ethereum.
W
Wallet
A digital (can be both hardware and software) piece used to store cryptocurrencies.
WazirX
India’s most trusted Bitcoin & cryptocurrency exchange.
Weak hands
A slang term referring for traders or inventors who get easily scared by market fluctuations and crypto volatility.
Web1 / Web 1.0
An early version of the internet.
Web2 / Web 2.0
The current version of the internet.
Web3 / Web 3.0
Next version of the internet that is believed to be decentralized and blockchain based.
Wei
The smallest fraction of Ethereum. Each Ethereum equals one quintillion (1,000,000,000,000,000,000) Wei.
Whale
A slang term describing an investor with large amounts available for investment. Sometimes “whales” act as angel-investors for altcoins.
WhiteBIT
A centralized exchange from Europe.
Whitelist
A list of investors who are interested in the purchase of a coin during ICO.
Whitepaper
An informational document that describes purpose, features and characteristics of crypto currency. An informative guide that holds all official information of cryptocurrency. Whitepaper is an inherent part of ICO.
Wholecoiner
Someone who owns 1 whole Bitcoin.
X
XRP
The ticker symbol of Ripple.
Xcalibra
A multi-currency licensed digital assets exchange based out of Switzerland.
Y
Yield Farming
The process of earning interest by investing cryptocurrency in decentralized finance markets.
YoBit
An online exchange trading platform designed to support the trading of cryptocurrencies.
Z
ZB.COM
A Switzerland based cryptocurrency exchange.
Zero Address
An address on the Ethereum blockchain that is the recipient of a special transaction used to register the creation of a new smart contract.
Zero Confirmation Transaction
An alternative phrasing for an unconfirmed transaction.
Zerocoin
A privacy protocol designed as an extension to the Bitcoin protocol that would improve Bitcoin transactions’ anonymity by having coin-mixing capabilities natively built into the protocol.