Address
(A wallet) address is a unique number which you could compare to your own bank account number. Also known as a receipt address, it is a series of numbers between 26 and 35 characters.
Airdrop
An airdrop is an entirely new form of marketing which brings the cryptocurrency to the attention of the general public. In other words, cryptocurrency is distributed for free or airdropped to early users.
Algorithm
A finite set of instructions that leads from a given initial state to an intended goal.
Altcoin
The abbreviation for ALTernative coin. Officially, any cryptocurrency other than Bitcoin can be named as altcoin.
AML
Anti money laundering. Global laws & regulations designed to prevent money laundering.
ANN
Short for ‘announcement’. The first notification of a project’s existence. In it, more of the project is shared, with a reference to the white paper and website.
ATH
Stands for ‘All Time High’, or the highest point of price for specific crypto asset.
Arbitrage
If a currency is traded on more than one exchange, there is often a difference between the prices on the different exchanges. You can profit from this difference by buying on one exchange and selling on another. People who do this are called ‘Arbitrageurs’.
Backwardation
When the price of futures is under the current market value. So it costs more for the product to be paid out now than later. Refers to cryptocurrency derivatives.
Bagholder
An informal term used to describe an investor who holds a cryptocurrency during a period when the shares or assets become worthless.
Bags
Slang for your investment of a specific cryptocurrency. e.g., “I have a lot of confidence in Ethereum, therefore I will not sell my ‘bags’.“
Bearish
A downward trend line.
Bear market
A Bear market is an overriding negative market sentiment. Stock prices then fall to the downside.
Block
A part of the blockchain and is usually connected to the previous block via an encrypted hash.
Block explorer
This is a tracker where you can view and search blocks and transactions of the public and well-organized ledger. Every blockchain has one.
Block height
This number indicates where a block will be placed in the blockchain. The first block has the height of 0, the next 1 and so on…
Block reward
The number of coins you will get as a reward if you are the first participant to publish a block according to the rules.
Block time
The time between two consecutive blocks. This is often between a few seconds and 10 minutes. The lower the block time, the faster the transaction is confirmed by the network.
Blockchain
A decentralized database that maintains a data list that cannot be manipulated.
Bullish
An upward trend line. Bullish is when you expect the market and the value to rise.
Bullmarket
A market sentiment in which prices continue to rise. There is an overall positive market sentiment.
Buy Wall
A wall of buy orders
Bribe
In DeFi, incentives for voting are commonly referred to as ‘bribes’. For example yBribe enables veCRV holders — be they protocols, DAOs, or individual users, to extract the value of their voting power.
BTFD
Short for: “Buy The Fucking Dip”. Used when prices drop.
Contango
When the price of futures is above the current market value. So it costs more for the product to be paid out later than right now. Refers to cryptocurrency derivatives.
Correction
Price aversion, often taking place after an upward trend.
Core wallet
A digital wallet where you hold your coins. Contains all the blockchain and in many cases allows programmers to develop on.
Circulation supply
The number of coins of a particular cryptocurrency in circulation.
Cliff
The amount of time that has to pass before the token release starts. Duration of the cliff can vary depending on the purpose of an allocation. After the cliff the vesting period begins.
Confirmation
Meaning the approval has been given on the transaction that was created.
Consensus
A process that determines which data input is reliable.
Cost averaging
Investing a fixed amount on a regular basis, if prices drop you lower the average purchasing price.
Cryptocurrency
A a digital currency that uses digital encryption techniques to produce new currency units and verify transactions, independent of a central bank.
Dapps
i.e., decentralized applications, abbreviated as dapps. Also known as blockchain applications.
Death cross
The intersection between two “moving averages”, one long-term and one short-term, traditionally 200 and 50 days. In a rising market, the short-term average is higher than the long-term average. If the short-term average falls below the long-term average (and thus the lines cross) it indicates a “trend reversal”, time for a bear market.
Decentralized
Decentralized, meaning that no central enitity has the power. The network exists and controlled by their many participants.
Difficulty
Used when referring to Mining. A certain level of difficulty that miners have to do to create a block.
Distributed ledger
A blockchain is a ledger, which is not in one central location, but distributed across a large network of participants who control the ledger.
Double spending
A blockchain prevents someone from spending their money twice by encrypted messaging.
DYOR
Short for: “Do Your Own Research”. This term is 1) for people who ask a question without any research 2) a disclaimer when someone gives a tip on a particular cryptocurrency.
ERC-20
A standard for tokens on the Ethereum network.
Exchange
An organization where multiple buyers and sellers come together. Where buyers and sellers can choose to buy or sell at any price, but will have to wait until another buyer or seller agrees to complete the transaction.
Fiat currency
are euros and dollars etc. It is money where the value is based on the trust people have in central banks and governments.
Flippening
The flippening refers to the possibility when Ethereum or another coin passes Bitcoin to become the most valuable cryptocurrency in terms of market capitalization.
FOMO
This is an abbreviation for “fear of missing out. This is common among novice traders. They see that a specific coin has risen sharply in price. For fear of missing out on a potential gold mine, they often buy in at the wrong time.
Fork
a permanent split from the current blockchain, creating a new blockchain with its own (new) rules. A well-known example of this is Ethereum and Ethereum Classic.
FUD
stands for Fear, Uncertainty & Doubt. In the crypto world, FUD amounts to spreading fear, uncertainty or doubt about certain blockchain projects.
Fully Diluted Value – FDV
Fully diluted value (FDV) is a term used to refer to the total value of a cryptocurrency if all outstanding units of the cryptocurrency, including those that have not yet been issued or are subject to vesting, were to be sold at the current market price.
A higher FDV can indicate a strong market presence and good investment opportunity, while a lower FDV may suggest a weaker market position and less favorable investment potential. However, it is important to note that FDV is only an estimate and the actual value of a cryptocurrency may be affected by market conditions and other factors.
Fundamental Analysis – FA
Research on a coin on project to determine if you want to invest.
Gas
A consumption charge and unit of account within Ethereum that indicates how much computing power was consumed to perform an action or series of actions.
Gas limit
With the Gas Limit you specify the maximum amount of Gas you want to spend on a transaction. This limit is added so that a contract cannot accidentally use up all your Ether by sending a transaction around forever within a contract.
Gas price
transaction cost for an Ethereum transaction. The Gas Price is hereby expressed in “GWEI”. A Gwei is 1/1,000,000,000th part of an ETH. Miners, however, decide which transactions to process first based on the Gas Price offered. Thus, a very low Gas Price will result in a longer transaction time.
Genesis Block
The Genesis Block is the first block of a blockchain and thus the beginning. The term Genesis Block is also known as Block 0. It serves as the foundation of the entire blockchain and can therefore be seen as the most important block.
GPU
The chip on a video card. Mining rigs often consist of a number of GPUs that do the work.
Gwei
The Gas Price is hereby expressed in “GWEI”. A Gwei is 1/1,000,000,000th part of an ETH.
Halving
In blockchain, the reward per block decreases as time progresses. With Bitcoin, the reward is halved every 210,000 bocks.
Hard cap
The maximum amount of money that people want to raise with the ICO. If this is reached, then the ICO ends.
Hash
An encryption that cannot be undone.
Hashrate
The number of hashes/encryptions that a participant (or the entire network) can compute per second.HODL, Once created as a typo of the word hold. However, due to the Internet, it was soon renamed ‘hodl’. It refers to the fact that you hold your investment for the longer term, and do not sell or trade in between.ICO, Initial Coin Offering. A crowd sale in which people are offered the opportunity to purchase digital coins from a new blockchain project.
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Oops… We are in dire need of Crypto jargon for this letter. Do you have words for us? Let us know here. Thanks in advance!
KYC
Know Your Customer. Data you must leave behind, because of certain legislation. For example, your passport and your name and address details.
Lambo
Lamborghini. The first car you could ever settle with bitcoins, and therefore a favorite with crypto traders and is used when trading or the crypto market is doing well.
Lightning network
With the Lightning Network it is possible to send transactions at lightning speed, without filling up the blockchain. The transactions do not take place on the blockchain. Instead, transactions are found in a layer on top of the blockchain.
Limit order
You buy coins for the maximum price, or sell coins for the minimum price, that you specify.
Margin trading,
Trading with leverage, with borrowed money. You lose it if the price goes the wrong way.
Market cap
The price of a specific coin, times the number of coins in circulation.
Masternode
Every computer that is connected to the blockchain network and interacts with it is called a node (NL: node in a network). These can be miners, wallets or masternodes.
Max Supply
The maximum number of coins of a particular crypto currency that will ever be issued.
Mining, Mining is having a computer perform mathematical calculations in order for the bitcoin network to confirm transactions and ensure security. As a reward for the work done, Bitcoin miners receive the commission that is passed along on some of the transactions – as well as newly mined Bitcoins.
Mining pool
Mining Bitcoins is now a specialized market, where the revenue is shared among the members of specialized groups (so-called mining pools) in proportion to how much computing power is contributed.
Mining rig
If you decide to buy a special mining machine, you can earn faster and more. A mining rig usually consists of a motherboard with several video cards.
Miner
Device that validates the blockchain (transactions).
Miner reward (block reward)
The reward a miner receives for the computing power he provides to verify nodes in the blockchain.
Moon
Crypto jargon. A coin or token goes up tremendously in value.
MyEtherWallet – MEW
MEW is an open source Ethereum wallet. You will be assigned your own Ethereum address to which you can send Ethereum (ETH) and other ERC20 tokens.
Node
A computer or other digital node with a full copy of the blockchain of relevant network. Primary purpose: to provide consensus on which block to add to the blockchain and validate it.
Open Interest – OI
Open Interest is a measure of the total number of outstanding contracts in the futures market that have not been settled. It always consists of 50% net long positions and 50% net short positions, and the Open Interest formula is calculated by adding the net open long positions and net open short positions and dividing the sum by 2.
- If both buy and sell side of the trade are expanding their net open positions, then Open Interest increases by the volume on the trade.
- If both buy and sell side of the trade are closing/contracting their net open positions, then Open Interest decreases by the volume on the trade.
- If one side (either buy or sell) is expanding their net open position and the other side (either buy or sell) is contracting their net open position, then the Open Interest stays flat at the same amount it was before.
Order Book
The collection of a totality of buy and sell orders given on a particular exchange. You can view the order book and therefore get a good idea at what price there is supply and demand.
Public key
publicly accessible ‘key’, in cryptocurrency your wallet.
Private key,
The private key to open your wallet.
Proof of Stake
Verification of the blockchain is done by (wallet) addresses with a certain amount of coins. The more coins, the more computing power you provide to validate the blockchain in question.
Proof of Work
is roughly a method in which a blockchain (transaction) is validated with computer processing power. The more computing power you provide for verifying, the more likely you are to receive the block reward.
Pump & Dump
is the manipulation of the market for the purpose of making money. This often happens with coins with a lower market cap, because they are easier to manipulate. By putting a lot of money into a specific coin, the price rises. Other traders see this and step in because of
Oops… We are in dire need of Crypto jargon for this letter. Do you have words for us? Let us know here. Thanks in advance!
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Resistance Level
A price point where upward price movements are held back by market conditions
REKT
When you have lost a lot
Reverse Indicator
Someone who always wrongly predicts price movements
Roadmap
Outlined route intended for the development of the digital currency in question.
RSI
The relative strength index is a technical indicator used in the analysis of financial markets.
RWA – Real World Assets
This includes traditional financial assets that have been tokenized and can be traded or invested in. Examples of an RWA product is a decentralized strategy vault that replicates US treasury bills, synthetic commodities, ETF on the blockchain,…
Satoshi
the developer of Bitcoin, Satoshi Nakamoto
Sats
The smallest part of a Bitcoin, being 0.00000001.
Scam
When a project is not legal/legit
Sell Wall
A wall of sell orders
Shilling
The hyping/promoting of a coin
Shitcoin
A coin with little potential
Smart Contract
A smart contract is an agreement written in code language that automatically takes effect when certain conditions are met.
Soft cap
The minimum amount of money that one wants to raise with the ICO.
Soft fork
In a soft fork, the rules within the blockchain are tightened. A split of the blockchain is not necessary, as it is with a hard fork.
Spoofing
Spoofing is where large players enter large buy/sell (long/short) positions above/below price to move the market AWAY from that order, then deleting the order and “opening up the wall.” This creates artificial demand and can artificially push or suppress price.
Stablecoin
By stable coins is generally meant crypto money with low volatility
Support Level
A price point where downward price movements are held back by market conditions
TA
Technical Analysis
The Flippening
The moment Ethereum passes Bitcoin in market cap.
Token burn
The “burning” of tokens. Removing a certain number of tokens from circulation so that no one can own them.
Total supply
The total number of coins or tokens currently made. Coins or tokens that have not yet been created do not count in the total supply, they count in the maximum supply.
Trading Volume
The volume in value traded in a specific period.
Token Generation Event – TGE
A Token Generation Event, as the name suggests, is an event that creates new tokens on a blockchain network. It can take many forms, including public sales, private sales, and initial coin offerings (ICOs). These are all ways of distributing the newly generated tokens to interested parties, such as investors or users of the network.
Vitalik Buterin
The Developer of Ethereum. Vitalik is a Russian developer who had Bitcoin as his inspiration. Although he was fascinated by the technology, he wanted his own platform to go in more directions than just digital currency. Buterin envisioned a future where in addition to transactions, smart contracts and Dapps were also possible.
Vesting
Vesting indicates a token lock for project members and early investors for a specificied time. After this time, tokens will be released and are ready to trade with or to be transferred.
Vesting Schedule
A vesting schedule is used to determine the time-bound release of locked tokens. This schedule spells out the duration and percentage of the token to be paid out to early investors.
Volatility
The movement of a stock price.
Volume
Volume is a measure of market activity and liquidity given a certain period. Price is influenced by volume. The total number of ‘cryptocurrency’ traded (buying & selling) within a certain timeframe. Volume is not counted double. If a buyer buys 100 and sells 200. The total volume is 100.
Wallet
a digital wallet on cryptocurrency to hold. Examples include Jaxx, Exodus, and the Guilder wallet.
whey, The smallest unit of ETH. 1 ETH = 10^18 = 1,000,000,000,000,000,000 wei.
Whale
An investor with a lot of money or coins is a whale. Whales have a lot of power because they have the means to be able to manipulate markets. For example, they can use large buy and sell orders to make prices rise and fall.
Whitelist
To be able to participate some ICOs require you to be on the whitelist. You will then receive an email if you are the “lucky” one to be allowed to participate in the ICO.
Whitepaper
A whitepaper is a document that describes a technology, service or product. This description details how the service or product solves a specific problem. A white paper should provide a reader with objective information about how a product or service specifically solves a problem.
Weak Hands
When someone sells at the smallest correction
Oops… We are in dire need of Crypto jargon for this letter. Do you have words for us? Let us know here. Thanks in advance!
Oops… We are in dire need of Crypto jargon for this letter. Do you have words for us? Let us know here. Thanks in advance!
zk-STARK
This technology stands for zero-knowledge succinct transparent argument of knowledge. This is the improved version of zk-SNARK. Here, all the teething problems have been remedied.