12
Feb

Cryptocurrency Dictionary

With every niche group there are bound to be some unique jargon and terminology that develops. Crypto is no exception. This will act as a comprehensive (and ever growing) list of all the terms, memes, and abbreviations that cryptonites use regularly.

Glossary of Terms

Altcoin – a cryptocurrency that acts as an alternative to Bitcoin.

Bagholding – when you hold onto a cryptocurrency that continues to decrease in value until it becomes worthless.

Bearish – characterized by falling market price.

Blockchain – the public, decentralized ledger in a cryptocurrency network that records all transactions of that cryptocurrency.

Breakout – when market price moves passed a predefined support or resistance level.

Bullish – characterized by rising market price.

Buy Wall – a huge buy order that prevents market price from going down until that entire buy order is complete.

Buying Pressure – occurs when the majority of traders are buying, indicating that the majority think the market price will increase.

Circulating Supply – the number of coins that are circulating in the market and available for spending or trading.

Commodity Money – a currency whose value comes from the commodity from which it is made.

Cryptography – the study and practice of secret communication.

Cryptocurrency – digital currencies that utilize encryption and cryptography to control the generation of new units of currency as well as secure and verify transactions of that currency.

Double-spending – the risk that digital currency can be spent twice (or more).

Dump – when a person or group sell a bunch of coins at a market value, driving the price of the coins down.

Fiat Money – a currency established by government regulation.

Hard Wallet – a physical offline storage device that stores cryptocurrencies.

HODL – a meme that emerged from the Bitcoin Talk forum. It has permeated crypto terminology since. HODL is just a typo for “Hold”.

Initial Coin Offering (ICO) – a crowdfunded release of a new cryptocurrency.

Market Capitalization – the total dollar market value of a coin’s circulating supply.

Mining – the process of verifying and adding transactions to the Blockchain.

Peer-to-Peer Network – a network of computers that share files and resources.

Proof-of-work – a measure to prevent denial of service attacks and achieve distributed consensus on a cryptocurrency Blockchain by requiring some type of work from a service requestor.

Proof-of-stake – a measure to prevent denial of service attacks and achieve distributed consensus on a cryptocurrency Blockchain by requiring ownership of a certain amount of cryptocurrency.

Pump – when a person or group with lots of money buy a bunch of coins at market value, driving the price of the coins up.

Resistance Level – a price point in which upward price movement is resisted due to market conditions.

Satoshi/Sats (unit) – the smallest unit of Bitcoin recorded on the Blockchain, named in honour of the creator of Bitcoin, Satoshi Nakamoto. (1 satoshi = 0.00000001 BTC)

Sell Wall – a huge sell order that prevents the market price from going up until that entire sell order is complete.

Selling Pressure – occurs when the majority of traders are selling, indicating that the majority think the market price will decrease.

Shill – someone who over hypes a cryptocurrency that is usually a scam.

Soft Wallet – software used to store cryptocurrencies either on PC, mobile devices, or online.

Support Level – a price point in which downward price movement is resisted due to market conditions.

The Flippening – the moment that Ethereum surpasses Bitcoin in total market cap.

Trading Volume – the total amount of crypto that was traded during a certain period of time.

Whale – people (or a group) that have enough capital – usually in the millions – to make huge orders that can manipulate the market to a degree.