Here are all the terms used on a daily basis by crypto currency enthusiasts
|2FA||Also known as “TFA,” two factor authentication is a method of securing accounts that goes beyond username+password combo, but also requires information that only the user has on them at that time (e.g. an expiring code sent via text message)||“Did you hear John got hacked? He didn’t put 2FA on his Coinbase account”|
|Airdrop||A cryptocurrency (or rather the company behind it) may choose to distribute, or “drop” free coins to holders of their cryptocurrency. A hard fork of one cryptocurrency usually results in a 1:1 airdrop of the new tokens, for example 1 Bitcoin Cash for every Bitcoin you own.||“You should buy Bitcoin now, there’s going to be an airdrop of free Bitcoin Cash next month”|
|Altcoin||Stands for “alternative coin,” which originally meant any coin that is not the original Bitcoin, but now stands to mean newer cryptocurrencies with smaller market caps.||“Altcoin prices tend to follow Bitcoin’s.”|
|ATH||Shorthand for “all time high,” the highest price achieved by an asset (crypto) so far.||“Ripple just hit its ATH today!”|
|Bagholders||Someone holding on to useless coins or cryptos that will fail (extremely subjective)||“Those who bought in at TRX at its ATH are going to be bagholders pretty soon…”|
|Bitcoin Dominance||Refers to the ratio / percentage in which Bitcoin represents the total market cap of all cryptocurrencies.||“Because of XRP and ETH’s rise, BTC dominance dropped below 40% today”|
|Blockchain||A digital ledger in which transactions are recorded chronologically and publicly. Because of the “work” of verification by decentralized parties in the network, blockchain transactions are said to be “immutable” – they cannot be reversed nor tampered with, and thus more trustworthy.||“IOTA is the new blockchain tech to look out for.”|
|Blocks & block times||Blocks are files that contain transaction data, and organized in a sequential order.||“Segwit2x is trying to double the block size in Bitcoin for faster transactions.”|
|CMC||CoinMarketCap.com, the pre-eminent website that tracks cryptocurrency prices and other stats||“Dude I’ve been checking CMC every hour on the hour”|
|Coin||Refers to any tradeable cryptocurrency asset, but more often now also blockchain platforms from which other tokens can be built off of.||“Ethereum’s my top coin pick, because of all the tokens that will continue to be built off it, like OmiseGo”|
|Cold storage||A method of storing cryptocurrency offline, e.g. in a USB stick, laptop not connected to the internet, or even written on paper||“For highest security, always have some of your crypto holdings in cold storage”|
|Confirmations||Once that block is created (usually through a mining process) and a new transaction is verified and added to that block, the transaction will have one confirmation. The more confirmations, the more “verified” a transaction – and the more difficult it is to reverse that transaction||“Binance requires 3 confirmations if you’re depositing BTC.”|
|Correction||A decrease of at least 10% to adjust for an asset’s overvaluation. Corrections are generally temporary price declines interrupting an uptrend in the market or an asset.||“Everyone’s freaking out about the market today, but this correction was overdue for a long time”|
|Crypto / cryptocurrency||Shorthand for “cryptocurrency”, a digital currency using encryption techniques to regulate the creation currency and verify the transfer of funds, operating independently of a central bank.||“I’m obsessed with this new crypto called TRON.”|
|DAG||“Directed acyclic graphs,” a tree structure purported to increase transaction speed on blockchains||“Raiblocks is gonna dominate using the DAG technology”|
|Dapp||Short for “decentralized application.” Dapps have code that run ondecentralized peer-to-peer networks vs centralized servers.||“Cryptokitties is a massively popular Ethereum Dapp.”|
|DAO||Decentralized autonomous organization||“One of the large reasons DAOs exists, is to emulate many of the functions of corporate business entities, but without the “inefficient” bureaucracies and red-tape that also come with running a large corporate organization.”|
|DEX||Short for “decentralized exchange,” which relies on peer-to-peer connections instead of centralized connections.||“DEXes, if built correctly, are more immune to network attacks and single points of failure.”|
|Dip||When the price of an asset decreases.||“BTC price is dropping…make sure you buy the dip”|
|Distributed||When not all of the processing of blockchain transactions is done from one place. Closely tied to the idea of decentralization, in which no one single entity has control over all the processing.||“Because the ledger is distributed, everyone involved can see the ‘world state’ at any point in time and can monitor the progress of the transaction.” Mastercard’s blockchain, however, is not viewable by anybody”|
|DYOR||“Do your own research”||“Yo is XYZ Coin a good buy?”
“I don’t now man, DYOR”
|Fiat||Traditional money, like the U.S. Dollar (“USD”).||“What’s the best exchange to convert fiat to NEO?”|
|Flippening||A hypothetical point at which a cryptocurrency displaces Bitcoin in market cap.||“Ethereum is going to shoot to #1 this year…the Flippening is nigh!”|
|Fork||In general refers to a software fork, which involves making a copy of source code and developing off of that copy to create a separate & unique piece of software.
Hard forks introduce new, irreversible rules to software that aren’t backwards compatible.
Soft forks are upgrades that are backwards-compatible.
|“I think Bitcoin will go to another all time high right before the fork.”|
|FUD||“Fear, uncertainty (and) doubt”||“OMG Bitcoin is totally a bubble”
“Stop spreading FUD, man.”
|Gas||A transaction cost associated with sending certain cryptocurrencies like Ethereum or NEO. Usually gas costs are set to a fraction of the main coin’s value, e.g. 0.0001 ETH||“When sending ETH to this ICO, please set the gas limit to at least 20,000.”|
|Hash(ing)||Essential for cryptography & privacy to work, hashes convert data (letters and numbers) of any length into an output of a fixed length.||The best explanation and illustration of how hashes work is from this Youtube video by BlockGeeks (link)|
|HODL||Hold on for dear life, or mispelling of “hold” your coins||“The best thing to do during a crash is to HODL.”|
|Hot Wallet||The opposite of cold storage; hot wallets are connected to the internet and thus more vulnerable to hacks. Specifically, private keys stored on a wallet connected to the internet are vulnerable to network-based theft.||“Joe got all his BTC stolen because he had all hisi crypto in hot wallets…”|
|ICO||An initial coin offering is the first time that a cryptocurrency goes on for sale.||“I’m waking up at 7am tomorrow to participate in PowerLedger’s ICO”|
|Lambos||Lamborghinis, expensive and flashy sports cars that all cryptocurrency investors hope they can afford with their crypto holdings.||“I’m waiting for NEO to 10x so I can finally buy my lambo”|
|Market cap||Market capitalization is the price of an asset multiplied by its circulating supply.||“Whoa all crypto’s market cap just went up to half a trillion dollars!”|
|Miners / Mining||Mining is the “work” to add transactions to a blockchain. For committing resources to secure and verify the network, miners earn a transaction fee.
Mining requires special computer programs that enable miners to “solve” mathematical problems, which are the blocks containing transaction data.
|“Most of Bitcoin’s mining activity is concentrated in China, where electricity is cheaper…”|
|Moon||Refers to when a crypto increases drastically in price||“ETH is totally mooning right now!”|
|Node||A computer that connects to, and forms the backbone, of a blockchain’s network. There are varying types of nodes, from lightweight nodes to masternodes that enforce network rules to lightweight nodes.||“Ethereum is the blockchain with the most nodes and hence most decentralized.”|
|Paper wallet||A form of cold storage in which your private key is written down on paper||“I’m paranoid so I hold all my crypto in paper wallets.”|
|Private Key||The password that gives you access to your cryptocurrency wallet (and thus your funds)||“If you lose your private key, your crypto is gone forever.”|
|Satoshi Nakamoto||The enigmatic, anonymous person who supposedly created Bitcoin.||“I’m 90% sure Charlie Lee of Litecoin is Satoshi Nakamoto”|
|Satoshi(s)||One hundredth of a million of BTC (0.00000001 BTC), the smallest fraction of a Bitcoin that can be sent (currently).||“That’s a shitcoin, it’s never going to be worth more than 1 satoshi”|
|Shilling||To promote a cryptocurrency, often with a negative connotation.||“McAfee sure is shilling LTC hard right now”|
|Shitcoin||A useless / scam coin||“Bitconnect just collapsed yesterday, we all knew it was a shitcoin.”|
|Sidechain & childchain||Within the realm of blockchain architecture, a sidechains are independent blockchains pegged to the main chain. Main chain nodes do not need to validate sidechain transactions.
Child Chains, on the other hand, are more integrated into the main blockchain because all child chains require validatation by nodes on the main chain.
|The first child chain of the Ardor platform is called “Ignis”|
|Token||A crypto that’s based off of a platform, e.g. ETH or NEO. Tokens, from an investment purpose, are in the same class as the platforms they’re built off of.||“Etherparty is a new ERC20 token built off of the Ethereum blockchain.”|
|Trading Pairs||A pair of cryptos that can be traded against each other.||“Gemini only offers ETH/USD and BTC/USD trading pairs”|
|TX||Shorthand for “transaction”||“This new coin touts zero tx fees and fast block times”|
|Wallet||Where you store your cryptocurrency.
Cold wallet (or “cold storage”) refers to an offline wallet not connected to the internet, like a paper wallet or hardware wallet (USB drive)
Hot wallet refers to online wallets, which trade convenience for vulnerability to network threats.
|“Make sure you send your crypto from your wallet to the right address, or else you’ll lose your coins.”|
|Whales||Market players with large crypto holdings who can manipulate the market with large buy / sell orders.||“Some whales just put up a giant sell wall at $12000 BTC”|